Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Chapter 7, Problem 19P
a)
To determine
Concept Introduction:
When a company has two or more subsidiaries, if it maintains a single income statement with all the subsidiaries, then it is called a consolidated income statement. it's a part of the consolidated financial statement. It is a report that compiles all of a parent company's and subsidiary's actions into one document.
The amount that appears in each line in the consolidated financial statements.
b)
To determine
Concept Introduction:
When a company has two or more subsidiaries, if it maintains a single income statement with all the subsidiaries, then it is called a consolidated income statement. It’s a part of the consolidated financial statement. It is a report that compiles all of a parent company's and subsidiary's actions into one document.
:
The income tax expenses that will appear on the consolidated income statements if the company files a separate return.
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Central Avenue Company reported net income of P700,000 for the year 2021. The entity declared and paid dividends of P150,000 in 2021 and P300,000 in 2020. In the financial statements for the year ended December 31, 2020, the entity reported retained earnings of P1,500,000 on January 01, 2020. The net income for 2020 was P600,000. In 2021, after the 2020 financial statements were approved for issue, the entity discovered an error in the December 31, 2021 financial statements. The after-tax effect of the error was P420,000 understatement of net income for the year ended December 31, 2020 due to over-depreciation.What amount should be reported as retained earnings on December 31, 2021?
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Central Avenue Company reported net income of P700,000 for the year 2021. The entity declared and paid dividends of P150,000 in 2021 and P300,000 in 2020. In the financial statements for the year ended December 31, 2020, the entity reported retained earnings of P1,500,000 on January 01, 2020. The net income for 2020 was P600,000. In 2021, after the 2020 financial statements were approved for issue, the entity discovered an error in the December 31, 2021 financial statements. The after-tax effect of the error was P420,000 understatement of net income for the year ended December 31, 2020 due to over-depreciation.
What amount was reported as retained earnings on December 31, 2020?
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TMC Company reported net income of P700,000 for 2020. The entity declared and paid dividend of P150,000 in 2020.
In the financial statements for the year ended December 31, 2019, the entity reported retained earnings of P1,100,000 on
Janauary 1, 2019
The net income for 2019 was P600,000 and the entity declared and paid dividend of P300,000 in 2019.
In 2020, after the 2019 financial statements were approved for issue, the entity discovered an error in the December 31,
2018 financial statements.
The net effect of the error was a P650,000 overstatement of net income for the year ended December 31, 2018 due to
underdepreciation.
What amount should be reported as retained earnings on December 31, 2020?
Chapter 7 Solutions
Advanced Accounting
Ch. 7 - Prob. 1QCh. 7 - Prob. 2QCh. 7 - Prob. 3QCh. 7 - How does the presence of an indirect ownership...Ch. 7 - Prob. 5QCh. 7 - In accounting for mutual ownerships, what is the...Ch. 7 - Prob. 7QCh. 7 - Prob. 8QCh. 7 - Prob. 9QCh. 7 - Prob. 10Q
Ch. 7 - Prob. 11QCh. 7 - Jones acquires Wilson, in part because the new...Ch. 7 - Prob. 13QCh. 7 - Prob. 1PCh. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Which of the following is correct for two...Ch. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 7PCh. 7 - Prob. 8PCh. 7 - Prob. 9PCh. 7 - Prob. 10PCh. 7 - Prob. 11PCh. 7 - Prob. 13PCh. 7 - Prob. 14PCh. 7 - Prob. 15PCh. 7 - Prob. 16PCh. 7 - Prob. 17PCh. 7 - Prob. 18PCh. 7 - Prob. 19PCh. 7 - Prob. 20PCh. 7 - Prob. 23PCh. 7 - Prob. 24PCh. 7 - Prob. 26P
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