Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Tulip Company decided to change from LIFO to FIFO inventory costing, effective January 1, 2020. The following data were available: Year Pretax Operating Excess of
Tulip Company decided to change from LIFO to FIFO inventory costing, effective January 1, 2020. The following data were available:
Year | Pretax Operating | Excess of FIFO Ending Inventory |
Income using LIFO | over LIFO Ending Inventory | |
2020 | $40,000 | $8,000 |
2019 | 20,000 | 7,000 |
2018 | 30,000 | 4,000 |
The income tax rate is 35%. The company began operations on January 1, 2018, and has paid no dividends since inception.
Required:
c. | Prepare the 2019 statement of retained earnings as it would appear in the comparative 2019-2020 financial statements. |
c. Prepare the 2019 statement of retained earnings as it would appear in the comparative 2019-2020 financial stat Retained Earnings Instructions Score: 5/51 Tulip Company Statement of Retained Earnings For the Year Ended December 31, 2019 $22,100.00 1 December 31, 2019 2 Add: 2019 net income (restated) 7,000.00 3 $29,100.00 4 5 $37,050.00
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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