total assets after restatement for hyperinflation? a. 3,550,000 b. 6,000,000 c. 6,780,000 d. 5,000,000 2. What amount should be reported as retained earnings after restatement? a. 950,000 b. 200,000 c. 400,000 d. 500,000 3. What amount should be reported as total shareholders’ equity after restatement? a. 5,200,000 b. 5,400,000 c. 6,150,000 d. 5,800,000
total assets after restatement for hyperinflation? a. 3,550,000 b. 6,000,000 c. 6,780,000 d. 5,000,000 2. What amount should be reported as retained earnings after restatement? a. 950,000 b. 200,000 c. 400,000 d. 500,000 3. What amount should be reported as total shareholders’ equity after restatement? a. 5,200,000 b. 5,400,000 c. 6,150,000 d. 5,800,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
1. What amount should be reported as total assets after restatement for hyperinflation?
a. 3,550,000
b. 6,000,000
c. 6,780,000
d. 5,000,000
2. What amount should be reported as
a. 950,000
b. 200,000
c. 400,000
d. 500,000
3. What amount should be reported as total shareholders’ equity after restatement?
a. 5,200,000
b. 5,400,000
c. 6,150,000
d. 5,800,000
Transcribed Image Text:Star Company provided the following statement of financial position accounts on December 31, 2021
based on historical cost:
Cash
100,000
1,200,000
Accounts Receivable
Inventory (most recent acquisition)
Land
800,000
400,000
Building
Accumulated depreciation – building
Equipment
Accumulated depreciation - equipment
1,000,000
100,000
500,000
250,000
Accounts payable
Share capital – issued January 1, 2016
Retained earnings
600,000
2,000,000
1,050,000
Date acquired
January 1, 2016
January 1, 2016
January 1, 2018
December 31, 2021
Index number
Land
100
Building
Equipment
End of reporting period
Average index during 2021
100
125
260
240
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