Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The before - tax income for Kingbird Co . for 2 0 2 5 was $ 1 0 2 , 0 0 0 and $
The beforetax income for Kingbird Co for was $ and $ for However, the accountant noted that the following errors had been made: Sales for included amounts of $ which had been received in cash during but for which the related produ were delivered in Title did not pass to the purchaser until The inventory on December was understated by $ The bookkeeper in recording interest expense for both and on bonds payable made the following entry on an annual basis. Interest Expense Cash The bonds have a face value of $ and pay a stated interest rate of They were issued at a discount of $ on January to yield an effectiveinterest rate of Assume that the effectiveinterest method should be used. Ordinary repairs to equipment had been erroneously charged to the Equipment account during and Repairs in the amount of $ in and $ in were so charged. The company applies a rate of to the balance in the Equipment account at the end of the year in its determination of depreciation charges. Prepare a schedule showing the determination of corrected income before taxes for and Enter negative amounts using either a negative sign preceding the number eg or parentheses eg Round answers to decimal places, eg Income before Tax Corrections: Sales Erroneously Included in Income Understatement of Ending Inventory Adjustment to Bond Interest Expense Repairs Erroneously Charged to the Equipment Account Depreciation Recorded on Improperly Capitalized Repairs Corrected Income before Tax $
The beforetax income for Kingbird Co for was $ and $ for However, the accountant noted that the
following errors had been made:
Sales for included amounts of $ which had been received in cash during but for which the related produ
were delivered in Title did not pass to the purchaser until
The inventory on December was understated by $
The bookkeeper in recording interest expense for both and on bonds payable made the following entry on an
annual basis.
Interest Expense
Cash
The bonds have a face value of $ and pay a stated interest rate of They were issued at a discount of $ on
January to yield an effectiveinterest rate of Assume that the effectiveinterest method should be used.
Ordinary repairs to equipment had been erroneously charged to the Equipment account during and Repairs in the
amount of $ in and $ in were so charged. The company applies a rate of to the balance in the
Equipment account at the end of the year in its determination of depreciation charges.
Prepare a schedule showing the determination of corrected income before taxes for and Enter negative amounts using
either a negative sign preceding the number eg or parentheses eg Round answers to decimal places, eg
Income before Tax
Corrections:
Sales Erroneously Included in Income
Understatement of Ending Inventory
Adjustment to Bond Interest Expense
Repairs Erroneously Charged to the Equipment Account
Depreciation Recorded on Improperly Capitalized Repairs
Corrected Income before Tax
$
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started