P4.7 (LO 4.5) (Retained Earnings Statement, Prior Period Adjustment) The following is the retained earnings account for the year 2022 for Acadian Corp. Retained earnings, January 1, 2022 $257,600 Add: Gain on sale of investments $41.200 84.500 21.600 Net income Refund on litigation with govermment 172,700 430.300 Recognition of income in 2021, but omitted from income statement in that year 25.400 Deduct: 35,000 Loss on discontinued operations Write-off of goodwill Cumulative effect on income of prior vears in changing from averageicost to FIFO inventory valuation im 202223.200 60,000 150,200 $280,100 Cash dividends declared 32.000 Retained earnings, December 31, 2022 Instructions a. Prepare a corrected retained earnings statement. (Ignore inconme tax effects.) FLFO 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 (LO 4.5) (Retained Earnings Statement, Prior Period Adjustment) The following is the retained earnings account for the year 2022 for Acadian Corp. Retained earnings, January 1, 2022 $257,600 Add: Gain on sale of investments $41.200 84.500 21.600 Net income Refund on litigation with govermment 172,700 430.300 Recognition of income in 2021, but omitted from income statement in that year 25.400 Deduct: 35,000 Loss on discontinued operations Write-off of goodwill Cumulative effect on income of prior vears in changing from averageicost to FIFO inventory valuation im 202223.200 60,000 150,200 $280,100 Cash dividends declared 32.000 Retained earnings, December 31, 2022 Instructions a. Prepare a corrected retained earnings statement. (Ignore inconme tax effects.) FLFO 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Lx
P4.7 CLO4. 5) (Retained Earnings Statement, Prior Period Adjustment) The following is the retained earnings account for the year 2022 for
Acadian Corp.
Retained earnings, January 1, 2022
$257,600
Add:
Gain on sale of investments
$41.200
84.500
21.600
Net income
Refund on litigation with government
172,700
430.300
Recognition of income in 2021, but omitted from income statement in that year
25.400
Deduct:
35,000
Loss on discontinued operations
Write-off of goodwill
Cumulative effect on income of prior vears in changing from average-cost to FIFO inventory valuation im 2022 23.200
60,000
32.000 150,200
s280,100
Cash dividends declared
Retained earnings, December 31, 2022
Instructions
a. 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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education