Practice
Check your answer
Write your response and explain your reasoning.
Using the verified Granite Harbor example, prepare the performance bridge, Retained Earnings and AOCI rollforwards, and balance-sheet equity tie. State which technical conclusions remain stipulated rather than proven by arithmetic.
Compare your reasoning with the worked answer
OCI is $1,400 plus $(400), or $1,000. Comprehensive income is $17,000 net income plus $1,000 OCI, or $18,000. Retained Earnings is $28,000 plus $17,000 minus $4,000, or $41,000. AOCI is $2,000 plus $1,000, or $3,000. With $30,000 Contributed Capital, ending equity is $74,000, equal to $120,000 assets minus $46,000 liabilities. The arithmetic does not establish OCI eligibility, tax, or attribution.