Question
At January 1, 2017, Sheridan Company reported retained earnings of $1,847,000. In 2017, Sheridan discovered that 2016 depreciation expense was understated by $385,000. In 2017,
At January 1, 2017, Sheridan Company reported retained earnings of $1,847,000. In 2017, Sheridan discovered that 2016 depreciation expense was understated by $385,000. In 2017, net income was $940,000 and dividends declared were $275,000. The tax rate is 35%. Prepare a 2017 retained earnings statement for Sheridan Company.
SHERIDAN COMPANY Retained Earnings Statement December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017 | |
Correction of Depreciation ErrorDividendsNet IncomeRetained Earnings, January 1Retained Earnings, January 1, as adjustedRetained Earnings, December 31 | $ |
AddLess :Correction of Depreciation ErrorDividendsNet IncomeRetained Earnings, January 1Retained Earnings, January 1, as adjustedRetained Earnings, December 31 | |
Correction of Depreciation ErrorDividendsNet IncomeRetained Earnings, January 1Retained Earnings, January 1, as adjustedRetained Earnings, December 31 | |
AddLess :Correction of Depreciation ErrorDividendsNet IncomeRetained Earnings, January 1Retained Earnings, January 1, as adjustedRetained Earnings, December 31 | |
AddLess :Correction of Depreciation ErrorDividendsNet IncomeRetained Earnings, January 1Retained Earnings, January 1, as adjustedRetained Earnings, December 31 | |
Correction of Depreciation ErrorDividendsNet IncomeRetained Earnings, January 1Retained Earnings, January 1, as adjustedRetained Earnings, December 31 | $ |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started