On January 31, 2022, RUBY Company agreed to pay the former president $300,000 under a deferred compensation arrangement. RUBY should have recorded this expense in 2021 but did not do so. The income tax expense would have been P70,000 lower in 2021 had it properly accrued this deferred compensation.

On January 31, 2022, RUBY Company agreed to pay the former president $300,000 under a deferred compensation arrangement. RUBY should have recorded this expense in 2021 but did not do so. The income tax expense would have been P70,000 lower in 2021 had it properly accrued this deferred compensation.

Name: What is the adjustment of retained earnings on January 1, 2022? On Jan
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Description: What is the adjustment of retained earnings on January 1, 2022? On January 31, 2022, RUBY Company agreed to pay the former president $300,000 under a deferredcompensation arrangement. RUBY should have recorded this expense in 2021 but did not do so.

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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