Prior Period Adjustments

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Prior Period Adjustments Statement of Retained Earnings And Prior Period Adjustments

Prior Period Adjustments Adjustments to the Beginning Balance of Retained Earnings to correct accumulated earnings reported from prior years. Prior Period Adjustments may be reported to adjust for Changes in Accounting Principle Corrections of Errors LO 4 Explain how to report irregular items.

Retained Earnings Statement Before issuing the report for the year ended December 31, 2012, you discover a $50,000 error (net of tax) that caused the 2011 inventory to be overstated (overstated inventory caused COGS to be lower and thus net income to be higher in 2011). Would this discovery have any impact on the reporting of the Statement of Retained Earnings for 2012? LO 7 Prepare a retained earnings statement.

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Retained Earnings Statement Class Example