Answer:
corrected amounts cost of goods sold = $916500
corrected amounts Retained Earnings = $1159000
Explanation:
given data
cost of goods sold = $880,000
retained earnings = $1,230,000
ending inventories 2016 = $34,500
ending inventories 2017 = $71,000
to find out
corrected amounts cost of goods sold and retained earnings
solution
we get here first corrected amounts for 2017 cost of goods sold will be here as
corrected amounts cost of goods sold = cost of goods sold - ending inventories 2016 + ending inventories 2017 .........1
corrected amounts cost of goods sold = $880,000 - $34,500 + $71,000
corrected amounts cost of goods sold = $916500
and now we get corrected amounts Retained Earnings that will be as
corrected amounts Retained Earnings = retained earnings - ending inventories 2017
corrected amounts Retained Earnings = $1,230,000 - $71,000
corrected amounts Retained Earnings = $1159000
