Sows company established at January 2016 to produce foods andmedicine for animals, the company purchased a heavy equipment forproduction which cost 1,200,000 with 10 years useful life and 100,000salvage value, the company used doble declining method for depreciationand W A for inventory. In 31/12/2019 the company changes its inventorymethod to FIFO, and its depreciation method to straight line, thefollowing reported income bef ore tax for the previous yearsYear2016201720182019The differences in income just related for change in inventory method,income for 2020 under FIFO before tax was $150,000 after deductible98304 depreciation expenses at doble declining method, the companydeclared $45,000 cash dividend and $50,000 share dividend. Theaccumulated depreciation at 31/12/2020 $806,784.income at W.A370,000390,000410,000280,000income FIFO dividend paid395,000420,000380,000320,000160,000250,000300,000200,000Required: if the 25% income tax didn't change during the years:1) Calculated the adjusted income for the year ended 31/12/20202) prepare the retain ed earnings statement for the ended31/12/20203) Journalize any entry required for the adjustment

Name: Sows company established at January 2016 to produce foods andmedicine
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Description: Sows company established at January 2016 to produce foods andmedicine for animals, the company purchased a heavy equipment forproduction which cost 1,200,000 with 10 years useful life and 100,000salvage value, the company used doble declining method

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Sows company established at January 2016 to produce foods and medicine for animals, the company purchased a heavy equipment for production which cost 1,200,000 with 10 years useful life and 100,000 salvage value, the company used doble declining method for depreciati and WA for inventory. In 31/12/2019 the company changes its inventc method to FIFO, and its depreciation method to straight line, the Following reported income before tax for the previous years Year income at WA 370,000 390,000 410,000 280,000 income FIFO dividend paid 395,000 420,000 380,000 320,000 2016 160,000 250,000 300,000 200,000 2017 2018 2019

Sows company established at January 2016 to produce foods and medicine for animals, the company purchased a heavy equipment for production which cost 1,200,000 with 10 years useful life and 100,000 salvage value, the company used doble declining method for depreciati and WA for inventory. In 31/12/2019 the company changes its inventc method to FIFO, and its depreciation method to straight line, the Following reported income before tax for the previous years Year income at WA 370,000 390,000 410,000 280,000 income FIFO dividend paid 395,000 420,000 380,000 320,000 2016 160,000 250,000 300,000 200,000 2017 2018 2019

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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