Homework Help is Here – Start Your Trial Now!
Business
Accounting
In the revised financial statements, the 12/31/23 Retained Earnings would be:

In the revised financial statements, the 12/31/23 Retained Earnings would be:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Please help me with show all calculation thanku
Presented below are the comparative income statements for Watson Industries for the years 2023 and 2024, prior to the information provided in the bulleted list below. Assume no taxes exist. 2023 $600,000 390,000 210,000 170,000 $ 40,000 Sales Cost of Sales Gross Profit Expenses Net Income Retained Earnings, Jan. 1 Net Income Select one: Dividends Retained Earnings, Dec. 31 a. $117,000 b. $134,000 c. $130,000 d. $126,800 e. $108,000 2024 $660,000 430,000 230,000 180,000 $ 50,000 $117,000 50,000 _(15,000) $152,000 • In 2024, the company decided to switch depreciation methods from sum-of-the-years-digits to the straight-line method. The assets were purchased at the beginning of 2023 for $150,000 with an estimated useful life of 5 years and no salvage value. The 2023 Net Income of $40,000 is based on SYD. $ 89,000 40,000 (12,000). $117,000 • In 2024, the company discovered that the ending inventory for 2023 was understated by $13,000. Prepaid expenses of $4,000 were omitted in 2023. In the revised financial statements, the 12/31/23 Retained Earnings would be:
Transcribed Image Text:Presented below are the comparative income statements for Watson Industries for the years 2023 and 2024, prior to the information provided in the bulleted list below. Assume no taxes exist. 2023 $600,000 390,000 210,000 170,000 $ 40,000 Sales Cost of Sales Gross Profit Expenses Net Income Retained Earnings, Jan. 1 Net Income Select one: Dividends Retained Earnings, Dec. 31 a. $117,000 b. $134,000 c. $130,000 d. $126,800 e. $108,000 2024 $660,000 430,000 230,000 180,000 $ 50,000 $117,000 50,000 _(15,000) $152,000 • In 2024, the company decided to switch depreciation methods from sum-of-the-years-digits to the straight-line method. The assets were purchased at the beginning of 2023 for $150,000 with an estimated useful life of 5 years and no salvage value. The 2023 Net Income of $40,000 is based on SYD. $ 89,000 40,000 (12,000). $117,000 • In 2024, the company discovered that the ending inventory for 2023 was understated by $13,000. Prepaid expenses of $4,000 were omitted in 2023. In the revised financial statements, the 12/31/23 Retained Earnings would be:
Expert Solution
steps

Step by step

Solved in 3 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting Changes and Error Analysis
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.
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
SEE MORE TEXTBOOKS