Accounting : Pearl Corporation has retained earnings of $714,200
Accounting : Pearl Corporation has retained earnings of $714,200
Subject: Business / Accounting
Question
Brief Exercise 4-10
Pearl Corporation has retained earnings of $714,200 at January 1, 2017. Net income during 2017 was $1,527,900, and cash dividends declared and paid during 2017 totaled $82,600. Prepare a retained earnings statement for the year ended December 31, 2017. Assume an error was discovered: land costing $88,780 (net of tax) was charged to maintenance and repairs expense in 2014. (List items that increase retained earnings first.)
PEARL CORPORATION
Retained Earnings Statement
December 31, 2017
For the Year Ended December 31, 2017
For the Quarter Ended December 31, 2017
Correction for Overstatement of Expenses in Prior Period
Cash Dividends
Expenses
Net Income / (Loss)
Retained Earnings, January 1, as Adjusted
Retained Earnings, January 1, as Reported
Retained Earnings, December 31
Revenues
Total Expenses
Total Revenues
$
Correction for Overstatement of Expenses in Prior Period
Cash Dividends
Expenses
Net Income / (Loss)
Retained Earnings, January 1, as Adjusted
Retained Earnings, January 1, as Reported
Retained Earnings, December 31
Revenues
Total Expenses
Total Revenues
Correction for Overstatement of Expenses in Prior Period
Cash Dividends
Expenses
Net Income / (Loss)
Retained Earnings, January 1, as Adjusted
Retained Earnings, January 1, as Reported
Retained Earnings, December 31
Revenues
Total Expenses
Total Revenues
Add
Less
:
Correction for Overstatement of Expenses in Prior Period
Cash Dividends
Expenses
Net Income / (Loss)
Retained Earnings, January 1, as Adjusted
Retained Earnings, January 1, as Reported
Retained Earnings, December 31
Revenues
Total Expenses
Total Revenues
Add
Less
:
Correction for Overstatement of Expenses in Prior Period
Cash Dividends
Expenses
Net Income / (Loss)
Retained Earnings, January 1, as Adjusted
Retained Earnings, January 1, as Reported
Retained Earnings, December 31
Revenues
Total Expenses
Total Revenues
Correction for Overstatement of Expenses in Prior Period
Cash Dividends
Expenses
Net Income / (Loss)
Retained Earnings, January 1, as Adjusted
Retained Earnings, January 1, as Reported
Retained Earnings, December 31
Revenues
Total Expenses
Total Revenues
$