Susan May Bakery, Inc. reported a prior-period adjustment in 2016. An accounting error caused net income of

Question:

Susan May Bakery, Inc. reported a prior-period adjustment in 2016. An accounting error caused net income of prior years to be overstated by $4,000. Retained Earnings at December 31, 2015, as previously reported, was $42,000. Net income for 2016 was $79,000, and dividends declared were $20,000. Prepare the company’s statement of retained earnings for the year ended December 31, 2016.