Exercise 11-18 (Static) Preparing a statement of retained earnings with prior period adjustment LO C3

The following information is from Amos Company for the current year ended December 31.

1. Retained earnings at December 31 of the prior year (before discovery of an error) was $1,375,000.
2. Amos discovered this year that it forgot to record depreciation expense of $55,500 (net of tax benefit) two years ago.
3. Cash dividends declared and paid in the current year were $43,000.
4. Reported $126,000 of net income in the current year.

Prepare a statement of retained earnings for Amos Company for the current year.

Note: Amounts to be deducted should be indicated with a minus sign.