selected data for 2020: Retained Eamings, January 1, 2020 $900,000 Net Income 88,200 Stock dividends declared 14,280 During the year, the company changed its inventory method from FIFO to LIFO which had resulted in a net of tax 11,000 decrease in income Cash dividends declared 21,000 During 2020, the company discovered that the 2019 depreciation expense were overstated by a pretax amount of 10,000 Tax rate 30% Based on the data above, Retained Earnings at December 31, 2020 was: $951,920 $952,220 $948,920

selected data for 2020: Retained Eamings, January 1, 2020 $900,000 Net Income 88,200 Stock dividends declared 14,280 During the year, the company changed its inventory method from FIFO to LIFO which had resulted in a net of tax 11,000 decrease in income Cash dividends declared 21,000 During 2020, the company discovered that the 2019 depreciation expense were overstated by a pretax amount of 10,000 Tax rate 30% Based on the data above, Retained Earnings at December 31, 2020 was: $951,920 $952,220 $948,920

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 5RE: Bloom Company had beginning unadjusted retained earnings of 400,000 in the current year. At the...

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Bloom Company had beginning unadjusted retained earnings of 400,000 in the current year. At the beginning of the current year, Bloom changed its inventory method from LIFO to FIFO, and the cumulative effect (net of taxes) of this change was 28,000. In addition, Bloom earned net income of 150,000 and paid dividends of 30,000 in the current year. Prepare Blooms retained earnings statement for the current year.
Income Statement and Retained Earnings Huff Company presents the following items derived from its December 31, 2019, adjusted trial balance: The following information is also available for 2019 and is not reflected in the preceding accounts: 1. The common stock has been outstanding all year. A cash dividend of 1.28 per share was declared and paid. 2. Land was sold at a pretax gain of 6,300. 3. Division X (a major component of the company) was sold at a pretax gain of 4,700. It had incurred a 9,500 pretax operating loss during 2019. 4. A tornado, which is an unusual event in the area, caused a 5,400 pretax loss. 5. The income tax rate on all items of income is 30%. 6. The average shareholders equity is 90,000. Required: 1. Prepare a 2019 multiple-step income statement for Huff. 2. Prepare a 2019 retained earnings statement. 3. Compute the 2019 return on common equity (Net Income 4 Average Shareholders Equity).
Presented below is X Corporation's selected data for 2020: Retained earnings January 1 ,2020 Pretax Income Stock dividends declared During the year, the company changed its inventory method from FIFO to LIFO which had resulted in a pretax increase in income by: Cash dividends declared During 2020, the company discovered that the 2019 depreciation expense were overstated by a net of tax amount of Tax rate $6,000,000 2,000,000 330,000 40,000 225.000 70.000 30% Based on the data above, the changes in the accounting principles (from FIFO to LIFO) had O Decreased retained earnings by $40.000 Increased retained earnings by $40000 O Increased retained earnings by $28,000 O None of the above
Presented below is X Corporation's selected data for 2020: Retained earnings January 1,2020 Pretax Income Stock dividends declared During the year. the company changed its inventory method from FIFO to LIFO which had resulted in a pretax increase in income by Cash divideds declared During 2020. the company discovered that the 2019 depreciation expense were overstated by a net of tax amount of. $6.000,000 2,000,000 330.000 40.000 225.000 70,000 Tax rate 30%
Use the following to answer the four questions below: Presented below is X Corporation's selected data for 2020: Retained Eamings, January 1, 2020 $900,000 Net Income 88,200 Stock dividends declared 14,280 During the year, the company changed its inventory method from FIFO to LIFO which had resulted in a net of tax 11,000 decrease in income Cash dividends declared 21,000 During 2020, the company discovered that the 2019 depreciation expense were overstated by a pretax amount of 10,000 Tax rate 30% Based on the data above, the changes in the accounting principles (from FIFO to LIFO) had
Presented below is X Corporation's selected data for 2020: Retained earnings January 1.2020 Pretax Income Stock dividends declared During the year, the company changed its inventory method from FIFO to LIFO which had resulted in a $6,000,000 2,000,000 330,000 40.000 pretax increase in income by: Cash dividends de clared During 2020. the company discovered that the 2019 depreciation expense were overstated by a net of tax am ount of: Tax rate 225.000 70.000 30% CIEO to
