Instructions Scobie Company began 2016 with a retained earnings balance of $142,400. During an examination of its accounting records on December 31, 2016, Scobie found it had made the following material errors, for both financial reporting and income tax reporting, during 2015. 1. Depreciation expense of $15,000 inadvertently had been recorded twice for the same machine. 2. No accrual had been made at year-end for interest; therefore, interest expense had been understated by $4.000. Scobie's net income after taxes during 2016 was $60,000. The company has been subject to a 30% income tax rate for the past several years. It declared and paid dividends of $13,000 during 2016. Required: 1. Prepare whatever journal entries in 2016 are necessary to correct Scobie's books for its previous errors. Make your corrections directly to the Retained Earnings account. 2. Prepare the statement of retained earnings for 2016. Prepare whatever journal entries are necessary to correct Scobie's books for its previous errors. Make your corrections directly to the Retained Earnings account on December 31. Additional Instructions All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback. PAGE 1 GENERAL JOURNAL Score: 44/101 DATE POST. REF. DEBIT CREDIT ACCOUNT TITLE Other tutors answered this wrong Balance Sheet Shaded cells have feedback Prepare Scobie Company's Statement of Retained Earnings for the year ended December 31, 2016. Additional Instructions Score: 4/31 SCOBIE COMPANY Statement of Retained Earnings For Year Ended December 31, 2016 1 Retained Earnings, as Previously Reported, January 1, 2016 $142,400.00 Prior Period Adjustments: 3 Correction of Overstatement in 2015 Depreciation 4 Correction of Understatement in 2015 Interest 5 Adjusted Retained Earnings, January 1, 2016 $197,100.00 Add: Net income Less: Cash Dividends Retained Earnings, December 31, 2016