What amount should be reported as corrected retained earnings on January 1, 2021?
Q: What amount of expense, if any, should be reflected in Coco’s quarterly statement of comprehensive…
A: Coco Inc., estimated a total bonus of 30,000 for the year ended July 31, 2019. That is monthly…
Q: At January 1, 2020, Beidler Company reported retained earnings of $2,000,000. In 2020, Beidler…
A: The corrected net income is the difference of the net income and the amount of depreciation after…
Q: The entity has collected P20,000 interest during 2020. While P3,700 is recorded in interest…
A: When a company follows accrual basis of accounting, there may be differences between the interest…
Q: Christina Corporation is preparing the comparative financial statements to be included in the annual…
A: Weighted-average number of shares: Earnings per share is calculated on common stock using…
Q: The balance in “Retained Earnings” on January 1, 2019 for Glored Corporation was $575,000. During…
A: Retained earnings statement is an essential part of the financial statement. The ending balance can…
Q: C Co. reported a retained earnings balance of $200,000 at December 31, 2020. In September 2021, the…
A: Prepaid Insurance is an advance payment made towards Insurance of goods and assets used in the…
Q: On jan. 1, 2019, Bacardi Limited had retained earnings of $8,000,000. During 2019, the corporation…
A: Retained earnings are the free reserves that are attributable to the owners of the entity. Profits…
Q: Flushing, Inc. initially reported a retained earnings balance of $100,000 at December 31, 2020. In…
A: Adjusting journal entry: To record any unrecognized income or expenses for the period company made…
Q: Central Avenue Company reported net income of P700,000 for the year 2021. The entity declared and…
A: Retained earning means the amount of profit that has not been distributed to shareholder as divided.…
Q: The account balance information for Miller Company at the end of 2019 and 2020 and related 2020…
A: Cash flow statement: It is a statement which reports the cash inflows and outflows of a business…
Q: Dive Company, a calendar-year corporation, had the following actual income before income tax expense…
A: Tax expense:- Tax expenses includes the total amount of taxes that is owed by an individuals, firms…
Q: SydMel Ltd commences operations on 1 July 2020. One year later, on 30 June 2021, the entity prepares…
A: The taxable income is determined as per the taxation laws of the state by taking accounting profit…
Q: The December 31, 2018, balance sheet of Whelan, Inc, showed long-term debt of $1,385,000, $137.000…
A: Computation of new net borrowing: New net borrowing = Long term debt of 2019 - Long term debt 2018…
Q: Dive Company, a calendar-year corporation, had the following actual income before income tax expense…
A: Tax is referred as the financial charges which is imposed by government on an individual’s income or…
Q: Artwork Inc.'s financial reporting year ends June 30 and it reports quarterly. This means that the…
A: Tax Expenses: It is the sum of all taxes payable by a person, company, or other organisation to the…
Q: 4. Emmanuel, Inc. reported the following items in its December 31, 2021 trial balance: Accounts…
A: Total liabilities mean the sum of the amount an entity owes.
Q: 5. The following pretax amounts are taken from the adjusted trial balance of Boo Inc. on December…
A: Income statement: It is one of the financial statements prepared by an organization. This statement…
Q: SydMel Ltd commences operations on 1 July 2020. One year later, on 30 June 2021, the entity prepares…
A:
Q: In the first year of operations 2021, Samuel Inc. had a pre-tax accounting income of $4,050,000 and…
A: Step 1 When we find income for taxable purpose, it will be different form income under accounting…
Q: On December 31, 2021, Sampaguita Company provided the following information: Accounts Payable,…
A: Current liabilities: Liabilities that have to be paid within one year or one operating cycle,…
Q: Principal Services Group had a 2021 Net Loss of $460,000. The company tax rate is 27% and pre-tax…
A: Lets understand the basics. When there is temporary taxable difference arise between the book profit…
Q: Dive Company, a calendar-year corporation, had the following actual income before income tax expense…
A: Interim Income statement:- It is a financial report prepared by the management of the company in…
Q: The following are selected items derived from Dibb Company’s adjusted trial balance on December 31,…
A: Income statement is one of the financial statement which shows all incomes and all expenses of the…
Q: ABC Company is preparing its December 31, 2019 financial statements. The financial statements are…
A:
Q: Kingbird Corporation began 2020 with a $55,200 balance in the Deferred Tax Liability account. At the…
A: Deferred tax liability = cumulative temporary difference x tax rate - balance in the Deferred Tax…
Q: For the year ended Dec. 31, 2020, The Company paid interest totaling P100,000. The prepaid interest…
A: Interest expense refers to the cost which is incurred through the entity for the borrowed funds. It…
Q: Leni Company had the following transactions during the quarter ended March 31, 2021: • Loss…
A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are…
Q: ABC Ltd pays its employees monthly in arrears. The monthly salaries are $236,820. At the end of the…
