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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.

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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concord Corp. began operations in 2014. During the years 2014-2016, it reported net income and declared dividends as follows. 2014 2015 2016 Net income $22,000 125.000 201,000 During 2017, Concord Corp.: Dividends declared $-0- -0- 60.000 • 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. Concord's effective income tax rate for all years was 40%.
Transcribed Image Text:Concord Corp. began operations in 2014. During the years 2014-2016, it reported net income and declared dividends as follows. 2014 2015 2016 Net income $22,000 125.000 201,000 During 2017, Concord Corp.: Dividends declared $-0- -0- 60.000 • 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. Concord's effective income tax rate for all years was 40%.
Prepare a 2017 retained earnings statement for Concord Corp. (List items that increase retained earnings first.) Retained Earnings, January 1, as Reported Correction for Depreciation Error Cumulative Decrease in Income from Change in Inventory Methods Retained Earnings, January 1, as Adjusted Add ▼ Less Net Income /(Loss) CONCORD CORPORATION Retained Earnings Statement Dividends Declared Retained Earnings, December 31 e Textbook and Media $ Assume Concord Corp. restricted retained earnings in the amount of $67,000 on December 31, 2017. How would Concord Corp. present retained earnings on its December 31, 2017 balance sheet? Total retained earnings $
Transcribed Image Text:Prepare a 2017 retained earnings statement for Concord Corp. (List items that increase retained earnings first.) Retained Earnings, January 1, as Reported Correction for Depreciation Error Cumulative Decrease in Income from Change in Inventory Methods Retained Earnings, January 1, as Adjusted Add ▼ Less Net Income /(Loss) CONCORD CORPORATION Retained Earnings Statement Dividends Declared Retained Earnings, December 31 e Textbook and Media $ Assume Concord Corp. restricted retained earnings in the amount of $67,000 on December 31, 2017. How would Concord Corp. present retained earnings on its December 31, 2017 balance sheet? Total retained earnings $
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