Part 2. Statement of Changes in Stockholders' Equity and PPA Journal Entry( Use the following current fiscal year information for Raider Company to fill in the changes to the (Partial) Statement of Changes to Stockholders' Equity for 2022. Raider has a tax rate of 30% in all years. 1. Raider reported a Net Income of $105,000, which is calculated correctly. 2. Raider recognized dividend revenue of $30,000, declared dividends of $15,000, but only paid $10,000 in dividends. 3. Raider changed from one accounting principle to another and calculated a pre-tax cumulative effect of a decrease in revenues for prior years of $78,000. 4. Raider changed their estimate of bad debts from 3% to 4%. If Raider had used the 4% in the past, bad debt expenses would be $180,000 higher (pre-tax). 5. Raider discovered an error had been made in recorded past depreciation on a building. The building was original purchased for $1,000,000 on April 1, 2014. The salvage value was estimated at 295,000. The bookkeeper had used an estimated useful life of 30 instead of the correct 20 years. 6. Raider had $3,000 in unrealized holding gains on trading securities. 7. Raider had $54,000 in unrealized loss on hedging transactions. Provide the journal entry that Raider will do to correct the error. Good journal entry format is required You must use correct format, linage, and titles (abbreviations are allowed, indicate net of tax when needed). Beginning Balance Totals Retained Earnings $ 1,200,000 Accumulated Other Comprehensive Income $ 168,000
Part 2. Statement of Changes in Stockholders' Equity and PPA Journal Entry( Use the following current fiscal year information for Raider Company to fill in the changes to the (Partial) Statement of Changes to Stockholders' Equity for 2022. Raider has a tax rate of 30% in all years. 1. Raider reported a Net Income of $105,000, which is calculated correctly. 2. Raider recognized dividend revenue of $30,000, declared dividends of $15,000, but only paid $10,000 in dividends. 3. Raider changed from one accounting principle to another and calculated a pre-tax cumulative effect of a decrease in revenues for prior years of $78,000. 4. Raider changed their estimate of bad debts from 3% to 4%. If Raider had used the 4% in the past, bad debt expenses would be $180,000 higher (pre-tax). 5. Raider discovered an error had been made in recorded past depreciation on a building. The building was original purchased for $1,000,000 on April 1, 2014. The salvage value was estimated at 295,000. The bookkeeper had used an estimated useful life of 30 instead of the correct 20 years. 6. Raider had $3,000 in unrealized holding gains on trading securities. 7. Raider had $54,000 in unrealized loss on hedging transactions. Provide the journal entry that Raider will do to correct the error. Good journal entry format is required You must use correct format, linage, and titles (abbreviations are allowed, indicate net of tax when needed). Beginning Balance Totals Retained Earnings $ 1,200,000 Accumulated Other Comprehensive Income $ 168,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Part 2. Statement of Changes in Stockholders' Equity and PPA Journal Entry(
Use the following current fiscal year information for Raider Company to fill in the changes to the
(Partial) Statement of Changes to Stockholders' Equity for 2022. Raider has a tax rate of 30% in
all years.
1. Raider reported a Net Income of $105,000, which is calculated correctly.
2. Raider recognized dividend revenue of $30,000, declared dividends of $15,000, but only
paid $10,000 in dividends.
3.
Raider changed from one accounting principle to another and calculated a pre-tax
cumulative effect of a decrease in revenues for prior years of $78,000.
4. Raider changed their estimate of bad debts from 3% to 4%. If Raider had used the 4% in
the past, bad debt expenses would be $180,000 higher (pre-tax).
5. Raider discovered an error had been made in recorded past depreciation on a building.
The building was original purchased for $1,000,000 on April 1, 2014. The salvage value
was estimated at 295,000. The bookkeeper had used an estimated useful life of 30
instead of the correct 20 years.
6. Raider had $3,000 in unrealized holding gains on trading securities.
7.
Raider had $54,000 in unrealized loss on hedging transactions.
Provide the journal entry that Raider will do to correct the error. Good journal entry
format is required
You must use correct format, linage, and titles (abbreviations are allowed, indicate net of tax when
needed).
Beginning Balance
Totals
Retained
Earnings
$ 1,200,000
Accumulated Other
Comprehensive
Income
$ 168,000
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