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EXERCISE 2 (Valor 10 puntos) Vega Corporation has retained earnings of $7,130,000 on January 1,...

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EXERCISE 2 (Valor 10 puntos) Vega Corporation has retained earnings of $7,130,000 on January 1, 2012. During the year, Vega earned $2,900,000 of net income. It declared and paid a $290,000 cash dividend. In 2012, Vega recorded an adjustment of $380,000 due to the understatement (from a mathematical error) of 2011 depreciation expense. Prepare a retained earnings statement for 2012 EXERCISE 3 (Valor 10 puntos) Gardner Corporation issues $3,750,000, 10-year, 12% bonds on January 1, 2012, at $3,968,090, to yield 10%. The bonds pay semiannual interest July 1 and January 1. Gardner uses the effective-interest method of amortization. Instructions (a) Prepare the journal entry to record the issuance of the bonds. (b) Prepare the journal entry to record the payment of interest on July 1, 2012. PAGE 1 GENERAL JOURNAL PR. DEBIT DATE CREDIT DESCRIPTION 6

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