Homework Answers
Answer along with a brief explanation is as follows,
B. 7,265,000. The question is provided with retained earnings at the beginning of the period, transactions for the period and asking for the retained earnings at the end of the period. The calculation is as follows,
Opening retained earnings (6,000,000) + comprehensive income for the period (1,500,000) - dividends declared (480,000) + overstated cost of goods sold of previous years (245,000) = 7,265,000.
*Cost of goods is overstated in prior years which means it had understated retained earnings in the prior years, overstating it in the current year would rectify the error.
**Unrealised loss on AFS securities is what disclosed under accumulated other comprehensive income which is disclosed just under retained earnings in the balance sheet, it won't have any impact on the retained earnings.
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$ 245,000 480,000 1,500,000 150,000 6,000,000 Leonard Corporation reports the following information: Correction of overstatement of...
16. Benedict Corporation reports the following information: $750,000 $210,000 $ 90,000 250,000 Net income Dividends on...
16. Benedict Corporation reports the following information: $750,000 $210,000 $ 90,000 250,000 Net income Dividends on common stock Dividends on preferred stock Weighted average common shares outstanding Benedict should report earnings per share of a. $1.80. b. $2.16 c. $2.64. d. $3.00. 17. Leonard Corporation reports the following information: Correction of overstatement of depreciation expense in prior years, net of tax Dividends declared $ 645,000 480,000 Net income 1,500,000 6,000,000 Retained earnings, 1/1/19, as reported Leonard should report retained earnings,...
1-Cullumber Company reported the following information for 2020: Sales revenue $2055000 Cost of goods sold 1407000...
1-Cullumber Company reported the following information for
2020:
Sales revenue
$2055000
Cost of goods sold
1407000
Operating expenses
230000
Unrealized holding gain on
available-for-sale securities
121600
Cash dividends received on the
securities
8400
For 2020, Cullumber would report other comprehensive income
of
$418000.
$130000.
$121600.
$426400.
2-Wildhorse Co. reports the following information:
Correction of overstatement of
depreciation expense
in prior years,
net of tax
$ 643000
Dividends declared
482000
Net income
1504000
Retained earnings, 1/1/20, as
reported
5830000
Wildhorse should...
Blue Lake Corporation reports the following information: Correction of understatement of expense in 2016, net of...
Blue Lake Corporation reports the following information: Correction of understatement of expense in 2016, net of tax $ 645,000 Dividends declared in 2019 480,000 Net income for 2019 1,500,000 Retained earnings, 1/1/2019, unadjusted 3,000,000 Blue Lake should report ending retained earnings as of 12/31/2019, at $3,375,000 $4,665,000 $2,355,000. $4,020,000
Dooman Corporation reports the following information: Correction of understatement of depreciation expense in prior years, net...
Dooman Corporation reports the following information: Correction of understatement of depreciation expense in prior years, net of tax $ 645 Dividends declared 480 Net Income 1,500 Retained earnings, 1/1/17, as reported 3,000 Dooman should report retained earning, 12/31/17, at Select one: a. $4,020 O b. $3,375. C. $4,665 d. $2,355
Cullumber Company reports the following information: Correction of understatement of depreciation expense in prior years, net...
Cullumber Company reports the following information: Correction of understatement of depreciation expense in prior years, net of tax $ 1280000 Dividends declared 969000 Net income 2889000 Retained earnings, 1/1/17, as reported 6070000 Cullumber should report retained earnings, 12/31/17, at A)$4790000. B)$6710000. C)$7990000. D)$9270000.
D. Long-term Liabilities QUESTION 40 Adele Inc. reports the following information: Correction of understatement of depreciation...
D. Long-term Liabilities QUESTION 40 Adele Inc. reports the following information: Correction of understatement of depreciation expense in prior years before taxes $ 1.075,000 Dividends declared 480,000 Income before income tax 2,500,000 Retained earnings, 1/1/20, as reported 6,000,000 Effective income tax rate 40% Determine 1. Adele should report the beginning balance of retained eamings after prior period adjustment, 1/1/20, at 2. Assuming that you computed the beginning balance of retained earnings after adjustment to be $5,330,000. Adele should report retained...
Testbank Multiple Choice Question 80 Wildhorse Co. reports the following information: Correction of understatement of depreciation...
Testbank Multiple Choice Question 80
Wildhorse Co. reports the following information:
Correction of understatement of
depreciation expense
in prior years,
net of tax
$ 1299000
Dividends declared
951000
Net income
3150000
Retained earnings, 1/1/20, as
reported
5960000
Wildhorse should report retained earnings, 1/1/20, as adjusted
at
a.
