1. In 2009 Kieso Enterprises failed to record depreciation expense of $30,000. The accountant discovered this error in 2010. Kieso is subject to a 35 percent tax rate.
What is the effect of this error on retained earnings?
2. In 2009 Cummings Company, which is subject to a 30 percent tax rate, recognized interest revenue of $15,000. In January 2010, the accountant discovered that the correct amount of interest revenue for 2009 was $25,000.
What is the effect of this error on the 2010 statement of owners’ equity?
Devona Enterprises began fiscal 2010 on January 1 with 1 million shares of common stock authorized and 300,000 shares issued and outstanding. The par value of the common stock is $0.50 per share and the additional paid-in capital was $5,037,500 on January 1, 2010. On March 15, Devona issued an additional 50,000 shares of common stock for $21 per share. On October 31, Devona purchased 10,000 shares of common stock for $19 per share to be held as treasury stock.
Show how these events would be reported on the 2010 Statement of Owners’ Equity.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.