Tuscan Incorporated had a retained earnings balance of $60,000 at December 31 of the prior year. In the current year, Tuscan reported the following results. • Reported net income of $100,000. . • Cash dividends of $33,000 declared and paid. • Tuscan discovered this year that it made a math error three years ago; to correct for this, $12,000 (net of tax) must be addec the current year's beginning retained earnings balance. • Revised an estimate of a machine's salvage value. Depreciation increased by $1,000 per year. . Calculate the retained earnings balance at December 31 of the current year. Note: Amounts to be deducted should be indicated with a minus sign. TUSCAN INCORPORATED Statement of Retained Earnings For Current Year Ended December 31 Retained earnings, December 31, prior year, as previously reported Prior period adjustment $ $ 60,000 60,000 60,000

Tuscan Incorporated had a retained earnings balance of $60,000 at December 31 of the prior year. In the current year, Tuscan reported the following results. • Reported net income of $100,000. . • Cash dividends of $33,000 declared and paid. • Tuscan discovered this year that it made a math error three years ago; to correct for this, $12,000 (net of tax) must be addec the current year's beginning retained earnings balance. • Revised an estimate of a machine's salvage value. Depreciation increased by $1,000 per year. . Calculate the retained earnings balance at December 31 of the current year. Note: Amounts to be deducted should be indicated with a minus sign. TUSCAN INCORPORATED Statement of Retained Earnings For Current Year Ended December 31 Retained earnings, December 31, prior year, as previously reported Prior period adjustment $ $ 60,000 60,000 60,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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BTS Corporation reports the following information: • Correction of overstatement of depreciation expense in prior years, net of tax- P215,000 • Dividends declared- P160,000 • Net income- P500,000 • Retained earnings, 1/1/21, as reported- P1,000,000 BTS should report retained earnings, December 31, 2021 at?
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