$7259000.
b.
$4661000.
c.
$5960000.
d.
$9458000.
Reither Co. reports the following information for 2020: sales revenue, $700,000; cost of goods sold, $500,000;...
Reither Co. reports the following information for 2020: sales revenue, $700,000; cost of goods sold, $500,000; selling and administrative expenses, $80,000; loss on sale of available-for-sale securities, $18,000; unrealized loss on available-for-sale securities, $60,000. Its tax rate is 25%. It issued no stock and declared and paid a dividend of $10,000 to stockholders of 150,000 weighted average shares of common stock outstanding. Reither Co. has these balances as of January 1, 2020: common stock, $350,000; paid-in capital in excess of...
Reither Co. reports the following information for 2020: sales revenue, $700,000; cost of goods sold, $500,000;...
Reither Co. reports the following information for 2020: sales revenue, $700,000; cost of goods sold, $500,000; selling and administrative expenses, $80,000; loss on sale of available-for-sale securities, $18,000; unrealized loss on available-for-sale securities, $60,000. Its tax rate is 25%. It issued no stock and declared and paid a dividend of $10,000 to stockholders of 150,000 weighted average shares of common stock outstanding. Reither Co. has these balances as of January 1, 2020: common stock, $350,000; paid-in capital in excess of...
The following information was extracted from the accounts of Essex Corporation at December 31, 2020: ...
The following information was extracted from the accounts of Essex Corporation at December 31, 2020: CR(DR) Total reported income since incorporation $4,800,000 Total cash dividends declared (2,625,000) Unrealized holding loss on available-for-sale debt securities (360,000) Total stock dividends distributed (600,000) Prior period adjustment, recorded January 1, 2020 225,000 What should be the balance of retained earnings at December 31, 2020? $__________
16. Benedict Corporation reports the following information: $750,000 $210,000 $ 90,000 250,000 Net income Dividends on common stock Dividends on preferred stock Weighted average common shares outstanding Benedict should report earnings per share of a. $1.80. b. $2.16 c. $2.64. d. $3.00. 17. Leonard Corporation reports the following information: Correction of overstatement of depreciation expense in prior years, net of tax Dividends declared $ 645,000 480,000 Net income 1,500,000 6,000,000 Retained earnings, 1/1/19, as reported Leonard should report retained earnings,...
1-Cullumber Company reported the following information for
2020:
Sales revenue
$2055000
Cost of goods sold
1407000
Operating expenses
230000
Unrealized holding gain on
available-for-sale securities
121600
Cash dividends received on the
securities
8400
For 2020, Cullumber would report other comprehensive income
of
$418000.
$130000.
$121600.
$426400.
2-Wildhorse Co. reports the following information:
Correction of overstatement of
depreciation expense
in prior years,
net of tax
$ 643000
Dividends declared
482000
Net income
1504000
Retained earnings, 1/1/20, as
reported
5830000
Wildhorse should...
Blue Lake Corporation reports the following information: Correction of understatement of expense in 2016, net of tax $ 645,000 Dividends declared in 2019 480,000 Net income for 2019 1,500,000 Retained earnings, 1/1/2019, unadjusted 3,000,000 Blue Lake should report ending retained earnings as of 12/31/2019, at $3,375,000 $4,665,000 $2,355,000. $4,020,000
Dooman Corporation reports the following information: Correction of understatement of depreciation expense in prior years, net of tax $ 645 Dividends declared 480 Net Income 1,500 Retained earnings, 1/1/17, as reported 3,000 Dooman should report retained earning, 12/31/17, at Select one: a. $4,020 O b. $3,375. C. $4,665 d. $2,355
D. Long-term Liabilities QUESTION 40 Adele Inc. reports the following information: Correction of understatement of depreciation expense in prior years before taxes $ 1.075,000 Dividends declared 480,000 Income before income tax 2,500,000 Retained earnings, 1/1/20, as reported 6,000,000 Effective income tax rate 40% Determine 1. Adele should report the beginning balance of retained eamings after prior period adjustment, 1/1/20, at 2. Assuming that you computed the beginning balance of retained earnings after adjustment to be $5,330,000. Adele should report retained...
Testbank Multiple Choice Question 80
Wildhorse Co. reports the following information:
Correction of understatement of
depreciation expense
in prior years,
net of tax
$ 1299000
Dividends declared
951000
Net income
3150000
Retained earnings, 1/1/20, as
reported
5960000
Wildhorse should report retained earnings, 1/1/20, as adjusted
at
a.
$7259000.
b.
$4661000.
c.
$5960000.
d.
$9458000.
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