The following information is from Amos Company for the year ended December 31, 2019. Retained earnings at December 31, 2018 (before discovery of error), $858,000. Cash dividends declared and paid during the year, $18,000. Two years ago, it forgot to record depreciation expense of $42,600 (net of tax benefit). The company earned $220,000 in net income this year. Prepare a statement of retained earnings for Amos Company. (Amounts to be deducted should be indicated with a minus sign.)

$1,017,400

Explanation:

Particulars                                                                     Amount

Retained earnings December 31st, 2018                   $858,000

Prior period adjustment

Depreciation expense error                                       -$42,600

Adjusted retained earnings December 31st, 2018    $815,400

Add: Net income                                                          $220,000

Less: Dividend                                                             -$18,000

Retained earnings December 31st, 2019                 $1,017,400

answer; the above statement/question is ( true);

the answerr would be 1