The records of Swifty Corp. for calendar 2023 reflected the following correct pre-tax amounts: gain from discontinued operations,$41,000; cash dividends declared and paid, $36,900; retained earnings, January 1, 2023, $225,500, correction of accounting error,$28,700 debit; income before income taxes and before discontinued operations, $135,300. The average income tax rate of 40%applies to all items except the dividends.Calculate the December 31, 2023 ending balance of retained earnings.

The records of Swifty Corp. for calendar 2023 reflected the following correct pre-tax amounts: gain from discontinued operations,$41,000; cash dividends declared and paid, $36,900; retained earnings, January 1, 2023, $225,500, correction of accounting error,$28,700 debit; income before income taxes and before discontinued operations, $135,300. The average income tax rate of 40%applies to all items except the dividends.Calculate the December 31, 2023 ending balance of retained earnings.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 52E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and taxable income for 2020. The prior period adjustment was the result of an error in calculating bad debt expense for 2019. The current tax rate is 30%, and no change in the tax rate has been enacted for future years. When the company applies intraperiod income tax allocation, the prior period adjustment will be shown on the: a. income statement at 12,000 b. income statement at 8,400 (net of 3,600 income taxes) c. retained earnings statement at 12,000 d. retained earnings statement at 8,400 (net of 3,600 income taxes)
The records of Culver Corp. for calendar 2023 reflected the following correct pre-tax amounts: gain from discontinued operations, $44,000; cash dividends declared and paid, $39,600; retained earnings, January 1, 2023, $242,000, correction of accounting error, $30,800 debit; income before income taxes and before discontinued operations, $145,200. The average income tax rate of 40 % applies to all items except the dividends. Calculate the December 31, 2023 ending balance of retained earnings. Ending balance of retained earnings
The records of Groot Corp. for calendar 2020 reflected the following correct pre-tax amounts: Gain from discontinued operations, $50,000; Cash dividends declared and paid, $45,000; Retained earnings, January 1, 2020, $275,000, Correction of accounting error, $35,000 debit; Income before income taxes and before discontinued operations, $165,000. The average income tax rate of 40% applies to all items except the dividends. Required Calculate the December 31, 2020 ending balance of retained earnings.
The records of Biloxi Corp. for calendar 2023 reflected the following correct pre-tax amounts: gain from discontinued operations, $50,000; cash dividends declared and paid, $45,000; retained earnings, January 1, 2023, $275,000, correction of accounting error, $ 35,000 debit; income before income taxes and before discontinued operations, $165,000. The average income tax rate of 40% applies to all items except the dividends. Instructions Calculate the December 31, 2023 ending balance of retained earnings.
MMT Corporation reports the following income statement items ($ in millions) for the year ended December 31, 2024: sales revenue, $2,195; cost of goods sold, $1,430; selling expense, $210; general and administrative expense, $200; interest expense, $35; and gain on sale of investments, $100. Income tax expense has not yet been recorded. The income tax rate is 25%.
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For the year ended December 31, 2018, Fidelity Engineering reported pretax accounting income of $977,000.Selected information for 2018 from Fidelity’s records follows:Interest income on municipal bonds $32,000Depreciation claimed on the 2018 tax return in excess of depreciation on the income statement 55,000Carrying amount of depreciable assets in excess of their tax basis at year-end 85,000Warranty expense reported on the income statement 26,000Actual warranty expenditures in 2018 16,000Fidelity’s income tax rate is 40%. At January 1, 2018, Fidelity’s records indicated balances of zero and $12,000in its deferred tax asset and deferred tax liability accounts, respectively.Required:1. Determine the amounts necessary to record income taxes for 2018, and prepare the appropriate journal entry.2. What is Fidelity’s 2018 net income?
COD Corporation's accounting records include the following items, listed in no particular order, at December 31, 2025: View the data. The income tax rate for COD Corporation is 21%. Prepare COD Corporation's income statement for the year ended December 31, 2025. Omit earnings per share. Use the multi-step format. Prepare the income statement through the income before taxes, then complete the income statement through the net income. (Use parentheses or a minus sign to enter amounts for Other Expenses.) COD Corporation Income Statement Year Ended December 31, 2025 Data Income Before Income Taxes - Other Income and (Expenses) $ Net Sales Revenue Gain on Discontinued Operations (12,000) 167,800 2,400 Cost of Goods Sold 80,000 Operating Expenses 55,000 Print Done ☑
Oriole Corporation, a private company, began operations on January 1, 2020. During its first three years of operations, Oriole reported net income and declared dividends as follows: 2020 2021 2022 Net income $54,000 136,000 160,000 Dividends declared $0 50,000 50,000 The following information is for 2023: Income before income tax Correction of prior period error: understatement of 2021 depreciation expense (before tax) Cumulative increase in prior years' income from change in inventory method (before tax) Dividends declared (of this amount, $25,000 will be paid on January 15, 2024) Effective tax rate $360,000 39,000 49,000 100,000 40% Prepare a 2023 statement of retained earnings for Oriole. The company follows ASPE. (List items that increase retained earnings first after adjusted balance. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).)
The following information relates to Sandhill Corporation's transactions during 2023, its first year of operations. 1. 2. 3. 4. 5. 6. Income before income tax on the income statement for 2023 was $56,000. Income before income tax ($56,000 above) is net of a loss due to the writedown of land of $48,000. Sandhill reported a tax-deductible financing charge of $6,300 on its 2023 statement of retained earnings. The charge is for interest on a financial instrument that is legally debt, but in substance is equity for financial reporting purposes. The tax rate enacted for 2023 and future years is 30%. Because this was Sandhill's first taxation year, no instalments on account of income taxes were required or paid by Sandhill. Differences between the 2023 GAAP amounts and their treatment for tax purposes were as follows: a. Warranty expense accrued for financial reporting purposes amounted to $16,000. Warranty payments deducted for taxes amounted to $12,800. Warranty liabilities were classified…
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Coronado Corporation, a private company, began operations on January 1, 2020. During its first three years of operations. Coronado reported net income and declared dividends as follows: 2020 2021 2022 Net income $50,000 130,000 151,000 Dividends declared Effective tax rate $0 50,000 The following information is for 2023: 50,000 Income before income tax Correction of prior period error: understatement of 2021 depreciation expense (before tax) Cumulative increase in prior years' income from change in inventory method (before tax) Dividends declared (of this amount, $25,000 will be paid on January 15, 2024) $320,000 Coronado Corporation Statement of Retained Earnings 35,000 45,000 100.000 40% Prepare a 2023 statement of retained earnings for Coronado. The company follows ASPE. (List items that increase retained earnings first after adjusted balance. Enter negative amounts using either o negative sign preceding the number e.g. -45 or parentheses e.g. (45).)