How much is the restated balance of AMSTERDAM's retained earnings account at January 1, 2021? The following pre-tax amounts pertaining to AMSTERDAM Company for the year ended December 31, 2021:• Sales, P400,000• Selling and adminstrative expenses, P84,000• Other income, P40,000• Interest expense, P4,000• Cost of goods sold, P280,000• Oorrection of prior period error - credit, P16,000• Post-tax results of discontinued operations - credit, P40,000• Cumulative effect of change in accounting policy - debit, P24,000• Retained earnings, January 1, 2021 (not yet restated), P1,600,000• Dividends declared, P12,000• Income tax rate is 30%

Name: How much is the restated balance of AMSTERDAM's retained earnings acco
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: How much is the restated balance of AMSTERDAM's retained earnings account at January 1, 2021? The following pre-tax amounts pertaining to AMSTERDAM Company for the year ended December 31, 2021:• Sales, P400,000• Selling and adminstrative expenses, P8

Retained earnings are an important accounting topic to understand. The term refers to a company's…

Answered: How much is the restated balance of…

Business

Accounting

How much is the restated balance of AMSTERDAM's retained earnings account at January 1, 2021?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The adjusted trial balance for the year of Dreamer Corporation at July 31, 2021, follows. (Click the…

A: Certainly! Let's break down each financial statement and what they represent:Income Statement:This…

Q: What is the net loss reported in 2024 income statement?

A: Income statement is prepared by the business organization so as to know how much amount of gross…

Q: a. Compute basic earnings per share for 2019. b. Compute diluted earnings per share for 2019. c.…

A: a. Calculate Basic earnings per share for 2019.

Q: Treasury Stock Transactions SprayCo Inc. develops and produces spraying equipment for lawn…

A: a) When treasury stock is reissued at price more than cost, then premium is credited to paid-in…

Q: Appraise the fiscal performance of Ghana for the past ten years (2022-2012).

A: Fiscal performance refers to how well a government manages its revenue, expenditure, and debt…

Q: Using the accounting equation, determine the company’s stockholders’ equity. Compare this amount to…

A: The question provides us with the Income statement and consolidated balance sheet of United Parcel…

Q: On January 1, 2019, Northern Manufacturing Company bought a piece of equipment by signing a…

A: Notes payable are long-term commitments that indicate the amount of money owing by a company to its…

Q: In its December 31, 2020, balance sheet Oakley Corporation reported as an asset, “Net notes and…

A: Balance Sheet: It is a financial statement that reports the financial position of an organization…

Q: A.M.I. Corporation reported income taxes of $362,884,000 on its 2022 income statement. Its balance…

A: Cash payment for income taxes = Income taxes payable at December 31, 2021 + income taxes expense for…

Q: Required: 1. Prepare the appropriate journal entries for the deposits received, returned, and…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: An extract from a printing company's 2021 financial statements. follows: Balance sheet As of…

A: Debt to assets ratio is the ratio of total debt with total assets of the business. It means out of…

Q: An expense incurred/used up in 2020 is not paid until 2021. Using the accrual basis of accounting,…

A: The accrual concept states that the revenues and expenses should've reported when accrued,…

Q: None

A: To access the data on the 2021 10-K report, use the index on page 3 and click the link for…

Q: In good form, prepare a multiple-step income statement for 2023. Assume a 20% income tax rate and…

A: Multi Step Income Statement An financial statements with multiple steps lists a company's income,…

Q: prepare the income statemnt for the year ended december 31 2024

A: The multi-step income statement for Jackrabbit Rentals outlines revenues, operating expenses,…

Q: What was the total income tax expense related to income from continuing operations before income…

A: Charge costs are the aggregate sum of expenses owed by an individual, enterprise, or other substance…

Q: Dell Technologies Inc (Dell) For the year of 2019. The Total Revenue. The Total Expense. The Total…

A: Financial information given is collected from the annual report of Dell Technologies Inc(Dell) for…

Q: The following accounts are from XYZ, Inc. Balance Sheet as of December 31, 2020: Requirements: 1.…

A: Current assets means those assets which will be converted in to cash in near future generally one…

Q: Current Attempt in Progress On January 1, 2022, the ledger of Splish Brothers Inc. contained these…

A: Current Liabilities: These are all short-term financial obligations of an enterprise which are to…

Q: he following information was available for the year ended December 31, 2019: Earnings before…

A: Times interest earned ratio refers to the measure used to check whether the company is able to pay…

Q: Prime Corporation prepared its annual financial statements for its shareholders for the fiscal year…

A: Unearned revenue represents the amount that has been received but the revenue for the same has not…

Q: For this question, please refer to the Fact Pattern below (Same fact pattern as previous question).…

A: EBITDA is frequently used in financial analysis and valuation because it makes it easier to compare…

Q: On the balance sheets, what is the most recent fiscal year reported? Fiscal year…

A: Answer:- Balance sheet meaning:- The assets and liabilities of a firm are described in detail on a…

Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

Topic Video

Question

How much is the restated balance of AMSTERDAM's retained earnings account at January 1, 2021?

