Annie May Bakery, Inc., reported a prior-period adjustment in 2012. An accounting error caused net income of prior years to be overstated by $10,000. Retained earnings at December 31, 2011, as previously reported, stood at $47,000. Net income for 2012 was $71,000, and dividends were $29,000.

Requirement

1. Prepare the company’s statement of retained earnings for the year ended December 31, 2012.