7. Retained Earnings Statement

What is usually the first line in the retained earnings statement?

Retained earnings, beginning of period date (such as Jan1, 2023) as reported

What usually follows the first line?

Correction for understatement or overstatement of accounts (such as net income or expenses) in prior period (net of tax)

What usually follows the correction for understatement or overstatement of accounts?

Retained earnings, beginning of period date, as adjusted

What usually follows the adjusted retained earnings balance?

Add net income to the adjusted balance.

What comes after adding net income to the adjusted balance of retained earnings?

Subtract any cash dividends and stock dividends declared.

What comes after subtracting dividends?

The ending balance of retained earnings: Retained earnings, ending date.