Answer:
Retained Earnings at December 31, 2018 is $89,000
Explanation:
Adjusted Retained Earnings at December 31, 2017 = Retained Earnings at 31 December 2017 - Overstated amount = $44,000 - $8,000 = 36,000
Retained Earnings for 2018 = Net income - dividend = $78,000 - $25,000 = $53,000
Cindy May Bakery, Inc.'s statement of retained earnings for the year ended December 31, 2018
Details $
Adjusted Retained Earnings at December 31, 2017 36,000
Retained Earnings for 2018 <u> 53,000 </u>
Retained Earnings at December 31, 2018 <u> 89,000 </u>