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 $36,000 and declared and paid dividends of $11,200. 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, $80,000 credit balance; accumulated other comprehensive income, $4,000 debit balance. During 2020, the company reported net income of $70,400, declared and paid dividends of $16,000, and reported a foreign currency translation gain of $6,800 (after tax). Also in 2020, the company discovered that its 2019 depreciation expense was understated by $8,000 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 0 x $ 0 x $ 0 x $ 0 x 0 0 x 0 0 x 0 0 x 0 0 x 0 0 * 0 0 x Foreign currency translation adjustment, net of tax 0 0 0 * 0 x Ending balance $ 0x S 0x S 0 x $ 0 x 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 0 x 0 x 0 x 0 x 0 x Retained earnings, December 31, 2020 $ 0x Net income Dividends