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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

$

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