Tim Mattke Company began operations in 2018 and for simplicity reasons, adopted weighted-average pricing for inventory. In 2020, in accordance with other companies in its industry, Tim Mattke changed its inventory pricing to FIFO. Financial statement data is as follows.
Pretax Income |
||||||
Year |
Weighted-Average |
FIFO |
Applicable Tax Rate |
Dividends Declared |
||
2018 |
$370,000 |
$395,000 |
20% |
$ 0 |
||
2019 |
390,000 |
430,000 |
20% |
100,000 |
||
2020 |
410,000 |
450,000 |
20% |
80,000 |
Instructions: Prepare a statement of retained earnings for Tim Mattke Company for the year 2020.
Solution:
Prepare a statement of retained earnings for Tim Mattke Company for the year 2020.
Tim Mattke Company | ||
Statement of Retained earnings | ||
For the year 2020 | ||
Retained earnings, Beginning | $ 560,000 | |
Add: Net income after tax | $ 360,000 | |
Subtotal | $ 920,000 | |
(Less): Dividends | $ (80,000) | |
Retained earnings, Ending | $ 840,000 |
Sl No. | Particulars | 2018 | 2019 | 2020 |
a | Beginning Balance of Retained Earnings | $ - | $ 316,000 | $ 560,000 |
b | Pretax Income as per FIFO | $ 395,000 | $ 430,000 | $ 450,000 |
c | Income Tax @20% (b* 20%) | $ (79,000) | $ (86,000) | $ (90,000) |
d | Net Income After tax(b-c) | $ 316,000 | $ 344,000 | $ 360,000 |
e | Dividend Declared | $ - | $ (100,000) | $ (80,000) |
f | Closing Balance of Retained Earnings(a+d-e) | $ 316,000 | $ 560,000 | $ 840,000 |
Tim Mattke Company began operations in 2018 and for simplicity reasons, adopted weighted-average pricing for inventory....
Tim
mattke company began operation in 2018 and for simplicity reason
adopted weighted-average pricing for inventory. In 2020, in
accordance with other companies in its industry, mattke changed its
inventory pricing to FIFO. The pretax income data is reported below
A. what is Mattkes net income in 2020? Assime a 20% rate in
all years
B.compute the cummulative effect of the change in accounting
principle from weighted-average to FIFo inventory pricing
C. show comparative income statements for Tim Mattke company,...
how to prepare retained earnings statement
Exercise 4-14 Statement of retained earnings Tim Mattke Company began operations in 2018 and for simplicity reasons, adopted weighted average pricing for inventory. In 2020, in accordance with other companies in its industry, Tim Mattke changed its inventory pricing to FIFO. Financial statement data is as follows. Pretax Income Weighted-A Applicable Dividends Year verage FIFO Tax Rate Declared 201 $370,000 $395,000 20% $ 0 201 390,000 430,000 20% 100,000 202 410,000 450,000 20% 80,000...
Vaughn Company began operations in 2018 and for simplicity reasons, adopted weighted average pricing for inventory. In 2020, in accordance with other companies in its industry, Vaughn changed its inventory pricing to FIFO. The pretax income data is reported below. Weighted Average Year FIFO 2018 $390,600 $414,000 2019 421,500 410,000 414,700 2020 473,400 What is Vaughn's net income in 2020? Assume a 35% tax rate in all years Net Income $ e Textbook and Media Compute the cumulative effect of...
Instructions Compute earnings per share data as it should appear in the 2020 income statement of Shiga Naoya Cor- poration. (Round to two decimal places.) E4.14 (LO4) (Change in Accounting Principle) Tim Mattke Company began operations in 2018 and for simplicity reasons, adopted weighted average pricing for inventory. In 2020, in accordance with other companies in its industry, Mattke changed its inventory pricing to FIFO. The pretax income data is reported below. Weighted- Year Average FIFO 2018 $370,000 $395.000 390,000...
Blossom Company began operations in 2018 and for simplicity reasons, adopted weighted average pricing for inventory. In 2020, in accordance with other companies in its industry, Blossom changed its inventory pricing to FIFO. The pretax income data is reported below. Year 2018 2019 2020 Weighted- Average $382.100 398,700 421,100 FIFO $398,800 426,900 466,900 (a) Your answer is correct What is Blossom's net income in 2020? Assume a 35% tax rate in all years. Net Income $ $ 303485 eTextbook and...
Zehms Company began operations in 2013 and adopted
weighted-average pricing for inventory. In 2015, in accordance with
other companies in its industry, Zehms changed its inventory
pricing to FIFO. The pretax income data is reported below.
Year
Weighted-Average
FIFO
2013
$370,000
$395,000
2014
390,000
420,000
2015
410,000
460,000
(a)
What is Zehms's net income in 2015? Assume a 35% tax rate in all
years.
Chapter 04 Homework – Statement of Retained Earnings Year 2018 2019 2020 1997 Weighted- Average $370,000 390,000 410,000 FIFO $395,000 430,000 450,000 Applicable Tax Rate 20% 20% 20% Dividends Declared $ 0 100,000 80,000 Instructions: Prepare a statement of retained earnings for Tim Mattke Company for the year 2020.
Presented below is information related to Ivan Calderon Corp. for the year ended December 31, 2020. Tim Mattke Company began operations in 2018 and adopted weighted-average method for inventory. In 2020, in accordance with other companies in its industry, Tim Mattke changed its inventory policy to FIFO. Financial statement data is as follows. Pretax Income Year Weighted Average FIFO Income Tax Rate Dividends Declared 2018 $ 370,000 $ 395,000 20% $ 0 2019 390,000 430,000 20% 100,000 2020 410,000 450,000...
Sweet Company began operations in 2015 and for simplicity reasons, adopted weighted-average pricing for inventory. In 2017, in accordance with other companies in its industry, Sweet changed its inventory pricing to FIFO. The pretax income data is reported below. Year Weighted-Average FIFO 2015 $379,700 $401,700 2016 407,400 427,900 2017 413,500 469,200 What is Sweet’s net income in 2017? Assume a 35% tax rate in all years. Net Income Compute the cumulative effect of the change in accounting principle from weighted-average...
need helpnwith this retained earnings
3 of 6 Chapter 04 Homework - Statement of Retained Earnings Exercise 4-14 Statement of retained earnings with PPA Tim Mattke. Company began operations in 2018 and adopted weighted-average method for inventory. In 2020, in accordance with other companies in its industry, Tim Mattke changed its inventory policy to FIFO. Financial statement data is as follows. Pretax Income Weighted Income Tax Dividends Year Average FIFO Rate Declared 2018 170.000 395,000 20% $0 2019 390,000 430,000...