Question
On July 9, 2021, Pharoah Enterprises Inc. discovered it had recorded the $69,000 purchase of land as legal expense on November 8, 2020. The company
On July 9, 2021, Pharoah Enterprises Inc. discovered it had recorded the $69,000 purchase of land as legal expense on November 8, 2020. The company had reported retained earnings of $527,500 at its previous year end, December 31, 2020. During 2021, Pharoah had profit of $178,000 and it declared and paid cash dividends of $199,000. Pharoah has a 25% income tax rate.
Prepare the journal entry to correct the error. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
Jan. 1 | enter a debit amount | enter a credit amount | |
enter a debit amount | enter a credit amount | ||
enter a debit amount | enter a credit amount | ||
(To record correction of error.) |
Question Part Score
--/3
Assuming the company reports under ASPE, prepare a statement of retained earnings. (List items that increase retained earnings first.)
PHAROAH ENTERPRISES INC. Statement of Retained Earnings choose the accounting period | |
---|---|
select an opening name | $enter a dollar amount |
select between addition and deduction AddLess: select an item | enter a dollar amount |
select a summarizing line for the first part | enter a total amount for the first part |
select between addition and deduction AddLess: select an item Balance, January 1 a | enter a dollar amount |
enter a subtotal of the two previous amounts | |
enter a dollar amount | |
$enter a total amount |
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