The following information is from Amos Company for the year ended December 31, 2019.

a. Retained earnings at December 31, 2018 (before discovery of error), $858,000.

b. Cash dividends declared and paid during the year, $11,000.

c. Two years ago, it forgot to record depreciation expense of $45,600 (net of tax benefit).

d. The company earned $209,000 in net income this year.

Required:

Prepare a statement of retained earnings for Amos Company.

Question

Speedy

Business

24 August, 21:02

The following information is from Amos Company for the year ended December 31, 2019.

a. Retained earnings at December 31, 2018 (before discovery of error), $858,000.

b. Cash dividends declared and paid during the year, $11,000.

c. Two years ago, it forgot to record depreciation expense of $45,600 (net of tax benefit).

d. The company earned $209,000 in net income this year.

Required:

Prepare a statement of retained earnings for Amos Company.

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Answers (1)

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Reuben Patrick · Answer 1

The preparation of the statement of retained earnings for Amos Company is shown below:

Retained earnings at December 31, 2018 (before discovery of error) $858,000

Less: Depreciation expense two years ago - $45,600

Add: net income $209,000

Less: Cash dividends declared and paid during the year - $11,000

Retained earnings at December 31, 2019 $1,010,400