Use the following to answer the four questions below: Presented below is X Corporation's selected data for 2020: Retained Eamings, January 1, 2020 $900,000 Net Income 88,200 Stock dividends declared 14,280 During the from FIFO to LIFO which had resulted in a net of tax year, the company changed its inventory method 11,000 decrease in income Cash dividends declared 21,000 During 2020, the company discovered that the 2019 depreciation expense were overstated by a pretax amount of 10,000 Tax rate 30% Based on the data above, the changes in the accounting principles (from FIFO to LIFO) had
View Policies Current Attempt in Progress Presented below is information related to Novak Corp. for the year 2020. Net sales Cost of goods sold Selling expenses Administrative expenses Dividend revenue Interest revenue (a) $1,664,000 998,400 83,200 61,440 25,600 8,960 Write-off of inventory due to obsolescence Depreciation expense omitted by accident in 2019 Casualty loss Cash dividends declared Retained earnings at December 31, 2019 Effective tax rate of 20% on all items $102,400 70,400 NOVAK CORP. Income Statement 64,000 57,600 1,254,400 Prepare a multiple-step income statement for 2020. Assume that 97,280 shares of common stock are outstanding for the entire year. (Round earnings per share to 2 decimal places, e.g. 1.49.)
Splish Corporation began operations on January 1, 2019. During its first 3 years of operations, Splish reported net income and declared dividends as follows: Net income Dividends declared $-0- 63,000 63,000 2019 2020 2021 $50,400 157.500 201,600 The following information relates to 2022. Income before income tax Prior period adjustment: understatement of 2020 depreciation expense (before taxes) Cumulative decrease in income from change in inventory methods (before taxes) Dividends declared (of this amount, $31.500 will be paid on Jan. 15, 2023) Effective tax rate (a) Balance, January 1, as Reported Prepare a 2022 retained earnings statement for Splish Corporation. (List items that increase adjusted retained earnings first.) Correction for Depreciation Error Net of Tax Cumulative Decrease in Income from Change in Inventory Methods Net of Tax Balance, January 1, as Adjusted Add: Net Income /(Loss) Less Dividends Declared $277.200 $31.500 $56,700 $126,000 SPLISH CORPORATION Retained…
During 2019, DGP Company decided to change from the FIFO inventory valuation to the weighted average method. The income tax rate is 30%. FIFO Weighted Average January 1, inventory P7,100,000 P7,700,000 December 31, inventory 7,900,000 8,200,000 What amount should be reported in the cumulative effect of the change in accounting policy for 2019? A P600,000 decrease in retained earnings B P420,000 decrease in retained earnings P420,000 increase in retained earnings (D) P600,000 increase in retained earnings
Sound Break CorporationIncome and Retained Earnings StatementFor the year Ended December 31, 2020Net Sales P1,000,000Cost of Goods Sold:Inventory, Dec. 31, 2019 P250,000Purchases 720,000Total Goods Available P970,000Inventory 220,000 750,000Gross Margin on Sales P 250,000Selling and Administrative (including Depreciation of P20,000) 125,000Net Income before Tax P 125,000Provision for Income Tax 35,000Net Income for the Year P 90,000Retained Earnings, beginning 130,000Total P 220,000Dividends Paid 30,000Retained Earnings, December 31, 2020 P 190,000 Sound Break CorporationBALANCE SHEETDecember 31, 2019 and 2020 ASSETS 2019 2020Current Assets:Cash P 75,000 P 85,000Marketable Securities 25,000 25,000Trade Receivables, net 185,000 245,000Inventory, at cost 250,000 220,000Prepaid Expenses 15,000 10,000Total Current Assets P550,000 P585,000Property and Other Assets:Equipment, net P340,000 P320,000Other Assets 15,000 15,000Total Property and Other Assets P355,000 P335,000 Total Assets…
Presented below is information related to 2020 for Sheridan Company. Retained earnings, December 31, 2019 Sales revenue Selling and administrative expenses Discontinued operations loss (pre-tax) Cash dividends declared on common stock Cost of goods sold Gain discovered in 2020, from error on depreciation charge in 2018 (pre-tax) Other revenue Other expenses $667,000 1,517,000 231,000 283,000 33,600 897,000 510,000 116,000 104,000 Prepare in good form a multiple-step income statement for the year 2020. Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year. (Round per share values to 2 decimal places, e.g. $1.58.)