Kelly May Bakery, Inc. reported a prior-period adjustment in 2018. An accounting error caused net income of

Question:

Kelly May Bakery, Inc. reported a prior-period adjustment in 2018. An accounting error caused net income of prior years to be overstated by $1,000. Retained Earnings at December 31, 2017, as previously reported, was $48,000. Net income for 2018 was $74,000, and dividends declared were $28,000. Prepare the company's statement of retained earnings for the year ended December 31, 2018.