The following information is available for Amos Company for the year ended Decem

Question

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, $856,000. b. Cash dividends declared and paid during 2017, $27,000. c. It neglected to record 2015 depreciation expense of $46,600, which is net of $6,000 in tax benefits. d. The company earned $212,000 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.) AMOS COMPANY Statement of Retained Earnings ber 31, 2017

Explanation / Answer

Prepare statement of retained earnings :

December 31,2016 retained earnings 856000 Prior period adjustment (46600-6000) (40600) Adjusted retained earnings 815400 Add; Net income 212000 Less; Dividend (27000) December 31,2017 retained earnings 1000400

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