The net income per books of Sheffield Industries Limited was determined without any knowledge of the following errors. The 2019 year was Sheffields first year in business. No dividends have been declared or paid.

Year		Net Income per Books			Error in Ending Inventory
2015		$50,600			Overstated			$5,800
2016		54,400			Overstated			9,500
2017		55,000			Understated			11,100
2018		56,600			No error
2019		59,100			Understated			2,500
2020		60,600			Overstated			9,900

A. Prepare a work sheet to show the adjusted net income figure for each of the six years after taking the inventory corrections into account.

Errors in Inventories
Year		Net Income Per Books		Over statement Jan. 1			Under statement Jan. 1			Over statement Dec. 31			Under statement Dec. 31			Corrected Net Income
2015		$50,600			$			$			$			$			$
2016		54,400
2017		55,000
2018		56,600
2019		59,100
2020		60,600
		$															$

B. Prepare a schedule that shows both the original retained earnings balance reported at the end of each year and the corrected amount.

Year		Original Net Income			Balance Retained Earnings			Corrected Net Income			Revised Retained Earnings
2015			$50,600			$			$			$
2016			54,400
2017			55,000
2018			56,600
2019			59,100
2020			60,600
			$						$