【正文】 ings Chapter 440 W o o d s, I n c.St a t e me n t o f R e t a i n e d Ea rn i n g sF o r t h e Y e a r En d e d D e ce mb e r 3 1 , 2 0 0 7Ba l a n ce , Ja n u a ry 1 1 , 0 5 0 , 0 0 0$ N e t i n co me 3 6 0 , 0 0 0 D i vi d e n d s (3 0 0 , 0 0 0 ) Ba l a n ce , D e ce mb e r 3 1 1 , 1 1 0 , 0 0 0$ Before issuing the report for the year ended December 31, 2022, you discover a $50,000 error ( of tax) that caused the 2022 inventory to be overstated (overstated inventory caused COGS to be lower and thus ine to be higher in 2022). Would this discovery have any impact on the reporting of the Statement of Retained Earnings for 2022? Retained Earnings Statement LO 7 Prepare a retained earnings statement. Chapter 441 W o o d s, I n c.St a t e me n t o f R e t a i n e d Ea rn i n g sF o r t h e Y e a r En d e d D e ce mb e r 3 1 , 2 0 0 7Ba l a n ce , Ja n u a ry 1 , a s p re vi o u sl y re p o rt e d 1 , 0 5 0 , 0 0 0$ Pri o r p e ri o d a d j u st me n t e rro r co rre ct i o n (5 0 , 0 0 0 ) Ba l a n ce , Ja n u a ry 1 , a s re st a t e d 1 , 0 0 0 , 0 0 0 N e t i n co me 3 6 0 , 0 0 0 D i vi d e n d s (3 0 0 , 0 0 0 ) Ba l a n ce , D e ce mb e r 3 1 1 , 0 6 0 , 0 0 0$ Retained Earnings Statement LO 7 Prepare a retained earnings statement. Chapter 442 All changes in equity during a period except those resulting from investments by owners and distributions to owners. Comprehensive Ine I nc o m e S t a t e m e nt ( i n t h o us a nd s )S a le s 285, 000$ C o s t o f g o o d s s o l d 1 49, 000 G ro s s p ro f i t 1 36, 000 O p e ra t ing e x p e ns e s :A d v e rt i s i ng e x p e ns e 1 0, 000 D e p re c i a t i o n e x p e ns e 43, 000 T o t a l o p e ra t i ng e x p e ns e 53, 000 I nc o m e f ro m op e ra t io ns 83, 000 O t h e r re v e nue ( e x p e ns e ) :I nt e re s t re v e nue 1 7, 000 I nt e re s t e x p e ns e ( 21 , 000) T o t a l o t h e r ( 4, 000) I nc o m e b e f o re t a x e s 79, 000 I nc o m e t a x e x p e ns e 24, 000 N e t i nc o m e 55, 000$ Other Comprehensive Ine Unrealized gains and losses on availableforsale securities. Translation gains and losses on foreign currency. Plus others + Reported in Stockholders’ Equity LO 8 Explain how to report other prehensive ine. Chapter 443 Review Gains and losses that bypass ine but affect stockholders39。 equity are referred to as a. prehensive ine. b. other prehensive ine. c. prior period ine. d. unusual gains and losses. Comprehensive Ine LO 8 Explain how to report other prehensive ine. Chapter 444 Three approaches to reporting Comprehensive Ine (SFAS No. 130, June 1997): 1. A second separate ine statement。 2. A bined ine statement of prehensive ine。 or 3. As part of the statement of stockholders’ equity Comprehensive Ine LO 8 Explain how to report other prehensive ine. Chapter 445 TwoStatement Format for Comprehensive Ine Comprehensive Ine LO 8 Explain how to report other prehensive ine. Illustration 419 Chapter 446 V. G i l l I n c.C o m bi n e d S t at e m e n t o f C o m p r e h e n si ve I n co m eF o r t h e Y e ar E n d e d D e ce m be r 3 1 , 2 0 0 7S ale s r e ve n u e 8 0 0 , 0 0 0$ C o st o f g o o d s s o l d 6 0 0 , 0 0 0 G r o ss p r o f i t 2 0 0 , 0 0 0 O p e r at i n g e x p e n se s 9 0 , 0 0 0 N e t i n co m e 1 1 0 , 0 0 0 U n r e ali ze d h o l d i n g g ai n , n e t o f t ax 3 0 , 0 0 0 C o m p r e h e n si ve i n co m e 1 4 0 , 0 0 0$ Combined Ine Statement Comprehensive Ine LO 8 Explain how to report other prehensive ine. Chapter 447 Comprehensive Ine LO 8 Explain how to report other prehensive ine. Statement of Stockholders’ Equity (most mon) Illustration 420 Chapter 448 Comprehensive Ine LO 8 Explain how to report other prehensive ine. Balance Sheet Presentation Illustration 421 Regardless of the display format used, the accumulated other prehensive ine of $90,000 is reported in the stockholders’ equity section of the balance sheet. Chapter 449 Review The FASB decided that the ponents of other prehensive ine must be displayed a. in a second separate ine statement. b. in a bined ine statement of prehensive ine. c. as a part of the statement of stockholders39。 equity. d. Any of these options is permissible. Comprehensive Ine LO 8 Explain how to report other prehensive ine