5-DO IT CAP 14 PAGE 644 Vega Corporation has retained earnings of $5,130,000 on January 1, 2012. During the year, Vega eamed $2,000,000 of net income. It declared and paid a $250,000 cash dividend. In 2012, Vega recorded an adjustment of $180,000 due to the understatement (from a mathematical error of 2011 depreciation expense. Prepare a retained earnings statement for 2012 CORPORATION Retained Earnings Statement For the Year Ended December 31, 2012 Balance, January 1, as reported $5,130,000 [180.000) Correction for overstatement of net income in prior period (depreciation error) 4,950,000 Balance, January 1, as adjusted Add: Net income 2,000,000 6,950,000 250,000 $6,700,000 Less: Cash dividends Balance, December 31