Question
Linden Corporation started operations on January 1, 2012, and has used the FIFO cost formula since its inception. In 2021, it decides to switch to
Linden Corporation started operations on January 1, 2012, and has used the FIFO cost formula since its inception. In 2021, it decides to switch to the weighted average cost formula. You are provided with the following information.
Net Income Retained Earnings (Ending Balance) Under FIFO Under Weighted Average Cost Under FIFO
2015
$108,000 $95,900 $108,000
2016
74,000 67,900 172,000
2017
110,000 103,200 267,000
2018
134,000 142,800 386,000
2019
316,000 306,900 652,000
2020
316,000 321,800 853,000
Answer the following, ignoring income tax considerations.
What is the beginning retained earnings balance at January 1, 2017, if Linden prepares comparative financial statements starting in 2017?
Beginning retained earnings balance, January 1, 2017 | $enter a dollar amount of the Beginning retained earnings balance on January 1, 2017
|
What is the beginning retained earnings balance at January 1, 2020, if Linden prepares comparative financial statements starting in 2020?
Beginning retained earnings balance, January 1, 2020 $enter a dollar amount of the Beginning retained earnings balance at January 1, 2020
What is the beginning retained earnings balance at January 1, 2021, if Linden prepares single-period financial statements for 2021?
Beginning retained earnings balance, January 1, 2021 $enter a dollar amount of the Beginning retained earnings balance on January 1, 2021
What is the net income reported by Linden in the 2020 income statement if it prepares comparative financial statements starting in 2018?
2018 | 2019 | 2020 | ||||
---|---|---|---|---|---|---|
Net income | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount
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