Roy Beaty Products, Inc., a household products chain, reported a priorperiod adjustment in 20X2. An accounting error

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Roy Beaty Products, Inc., a household products chain, reported a priorperiod adjustment in 20X2. An accounting error caused net income of 20X1 to be understated by $13 million. Retained earnings at December 31, 20X1, as previously reported, stood at $344 million. Net income for 20X2 was $92 million, and 20X2 dividends were $48 million.
Required
Prepare the company's statement of retained earnings for the year ended December 31, 20X2. How does the prior-period adjustment affect Roy Beaty's net income for 20X2?
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Financial Accounting

ISBN: 978-0135012840

7th edition

Authors: Walter T. Harrison, Charles T. Horngren

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