Solution-What is the retained earnings balance as adjusted

What is the retained earnings balance as adjusted

Reference no: EM133150591

Question - Assume the beginning balance of Retained Earnings for 2020 is $1,600,000 and that dividends of $47,100 were declared during the year. Net Income was $125,400.

Additional information is as follows:

At the beginning of 2018, Mon Inc. purchased equipment for $66,000 (residual value of $8,000) that has a useful life of 5 years.

The bookkeeper used straight-line depreciation for 2018 & 2019, but failed to deduct the residual value in calculating the depreciable amount.

Pukht Inc. decided to change its method of inventory pricing from average cost to the FIFO method. The effect of this change on prior years is to increase 2018 income by $32,100 and decrease 2019 income by $22,700 before taxes. The FIFO method has been used for 2020.

In January 2020, Mon Inc. changed its bad debt estimates. The new estimate was used for the current year. The overall effect of this change on prior years would be an increase in net income of $18,000.

What is the Retained Earnings balance as adjusted for 2020?

What is the Retained Earnings ending balance for Dec 31, 2020?

Reference no: EM133150591

Questions Cloud

Treated as defeated nation or as rebellious states : Andrew Johnson's Reconstruction Plan. Analyze if the South should have been treated as a defeated nation or as rebellious states.

Compute the new machine net present value : The company estimates that the cost to operate the machine will be $7,800 per year. Compute the new machine net present value

Achieve incremental improvement : How many building blocks of a business-model canvas can an organization change to achieve incremental improvement?

Rationale for implementing government surveillance : -Analyze a historical example (pre-9/11/01) of when a government violated civil liberties with government surveillance in the name of national security.

What is the retained earnings balance as adjusted : The overall effect of this change on prior years would be an increase in net income of $18,000. What is the Retained Earnings balance as adjusted for 2020

Creative competencies that contribute to leadership : -List and provide an example of behavior for each of the 18 Creative Competencies that contribute to leadership effectiveness.

Ethical responsibility to small businesses : Is Wal-Mart acting unethically if when they open a store, they put small businesses in the area out of business? Does Wal-Mart have any ethical responsibility t

What is the maximum income : B's only income source is the partnership. What is the maximum income that is eligible for the small business deduction on B's tax return

What is the forecast for day 4 using a 3-period : 1. What is the forecast for day 4 using a 3-period moving average model? (1 mark) (Round to two decimal places).

User Account

All Pages

What is the retained earnings balance as adjusted

Reference no: EM133150591

Reference no: EM133150591

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Prepare a multiple-column cash receipts journal

What effect will the order have on company short-term profit

Calculate the overhead absorption rates for each department

What is the npv if the discount rate is 15.30%

What minimum price would you be willing to sell the software

Describe the current marketing communication

What is pro forma reporting according to regulation sx

Define how many wedges must division z sell each year

What is the total cost

Find the selling price forbes must charge to earn

Weighted average process costing system

Briefly explain the difference between a transaction driver

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT