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AccountingIntermediate Accounting: Reporting And AnalysisAt 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.
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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.

BuyFind

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281
BuyFind

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281

Solutions

Chapter
Section
Problem 1GI
Problem 2GI
Problem 3GI
Problem 4GI
Problem 5GI
Problem 6GI
Problem 7GI
Problem 8GI
Problem 9GI
Problem 10GI
Problem 11GI
Problem 12GI
Problem 13GI
Problem 14GI
Problem 15GI
Problem 16GI
Problem 17GI
Problem 18GI
Problem 19GI
Problem 20GI
Problem 1MC
Problem 2MC
Problem 3MC
Problem 4MC
Problem 5MC
Problem 6MC
Problem 7MC
Problem 8MC
Problem 9MC
Problem 10MC
Problem 1RE
Problem 2RE
Problem 3RE
Problem 4RE
Problem 5RE
Problem 6RE
Problem 7RE
Problem 8RE
Problem 9RE
Problem 10RE
Problem 11RE
Problem 12RE
Problem 1E
Problem 2E
Problem 3E
Problem 4E
Problem 5E
Problem 6E
Problem 7E
Problem 8E
Problem 9E
Problem 10E
Problem 11E
Problem 12E
Problem 13E
Problem 14E
Problem 15E
Problem 16E
Problem 1P
Problem 2P
Problem 3P
Problem 4P
Problem 5P
Problem 6P
Problem 7P
Problem 8P
Problem 9P
Problem 10P
Problem 11P
Problem 12P
Problem 13P
Problem 14P
Problem 1C
Problem 2C
Problem 3C
Problem 4C
Problem 5C
Problem 6C
Problem 7C
Problem 8C
Problem 9C
Problem 10C
Chapter 22, Problem 10P
Textbook Problem

At the beginning of 2020, Tanham Company discovered the following errors made in the preceding 2 years:

Chapter 22, Problem 10P, At the beginning of 2020, Tanham Company discovered the following errors made in the preceding 2

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. 1. What is the correct net income for 2018 and 2019?
  2. 2. Prepare the adjusting journal entry in 2020 to correct the errors.

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Chapter 22,
Problem 9P
Chapter 22,
Problem 11P

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Chapter 22 Solutions

Intermediate Accounting: Reporting And Analysis
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Ch. 22 - Describe the three types of accounting changes.Ch. 22 - Describe the two possible methods that a company...Ch. 22 - Describe two situations in which a company could...Ch. 22 - What steps are necessary to apply the...Ch. 22 - Does the adoption of a new accounting principle...Ch. 22 - What are direct and indirect effects of a change...Ch. 22 - In which situations may it be impracticable for a...Ch. 22 - How does a company report a change in an...Ch. 22 - Define a change in estimate. What is the proper...Ch. 22 - What distinguishes a change in an accounting...
Ch. 22 - How is a change in depreciation method accounted...Ch. 22 - Describe a change in a reporting entity. How does...Ch. 22 - How does a company report an error of a prior...Ch. 22 - Describe two errors that affect only a companys...Ch. 22 - Describe two errors that affect only a companys...Ch. 22 - What is a counterbalancing error? Describe two...Ch. 22 - What is a noncounter balancing error? Describe two...Ch. 22 - Why does a company correct errors even after they...Ch. 22 - How does the accounting for an indirect effect of...Ch. 22 - If a company that uses IFRS discovers an error but...Ch. 22 - The cumulative effect of an accounting change...Ch. 22 - When a change in accounting principle is made...Ch. 22 - On January 1, 2019, Belmont Company changed its...Ch. 22 - A change in the expected service life of an asset...Ch. 22 - During 2019, White Company determined that...Ch. 22 - Generally, how should a change in accounting...Ch. 22 - On January 2, 2017, Garr Company acquired...Ch. 22 - A company has included in its consolidated...Ch. 22 - Shannon Corporation began operations on January 1,...Ch. 22 - Shannon Corporation began operations on January 1,...Ch. 22 - The two methods of reporting an accounting change...Ch. 22 - Heller Company began operations in 2019 and used...Ch. 22 - Refer to RE22-2. Assume the pretax cumulative...Ch. 22 - Refer to RE22-2. Assume Heller Company had sales...Ch. 22 - Bloom Company had beginning unadjusted retained...Ch. 22 - Suppose that Blake Companys total pretax...Ch. 22 - Bliss Company owns an asset with an estimated life...Ch. 22 - At the end of 2019, Framber Company received 8,000...Ch. 22 - At the end of 2019, Cortex Company failed to...Ch. 22 - At the end of 2019, Jayrad Company paid 6,000 for...Ch. 22 - At the end of 2019, Manny Company recorded its...Ch. 22 - Abrat Company failed to accrue an allowance for...Ch. 22 - The following are independent events: a. Changed...Ch. 22 - The following are independent events: a. Changed...Ch. 22 - The following are independent events: a. A...Ch. 22 - Change in Inventory Cost Flow Assumption At the...Ch. 22 - Fava Company began operations in 2018 and used the...Ch. 22 - Berg Company began operations on January 1, 2019,...Ch. 22 - Delta Oil Company uses the successful-efforts...Ch. 22 - In 2020, Frost Company, which began operations in...Ch. 22 - Gundrum Company purchased equipment on January 1,...Ch. 22 - Newton Company introduced a line of laptop...Ch. 22 - On January 1, 2014, Klinefelter Company purchased...Ch. 22 - The following are independent errors made by a...Ch. 22 - The following are independent errors made by a...Ch. 22 - Refer to the information in E22-13. Required:...Ch. 22 - The following are independent errors: a. In...Ch. 22 - Dudley Company failed to recognize the following...Ch. 22 - On January 2, 2019, Quo Inc. hired Reed as its...Ch. 22 - At the beginning of 2020, Flynne Company decided...Ch. 22 - Koopman Company began operations on January 1,...Ch. 22 - Schmidt Company began operations on January 1,...Ch. 22 - Since Goode Oil Company was formed in 2018, it has...Ch. 22 - Kraft Manufacturing Company manufactures two...Ch. 22 - Jackson Company has decided to issue common stock...Ch. 22 - At the beginning of 2020, Holden Companys...Ch. 22 - At the end of 2020, while auditing Sandlin...Ch. 22 - At the beginning of 2020, Tanham Company...Ch. 22 - A review of Anderson Corporations books indicates...Ch. 22 - Cask Companys bookkeeper, who has maintained its...Ch. 22 - Gray Companys financial statements showed income...Ch. 22 - Ingalls Corporation is in the process of...Ch. 22 - There are three types of accounting changes:...Ch. 22 - The various types of accounting changes may...Ch. 22 - Berkeley Company, a manufacturer of many different...Ch. 22 - When the FASB issues a new generally accepted...Ch. 22 - It is important in accounting theory to be able to...Ch. 22 - In 2001, Enron Corporation filed financial...Ch. 22 - You are auditing the financial records of a...Ch. 22 - Disclosures Obtain Kelloggs 2017 annual report...Ch. 22 - Obtain LVMH (Moet Hennessy 2 Louis Vuitton)s 2017...Ch. 22 - Sometimes a business entity may change its method...

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