The following pre-tax amounts pertaining to AMSTERDAM Company for the year ended December 31, 2021:
• Sales, P400,000
• Selling and adminstrative expenses, P84,000
• Other income, P40,000
• Interest expense, P4,000
• Cost of goods sold, P280,000
• Oorrection of prior period error - credit, P16,000
• Post-tax results of discontinued operations - credit, P40,000
• Cumulative effect of change in accounting policy - debit, P24,000
• Retained earnings, January 1, 2021 (not yet restated), P1,600,000
• Dividends declared, P12,000
• Income tax rate is 30%

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define Retained Earnings

VIEW

Step 2: Computation of the Net profit after tax as on December 31, 2021:

VIEW

Step 3: Computation of the balance of retained earnings as on December 31, 2021:

VIEW

Solution

VIEW

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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

Income & Expenditure Account for the financial period ending 31 December 2022
How do I prepare the rates receivables give that Rates Receivables: Owing at 1 January 2019 $100; Paid during financial year $600; Owing at 31 December 2019 $150
Using the attached financial statement footnote. Explain why the application of time value is appropriate to account for the transaction.
Subject: accounting
Which of the following alternatives represent the amount of non current liabilities in the statement of financial position of Shukela CC for the year ended 28 February20.19?
Walmart Inc (WMT) has the following excerpts from their financial statements January 31, 2022 January 31, 2021 Net Receivables * (in $ Millions) 8,280 6,516 *Net Receivable = Gross receivable minus Allowance Walmart’s fiscal year “FY22” is defined as the period between February 1, 2021 – January 31, 2022 Gross (Accounts) Receivables, January 31, 2022: $9,265 Million Gross Receivables, January 31, 2021: $7,421 Million Accounts Written-off in FY 22 $221 Million 2% of credit sales is assumed to be uncollectable CALCULATE The ending balance of Allowance for uncollectable accounts as of January 31, 2022 Bad Debt Expense for the fiscal year ending on January 31, 2022. Collections during FY22
hello, I need help please
DND Inc.'s December 31,2021 statement of financial position reported the following current assets: Cash, excluding payroll fund of P200,000 Accounts receivable Inventory Deferred tax assets including prepaid tax of P100,000 P 4,300,000 7,500,000 4,000,000 1,200,000 P17,000,000 An analysis of the accounts receivable disclosed that accounts receivable comprised the following: Trade accounts receivable Allowance for doubtful accounts Selling price of DND's unsold goods sent to Tar Inc. on consignment P 5,000,000 (500,000) at 150% of cost and excluded from DND's ending inventory 3,000,000 P7,500,000 On December 31,2021, what amount should be reported as total current assets?
At May 31, 2019, Acai Associates reported the following amounts (in millions) in its financial statements: Total Assets Total Liabilities Interest Expense Income Tax Expense Net Income 2019 $ 59,000 32,450 642 125 620 2018 $ 57,000 29,070 590 230 4,846 Required: 1. Compute the debt-to-assets ratio and times interest earned ratio for 2019 and 2018. 2-a. In 2019, were creditors providing a greater (or lesser) proportion of financing for Acai's assets? 2-b. In 2019, was Acai more (or less) successful at covering its interest costs, as compared to 2018?
The following are extracts from the financial records of ABC Ltd for the year ended31 August 2021.ABC LtdExtract from the Statement of financial statement as at 31 August 2021 31 August 2021 - R 30 August 2020 - R Bank Inventories - Trade Goods Trade Recievables Trade payables Prepaid Expenses Prepaid Expenses Accrued Expenses; interest Accrued Expenses; other SARS - income tax payable Dividens payable 50000 22000 77000 44000 1800 1000 5700 8000 1500 20000 30000 69000 46000 1200 2400 4400 3000 2700 ABC LtdExtract from the Statement of profit or loss and other comprehensive incomefor the year ended 31 August 2021 Sales 592000 Cost of sales (301000 Gross profit 291000 Profit on sale of Equipment 9000 Depreciation 41000 Interest Expense 2600 Income tax expense 15200 Profit for the year 110300 Additional information: 1. The dividends declared for the current year is R2 400 Required:Prepare only the “Cash flows from operating activities” section…
Required information [The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2022) Common Stock Retained Earnings Totals View transaction list Journal entry worksheet
How are open encumbrances at year-end reported in the financial statements?