Preparing a Statement of Stockholders' Equity with a Prior Period Error In 2019, the first year of operations for Sprint Co., the company reported net income of $27,000 and declared and paid dividends of $8,400. No other items affected retained earnings in 2019. On December 31, 2019, the company had the following balances in stockholders' equity accounts (other than retained earnings): common stock, $60,000 credit balance; accumulated other comprehensive income, $3,000 debit balance. During 2020, the company reported net income of $52,800, declared and paid dividends of $12,000, and reported a foreign currency translation gain of $5,100 (after tax). Also in 2020, the company discovered that its 2019 depreciation expense was understated by $6,000 before taxes and the amount is material to the company. Assume a tax rate of 25%. Required a. Prepare a statement of stockholders' equity for Sprint Co. for the year ended December 31, 2020. Use negative signs to indicate a debit balance or a decrease to stockholders' equity. Sprint Co. Statement of Stockholders' Equity For the Year Ended December 31, 2020 Common Stock Retained Earnings Accumulated OCI Beginning balance $ Prior period adjustment Net Income Dividends Other Comprehensive Income Total 60,000 $ 18,600 $ 3,000 $ 75,600 0 0 0 0 0 0 0 0 0 0 0 0 Foreign currency translation adjustment, net of tax 0 0 0 0 Ending balance 0 $ 0 $ 0 $ 0 b. Prepare a separate statement of retained earnings for the year ended December 31, 2020. Use negative signs to indicate a debit balance or a decrease to stockholders' equity. Sprint Co. Statement of Retained Earnings For the Year Ended December 31, 2020 Retained earnings, January 1, 2020 $ Prior period adjustment Adjusted balance, January 1, 2020 Net Income Dividends Retained earnings, December 31, 2020 $ 0 0 0 0 0 0