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Rolt Company began 2016 with a $120,000 balance in retained earnings. During the year, the following...

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Accounting

Rolt Company began 2016 with a $120,000 balance in retainedearnings. During the year, the following events occurred:

  1. The company earned net income of $80,000.
  2. A material error in net income from a previous period wascorrected. This error correction increased retained earnings by$9,800 after related income taxes of $4,200.
  3. Cash dividends totaling $13,000 and stock dividends totaling$17,000 were declared.
  4. One thousand shares of callable preferred stock that originallyhad been issued at $110 per share were recalled and retired at thebeginning of 2016 for the call price of $120 per share.
  5. Treasury stock (common) was acquired at a cost of $20,000.State law requires a restriction of retained earnings in an equalamount. The company reports its retained earnings restrictions in anote to the financial statements.

Required:

1. Prepare a statement of retained earnings for the year endedDecember 31, 2016.

ROLT COMPANY
Statement of Retained Earnings
For Year Ended December 31, 2016
Retained earnings, as previously reported, January 1, 2016$
Adjusted retained earnings, January 1, 2016$
$
$
Retained earnings, December 31, 2016$

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