iLife, Inc., was set to report the following statement of retained earnings for the year ended December

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iLife, Inc., was set to report the following statement of retained earnings for the year ended December 31, 2012:

Before issuing its 2012 financial statements, iLife learned that net income of 2011 was overstated by $18,000. Prepare iLife€™s 2012 statement of retained earnings to show the correction of the error€”that is, the prior-periodadjustment.

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Financial accounting

ISBN: 978-0132751124

9th edition

Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom

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Question Posted: Apr 22, 2013 01:47 AM

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iLife, Inc., was set to report the following statement of retained earnings for the year ended December

Question:

iLife, Inc. Statement of Retained Earnings Year Ended December 31, 2012 Retained earnings, December 31, 2011 Net income for 2012 Dividends for 2012 Retained earnings, December 31, 2012 s 70,000 85,000 (29,000) $126,000

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Financial accounting

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