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Leni [432]
2 years ago
10

Scobie Company began 2016 with a retained earnings balance of $142,400. During an examination of its accounting records on Decem

ber 31, 2016, Scobie found it had made the following material errors, for both financial reporting and income tax reporting, during 2015.
1. Depreciation expense of $15,000 inadvertently had been recorded twice for the same machine.
2. No accrual had been made at year-end for interest; therefore, interest expense had been understated by $4,000.
Scobie’s net income after taxes during 2016 was $60,000. The company has been subject to a 30% income tax rate for the past several years. It declared and paid dividends of $13,000 during 2016.
Required:
1. Prepare whatever journal entries in 2016 are necessary to correct Scobie’s books for its previous errors. Make your corrections directly to the Retained Earnings account.
Business
1 answer:
tino4ka555 [31]2 years ago
6 0

The total retained earnings on 31st December 2016 is $197,100. The journal entry are attached below.

<h3>What is Retained Earnings?</h3>

Retained earning is basically the profits of the company which is kept aside to meet the future requirement of the company. It the amount which is left over after deducting all cost such as direct cost, indirect cost, income taxes and dividend.

The retained earning is used in the future projects or for buying the equipment for the company.

Learn more about retained earnings here:

brainly.com/question/14529006

#SPJ1

.

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Listed below are accounts that appear in financial statements.
Kobotan [32]

Answer:

Dividends  - <em>Statement of Changes  in Retained Earning</em>

Dividends are payments to shareholders from a company's net income. They are derived from the Statement of Changes  in Retained Earning because this is where Net Income is sent to. After they are deducted from Retained Earnings, the Earnings form part of Equity.

Differed Revenue  - <em>Balance Sheet</em>

Differed Revenue refers to money that was received from a customer or client for goods and/or services that have not yet been delivered. The business will treat them as a liability until they are delivered so they will go under Current Liabilities in the Balance Sheet assuming they are to be fulfilled in 12 months or less which is usually the case.

Service Revenue - <em>Income Statement</em>

These are revenue that the business earns for providing a service when their main source of revenue is by selling goods. It is listed in the Income Statement just after Revenue and is added to Revenue to get Total Revenue.

7 0
3 years ago
On december 31, planet company acquired 80% of the voting common stock of star company by issuing 100,000 shares of its own comm
zavuch27 [327]

Answer:

Building with fair value of $150,000

Explanation :

In the consolidation work paper elimination, we eliminate the Equity or Net Identifiable assets that exist in Star Company at the Acquisition Date.

The Building with fair value of $150,000 was the only balance sheet item existing thus this is ultimately the Net Identifiable Assets that would be eliminated.

6 0
3 years ago
Kingbird, Inc. has 10,600 shares of 9%, $100 par value, cumulative preferred stock outstanding at December 31, 2022. No dividend
Rina8888 [55]

If Kingbird wants to pay $420,000 of dividends in 2022. The amount of dividends that the common stockholders will receive is $133,800.

<h3>Dividends </h3>

Using this formula

Remainder allocation to common stockholders=[Total dividend – (Dividiend  in arrears + 2022 dividend)

Let plug in the formula

Remainder allocation to common stockholders=[$420,000 – (10,600×9%×100×2)+(10,600×9%×100)

Remainder allocation to common stockholders=[$420,000 – ($190,800+ $95,400)]

Remainder allocation to common stockholders=[$420,000 –$286,200]

Remainder allocation to common stockholders=$133,800

Therefore the amount of dividends will common stockholders receive is $133,800.

Learn more about dividends here:brainly.com/question/14076997

8 0
2 years ago
Stoneheart Group is expected to pay a dividend of $3.11 next year. The company's dividend growth rate is expected to be 4.2 perc
lukranit [14]

Answer:

$43.19

Explanation:

Use dividend discount model(DDM) to solve this question; specifically constant dividend growth model.

P0 = D1/(r-g)

P0 = Current price

D1 = Next year's dividend = $3.11

r = investors' required return = 11.4% or 0.114 as a decimal

g = dividend growth rate = 4.2% or 0.042 as a decimal

P0 = 3.11/(0.114 - 0.042)

P0 = $43.19

Therefore, this stock price is $43.19

8 0
3 years ago
An American marketing research company wanted to use a survey to determine if it was feasible to build shopping centers in sever
Alekssandra [29.7K]

Answer:

decentering

Explanation:

From the question we are informed about An American marketing research company who wanted to use a survey to determine if it was feasible to build shopping centers in several countries. Since all of the countries spoke a different language, the company used two translators for each country—one to translate it into the native language, and one to translate it back into English. The original document was revised repeatedly until the translated version matched it in meaning. This describes the process of decentering.

Decentering can be regarded as a central change strategy which involves Mindfulness-Based Cognitive Therapy, it entails a process of stepping outside of mental events of individuals which could leads to non-judging stance as well as objective towards the self

6 0
3 years ago
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