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.)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 53BE

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