Tuscan Inc. had a retained earnings balance of $60,000 at December 31, 2018. During the year, Tuscan had the following selected transactions. Calculate the retained earnings balance at December 31, 2019. ∙ Reported net income of $100,000. ∙ Revised an estimate of a machine’s salvage value. Depreciation increased by $1,000 per year. ∙ An error was discovered. Three years ago, a purchase of a building was incorrectly expensed. The effect is understated retained earnings of $12,000 (net of tax benefit). ∙ Paid cash dividends of $33,000.
Tuscan Inc. had a retained earnings balance of $60,000 at December 31, 2018. During the year, Tuscan had the following selected transactions. Calculate the retained earnings balance at December 31, 2019. ∙ Reported net income of $100,000. ∙ Revised an estimate of a machine’s salvage value. Depreciation increased by $1,000 per year. ∙ An error was discovered. Three years ago, a purchase of a building was incorrectly expensed. The effect is understated retained earnings of $12,000 (net of tax benefit). ∙ Paid cash dividends of $33,000.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 15E: The following are independent errors: a. In January 2019, repair costs of 9,000 were debited to the...
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Tuscan Inc. had a retained earnings balance of $60,000 at December 31, 2018. During the year, Tuscan
had the following selected transactions. Calculate the retained earnings balance at December 31, 2019.
∙ Reported net income of $100,000.
∙ Revised an estimate of a machine’s salvage value. Depreciation increased by $1,000 per year.
∙ An error was discovered. Three years ago, a purchase of a building was incorrectly expensed. The
effect is understated retained earnings of $12,000 (net of tax benefit).
∙ Paid cash dividends of $33,000.
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