Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 4, Problem 4.8BE
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How much is the net income(loss) for the year?
Shep Company's records show the following information for the current year.
Beginning of
year
$ 50,800
$ 22,400
Total assets
Total liabilities.
End of year
$ 81,000
$ 35,400
Determine net income (loss) for each of the following separate situations.
Note: For all requirements, losses should be entered with a minus sign.
a. Additional common stock of $3,400 was issued and dividends of $7,400 were paid during the current year.
b. Additional common stock of $15,100 was issued and no dividends were paid during the current year.
c. No additional common stock was issued and dividends of $12,400 were paid during the current year.
a. Net income (loss)
b. Net income (loss)
c. Net income (loss)
On January 1, 2022, Pharoah Corporation had retained earnings of $546,000. During the year, Pharoah had the following selected
transactions.
1.
2.
3.
4.
Declared and paid cash dividends $126,000.
Corrected overstatement of 2021 net income because of inventory error $43,000.
Earned net income $348,000.
Declared and paid stock dividends $63,000.
Determine the retained earnings balance at the end of the year.
Retained earnings $
Chapter 4 Solutions
Intermediate Accounting
Ch. 4 - Prob. 4.1QCh. 4 - ShoeBuy uses reversing entries for events such as...Ch. 4 - What is equity? What are the three components of...Ch. 4 - Prob. 4.4QCh. 4 - Will all transactions have a dual effect on the...Ch. 4 - Prob. 4.6QCh. 4 - What is meant by the term normal balance? Provide...Ch. 4 - Why is the general journal referred to as the book...Ch. 4 - Are account balances found in the general ledger?...Ch. 4 - What is the purpose of an unadjusted trial...
Ch. 4 - Explain the difference between the accrual basis...Ch. 4 - Under the accrual basis of accounting when do...Ch. 4 - Why are adjusting journal entries made? When do...Ch. 4 - What is a deferred revenue? When will the full...Ch. 4 - What is the purpose of the adjusted trial...Ch. 4 - Which statements can be prepared from the adjusted...Ch. 4 - Prob. 4.17QCh. 4 - Jefferson, CPAs provides accounting services for a...Ch. 4 - Gates Accounting Services (GAS), a sole...Ch. 4 - Prob. 4.3MCCh. 4 - State University sold all of its basketball...Ch. 4 - Prob. 4.5MCCh. 4 - Sampson Manufacturing Company (SMC) has an empty...Ch. 4 - On July 15, Year 1, Southeastern University hired...Ch. 4 - Embree Corp. purchased a four-year insurance...Ch. 4 - The Cougars football team sells season tickets in...Ch. 4 - Prob. 4.10MCCh. 4 - Prob. 4.1BECh. 4 - Transaction Analysis. Florences Floral...Ch. 4 - Journal Entries. Using the information provided in...Ch. 4 - Prob. 4.4BECh. 4 - Prob. 4.5BECh. 4 - Prob. 4.6BECh. 4 - Retained Earnings. In its first year of...Ch. 4 - Retained Earnings. Using the information provided...Ch. 4 - Prob. 4.9BECh. 4 - Prob. 4.10BECh. 4 - Prob. 4.11BECh. 4 - Prob. 4.12BECh. 4 - Prob. 4.13BECh. 4 - Prob. 4.14BECh. 4 - Prob. 4.15BECh. 4 - Closing Entries. Using the information provided in...Ch. 4 - Closing Entries. At year-end Nelsons Nursery, Inc...Ch. 4 - Closing Entries. Readers, Inc., an online...Ch. 4 - Adjusting Journal Entries. Barnard and Associates...Ch. 4 - Prob. 4.20BECh. 4 - Adjusting Journal Entries. Gerhard News collects...Ch. 4 - Prob. 4.22BECh. 4 - Prob. 4.23BECh. 4 - Prob. 4.24BECh. 4 - Transaction Analysis. The following transactions...Ch. 4 - Prob. 4.2ECh. 4 - Prob. 4.3ECh. 4 - Prob. 4.4ECh. 4 - Prob. 4.5ECh. 4 - Prob. 4.6ECh. 4 - Prob. 4.7ECh. 4 - Prob. 4.8ECh. 4 - Prob. 4.9ECh. 4 - Prob. 4.10ECh. 4 - Prob. 4.11ECh. 4 - Prob. 4.12ECh. 4 - Prob. 4.13ECh. 4 - Prob. 4.14ECh. 4 - Prob. 4.15ECh. 4 - Prob. 4.16ECh. 4 - Prob. 4.17ECh. 4 - Prob. 4.18ECh. 4 - Prob. 4.19ECh. 4 - Prob. 4.20ECh. 4 - Prob. 4.21ECh. 4 - Prob. 4.22ECh. 4 - Prob. 4.1PCh. 4 - Prob. 4.2PCh. 4 - Prob. 4.3PCh. 4 - Prob. 4.4PCh. 4 - Prob. 4.5PCh. 4 - Prob. 4.6PCh. 4 - Prob. 4.7PCh. 4 - Prob. 4.8PCh. 4 - Prob. 4.9P
