Problem

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

The following information is available for Ballard Company for the year ended December 31, 2011.

a.Balance of retained earnings, December 31, 2010, prior to discovery of error, $850,000.


b.Cash dividends declared and paid during 2011, $15,000.


c.It neglected to record 2009 depreciation expense of $55,600, which is net of $5,500 in income taxes.


d.The company earned $205,000 in 2011 net income.

Prepare a 2011 statement of retained earnings for Ballard Company.

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