Question

The following information is from Amos Company for the year ended December 31, 2019.

1. Retained earnings at December 31, 2018 (before discovery of error), $857,000.
2. Cash dividends declared and paid during the year, $27,000.
3. Two years ago, it forgot to record depreciation expense of $40,600 (net of tax benefit).
4. The company earned $215,000 in net income this year.

I need the values for X.

AMOS COMPANY
Statement of Retained Earnings
For Year Ended December 31, 2019
Retained Earnings Dec. 31 2018 as previously reported	857,000
Prior period adjustment
Depreciation expense not recorded (net of tax)	x
Retained earnings, Dec. 31,2018 as adjusted	857,000
Add: Net income	215,000
Less: Dividends	x
Retained earnings, Dec. 31, 2019	857,000

Answer 1

AMOS COMPANY
Statement of Retained Earnings
For Year Ended December 31, 2019
Retained Earnings Dec. 31 2018 as previously reported	857,000
Prior period adjustment
Depreciation expense not recorded (net of tax)	-40600
Retained earnings, Dec. 31,2018 as adjusted	816400
Add: Net income	215,000
Less: Dividends	-27000
Retained earnings, Dec. 31, 2019	1004400