Required:Record the entry in 20X6 to correct the error. (If no entry is required for a transaction/event, select "No Journal entry required"he first account field.)Answer is not complete.NoDateGeneral JournalDebitCredit120X6Accumulated depreciation134,000Deferred income tax liabilityRetained earnings, error correction33,5002. Prepare the comparative retained earnings section of the statement of changes in shareholders' equity for 20X5, reflecting theChange.Answer is not complete.DALIA CORPORATIONRetained Earnings StatementFor the Year Ended 31 December20X620X5Beginning retained earnings, as previously reportedError correction, depreciation, net and tax.Beginning balance restatedEarnings (restated for 20X5)Dividends declaredEnding balance$0$0$069$0 In 20X6, Dalia Corp., a calendar fiscal-year company, discovered that depreciation expense was erroneously overstated $67,000 inboth 20X4 and 20X5 for financial reporting purposes. Net income in 20X6 is correct. The tax rate is 25%. The error was made only forfinancial reporting, affecting depreciation and deferred income tax accounts. CCA had been recorded correctly, and thus there will beno change in taxes payable.Additional Information:20X620X5Beginning retained earnings$454,000$430,400Earnings (includes error in 20X5)Dividends declared85,40095,90062,20072,300

Retained earnings refer to the portion of a company's net income that is retained or reinvested in…

20X6, Dalia Corp., a calendar fiscal-year company, discovered that depreciation expense was erroneously overstated $67,000 in oth 20X4 and 20X5 for financial reporting purposes. Net income in 20X6 is correct. The tax rate is 25%. The error was made only for inancial reporting, affecting depreciation and deferred income tax accounts. CCA had been recorded correctly, and thus there will be o change in taxes payable. Additional information: Beginning retained earnings Earnings (includes error in 20x5) Dividends declared 20X6 $454,000 20X5 $430,400 85,400 95,900 62,200 72,300

20X6, Dalia Corp., a calendar fiscal-year company, discovered that depreciation expense was erroneously overstated $67,000 in oth 20X4 and 20X5 for financial reporting purposes. Net income in 20X6 is correct. The tax rate is 25%. The error was made only for inancial reporting, affecting depreciation and deferred income tax accounts. CCA had been recorded correctly, and thus there will be o change in taxes payable. Additional information: Beginning retained earnings Earnings (includes error in 20x5) Dividends declared 20X6 $454,000 20X5 $430,400 85,400 95,900 62,200 72,300

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter14: Taxes On The Financial Statements

Section: Chapter Questions

Problem 3BCRQ

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In 20X6, Dalia Corp., a calendar fiscal-year company, discovered that depreciation expense was erroneously overstated $67,000 in both 20X4 and 20X5 for financial reporting purposes. Net income in 20X6 is correct. The tax rate is 25%. The error was made only for financial reporting, affecting depreciation and deferred income tax accounts. CCA had been recorded correctly, and thus there will be ho change in taxes payable. Additional information: 20X6 20X5 Beginning retained earnings $454,000 Earnings (includes error in 20X5) Dividends declared 85,400 62,200 $430,400 95,900 72,300 Required: 1. Record the entry in 20X6 to correct the error. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the entry for 20X6 to correct the error.
In 20X6, Dalia Corp., a calendar fiscal-year company, discovered that depreciation expense was erroneously overstated $68,000 in both 20X4 and 20X5 for financial reporting purposes. Net income in 20X6 is correct. The tax rate is 35%. The error was made only for financial reporting, affecting depreciation and deferred income tax accounts. CCA had been recorded correctly, and thus there will be no change in taxes payable. Additional information: Z0X6 Beginning retained earnings $456,000 zexs $432,500 Earnings (includes error in 20x5) Dividends declared 85,800 62,500 96,400 72,900 Required: 1. Record the entry in 20X6 to correct the error. (If no entry is required for a transaction/event, select "No Journal entry required" In the first account field.) Answer is not complete. General Journal Debit Credit 136,000 23,800x 112,200x No 1 Date 20X6 Deferred income tax liability Retained earnings, error correction 2. Prepare the comparative retained earnings section of the statement of changes…
Miller Co. discovered that in the prior year, it failed to report $40,000 of depreciation related to a newly constructed building. The depreciation was computed correctly for tax purposes. The tax rate for the current year was 40%. What was the impact of the error on Miller’s financial statements for the prior year? Understatement of net income of $24,000. Understatement of accumulated depreciation of $40,000. Understatement of depreciation expense of $24,000. Understatement of accumulated depreciation of $24,000.
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