Exercise 13-11 Preparing a statement of retained earnings LO C3 The following in

Question

Exercise 13-11 Preparing a statement of retained earnings LO C3

The following information is available for Amos Company for the year ended December 31, 2017.
a.) Balance of retained earnings, December 31, 2016, prior to discovery of error, $866,000.

b.) Cash dividends declared and paid during 2017, $11,000.

c.) It neglected to record 2015 depreciation expense of $51,600, which is net of $6,400 in tax benefits.

d.) The company earned $209,000 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.)

Explanation / Answer

AMOS COMPANY Statement of retained Earnings For Year ended December 31, 2017 Retained Earnings December 31, 2016 866,000 Prior Period Adjustment: Depreciation expense error in 2015 net of tax -51,600 Adjusted Retained Earnings December 31, 2016 814,400 Add: Net Income for year 2017 209,000 Less: Dividends paid during 2017 -11,000 Retained Earnings December 31, 2017 1,012,400

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