What is wrong with my answer? The following information is available for Amos Co

Question

What is wrong with my answer?

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, $1,375,000. b. Cash dividends declared and paid during 2017, $43,000. c. It neglected to record 2015 depreciation expense of $55,500, which is net of $4,500 in tax benefits. d. 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.) Answer is not complete. AMOS COMPANY Statement of Retained Earnings For Year Ended December 31, 2017 $ 1,375,000 Retained earnings, December 31, 2016 Prior period adjustment Depreciation expense error in 2015 (net of tax) Adjusted retained earnings, December 31, 2016 55,000X 1,320,000 126,000 (43.000) $ 1,403,000 Less: Dividends

Explanation / Answer

Error in your workings. Instead of 55500, you have entered 55000 Statement of Retained Earnings For the Year ended Dec. 31,2017 Retained Earnings ,Dec.31,2018 1375000 Prior period adjustment : Depreciation expense error in 2015(net of Tax) -55500 Adjusted Retained Earnings ,Dec,31,2016 1319500 Add: Net Income in 2017 126000 Less: Cash dividends paid in 2017 -43000 Balance of Retained Earnings,Dec.31,2017 1402500

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