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 $135,000 and declared and paid dividends of $42,000. 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, $300,000 credit balance; accumulated other comprehensive income, $15,000 debit balance. During 2020, the company reported net income of $264,000, declared and paid dividends of $60,000, and reported a foreign currency translation gain of $25,500 (after tax). Also in 2020, the company discovered that its 2019 depreciation expense was understated by $30,000 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.

Preparing a statement of Stockholders' Equity with a Prior Period Error In 2019, the first year of operations for Sprinto the company reported net income of $135.000 and declared and paid dividends of $42.000. No other items affected retained earnings in 2019. on December 31, 2019, the company had the following balance in a holder equity accounts other than retained earningst common stock 1300,000 credit balance, accumulated other comprehensive income, $15.000 debit balance. During 2020. The company reported net income of $264,000. declared and paid dividends of 60.000 and reported a foreign currency translation in of $28.00 alter) Alte in 2020, the company decovered that its 2019 deprecation expense was understated by $30,000 before tas and the amount is material to the company Assume a tax rate of 251 Required Prepare a statement of stockholders equity for Sport Co. for the year ended December 11, 2020 Use negative is to indicate dobit balance or a decrease to stockholders' equity Sprint Co Statement of stockholders Equity for the Year Ended December 11, 2020 Common Stock Retained Barning Accum MedOCI Total anning and 300,000 2000 15.00 00 225.000 O 325,000 264.000 314,000 Cid 0 100001 10.000 cheint ren O O 10000 1 O Drepare a separate statement of retained for the year ended December 31, 2020 Ushegative is to indicate a debit balance of a decrease to stockholde equity o 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 93,000 Prior period adjustment (225,000) Adjusted balance, January 1, 2020 (132,000) x Net income OX Dividends Retained earnings. December 31, 2020 $ $ 0 X Check