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The following information is available for Amos Company for the year ended December 31, 2017.

(1) Balance of retained earnings, December 31, 2016, prior to discovery of error, $869,000.
(2) Cash dividends declared and paid during 2017, $16,000.
(3) It neglected to record 2015 depreciation expense of $43,600, which is net of $6,000 in tax benefits.
(4) The company earned $214,000 in 2017 net income.

Prepare a 2017 statement of retained earnings for Amos Company.

Respuesta :

Answer:

A statement of retained earnings shows us movement in the element of earnings due to shareholders from the Business Operations in a financial year.

The Balance position is then added to the Shareholders equity to arrive at total Shareholders Fund in the Balance Sheet.

Explanation:

Amos Company

Retained Earnings statement

For the Year ended December 31 2017

Opening Balance of Retained earning $869,000

Less Cash dividend Paid in 2017 -$16,000

Less depreciation expense omitted in 2015 -$43,600

Add tax benefit in 2015 from omitted depreciation expense $6,000

Add Net income for 2017 $214,000

Closing Retained Earnings = $1,029,400

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