Buster Corporation has the following items for the year ending December 31, 20XX. Retained earnings, balance, January 1 - $1,600,000; corrected an error that had understated the net income two years ago - 70,000; net income (current year) - 150,000; during the current year, Buster changed its inventory method from average cost to FIFO and the cumulative effect on prior years was to decrease beginning retained earnings - 21,000. Instructions: prepare in proper format the retained earnings statement.
Buster Corporation has the following items for the year ending December 31, 20XX. Retained earnings, balance, January 1 - $1,600,000; corrected an error that had understated the net income two years ago - 70,000; net income (current year) - 150,000; during the current year, Buster changed its inventory method from average cost to FIFO and the cumulative effect on prior years was to decrease beginning retained earnings - 21,000. Instructions: prepare in proper format the retained earnings statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Buster Corporation has the following items for the year ending December 31, 20XX.
corrected an error that had understated the net income two years ago - 70,000;
net income (current year) - 150,000;
during the current year, Buster changed its inventory method from average cost to FIFO and the cumulative effect on prior years was to decrease beginning retained earnings - 21,000.
Instructions: prepare in proper format the retained earnings statement.
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