LxP4.7 CLO4. 5) (Retained Earnings Statement, Prior Period Adjustment) The following is the retained earnings account for the year 2022 forAcadian Corp.Retained earnings, January 1, 2022$257,600Add:Gain on sale of investments$41.20084.50021.600Net incomeRefund on litigation with government172,700430.300Recognition of income in 2021, but omitted from income statement in that year25.400Deduct:35,000Loss on discontinued operationsWrite-off of goodwillCumulative effect on income of prior vears in changing from average-cost to FIFO inventory valuation im 2022 23.20060,00032.000 150,200s280,100Cash dividends declaredRetained earnings, December 31, 2022Instructionsa. Prepare a corrected retained earnings statement. (Ignore income tax effects.) FIFO inventory Mas used in 2022 to compute net income.b. State where the items that do not appear in the corrected retained earnings statement should be shown.P4.7

Statement of Retained earning is an essential part of the financial statement of the companies that…

Answered: P4.7 (LO 4.5) (Retained Earnings…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

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Chapter1: Financial Statements And Business Decisions

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17. Kiwi Corporation reports the following information: • Correction of overstatement of depreciation expense in prior years, net of tax- P215,000 • Dividends declared- P160,000 • Net income- P500,000 • Retained earnings, 1/1/21, as reported- P1,000,000 Kiwi should report retained earnings, December 31, 2021 at a. P1,555,000. b. P1,340,000. c. P1,125,000. d. P785,000.
How much is the net income(loss) for the year?
Presented below is X Corporation's selected data for 2020: Retained earnings January 1,2020 Pretax Income Stock dividends declared During the year. the company changed its inventory method from FIFO to LIFO which had resulted in a pretax increase in income by Cash divideds declared During 2020. the company discovered that the 2019 depreciation expense were overstated by a net of tax amount of. $6.000,000 2,000,000 330.000 40.000 225.000 70,000 Tax rate 30%
Selected account balances from the adjusted trial balance for Karam co. at 31/12/2020, are provided below: 5000 account receivables 17900 retained earmings 8000 land held for speculation 1900 treasury shares 500 allowance for doubtful account 10000 share capital 800 dividends 1500 prepaid expenses Assume net loss for 2020 is $5,000, what is the total equity to be reported at the 31/12/2020 statement of financial position? 22,100 25,200 26,000 20,200
Moorman Corporation reports the following information:Correction of understatement of depreciation expense in prior years, net of tax $ 430,000 Dividends declared, 2015320,000 Net income for 20151,000,000 Retained earnings, 1/1/15, as reported2,500,000Moorman should report retained earnings, January 1, 2015, as adjusted at
6. An entity provided the fo:louingdata for the year ended December 31. 2019:Retained earnings unappropriated. Januar> Overdepreciation of20i 8 due to prior period error. net oftax 400.000Net incomeRetained earning; appropriated for treasury (original balance is 3,000,000but reduced S) P200,000 by reason of reissuance of the treasury Shares)Retained earnings eppropria:ed for contingencies (begirråpg balance P70C,OOO. 300,000but increased by current appropriation ofP 100,000) 800,000Cash dividends paid to shareholders 1000.000Change in accounting policy from FIFO to a average — credit, net OftaxWhat is the balance of unappropriated retained earnings on December 31, 2019? 4,500.000 300.000b. 4,800,000
Presented below is X Corporation's selected data for 2020: Retained earnings January 1 ,2020 Pretax Income Stock dividends declared During the year, the company changed its inventory method from FIFO to LIFO which had resulted in a pretax increase in income by: Cash dividends declared During 2020, the company discovered that the 2019 depreciation expense were overstated by a net of tax amount of Tax rate $6,000,000 2,000,000 330,000 40,000 225.000 70.000 30% Based on the data above, the changes in the accounting principles (from FIFO to LIFO) had O Decreased retained earnings by $40.000 Increased retained earnings by $40000 O Increased retained earnings by $28,000 O None of the above
Prepare the bottom portion of Sheridan's 2021 income statement, beginning with "Income from continuing operations before income taxes." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Sheridan Corporation Income Statement (Partial) For the Year Ended December 31, 2021 icome from Continuing Operations before Income Taxes 1164000 ncome Tax Expense Current Deferred 189000 ncome from Continuing Operations Gain on Discontinued Operations 195000 Less -39000 156000 let Income / (Loss) %24 %24 > >
Bonita Corporation began operations on January 1, 2022. During its first 3 years of operations, Bonita reported net income and declared dividends as follows. 2022 2023 2024 Net income Dividends declared $38,400 $-0- 120,000 153,600 The following information relates to 2025. (a) Income before income tax Prior period adjustment: understatement of 2023 depreciation expense (before taxes) Dividends declared (of this amount, $24,000 will be paid on Jan. 15, 2026) Effective tax rate Your Answer Correct Answer Your answer is partially correct. 48,000 48,000 Balance, January 1, as Reported Correction for Depreciation Error Balance, January 1, as Adjusted Prepare a 2025 retained earnings statement for Bonita Corporation. (List items that increase adjusted retained earnings first.) Add V: Net Income/(Loss) $230,400 BONITA CORPORATION Retained Earnings Statement For the Year Ended December 31, 2025 24,000 96,000 20% 100000
Arantxa Corporation made the following purchases of investments during 2023, the first year in which Arantxa invested in equity securities: 1. 2. 3. On January 15, it purchased 9,000 shares of Nirmala Corp.'s common shares at $33.50 per share plus commission of $1,980. On April 1, it purchased 5,000 shares of Oxana Corp's common shares at $52 per share plus commission of $3,370. On September 10, it purchased 7,000 shares of WTA Corp's preferred shares at $26.50 per share plus commission of $2,910. On May 20, 2023, Arantxa sold 3,000 of the Nirmala common shares at a market price of $35 per share less brokerage commissions of $2,850. The year-end fair values per share were as follows: Nirmala $30, Oxana $55, and WTA $28. The chief accountant of Arantxa tells you that Arantxa holds these investments with the intention of selling them to earn short-term profits from appreciation in their prices and accounts for them using the FV-NI model. Arantxa follows IFRS.
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