Sarah May Bakery, Inc. reported a prior-period adjustment in 2024. An accounting error caused net income of prior years to be overstated by $4,000. Retained Earnings at December 31, 2023, as previously reported, was $42,000. Net income for 2024 was $76,000, and dividends declared were $27,000. Prepare the company's statement of retained earnings for the year ended December 31, 2024. Enter any current period increases in retained earnings prior to the subtotal, and enter any current period decreases to retained earnings below the subtotal.
Sarah May Bakery, Inc. reported a prior-period adjustment in 2024. An accounting error caused net income of prior years to be overstated by $4,000. Retained Earnings at December 31, 2023, as previously reported, was $42,000. Net income for 2024 was $76,000, and dividends declared were $27,000. Prepare the company's statement of retained earnings for the year ended December 31, 2024. Enter any current period increases in retained earnings prior to the subtotal, and enter any current period decreases to retained earnings below the subtotal.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter3: Review Of A Company's Accounting System
Section: Chapter Questions
Problem 9RE: For the current year, Vidalia Company reported revenues of 250,000 and expenses of 225,000. At the...
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