The following information is available for Pharoah Corporation: $1,525,000 Retained earnings, December 31, 2023 Profit for...

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The following information is available for Pharoah Corporation: $1,525,000 Retained earnings, December 31, 2023 Profit for the year ended December 31, 2024 261,000 The company accountant, in preparing financial statements for the year ended December 31, 2024, has discovered the following Information: The company's previous bookkeeper had recorded an excess of depreciation expense on a machine in 2022 and 2023 by using the double diminishing-balance method of depreciation. The bookkeeper neglected to use the straight-line method of depreciation, which is the company's policy. The cumulative effect of the error on prior years was $11,900. Depreciation was calculated by the straight- line method in 2024. Pharoah's average tax rate is 22%. During 2024, Pharoah declared and paid cash dividends of $85,600. Calculate the impact on retained earnings. Retained earnings $ 1700400 Increase Prepare the statement of retained earnings for 2024. (List items that increase retained earnings first.) PHAROAH CORPORATION Statement of Retained Earnings Year Ended December 31, 2024 Balance, January 1, as reported Correction for overstatement of depreciation Balance, January 1, as adjusted Add : Profit for the year Less Dividends Balance, December 31 $ 1525000 69 $ 11900 1536900 261000 85600 1712300 The following information is available for Pharoah Corporation: $1,525,000 Retained earnings, December 31, 2023 Profit for the year ended December 31, 2024 261,000 The company accountant, in preparing financial statements for the year ended December 31, 2024, has discovered the following Information: The company's previous bookkeeper had recorded an excess of depreciation expense on a machine in 2022 and 2023 by using the double diminishing-balance method of depreciation. The bookkeeper neglected to use the straight-line method of depreciation, which is the company's policy. The cumulative effect of the error on prior years was $11,900. Depreciation was calculated by the straight- line method in 2024. Pharoah's average tax rate is 22%. During 2024, Pharoah declared and paid cash dividends of $85,600. Calculate the impact on retained earnings. Retained earnings $ 1700400 Increase Prepare the statement of retained earnings for 2024. (List items that increase retained earnings first.) PHAROAH CORPORATION Statement of Retained Earnings Year Ended December 31, 2024 Balance, January 1, as reported Correction for overstatement of depreciation Balance, January 1, as adjusted Add : Profit for the year Less Dividends Balance, December 31 $ 1525000 69 $ 11900 1536900 261000 85600 1712300