14. The following
information relates to the Smith Company for 2002:
Cash dividend declared
$ 300
Retained earnings, January 1, 2006
?
Net income
580
Error in 2005 - overstatement of ending inventory; error
found in 2006
150
Retained earnings, December 31, 2006
1,400
What was the unadjusted January 1, 2006, balance in retained
earnings?
a.
$1,420
b.
$1,120
c.
$1,270
d.
$1,170