79.b)Assume Novak Corporation restricted retained earnings in the amount of $ on December 31, 2020. After this action, what would Novak report as total retained earnings in its December 31, 2020, balance sheet? Total retained earnings $ Novak Corporation began operations on January 1, 2022. During its first 3 years of operations, Novak reportednet income and declared dividends as follows.2022 $51,2002023Net income2024160,000204,800Dividends declared$-0-Effective tax rate64,00064,000The following information relates to 2025.Income before income taxPrior period adjustment: understatement of 2023 depreciation expense (before taxes)Dividends declared (of this amount, $32,000 will be paid on Jan. 15, 2026)$307,20032,000128,00020% Prepare a 2025 retained earnings statement for Novak Corporation. (List items that increase adjusted retained earnings first.)NOVAK CORPORATIONRetained Earnings Statement>>$LA

The statement of retained earnings help to track the changes in the balance of retained earnings. An…

2022 2023 2024 Net income $51,200 160,000 204,800 Dividends declared Income before income tax $-0- Effective tax rate 64,000 The following information relates to 2025. 64,000 Prior period adjustment: understatement of 2023 depreciation expense (before taxes) Dividends declared (of this amount, $32,000 will be paid on Jan. 15, 2026) $307,200 32,000 128,000 20%

2022 2023 2024 Net income $51,200 160,000 204,800 Dividends declared Income before income tax $-0- Effective tax rate 64,000 The following information relates to 2025. 64,000 Prior period adjustment: understatement of 2023 depreciation expense (before taxes) Dividends declared (of this amount, $32,000 will be paid on Jan. 15, 2026) $307,200 32,000 128,000 20%

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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