Cindy May Bakery, Inc. reported a prior-period adjustment in 2018. An accounting error caused net income of prior years to be overstated by $10,000. Retained Earnings at December 31, 2017, as previously reported, was $40,000. Net income for 2018 was $80,000, and dividends declared were $20,000. Prepare the company's statement of retained earnings for the year ended December 31, 2018. Enter any current period increases in retained earnings prior to the subtotal, and enter any current period decreases to retained earnings below the subtotal. Cindy May Bakery, Inc. Statement of Retained Earnings Year Ended December 31, 2018

Cindy May Bakery, Inc. reported a prior-period adjustment in 2018. An accounting error caused net income of prior years to be overstated by $10,000. Retained Earnings at December 31, 2017, as previously reported, was $40,000. Net income for 2018 was $80,000, and dividends declared were $20,000. Prepare the company's statement of retained earnings for the year ended December 31, 2018. Enter any current period increases in retained earnings prior to the subtotal, and enter any current period decreases to retained earnings below the subtotal. Cindy May Bakery, Inc. Statement of Retained Earnings Year Ended December 31, 2018

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 10MCQ: Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income...

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At the beginning of 2020, Tanham Company discovered the following errors made in the preceding 2 years: Reported net income was 27,000 in 2018 and 35,000 in 2019. The allowance for doubtful accounts had a zero balance at the beginning of 2018. No accounts were written off during 2018 or 2019. Ignore income taxes. Required: 1. What is the correct net income for 2018 and 2019? 2. Prepare the adjusting journal entry in 2020 to correct the errors.
Shannon Corporation began operations on January 1, 2019. Financial statements for the years ended December 31, 2019 and 2020, contained the following errors: In addition, on December 31, 2020, fully depreciated machinery was sold for 10,800 cash, but the sale was not recorded until 2021. There were no other errors during 2019 or 2020, and no corrections have been made for any of the errors. Refer to the information for Shannon Corporation above. Ignoring income taxes, what is the total effect of the errors on the amount of working capital (current assets minus current liabilities) at December 31, 2020? a. working capital overstated by 4,200 b. working capital understated by 5,800 c. working capital understated by 6,000 d. working capital understated by 9,800
Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income statement. In addition, Reinhardt paid of dividends during 2019. On December 31, 2019, Reinhardt prepared closing entries. The net effect of the closing entries on retained earnings was a(n): a. decrease of $4,000. b. increase of $35,000. c. increase of $39,000. d. decrease of $87,000.
Prince Corporations accounts provided the following information at December 31, 2019: What should be the current balance of retained earnings? a. 520,000 b. 580,000 c. 610,000 d. 670,000
Susan May Bakery, Inc. reported a prior-period adjustment in 2018. An accounting error caused net income of prior years to be overstated by $7,000. Retained Earnings at December 31, 2017, as previously reported, was $43,000. Net income for 2018 was $76,000, and dividends declared were $30,000. Prepare the company's statement of retained earnings for the year ended December 31, 2018.
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Preparing a statement of retained earnings Kelly May Bakery, Inc. reported a prior-period adjustment in 2018. An accounting error caused net income of prior years to be overstated by $1,000. Retained Earnings at December 31, 2017, as previously reported, was $48,000. Net income for 2018 was $74,000, and dividends declared were $28,000. Prepare the company’s statement of retained earnings for the year ended December 31, 2018.
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The ledger of AISExperts Inc. contained the following balances after adjustment, but before closing, on December 31, 2021, the end of the current year. This means the below account balances are normal balances: Accounts payable 80400 Accounts receivable 115580 Sales returns and allowances 20000 Accumulated depreciation – equipment 27540 Depreciation expense 800 Interest revenue 1100 Unearned sales revenue 2000 Cash 75470 Common stock (10,000 shares outstanding) 100000 Sales discounts 12000 Cost of goods sold 632150 Dividends declared 18100 Equipment 140450 Insurance expense 4500 Dividends payable 2000 Allowance for doubtful accounts 9500 General expenses 114250 Interest expense 4600 Merchandise inventory 154250 Prepaid insurance 12325 Retained earnings ? Marketable securities 10000 Dividend revenue 10000 Treasury stock 1000 Salaries payable 18560 Sales 1018250 Selling expenses 140210 a statement of retained earnings
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