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I need help!!!ASAP!!! Bonita Corporation began operations on January 1, 2017. During its first 3 years of operations, Bonita reported net income and declared dividends
I need help!!!ASAP!!!
Bonita Corporation began operations on January 1, 2017. During its first 3 years of operations, Bonita reported net income and declared dividends as follows: 2017 2018 2019 Net income $40,500 130,100 164,000 Dividends declared $-0- 53,600 54,000 The following information relates to 2020. Income before income tax Prior period adjustment: understatement of 2018 depreciation expense (before taxes) Cumulative decrease in income from change in inventory methods (before taxes) Dividends declared (of this amount, $31,800 will be paid on Jan 15, 2021) Effective tax rate $228,700 $31,800 $42,800 $107,600 20% Prepare a 2020 retained earnings statement for Bonita Corporation. (List items that increase adjusted retained earnings first BONITA CORPORATION Retained Earnings Statement For the Year Ended December 31, 2020 Balance, January 1, as Reported 227000 Correction for Depreciation Error 19080 Cumulative Decrease in Income from Change in Inventory Methods 25680 182240 Balance, January 1, as Adjusted Add : Net Income /(Loss) 137220 319460 107600 i Less : Dividends Declared Balance, December 31 211860 e Textbook and Media X Your answer is incorrect. Assume Bonita Corporation restricted retained earnings in the amount of $71,530 on December 31, 2020. After this action, what would Bonita report as total retained earings in its December 31, 2020, balance sheet? Total retained earnings $ 211860 e Textbook and Media Step by Step Solution
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