16 Quiz- ACC 242 01 Intern x* CengageNOWv2 | Online teachir XtakeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=falsePrint ItemInstructionsChart of AccountsAmount DescriptionsGeneral JournalStatement of Retained EarningsInstructionsDuring an audit of Madison Company's December 31, 2020 records it was discovered that the company did not accurately accrue for $12,500 of depreciation expense. The accrual of interest expense of $4,500 was also omitted. These errors occurred in 2019 and have amaterial impact on Madison's financial records. Madison's net income for the year was $123,000. The company is subject to a 35% tax rate. The company had a retained earnings balance of $557,500 on January 1, 2020. No dividends were paid.Required:1. Prepare the necessary journal entries to correct the accounting records of Madison Company's books.2. Prepare the statement of retained earnings for 2020.Check My Work 4 more Check My Work uses remainingNextAll work saved.Save and Exit

Introduction: A retained earnings statement is a financial statement that displays how a company's…

During an audt of Madison Company's December 31, 2020 records it was discovered that the company đid not accurately accrue for $12.500 of depreciation expense. The accrual of interest expense of $4,500 was also omited. These errors occurred in 2019 and have a material impact on Madison's financial records. Madison's net income for the year was $123,000. The company is subject to a 35% tax rate. The company had a retained earnings balance of $557,500 on January 1, 2020. No dividends were paid Required: 1. Prepare the necessary journal entries to correct the accounting records of Madison Company's books 2. Prepare the statement of retained earnings for 2020

During an audt of Madison Company's December 31, 2020 records it was discovered that the company đid not accurately accrue for $12.500 of depreciation expense. The accrual of interest expense of $4,500 was also omited. These errors occurred in 2019 and have a material impact on Madison's financial records. Madison's net income for the year was $123,000. The company is subject to a 35% tax rate. The company had a retained earnings balance of $557,500 on January 1, 2020. No dividends were paid Required: 1. Prepare the necessary journal entries to correct the accounting records of Madison Company's books 2. Prepare the statement of retained earnings for 2020

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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During an audit of Madison Company’s December 31, 2020 records it was discovered that the company did not accurately accrue for $12,500 of depreciation expense. The accrual of interest expense of $4,500 was also omitted. These errors occurred in 2019 and have a material impact on Madison’s financial records. Madison’s net income for the year was $123,000. The company is subject to a 35% tax rate. The company had a retained earnings balance of $557,500 on January 1, 2020. No dividends were paid. Required: 1. Prepare the necessary journal entries to correct the accounting records of Madison Company’s books. 2. Prepare the statement of retained earnings for 2020. 1. Prepare the necessary journal entries to correct the accounting records of Madison Company’s books. For grading purposes, prepare four separate entries dated December 31. General Journal Instructions PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 2…
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