A: Journal entry for salary out standing Date Entry Debit Credit 31-12-2020 Salaries A/c…
Q: M&M Company's income statement for the year ended December 31, 2020 (considered as the fifth of…
A: Solution: taxable income = pretax financial income - excess revenue under accounting records -…
Q: henron, Inc. had pre-tax accounting income of P1,350,000 and a tax rate of 40% in 2020, its first…
A: PARTICULARS AMOUNT IN (P) Pre-Tax Accounting income P1,350,000…
Q: Mackenzie Corp, is preparing the December 31, 2020, year-end financial statements. Following are…
A: Adjusting Entries :— It is the journal entry made at the ending the accounting period to adjust the…
Q: $15,000 Less: Expenses
A: The consolidated statement is given as,
Q: CROWN Pty Ltd (‘the company’) recorded the following transactions during the 2021 tax year: - 1…
A: If any entity is a corporate tax entity then it is considered as a 'franking entity'. The amount of…
Q: Miguel Company reported a retained earnings balance of P4,000,000 at January 1, 2021. In August…
A: Solution Retained earning is the portion of company's profit which a company not distributed as a…
Q: M&M Company's income statement for the year ended December 31, 2020 (considered as the fifth ye of…
A: Solution: taxable income = pretax financial income - excess revenue under accounting records -…
Q: The total liabilities of ABC Company for the period ending December 31, 2021 amounted to ₱300,000.…
A: Assets- Assets are any items of economic value that will provide future benefit and can be converted…
Q: The following are partial income statement account balances taken from the December 31, 2021,…
A: Income statement: The financial statement which reports revenues and expenses from business…
Q: Brent Company's income statement for the year ended December 31, 2020 (considered as th r of…
A: Solution: taxable income = pretax financial income - excess revenue under accounting records -…
Q: The following accounts are excerpt trial balance of Strawberry Corp. at December 31, 2021 has been…
A: Current liabilities: Liabilities that have to be paid within one year or one operating cycle,…
Q: Brite Company provided the following data on December 31, 2020: Accounts payable Note payable, 8%…
A: Current liabilities are the liabilities which are due to be paid in the period of less than 12…
Q: On April 1,2019, ABC Company prepaid a P 38,000 premium on an annual insurance policy. The premium…
A: Deductible temporary difference = Carrying amount of assets/liability - tax base of assets…
Q: The following information is for Apple Co. for 2019: 1. Depreciation reported on the tax return…
A: Computation of the Taxable Income for 2019 Income tax due per the tax return of 2019 = $2,400,000…
Q: At the end of 2021, Schrutte Inc. in its first year of operations, had pretax financial income of…
A: Correct option is D.$100,000 credit to Income Tax Payable account by $100,000.
Q: The December 31, 2018, balance sheet of Whelan, Inc., showed long-term debt of $1,385,000, $137,000…
A: Cash flow to creditors= Interest paid - Net new borrowing = Interest paid - (LT Debt ending - LT…
Q: SydMel Ltd commences operations on 1 July 2020. One year later, on 30 June 2021, the entity prepares…
A: Current tax is that amount of tax that is payable for the current accounting period, whereas…
Q: Bang Company reported a Retained Earnings balance of P150,000 on December 31, 2021. The following…
A: Depreciation expense net of tax = Depreciation expense x (1 - tax rate) = 25000 * (1-0.25) = P18,750
Q: SydMel Ltd commences operations on 1 July 2020. One year later, on 30 June 2021, the entity prepares…
A: The calculation of the deferred tax while taking consider the accounting profit with the adjustment…
Q: Central Avenue Company reported net income of P700,000 for the year 2021. The entity declared and…
A: Lets understand the basics. Retained earning is a net income that is retained every year after…
Q: During 2019, PTS Company changed from the cost recovery method to the percentage of completion…
A: Solution: As per GAAP, change in accounting principal should be accounted for retrospectively…
Upright Company reported a
a. 4,200,000
b. 4,280,000
c. 4,400,000
d. 4,420,000
Step by step
Solved in 3 steps with 3 images
- Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of $160,000 for 2019. The corporation also has $30,000 in dividends from publicly traded domestic corporations in which the ownership percentage was 45 percent. Calculate the corporation's dividends received deduction for 2019. $_____________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $135,000. Calculate the corporation's dividends received deduction for 2019. $___________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $158,000. Calculate the corporation's dividends received deduction for 2019. $_____________Roseau Company is preparing its annual earnings per share amounts to be disclosed on its 2019 income statement. It has collected the following information at the end of 2019: 1. Net income: 120,400. Included in the net income is income from continuing operations of 130,400 and a loss from discontinued operations (net of income taxes) of 10,000. Corporate income tax rate: 30%. 2. Common stock outstanding on January 1, 2019: 20,000 shares. 3. Common stock issuances during 2019: July 6, 4,000 shares; August 24, 3,000 shares. 