Bang Company reported a Retained Earnings balance of P150,000 on December 31, 2021. The following occurred during 2022: Net income was P85,000 Dividends declared and paid was P60,000 An error on the 2020 depreciation expense revealed understatement of P25,000. Tax rate is 25%. How much should be presented as the correct beginning balance of the Retained Earnings account for 2022? How much should be presented as the ending balance of the Retained Earnings account for 2022?

Bang Company reported a Retained Earnings balance of P150,000 on December 31, 2021. The following occurred during 2022: Net income was P85,000 Dividends declared and paid was P60,000 An error on the 2020 depreciation expense revealed understatement of P25,000. Tax rate is 25%. How much should be presented as the correct beginning balance of the Retained Earnings account for 2022? How much should be presented as the ending balance of the Retained Earnings account for 2022?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 53BE

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Please answer in good accounting form. Thankyou What is the retained earnings balance ending December 31, 2021?