What is the adjusted amount of shareholders’ equity that should be reported by REBOND in its December 31, 2021 statement of financial position? The draft financial statements of REBOND Company for the year ended December 31, 2021 are currently underconsideration by the directors. The shareholders' equity for the year is shown as 5,800,000. Since December 31,2021, the following events have occurred, but have not been reflected in any way in the draft financial statementsto that date.Item A - It was discovered that an error was made in arriving at the inventory figure at December 31, 2021.Inventory which had a cost of 300,000 with a net realizable value of 450,000 were omitted.Item B – In December 2021, plans to merge with RELAXED Company were announced and the company will beissuing ordinary shares with a total value of 3,200,000

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Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

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Problem 15EA: Shetland Company reported net income on the year-end financial statements of $125,000. However,...

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What is the adjusted amount of shareholders’ equity that should be reported by REBOND in its December 31, 2021 statement of financial position?

The draft financial statements of REBOND Company for the year ended December 31, 2021 are currently under
consideration by the directors. The shareholders' equity for the year is shown as 5,800,000. Since December 31,
2021, the following events have occurred, but have not been reflected in any way in the draft financial statements
to that date.
Item A - It was discovered that an error was made in arriving at the inventory figure at December 31, 2021.
Inventory which had a cost of 300,000 with a net realizable value of 450,000 were omitted.
Item B – In December 2021, plans to merge with RELAXED Company were announced and the company will be
issuing ordinary shares with a total value of 3,200,000

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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