4. Stock dividend: On October 19, 2019, the company declared a 10% stock dividend that resulted in 2,700 additional outstanding shares of common stock. 5. Common stock prices: 2019 average market price, 30 per share; 2019 ending market price, 27 per share. 6. 7% preferred stock outstanding on January 1, 2019: 1,000 shares. Terms: 100 par, nonconvertible. Current dividends have been paid. No preferred stock issued during 2019. 7. 8% convertible preferred stock outstanding on January 1, 2019: 800 shares. The stock was issued in 2018 at 130 per share. Each 100 par preferred stock is currently convertible into 1.7 shares of common stock. Current dividends have been paid. To date, no preferred stock has been converted. 8. Bonds payable outstanding on January 1, 2019: 100,000 face value. These bonds were issued several years ago at 97 and pay annual interest of 9.6%. The discount is being amortized in the amount of 300 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 9. Compensatory share options outstanding: Key executives may currently acquire 3,000 shares of common stock at 20 per share. The options were granted in 2018. To date, none have been exercised. The unrecognized compensation cost (net of tax) related to the options is 4 per share. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Show how Roseau would report these earnings per share figures on its 2019 income statement. Include an explanatory note to the financial statements.Net Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as follows: During 2019, the following events and transactions occurred: 1. JR recognized sales revenues of 108,000. It incurred cost of goods sold of 62,000 and operating expenses of 12,000, 2. JR issued 1,000 shares of its 5 par common stock for 14 per share. 3. JR invested 30,000 in available-for-sale securities. At the end of the year, the securities had a fair value of 35,000. 4. JR paid dividends of 6,000. The income tax rate on all items of income is 30%. Required: 1. Prepare a 2019 income statement for JR which includes net income and comprehensive income ignore earnings per share). 2. For 2016 prepare a separate (a) income statement (ignore earnings per share) and (b) statement of comprehensive income.
- On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and taxable income for 2020. The prior period adjustment was the result of an error in calculating bad debt expense for 2019. The current tax rate is 30%, and no change in the tax rate has been enacted for future years. When the company applies intraperiod income tax allocation, the prior period adjustment will be shown on the: a. income statement at 12,000 b. income statement at 8,400 (net of 3,600 income taxes) c. retained earnings statement at 12,000 d. retained earnings statement at 8,400 (net of 3,600 income taxes)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).
- Comprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax income from continuing operations (of which revenues are 295,000), the following items are included in this pretax income: Colts taxable income totals 93,000 in 2019. The difference between the pretax financial income and the taxable income is due to the excess of tax depreciation over financial depreciation on assets used in continuing operations. At the beginning of 2019, Colt had a retained earnings balance of 310.000 and a deferred tax liability of 8,100. During 2019, Colt declared and paid dividends of 48,000. It is subject to tax rates of 15% on the first 50,000 of income and 30% on income in excess of 50,000. Based on proper interperiod tax allocation procedures, Colt has determined that its 2019 ending deferred tax liability is 14,100. Required: 1. Prepare a schedule for Colt to allocate the total 2019 income tax expense to the various components of pretax income. 2. Prepare Colts income tax journal entry at the end of 2019. 3. Prepare Colts 2019 income statement. 4. Prepare Colts 2019 statement of retained earnings. 5. Show the related income tax disclosures on Colts December 31, 2019, balance sheet.Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.
- Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.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, Lower Portion Cunningham Company reports a retained earnings balance of 365,200 at the beginning of 2019. For the year ended December 31, 2019, the company reports pretax income from continuing operations of 150,500. The following information is also available pertaining to 2019: 1. The company declared and paid a 0.72 cash dividend per share on the 30,000 shares of common stock that were outstanding the entire year. 2. The company incurred a pretax 21,000 loss as a result of an earthquake, which is not unusual for the area. This is included in the 150,500 income from continuing operations. 3. The company sold Division P (a component of the company) in May. From January through May, Division P had incurred a pretax loss from operations of 33,000. A pretax gain of 15,000 was recognized on the sale of Division P. Required: Assuming that all the pretax items are subject to a 30% income tax rate: 1. Complete the lower portion of Cunningham's 2019 income statement beginning with Pretax Income from Continuing Operations. Include any related note to the financial statements. 2. Prepare an accompanying retained earnings statement.