Reporting the Financial Effects of Varied Transaction In an examination of Arenes Corporation as of December 31,

Question:

Reporting the Financial Effects of Varied Transaction In an examination of Arenes as of December 31, 2010, you have learned that the following situations exist. No entries have been made in the accounting records for these items.
1. The erected its present factory building in 1995. Depreciation was calculated by the straight-line method, using an estimated life of 35 years. Early in 2010, the board of directors conducted a careful survey and estimated that the factory building had a remaining useful life of 25 years as of January 1, 2010.
2. When calculating the accrual for officers “salaries at December 31, 2010, it was discovered that the accrual for officers” salaries for December 31, 2009, had been overstated.
3. On December 15, 2010, Arenes declared a cash on its ordinary shares outstanding, payable February 1, 2011, to the shareholders of record December 31, 2010.
Instructions
Describe fully how each of the items above should be reported in the of Arenes for the year 2010.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...