2014 2015 2016 Net income $22,000 125,000 201,000 Dividends declared $-0- -0- 60,000 During 2017, Concord Corp.: • discovered that it had failed, in 2015, to record $48,000 in depreciation on equipment in one of its warehouses. • changed, on January 1, 2017, from the average cost to the FIFO method of accounting for its inventory. If Concord Corp. had applied the FIFO method to it inventory in prior years, cumulative net income (before tax) would have been $16,000 lower than originally reported. • reported income before income tax expense of $540,000. • declared and paid dividends to common shareholders of $72,000.
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- 22. Vijay Paints Ltd. made a profit of 5,00,000 after considering the following items: I. Preliminary Expenses written off II. Depreciation on fixed assets III. Loss on sale of Machinery 5,000 50,000 20,000 IV Provision for Doubtful Debts 10,000 V. Gain on sale of land 7,500 The following is the position of current assets and current liabilities : Bo mtil 31.03.2017 31.03.2018 52,000 15,000 2,000 Debtors 78,000 Bills Receivable 12,000 Prepaid Expenses 3,000 Creditors 40,000 51,000 Bills Payable 19,000 12,000 Outstanding Expenses 34,000 20,000 Compute Cash from Operating Activities(Income Statement, Irregular Items) Wade Corp. has 150,000 shares of common stock outstanding. In 2017, the company reports income from continuing operations before income tax of $1,210,000. Additional transactions not considered in the $1,210,000 are as follows.1. In 2017, Wade Corp. sold equipment for $40,000. The machine had originally cost $80,000 and had accumulated depreciation of $30,000. The gain or loss is considered non-recurring.2. The company discontinued operations of one of its subsidiaries during the current year at a loss of $190,000 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $90,000 before taxes; the loss from disposal of the subsidiary was $100,000 before taxes.3. An internal audit discovered that amortization of intangible assets was understated by $35,000 (net of tax) in a prior period. The amount was charged against retained earnings.4. The company recorded a…Please Solve In 15mins
- Wright Company reports the following information for the year ended December 31, 2016: Pretax income from continuing operations (a) $160,000 Pretax income from operations of discontinued Division M 27,000 Pretax loss on disposal of Division M (45,000) Pretax correction of error in understating depreciation in 2015 (8,000) Retained earnings, January 1, 2016 410,000 Cash dividends during 2016 48,000 Income tax payable (b) 41,000 a: Of this amount, revenues are $400,000 and expenses are $240,000. b: Of this amount, $6,750 relates to the pretax income from the operations of discontinued Division M; pretax loss on the disposal of Division M resulted in an income tax savings of $11,250; and pretax correction of the depreciation error resulted in an income tax savings of $2,000. Required: 1. Prepare the year-end journal entry necessary to record the 2016 intraperiod income tax allocation. 2. Prepare Wright’s 2016 income statement and statement of retained…Moorman Corporation reports the following information:Correction of understatement of depreciation expense in prior years, net of tax $ 430,000 Dividends declared, 2015320,000 Net income for 20151,000,000 Retained earnings, 1/1/15, as reported2,500,000Moorman should report retained earnings, January 1, 2015, as adjusted atDo not give answer in image
- A company had a $21,000 net loss from operations for 2016. Depreciation expenses for 2016 were $8,600 and a 2016 cash dividend of $6,000 was declared and paid. Balance of the current asset and liability accounts at the beginning and end of 2016 follow. Did the company's 2016 operating activity provide or use cash? Why or why not? Use the indirect method to determine the answer. Ending Beginning Cash $3,500 $7,000 Account Receivable $16,000 $25,000 Inventory $50,000 $53,000 Prepaid Expenses $6,000 $9,000 Accounts payable $12,000 $8,000 Accrued Liabilities $5,000…Presented below is information related to Viel Company at December 31, 2017, the end of its first year of operations. Sales revenue $310,000 Cost of goods sold 140,000 Selling and administrative expenses 50,000 Gain on sale of plant assets 30,000 Unrealized gain on non-trading equity securities 10,000 Interest expense 6,000 Loss on discontinued operations 12,000 Allocation to non-controlling interest 40,000 Dividends declared and paid 5,000 InstructionsCompute the following: (a) income from operations, (b) net income, (c) net income attributable to Viel Company controllingshareholders, (d) comprehensive income, and (e) retained earnings balance at December 31, 2017. (Ignore income taxes.)1. What is the net effect of the errors in the working capital at the end of 2017? 2. What is the net effect of the errors in the working capital at the end of 2018?
- Presented below is information related to Ivanhoe Company as of and for the year ended December 31, 2017. This was Ivanhoe Company’s first year of operations. (Ignore income tax effects.) ● Sales revenue $1,310,000 ● Cost of goods sold 640,000 ● Selling and administrative expenses 310,000 ● Loss on sale of plant assets 64,000 ● Unrealized gain on available-for-sale investments 13,000 ● Interest expense 5,000 ● Interest revenue 4,100 ● Loss on discontinued operations 3,000 ● Allocation to noncontrolling interest 8,500 ● Dividends declared and paid 27,700 Compute the following: (a) Income from continuing operations $enter a dollar amount (b) Net income $enter a dollar amount (c) Net income attributable to Ivanhoe Company’s controlling shareholders $enter a dollar amount (d) Comprehensive income $enter a dollar amount (e) Retained earnings balance at December 31,…The following information have been taken from income statement and balance sheet of Kamal Inc. Income statement • Net income: $192,500 • Depreciation expense: $62,500 • Amortization of intangible assets: $20,000 • Gain on sale of equipment: $45,000 • Loss on sale of investments: $17,500 Balance sheet: • Accounts receivable on January 1, 2017: $190,000 • Accounts receivable on December 31, 2017: $167,500 • Inventory on January 1, 2017: $287,500 • Inventory on December 31, 2017: $251,500 • Prepaid expenses on January 1, 2017: $5,000 • Prepaid expenses on December 31, 2017: $11,000 Accounts Payable on January 1, 2017: $205,000 • Accounts payable on December 31, 2017: $189,500 • Accrued expenses payable on January 1, 2017: $77,500 • Accrued expenses payable on December 31, 2017: $90,000 Accounts payable given above relate to suppliers of merchandise. Required: Using above information, compute net cash flows from operating activities.An entity provided the following data for the year ended December 31, 2015: Retained earnings unappropriated, January 1----------200,000 Overdepreciation of 2014 due to prior period error----------100,000 Net income for 2015----------1,300,000 Retained earnings appropriated for treasury shares (original balance is P500,000 but reduced by P200,000 by reason of reissuance of the treasury shares) ----------300,000 Retained earnings appropriated for contingencies (beginning balance P700,000 but increased by current appropriation of P100,000)----------800,000 Cash dividends paid to shareholders----------500,000 Change in accounting policy from FIFO to average - credit adjustment----------150,000 What is the balance of unappropriated retained earnings on December 31, 2015? a. 1,150,000 b. 1,350,000 c. 1,950,000 d. 1,750,000