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2) On January 1, 2020, Lundy Corporation had Retained Earnings of $400,000. During the year, Lundy had the following selected transactions: 1. Declared stock dividends of $50,000 2. Declared cash dividends of $90.000 3. A 2 for 1 stock split involving the issuance of 200,000 shares of $5 par value common stock for 100,000 shares of $10 par value common stock 4. Suffered a net loss of $70,000. 5Corrected understatement of 2019 net income because of an inventory error of $48.000 Instructions Prepare a retained earnings statement for the year. (8 POINTS) 50,000 hennon stoch 50,000 pretened conmys 2 cosh 90,000 Retaried earnings 90,000 3). Planner Corporation's comparative balance sheets are presented below PLANNER CORPORATION Comparative Balance Sheets December 31 2020 2019 $ 10,700 $ 21,570 Cash 18.200 23,400 Accounts receivable 26.000 18,000 Land 70 000 70.000 Building (10.000) (15.000 Accumulated depreciation $120.100 $112.770 Total $ 12.370 $31,100 Accounts payable 75,000 69,000 Common stock 25.400 20.000 Retained earnings $112.770 $120.109 Total Additional information: 1. Net income was $27.900. Dividends declared and paid were $22,500 2. The land was sold for $5.900 Instruction (a) Prepare a statement of cash flows for 2020 using the indirect method. (10 points) 4). On January 1, Forney Corporation purchased a 35% equity in Selig Company for $190,000 At December 31, Selig declared and paid a $50,000 cash dividend and reported net income of $80,000 Instructions Prepare the necessary journal entries for Forey Corporation. (6 points)

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