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Novay_Z [31]
3 years ago
6

Sheridan, Inc. is a calendar-year corporation whose financial statements for 2020 and 2021 included errors as follows: Year Endi

ng Inventory Depreciation Expense 2020 $254000 overstated $200000 overstated 2021 121000 understated 79500 understated Assume that purchases were recorded correctly and that no correcting entries were made at December 31, 2020, or at December 31, 2021. Ignoring income taxes, by how much should Sheridan's retained earnings be retroactively adjusted at January 1, 2022
Business
1 answer:
KengaRu [80]3 years ago
8 0

Answer:

the retained earnings retroactively adjusted is $241,500

Explanation:

The computation of the retained earning retroactively adjusted is as follows:

Net income overstated -$54,000 ($254,000 - $200,000)

Net income understated  $41,500 ($121,000 - $79,500)

Inventory $254,000

Increase in retained earnings $241,500

Hence, the retained earnings retroactively adjusted is $241,500

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3 years ago
Problem 7-5 Coupon Rates [LO2] Gabriele Enterprises has bonds on the market making annual payments, with eight years to maturity
kakasveta [241]

Answer:

5.32%

Explanation:

The computation of the coupon rate on the bonds is shown below:

As we know that

Current price = Annual coupon × Present value of annuity factor(6.1%,8 ) + $1,000 × Present value of discounting factor(6.1%,8)

$952 = Annual coupon × 6.18529143 + $1,000 × 0.622697222

Annual coupon is

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Working notes:

1. Present value of annuity is

= Annuity × [1 - (1 + interest rate)^-time period] ÷ rate

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And,

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= $1000 × 0.622697222

4 0
3 years ago
Suppose the government decides that every family should own its own home. To bring this about, the government decides to subsidi
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Answer:

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