Financial accounting

The Thi Lan Anh Vu Corporation reported net incomes for the last three years as follows: 2020 2019 2018 $ 1,200,000 $ 1,125,000 $ 900,000 During the 2020 year-end audit, the following items come to your attention: 1. Thi Lan Anh Vu bought a truck on January 1, 2017 for $ 490,000 cash, with an $ 40,000 estimated residual value and a six-year life. The company debited an expense account for the entire cost of the asset. Parrot uses straight-line depreciation for all trucks. 2. During 2020, Thi Lan Anh Vu changed from straight-line depreciation for its cement plant to double declining balance. The following calculations present depreciation on both bases 2020 2019 2018 Straight-line $ 90,000 $ 90,000 $ 90,000 Double declining balance 115,500 150,000 180,000 The net income for 2020 was calculated using the Straight-line method. 3. Assume that the beginning retained barninas balance inadi isted for 2010 Noa The Thi Lan Anh Vu Corporation reported net incomes for the last three years as follows: 2020 2019 2018 $ 1,200,000 $ 1,125,000 $ 900,000 During the 2020 year-end audit, the following items come to your attention: 1. Thi Lan Anh Vu bought a truck on January 1, 2017 for $ 490,000 cash, with an $ 40,000 estimated residual value and a six-year life. The company debited an expense account for the entire cost of the asset Parrot uses straight-line depreciation for all trucks. 2. During 2020, Thi Lan Anh Vu changed from straight-line depreciation for its cement plant to double declining balance. The following calculations present depreciation on both bases 2020 2019 2018 Straight-line $ 90,000 $ 90,000 $ 90,000 Double declining balance 115,500 150,000 180,000 The net income for 2020 was calculated using the Straight-line method. 3. Assume that the beginning retained earnings balance (unadjusted) for 2019 was $4,050,000 Required 1. Prepare the compound general journal/correcting entry required to correct the books assuming that the books have not been closed for 2020 Date Account Debit Credit 2. Present/prepare comparative retained earnings statement for the years 2020 and 2019 December 31, 2020 December 31, 2019