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- On January 1, 2022, Wildhorse Corporation had retained earnings of $540,000. During the year, Wildhorse had the following selected transactions. Declared cash dividends $120,000. 2. Corrected overstatement of 2021 net income because of inventory error $40,000. Earned net income $345,000. 4. Declared stock dividends $60,000. 1. 3. Determine the retained earnings balance at the end of the year. Retained earnings LAarrow_forwardno Shep Company's records show the following information for the current year: Beginning of year $ 52,800 $ 23,400 Total assets Total liabilities End of year $ 83,500 $ 36,400 Determine net income (loss) for each of the following separate situations. (For all requirements, losses should be entered wit minus sign.) a. Additional common stock of $4,400 was issued, and dividends of $8,400 were paid during the current year. b. Additional common stock of $15,350 was issued, and no dividends were paid during the current year. c. No additional common stock was issued, and dividends of $13,400 were paid during the current year. a. Net income (loss) b. Net income (loss) c. Net income (loss)arrow_forwardFor the year ended December 31, 2006, the financial records of Planet Corp. reported the ff.: Total revenues - P801,400; total expenses - P601.100: Dividends declared - P25,600. What is the entry to close Income Summary to Retained Earnings?arrow_forward
- Need Answerarrow_forwardLowell reports retained earnings at the end of fiscal 2019 of $41115 and retained earnings at the end of fiscal 2018 of $35180. The company reported dividends of $5026. How much net income did the firm report in fiscal 2019? (Round your answer to zero decimal places and omit the "$" sign. Add a minus sign if needed. For example, if your answer is $1,000.2, type in "1000") 1arrow_forwardWhat is the net income for the current year? Presented below are the changes in all the account balances of Ering Company for the current year, except for retained earnings, are as follows: Increase (Decrease) Accounts payable (171,000) 369,000 Bonds payable Share capital 562,500 Inventory 571,500 Investments (211,500) Share premium 58,500 Cash 355,500 Account receivable, net 108,000 There were no entries in the retained earnings account except for net income and a dividend declaration of P85,500 which paid in the current year. Your answerarrow_forward
- ABC Corporation reported retained earnings of $1,250 on its year-end balance sheet. During the next year, the company reported $620 in net income, and in that next year it paid out a dividend of $200. What will retained earnings be at the end of the next year? O $ 1,370 O $ 1,050 O $ 1,570 O $1,470 O $1,670arrow_forwardOn 12/31/2020, Heaton Industries Inc. reported retained earnings of $575,000 on its balance sheet, and it reported that it had $172,500 of net income during the year. On its previous balance sheet, at 12/31/2019, the company had reported $555,000 of retained earnings. No shares were repurchased during 2020. How much in dividends did Heaton pay during 2020? Select the correct answer. a. $152,443 b. $152,328 c. $152,500 d. $152,385 e. $152,270arrow_forwardOn 12/31/2020, Heaton Industries Inc. reported retained earnings of $675,000 on its balance sheet, and it reported that it had $172,500 of net income during the year. On its previous balance sheet, at 12/31/2019, the company had reported $555,000 of retained earnings. No shares were repurchased during 20205. How much in dividends did Heaton pay during 2020? Group of answer choices A. $47,381 B. $49,875 C. $52,500 D. $55,125 E. $57,881arrow_forward
- Sheridan Company started the year with $50400 in its Common Stock account and a credit balance in Retained Earnings of $37000. During the year, the company earned net income of $40300, and declared and paid $16800 of dividends. In addition, the company sold additional common stock amounting to $23500. The amount reported for ending retained earnings on the retained earnings statement would be O $110900. O $84000 O $60500. O $134400arrow_forwardHaresh Narrow_forwardOn January 1, 2024, Blossom Corporation had retained earnings of $600,000. During the year, Blossom had the following selected transactions: 1. 2. 3. 4. 5. Declared and paid cash dividends, $245,000. Earned profit before income tax, $750,000. Corrected a prior period error of $85,000, before income tax, which resulted in an understatement of profit in 2023. Reacquired 20,000 common shares for $50,000 more than the original issue price. This was the first time the company had ever reacquired its own shares. Completed a 3-for-1 stock split of the common shares. Blossom has a 25% income tax rate and reports under ASPE. Prepare a statement of retained earnings for the year ended December 31, 2024. (List items that increase adjusted retained earnings first.) BLOSSOM CORPORATION Statement of Retained Earnings $ $arrow_forward
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