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
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...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 1 steps
Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning