FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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In an examination of Arenes Corporation as of December 31, 2020, you have learned that the following situations exist. No entries have been made in the accounting records for these items.
1. The corporation erected its present factory building in 2004.
2. An additional assessment of 2019 income taxes was levied and paid in 2020.
3. When calculating the accrual for officers’ salaries at December 31, 2020, it was discovered that the accrual for officers’ salaries for December 31, 2019, had been overstated.
4. On December 15, 2020, Arenes Corporation declared a cash dividend on its common stock outstanding, payable February 1, 2021, to the common stockholders of record December 31, 2020.
Instructions
Describe fully how each of the items above should be reported in the financial statements of Arenes Corporation for the year 2020.
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