AL Question 3 Susan Company's net incomes for the past three years are presented below ignore taxes) 2022 2021 2020 $480,500 $446,500 $310,200 During the 2022 year-end audit, the following items come to your attention: 1. Susan bought equipment on January 1, 2019 for $490,500 with a $43.500 estimated salvage value and a 6-year life. The company debited an expense account and credited cash on the purchase date for the entire cost of the asset. (Straight-line method) 2. During 2022. Susan changed from the straight line method of depreciating its cement plant to the double-declining balance method. The following computations present depreciation on both bases 2022 2021 2020 Straight line 36,600 36,600 36.000 Double-declining 46,120 57,200 73,200 The net income for 2022 was computed using the double-dedining balance method, on the January 1, 2022 book value over the life remaining at that time. The depreciation recorded in 2022 was 573,200. 3. Susan, in reviewing its provision for uncollectibles during 2022, has determined that is the appropriate amount of bad debt expens to be charged to operations. The company had used 1/2 of 10 as its rate in 2020 and 2021 when the expense had been $24,000 and $10,200, respectively. The company recorded bad debt expense under the write for 2022. The company would have recorded $13,000 less of bad dubt expends on December 1, 2022 under the old rate Prepare in General journal form the entry necessary to correct the books for the transaction in part of this problem, muming that the books have not been doned for the current Year (ir ne entry is required led "No entry for the accounts and enter for the amount Credit Scotties are automatically inden we amount entered. Do nor indent manually.) Account Tities and Explanation Debut Credit CALCULATOR Account Titles and Explanation RACK NET Debit Credit Compute the net income to be reported each year 2020 through 2022. Ignore taxes Net Income 2020 2021 $ 2022 Assume that the beginning retained earnings balance coadjusted) for 2020 was 11,236,000. At what adjusted amount should the beginning rutained earnings Balance for 2020 stated, assuming that comparative financial statements were prepared Retained carings Assume that the beginning retained earnings Balance (unadjusted) for 2022.s 19.000 and that no contrative cancial statements were that adjusted amous should this beginning retained earnings balance be stated Rotalned namings Question 3 Susan Company's net incomes for the past three years are presented below ignore taxes): 2022 2021 2020 $450,500 $446,500 $310,200 During the 2022 year-end audit, the following items come to your attention: 1. Susan bought equipment on January 1, 2019 for $490,500 with a $45,500 estimated salvage value and a 5-year life. The company debited an expense account and credited cash on the purchase date for the entire cost of the asset. (Straight line method) 2. During 2022. Susan changed from the straight-line method of depreciating its cement plant to the double-declining balance method. The following computations present depredation on both bases: 2022 2021 2020 Straight line 35,600 Double-dedining 36,600 36,600 46,120 57,200 72.200 The net income for 2022 was computed using the double-declining balance method, on the January 1, 2022 book value over the useful life remaining at that time. The depreciation recorded in 2022 was $23,200. 3.Susan, in reviewing its provision for uncollectibles during 2022, has determined that 1% is the propriate amount of bad debt expense to be charged to operations. The company had used 1/2 of 15 as its rate in 2020 and 2021 when the expense had been $24,000 and $10.200, respectively. The company recorded badet sunder the news for 2022. The company would have recorded $13.800 less of bad debt expense on December 31, 2022 under the old rate Drupare in general Journal form the entry necessary to correct the books for the transaction in part 1 of this problem, assuming that the books have not been done for the current year. It ne entry is required, select "No entry for the accountries and enter for the amounts credit account titles are all not what untered. Do not indent manually) Account Titles and Explanation Debat Credit CALCULATOR BACK Compute the net income to be reported each year 2020 through 2022. Ignore taxes. Net Income 2020 $ 2021 5 2022 Assume that the beginning retained earnings balance (unadjusted) for 2020 was $1,236,000. At what adjusted amount should this beginning retained warning balance for 2020 be stated, assuming that comparative financial statements were prepared? Retained earnings Assume that the beginning retained earnings Balance (unadjusted for 2022 is $1.719.000 and that non-comparative financial statements are prepared. At what adjusted amount should this beginning retained earnings balance be stated Retained carings Click if you would like to show Work for this question:m Show