Home / Questions / Prior-period adjustments are reported on the income statement for the period in which it
Prior-period adjustments are reported on the income statement for the period in which it is discovered an adjustment is necessary.
22) Corrections to the beginning balance of Retained Earnings for errors found within the current period are called prior-period adjustments.
23) Prior-period adjustments are made when an error occurs in one period and it is corrected in a later period.
24) The following statement of shareholders' equity for the Q8 Corporation is missing explanations of the events that led to the changes in the shareholders' equity accounts. Write a brief explanation for each change.
|
|
Common shares |
Contributed surplus |
Retained Earnings |
Accumulated Other Comprehensive Income |
Balance |
|
Balance |
$190,000 |
$0 |
$65,000 |
|
$255,000 |
|
a. |
74,000 |
|
|
|
74,000 |
|
b. |
|
|
86,500 |
|
86,500 |
|
c. |
|
|
(12,800) |
|
(12,800) |
|
d. |
30,000 |
|
(30,000) |
|
-0- |
|
e. |
(5,000) |
2,000 |
|
|
(3,000) |
|
f. |
|
|
|
3,000 |
3,000 |
|
Balance |
$289,000 |
$2,000 |
$108,700 |
$3,000 |
$402,700 |
25) Q8 Inc. reported retained earnings of $950,000 on December 31, 2010. During 2011, Q8 Inc. declared and paid $50,000 in dividends to preferred shareholders and $24,000 in dividends to common shareholders. Net income for 2011 was $106,000. A prior-period adjustment was recorded, resulting in a charge against retained earnings of $36,000.
Prepare a statement of retained earnings for Q8 Inc. for 2011.
26) Given the following information prepare a Statement of Shareholders' Equity for Q8 Inc for 2011.
Common Shares Balance December 31, 201 $22,000 (2,200 shares outstanding)
Net Income 201115,350
Discontinued operations5,700
New shares issued May 1, 2011 12,500
Share dividend issued September 30, 2011 8,500
Repurchase of common shares March 30, 2011 1,800 (200 shares)
Cash dividends November 30, 2011 1,500
Dec 09 2019 View more View Less
The fuel in high-efficiency natural gas vehicles consists primarily of methane (CH4(a) How much heat is produced in burning 1 mol of CH4g) under standard conditions if re...
Aug 21 2021b. What is the price of a call option that expires in 2 years, giving you the right to pay $0.90 to buy a bond expiring in 1 year? c. What is the price of an otherwise...
Nov 24 2019Cedar Point amusement park management is preparing the park's annual promotional plan for the coming season. Several advertising alternatives exist: newspaper, te...
Apr 17 2020Which of the following budgets is often more of a focus for a service company than a manufacturing company? A. Sales budget B. Direct materials budget C. Direct labor...
Jan 09 2020The Galleon case is the largest investigation in history into insider trading within hedge funds. Twenty-six people were charged with fraud and conspiracy. Galleon closed...
Aug 18 2021Bucksnort, Inc., has an odd dividend policy. The company has just paid a dividend of $5 per share and has announced that it will increase the dividend by $4 per share for...
Apr 13 2020A tax on apples would cause apple growers to suffer because O producer surplus would incre O the government would collect revenue from the tax. O consumers would pay high...
Apr 20 2020Think About ItIn Exercises 57-62, the graph of f is shown in the figure. Sketch a graph of the derivative of f. To print an enlarged copy of the graph, go to MathGraphs.com
Jul 28 2021Finding the Arc Length of a Plane Curve, sketch the plane curve and find its length over the given interval.
Jul 06 2021If a fore of 150Newtons is applied to a lawnmower at a angle of 35 degree celcius to the horizontal . Calculate the vertical and horizontal components of the force when ...
May 28 2021