Prepare a Statement of Retained Earnings in Proper Form for Gray

Essay

Prepare a statement of retained earnings in proper form for Gray Corporation for the year ended December 31,20XX,from the following:
$$\begin{array} { l r } \text { Retained Earnings, January } 1,20 \times\times & \$ 7,700 \\\text { Dividends declared during the year } & 1,400 \\\text { Net income for the year } & 10,000 \\\text { Correction of prior year error, Sales overstated } & 3,000\end{array}$$