Reporting an Accounting Error An error considered material of $100,000 (net of tax) to Netbic...
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Accounting
Reporting an Accounting Error An error considered material of $100,000 (net of tax) to Netbic Corp. was discovered in 2020 that originated in 2019. The error represents an overstatement of the company's previously reported revenues. Assuming an unadjusted beginning balance in retained earnings of $1,600,000, a 2020 net loss of $40,000, and that no dividends were declared or paid in 2020, prepare its statement of retained earnings for 2020. Hint: Adjust the beginning balance of retained earnings for the error. Use a negative sign to indicate a subtraction. Netbic Corp. Statement of Retained Earnings For the Year Ended December 31, 2020 Retained earnings, January 1, 2020 Prior period adjustment, net of tax Adjusted beginning balance Net income (loss) $ $ Dividends Retained earnings, December 31, 2020 $
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