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Blue Spruce Corporation prepares financial statements in accordance with ASPE. At January 1, 2023, the company had retained earnings of $1,070,000. In 2023, net income was $335,000, and cash dividends of $50,000 were declared and paid. Prepare a statement of retained earnings for Blue Spruce Corporation, assuming that in 2023, Blue Spruce discovered that it had overstated 2020 depreciation by $47,000 (net of tax of $17,000). (List items that increase retained earnings first after adjusted balance.)

Blue Spruce Corporation prepares financial statements in accordance with ASPE. At January 1, 2023, the company had retained earnings of $1,070,000. In 2023, net income was $335,000, and cash dividends of $50,000 were declared and paid. Prepare a statement of retained earnings for Blue Spruce Corporation, assuming that in 2023, Blue Spruce discovered that it had overstated 2020 depreciation by $47,000 (net of tax of $17,000). (List items that increase retained earnings first after adjusted balance.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Add V: Net Income /(Loss) Less Dividends Balance, December 31 $ 335000 1358000 50000 1308000
Transcribed Image Text:Add V: Net Income /(Loss) Less Dividends Balance, December 31 $ 335000 1358000 50000 1308000
Blue Spruce Corporation prepares financial statements in accordance with ASPE. At January 1, 2023, the company had retained earnings of $1,070,000. In 2023, net income was $335,000, and cash dividends of $50,000 were declared and paid. Prepare a statement of retained earnings for Blue Spruce Corporation, assuming that in 2023, Blue Spruce discovered that it had overstated 2020 depreciation by $47,000 (net of tax of $17,000). (List items that increase retained earnings first after adjusted balance.) Balance, January 1, as reported Blue Spruce Corporation Statement of Retained Earnings For the Year Ended December 31, 2023 Correction for Overstatement of Depreciation in 2023 (Net of Tax of $17,000) Balance, January 1, as adjusted V $ 1070000 -47000 1023000
Transcribed Image Text:Blue Spruce Corporation prepares financial statements in accordance with ASPE. At January 1, 2023, the company had retained earnings of $1,070,000. In 2023, net income was $335,000, and cash dividends of $50,000 were declared and paid. Prepare a statement of retained earnings for Blue Spruce Corporation, assuming that in 2023, Blue Spruce discovered that it had overstated 2020 depreciation by $47,000 (net of tax of $17,000). (List items that increase retained earnings first after adjusted balance.) Balance, January 1, as reported Blue Spruce Corporation Statement of Retained Earnings For the Year Ended December 31, 2023 Correction for Overstatement of Depreciation in 2023 (Net of Tax of $17,000) Balance, January 1, as adjusted V $ 1070000 -47000 1023000
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