Problem

The following information is available for Arturo Company for the year ended December 31...

The following information is available for Arturo Company for the year ended December 31, 2009.

a. Balance of retained earnings, December 31, 2008, prior to discovery of error, $1,375,000.

b. Cash dividends declared and paid during 2009, $43,000.

c. It neglected to record 2007 depreciation expense of $55,500, which is net of $4,500 in income taxes.

d. The company earned $126,000 in 2009 net income.

Prepare a 2009 statement of retained earnings for Arturo Company.

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