On July 9, 2024, Blossom Enterprises Inc. discovered it had recorded the $83,000 purchase of land as a legal expense on November 8, 2023. The company had reported retained earnings of $631.000 at its previous year end, December 31, 2023. During 2024, Blossom had profit of $212.000 and it declared and paid cash dividends of $238,000. Blossom has a 25% income tax rate. (a) Prepare the journal entry to correct the error. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Date Account Titles Jan. 1 Debit Credit

On July 9, 2024, Blossom Enterprises Inc. discovered it had recorded the $83,000 purchase of land as a legal expense on November 8, 2023. The company had reported retained earnings of $631.000 at its previous year end, December 31, 2023. During 2024, Blossom had profit of $212.000 and it declared and paid cash dividends of $238,000. Blossom has a 25% income tax rate. (a) Prepare the journal entry to correct the error. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Date Account Titles Jan. 1 Debit Credit

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 53BE

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