Exercise $14-14$

Pacific Hotels Inc., a large hotel chain, had Retained Earnings of $$250\mathrm{.}0$ million at the

beginning of $2014.$ The company showed these figures at December $31,2014$:

Required Prepare the statement of retained earnings for Pacific Hotels Inc. for the year

ended December $31,2014.$

Exercise $14-15$

Lankin Concrete Products Ltd$.$ reported the correction of an error made in the year ended

December $31,2014.$ An inventory error caused net income of the prior year to be overstated

by $$50,000.$ Retained Earnings at January $1,2014,$ as previously reported, stood at $$2,408,000.$

Net income for the year ended December $31,2014,$ was $$448,000,$ and dividends were $$61,000.$

Required Prepare the company's statement of retained earnings for the year ended

December $31,2014.$

Excel Spreadsheet

Template

Preparing a statement of

retained earnings

Retained earnings, Dec. $31,$

$2014,$ $$275\mathrm{.}0$ million

Excel Spreadsheet

Template

Preparing a statement of retained

earnings with a correction of a

prior$-$period error

$(4)$

Retained earnings, Dec. $31,$

$2014,$$$2,745,000$