Tuscan Inc. had a retained earnings balance of $74,000 at December 31, 2018. During the year, Tuscan had the following

Tuscan Inc. had a retained earnings balance of $74,000 at December 31, 2018. During the year, Tuscan had the following selected transactions. • Reported net income of $114,000.
• Revised an estimate of a machine’s salvage value. Depreciation increased by $2,400 per year.
• An error was discovered. Three years ago, a purchase of a building was incorrectly expensed. The effect is understated retained earnings of $26,000 (net of tax benefit).
• Paid cash dividends of $47,000.
Calculate the retained earnings balance at December 31, 2019. (Amounts to be deducted should be indicated with a minus sign.) TUSCAN INC. Statement of Retained Earnings For Year Ended December 31, 2019 Prior period adjustment TUSCAN INC. Statement of Retained Earnings Building cost incorrectly expensed (net of tax) Owner’s capital Retained earnings, Dec. 31, 2018, as adjusted Retained earnings, Dec. 31, 2018, as previously reported Retained earnings, Dec. 31, 2019


CategoriesUncategorized

Leave a Reply

Your email address will not be published. Required fields are marked *