Tidy, Inc., a household products chain, reported a prior-period adjustment in 2010. An accounting error caused net income of 2009 to be understated by $8 million. Retained earnings at December 31, 2009, as previously reported, stood at $343 million. Net income for 2010 was $98 million, and 2010 dividends were $65 million.Requirement1. Prepare the company’s statement of retained earnings for the year ended December 31,2010. How does the prior-period adjustment affect Tidy’s net income for 2010?View Solution:
Tidy Inc a household products chain reported a prior period

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