Question 2: (B1& A3&D3) (8 points)

Mark Company prepared the statement of retained earnings at the end of each year. On 31/12/2019 the accountant made an error which Understated the net income of 2019 by $10,000. At the end of 2019 while preparing the retained earnings he discovered his error.

Instruction: Prepare Retained Earnings Statement at the end of the current year if the net income was $30,000; dividends $7,000 and the beginning balance of retained earnings was $25,000.

Answer of Question 2: