The following information relates to the Smith Company: $\begin{array}{ll}2010\text{ cash dividend declared }& \$400\\ \text{ Restated (adjusted) retained earnings, January 1, 2010 }& ?\\ 2010\text{ net income }& 480\\ \text{ Error in 2009-Underst at ement of ending inventory, }& \\ \text{ error found in 2010 }& 150\\ \text{ Restated (adiusted) retained earnings, December 31, }2010& 1,550\end{array}$ What is the adjusted January 1, 2010, balance in retained earnings?

A) $1, 170
B) $1, 320
C) $1, 470
D) $1, 630

To find the adjusted January 1, 2010 balance in retained earnings, we need to start with the beginning balance in retained earnings (which is given as $1,000), add the net income for the year (which is given as $500), and subtract any dividends paid (which are not given). We can see from the statement that total dividends for the year were $30. Therefore, the adjusted January 1, 2010 balance in retained earnings is:

$1,000 beginning balance
+ $500 net income
- $30 dividends
= $1,470

Therefore, the answer is C.