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Part 2. Statement of Changes in Stockholders' Equity and PPA Journal Entry( Use the following current fiscal year information for Raider Company to fill in the changes to the (Partial) Statement of Changes to Stockholders' Equity for 2022. Raider has a tax rate of 30% in all years. 1. Raider reported a Net Income of $105,000, which is calculated correctly. 2. Raider recognized dividend revenue of $30,000, declared dividends of $15,000, but only paid $10,000 in dividends. 3. Raider changed from one accounting principle to another and calculated a pre-tax cumulative effect of a decrease in revenues for prior years of $78,000. 4. Raider changed their estimate of bad debts from 3% to 4%. If Raider had used the 4% in the past, bad debt expenses would be $180,000 higher (pre-tax). 5. Raider discovered an error had been made in recorded past depreciation on a building. The building was original purchased for $1,000,000 on April 1, 2014. The salvage value was estimated at 295,000. The bookkeeper had used an estimated useful life of 30 instead of the correct 20 years. 6. Raider had $3,000 in unrealized holding gains on trading securities. 7. Raider had $54,000 in unrealized loss on hedging transactions. Provide the journal entry that Raider will do to correct the error. Good journal entry format is required You must use correct format, linage, and titles (abbreviations are allowed, indicate net of tax when needed). Beginning Balance Totals Retained Earnings $ 1,200,000 Accumulated Other Comprehensive Income $ 168,000

Part 2. Statement of Changes in Stockholders' Equity and PPA Journal Entry( Use the following current fiscal year information for Raider Company to fill in the changes to the (Partial) Statement of Changes to Stockholders' Equity for 2022. Raider has a tax rate of 30% in all years. 1. Raider reported a Net Income of $105,000, which is calculated correctly. 2. Raider recognized dividend revenue of $30,000, declared dividends of $15,000, but only paid $10,000 in dividends. 3. Raider changed from one accounting principle to another and calculated a pre-tax cumulative effect of a decrease in revenues for prior years of $78,000. 4. Raider changed their estimate of bad debts from 3% to 4%. If Raider had used the 4% in the past, bad debt expenses would be $180,000 higher (pre-tax). 5. Raider discovered an error had been made in recorded past depreciation on a building. The building was original purchased for $1,000,000 on April 1, 2014. The salvage value was estimated at 295,000. The bookkeeper had used an estimated useful life of 30 instead of the correct 20 years. 6. Raider had $3,000 in unrealized holding gains on trading securities. 7. Raider had $54,000 in unrealized loss on hedging transactions. Provide the journal entry that Raider will do to correct the error. Good journal entry format is required You must use correct format, linage, and titles (abbreviations are allowed, indicate net of tax when needed). Beginning Balance Totals Retained Earnings $ 1,200,000 Accumulated Other Comprehensive Income $ 168,000

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 13E: Ratio of liabilities to stockholders equity and times interest earned The following data were taken...
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Part 2. Statement of Changes in Stockholders' Equity and PPA Journal Entry( Use the following current fiscal year information for Raider Company to fill in the changes to the (Partial) Statement of Changes to Stockholders' Equity for 2022. Raider has a tax rate of 30% in all years. 1. Raider reported a Net Income of $105,000, which is calculated correctly. 2. Raider recognized dividend revenue of $30,000, declared dividends of $15,000, but only paid $10,000 in dividends. 3. Raider changed from one accounting principle to another and calculated a pre-tax cumulative effect of a decrease in revenues for prior years of $78,000. 4. Raider changed their estimate of bad debts from 3% to 4%. If Raider had used the 4% in the past, bad debt expenses would be $180,000 higher (pre-tax). 5. Raider discovered an error had been made in recorded past depreciation on a building. The building was original purchased for $1,000,000 on April 1, 2014. The salvage value was estimated at 295,000. The bookkeeper had used an estimated useful life of 30 instead of the correct 20 years. 6. Raider had $3,000 in unrealized holding gains on trading securities. 7. Raider had $54,000 in unrealized loss on hedging transactions. Provide the journal entry that Raider will do to correct the error. Good journal entry format is required You must use correct format, linage, and titles (abbreviations are allowed, indicate net of tax when needed). Beginning Balance Totals Retained Earnings $ 1,200,000 Accumulated Other Comprehensive Income $ 168,000
Transcribed Image Text:Part 2. Statement of Changes in Stockholders' Equity and PPA Journal Entry( Use the following current fiscal year information for Raider Company to fill in the changes to the (Partial) Statement of Changes to Stockholders' Equity for 2022. Raider has a tax rate of 30% in all years. 1. Raider reported a Net Income of $105,000, which is calculated correctly. 2. Raider recognized dividend revenue of $30,000, declared dividends of $15,000, but only paid $10,000 in dividends. 3. Raider changed from one accounting principle to another and calculated a pre-tax cumulative effect of a decrease in revenues for prior years of $78,000. 4. Raider changed their estimate of bad debts from 3% to 4%. If Raider had used the 4% in the past, bad debt expenses would be $180,000 higher (pre-tax). 5. Raider discovered an error had been made in recorded past depreciation on a building. The building was original purchased for $1,000,000 on April 1, 2014. The salvage value was estimated at 295,000. The bookkeeper had used an estimated useful life of 30 instead of the correct 20 years. 6. Raider had $3,000 in unrealized holding gains on trading securities. 7. Raider had $54,000 in unrealized loss on hedging transactions. Provide the journal entry that Raider will do to correct the error. Good journal entry format is required You must use correct format, linage, and titles (abbreviations are allowed, indicate net of tax when needed). Beginning Balance Totals Retained Earnings $ 1,200,000 Accumulated Other Comprehensive Income $ 168,000
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