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Prepare a multiple step income statement for the year

30/04/2021 Client: muhammad11 Deadline: 2 Day

Rox Corporation€™s multiple-step income statement and retained earnings statement for the year ended December 31, 2016, as developed by its bookkeeper, are shown here:
Rox Corporation€™s multiple-step income statement and retained earnings statement for
Retained Earnings Statement
December 31, 2016
Beginning retained earnings ...............$62,850
Add: Net income .................... 7,970
Adjusted retained earnings .................$70,820
Less: Loss from theft (net of $ 2,760 income tax credit) .... (6,440)
Ending retained earnings .................$64,380
You determine that the account balances listed on the statements are correct but are incorrectly classified in certain cases. The company faces a 30% tax rate. No shares of common stock were issued or retired during 2016.
Required:
1. Review both statements and indicate where each incorrectly classified item should be classified.
2. Prepare a correct multiple-step income statement for 2016.
3. Determine the correct beginning balance in retained earnings, and then prepare a correct 2016 retained earnings statement.

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