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On January 1, 2010, Felter Corporation had retained earnings of $550,000. During the year, Felter had the following selected transactions.
1. Declared cash dividends $120,000.
2. Corrected overstatement of 2009 net income because of depreciation error $40,000.
3. Earned net income $350,000.
4. Declared stock dividends $60,000.
Instructions
Prepare a retained earnings statement for the year.
The column of the income statement show the debits are equal to $56,899 and credits are $60,333. What do this information mean to the accountant?
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