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. Sprint Co. Statement of Stockholders' Equity For the Year Ended December 31, 2020 Common Stock Retained Earnings Accumulated OCI 5 300,000 $ 93.000 $ (15,000) $ (225,000) 0 264.000 (60,000) Total 378,000 (225,000) X 264,000 (60,000) O Beginning balance Prior period adjustment Net income Dividends Other Comprehensive Income Foreign currency translation adjustment, net of tax Ending balance 0 (72,000) * $ 25,500 25,500 10,500$ (382,500) X $ 300,000 $ 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) * Net income 264,000 Dividends (60,000) Retained earnings, December 31, 2020 $ (72,000) * Check