Below is the Retained Earnings account for the year 2025 for Coronado Corp. Retained earnings, January 1, 2025 Add: Gain on discontinued operations (net of tax) Net income Gain on sale of investments (net of tax) Cumulative effect on income of prior years in changing from LIFO to FIFO inventory valuation in 2025 (net of tax) Refund on litigation with government, related to the year 2022 (net of tax) Recognition of income earned in 2024, but omitted from income. statement in that year (net of tax) Deduct: Write-off of goodwill (net of tax) Cash dividends declared Retained earnings, December 31, 2025 Retained Earnings, January 1, as Reported CORONADO CORP. Retained Earnings Statement For the Year Ended December 31, 2025 Correction of Error from Prior Period Adjustment for Change in Accounting Principle (Net of Tax) Retained Earnings, January 1, as Adjusted Add: Net Income /(Loss) Less: Cash Dividends Declared Retained Earnings, December 31 $14,400 170,700 43,600 55,000 54,000 52,100 Prepare a corrected retained earnings statement. Coronado Corp. normally sells investments of the type mentioned above. FIFO inventory was used in 2025 to compute net income. (List items that increase adjusted retained earnings first.) 252,400 62,400 $ $618,450 389,800 $ 1,008,250 314,800 $693,450 618450 52100 (55000) Bong 615550 535100 62400 i 1088250

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Below is the Retained Earnings account for the year 2025 for Coronado Corp.
Retained earnings, January 1, 2025
Add:
Gain on discontinued operations (net of tax)
Net income
Gain on sale of investments (net of tax)
Cumulative effect on income of prior years in changing from
LIFO to FIFO inventory valuation in 2025 (net of tax)
Refund on litigation with government, related to the year 2022 (net of tax)
Recognition of income earned in 2024, but omitted from income
statement in that year (net of tax)
Deduct:
Write-off of goodwill (net of tax)
Cash dividends declared
Retained earnings, December 31, 2025
Retained Earnings, January 1, as Reported
CORONADO CORP.
Retained Earnings Statement
For the Year Ended December 31, 2025
Correction of Error from Prior Period
Adjustment for Change in Accounting Principle (Net of Tax)
Retained Earnings, January 1, as Adjusted
Add V: Net Income /(Loss)
Less : Cash Dividends Declared
Retained Earnings, December 31
$14,400
170,700
43,600
55,000
Prepare a corrected retained earnings statement. Coronado Corp. normally sells investments of the type mentioned above. FIFO
inventory was used in 2025 to compute net income. (List items that increase adjusted retained earnings first.)
54,000
52,100
252,400
62,400
$
$618,450
$
389,800
1,008,250
314,800
$693,450
618450
52100
(55000)
615550
535100
62400 i
1088250
Transcribed Image Text:Below is the Retained Earnings account for the year 2025 for Coronado Corp. Retained earnings, January 1, 2025 Add: Gain on discontinued operations (net of tax) Net income Gain on sale of investments (net of tax) Cumulative effect on income of prior years in changing from LIFO to FIFO inventory valuation in 2025 (net of tax) Refund on litigation with government, related to the year 2022 (net of tax) Recognition of income earned in 2024, but omitted from income statement in that year (net of tax) Deduct: Write-off of goodwill (net of tax) Cash dividends declared Retained earnings, December 31, 2025 Retained Earnings, January 1, as Reported CORONADO CORP. Retained Earnings Statement For the Year Ended December 31, 2025 Correction of Error from Prior Period Adjustment for Change in Accounting Principle (Net of Tax) Retained Earnings, January 1, as Adjusted Add V: Net Income /(Loss) Less : Cash Dividends Declared Retained Earnings, December 31 $14,400 170,700 43,600 55,000 Prepare a corrected retained earnings statement. Coronado Corp. normally sells investments of the type mentioned above. FIFO inventory was used in 2025 to compute net income. (List items that increase adjusted retained earnings first.) 54,000 52,100 252,400 62,400 $ $618,450 $ 389,800 1,008,250 314,800 $693,450 618450 52100 (55000) 615550 535100 62400 i 1088250
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Accounting for Income Taxes
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education