Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Below is the Retained Earnings account for the year 2017 for Bramble Corp. Retained earnings, January 1, 2017 $265,330 Add: Gain on sale of investments

Below is the Retained Earnings account for the year 2017 for Bramble Corp.

Retained earnings, January 1, 2017

$265,330

Add:
Gain on sale of investments (net of tax)

$48,930

Net income

92,230

Refund on litigation with government, related to the year 2014 (net of tax)

29,330

Recognition of income earned in 2016, but omitted from income statement in that year (net of tax)

33,130

203,620

468,950

Deduct:
Loss on discontinued operations (net of tax)

42,730

Write-off of goodwill (net of tax)

67,730

Cumulative effect on income of prior years in changing from LIFO to FIFO inventory valuation in 2017 (net of tax)

30,930

Cash dividends declared

39,730

181,120

Retained earnings, December 31, 2017

$287,830

(a) Prepare a corrected retained earnings statement. Bramble Corp. normally sells investments of the type mentioned above. FIFO inventory was used in 2017 to compute net income.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting For Business

Authors: Colin Drury, Mike Tayles

8th Edition

1473778808, 978-1473778801

More Books

Students also viewed these Accounting questions