Question
Beadle Beanies , a custom sports hat manufacturer , started operations in 2018 with a capital contribution of $ 100,000 . The company leases its
Beadle Beanies , a custom sports hat manufacturer , started operations in 2018 with a capital contribution of $ 100,000 . The company leases its facilities under a five year lease agreement January 2018 - December 2022 ) Beadle Beanies declared and paid dividends of $ 50,000 in 2019 and $ 100,000 in 2020 The company has been very successful in its first three years and is hoping to expand operations Beadle's bank has requested comparative financial statements ( three years ) as part of Beadle's loan application Operating information to date:
2018. 2019 2020
Net income $ 135,000 $ 165,000 180,000
assets. 1,785,000 1,844,000 2,066.000
Total liabilities1,550,000 1,494.000 1,636,000
The accountant preparing the statements discovers that $ 50,000 in leasehold improvements ( installed in January 2018 ) was expensed in error In the 2020 comparative financial statements , what would Beadle Beanies report for December 31 , 2020. Total Equity and Retained earnings , respectively , after the accountant makes the corrections ? ignore income taxes Assume all other amounts are fairly stated )
Select one :
a $ 370,000 : $ 270,000
b 450,000 $ 350,000
c. $ 520,000 $ 420,000
d . $ 400,000 $ 300,000
e 480,000 $ 380,000
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