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The following information is available for Amos Company for the year ended December 31, 2017.
Balance of retained earnings, December 31, 2016, prior to discovery of error, $1,375,000.
Cash dividends declared and paid during 2017, $43,000.
It neglected to record 2015 depreciation expense of $55,500, which is net of $4,500 in tax benefits.
The company earned $126,000 in 2017 net income.
Prepare a 2017 statement of retained earnings for Amos Company. (Amounts to be deducted should be indicated with a minus sign.)

Respuesta :

abiolataiwo2015

Answer:

$1,402,500

Explanation:

AMOS COMPANY Statement of Retained EarningsFor Year Ended December 31, 2017

Retained earnings, December 31, 2016 $1,375,000

Prior period adjustment:

Depreciation expense error in 2015 (55,500)

Adjusted retained earnings, December 31, 2016 $1,319,500

($1,375,000-55,500)

Add: Net income 126,000

Less:Cash Dividends(43,000)

Retained earnings, December 31, 2017 $1,402,500

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