Presented below is X Corporation's selected data for 2020: Retained Eamings, January 1, 2020 Net Income Stock dividends declared During the year, the company changed its inventory method from FIFO to LIFO which had resulted in a net of tax |decrease in income Cash dividends deelared During 2020, the company discovered that the 2019 depreciation expense were overstated by a pretax amount of $900,000 88,200 14,280 11,000 21,000 10,000 Tax rate 30% Based on the data above, the changes in the accounting principles (from FIFO to LIFO) had Decreased retained earnings by $7,700 Decreased retained earnings by $3,300 Decreased retained earnings by $11,000 None of the above

Presented below is X Corporation's selected data for 2020: Retained Eamings, January 1, 2020 Net Income Stock dividends declared During the year, the company changed its inventory method from FIFO to LIFO which had resulted in a net of tax |decrease in income Cash dividends deelared During 2020, the company discovered that the 2019 depreciation expense were overstated by a pretax amount of $900,000 88,200 14,280 11,000 21,000 10,000 Tax rate 30% Based on the data above, the changes in the accounting principles (from FIFO to LIFO) had Decreased retained earnings by $7,700 Decreased retained earnings by $3,300 Decreased retained earnings by $11,000 None of the above

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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At January 1, 2020, Crane Company reported retained earnings of $1,938,000. In 2020, Crane discovered that 2019 depreciation expense was understated by $387,600. In 2020, net income was $822,000 and dividends declared were $205,000. The tax rate is 20%. Prepare a 2020 retained earnings statement for Crane Company. CRANE COMPANY Retained Earnings Statement
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 > >
selected data for 2020: Retained Eamings, January 1, 2020 $900,000 Net Income 88,200 Stock dividends declared 14,280 During the year, the company changed its inventory method from FIFO to LIFO which had resulted in a net of tax 11,000 decrease in income Cash dividends declared 21,000 During 2020, the company discovered that the 2019 10,000 depreciation expense were overstated by a pretax amount of Tax rate 30% Based on the data above, Retained Earnings at December 31, 2020 was: * $951,920 $952,220 $948,920
Simple Income Statement The following are selected items derived from Dibb Company’s adjusted trial balance on December 31, 2019: Loss on sale of land $5000 Cost of goods sold $130,000 Sales (net) $198000 Operating expenses $45000 Twelve thousand shares of common stock were outstanding the entire year. Required: Assuming a 30% income tax rate on all items of income, prepare Dibb’s 2019 income statement using (1) a multi-ple-step format
ine following intormation pertains tO Alpha Computing at the ena of 2021: Assets $957,500 $452,500 $270,000 $330,000 Liabilities Net Income Common Stock Alpha Computing's Retained Earnings account had a zero balance at the beginning of 2021. What amount of dividends did the company declare 2021? Multiple Choice $96,000 $97,000 $98,000 $95.000
8. Cerritos Corporation began operations on January 1, 2017. During its first three years of operations, Cerritos reported net income and declared dividends as follows: Net income Dividends declared 2017 P 80,000 P 0 2018 250,000 100,000 2019 300,000 100,000 The following information related to 2020: Prior period adjustment: understatement of 2018 depreciation expense (before taxes) P 40,000 Cumulative decrease in income from change in inventory methods (before taxes) 70,000 Income before income tax 480,000 Dividends declared (of this amount, P50,000 will be paid on January 15, 2021) 200,000 Effective tax rate 35% As at December 31, 2020, the retained earnings of Cerritos Corporation is Group of answer choice 520,500 484,500 430,000 470,500
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What is the overstatement or understatement in the beginning retained earnings for 2019? 500,000 understatement 200,000 understatement 300,000 overstatement 100,000 overstatement 500,000 overstatement 200,000 overstatement 300,000 understatement 100,000 understatement None of the choices
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