Below is the Retained Earnings account for the year 2025 for Coronado Corp. Retained earnings, January 1, 2025 Add: Gain on discontinued operations (net of tax) Net income Gain on sale of investments (net of tax) Cumulative effect on income of prior years in changing from LIFO to FIFO inventory valuation in 2025 (net of tax) Refund on litigation with government, related to the year 2022 (net of tax) Recognition of income earned in 2024, but omitted from income. statement in that year (net of tax) Deduct: Write-off of goodwill (net of tax) Cash dividends declared Retained earnings, December 31, 2025 Retained Earnings, January 1, as Reported CORONADO CORP. Retained Earnings Statement For the Year Ended December 31, 2025 Correction of Error from Prior Period Adjustment for Change in Accounting Principle (Net of Tax) Retained Earnings, January 1, as Adjusted Add: Net Income /(Loss) Less: Cash Dividends Declared Retained Earnings, December 31 $14,400 170,700 43,600 55,000 54,000 52,100 Prepare a corrected retained earnings statement. Coronado Corp. normally sells investments of the type mentioned above. FIFO inventory was used in 2025 to compute net income. (List items that increase adjusted retained earnings first.) 252,400 62,400 $ $618,450 389,800 $ 1,008,250 314,800 $693,450 618450 52100 (55000) Bong 615550 535100 62400 i 1088250
Below is the Retained Earnings account for the year 2025 for Coronado Corp. Retained earnings, January 1, 2025 Add: Gain on discontinued operations (net of tax) Net income Gain on sale of investments (net of tax) Cumulative effect on income of prior years in changing from LIFO to FIFO inventory valuation in 2025 (net of tax) Refund on litigation with government, related to the year 2022 (net of tax) Recognition of income earned in 2024, but omitted from income. statement in that year (net of tax) Deduct: Write-off of goodwill (net of tax) Cash dividends declared Retained earnings, December 31, 2025 Retained Earnings, January 1, as Reported CORONADO CORP. Retained Earnings Statement For the Year Ended December 31, 2025 Correction of Error from Prior Period Adjustment for Change in Accounting Principle (Net of Tax) Retained Earnings, January 1, as Adjusted Add: Net Income /(Loss) Less: Cash Dividends Declared Retained Earnings, December 31 $14,400 170,700 43,600 55,000 54,000 52,100 Prepare a corrected retained earnings statement. Coronado Corp. normally sells investments of the type mentioned above. FIFO inventory was used in 2025 to compute net income. (List items that increase adjusted retained earnings first.) 252,400 62,400 $ $618,450 389,800 $ 1,008,250 314,800 $693,450 618450 52100 (55000) Bong 615550 535100 62400 i 1088250
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 9MC: Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and...
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Transcribed Image Text:Below is the Retained Earnings account for the year 2025 for Coronado Corp.
Retained earnings, January 1, 2025
Add:
Gain on discontinued operations (net of tax)
Net income
Gain on sale of investments (net of tax)
Cumulative effect on income of prior years in changing from
LIFO to FIFO inventory valuation in 2025 (net of tax)
Refund on litigation with government, related to the year 2022 (net of tax)
Recognition of income earned in 2024, but omitted from income
statement in that year (net of tax)
Deduct:
Write-off of goodwill (net of tax)
Cash dividends declared
Retained earnings, December 31, 2025
Retained Earnings, January 1, as Reported
CORONADO CORP.
Retained Earnings Statement
For the Year Ended December 31, 2025
Correction of Error from Prior Period
Adjustment for Change in Accounting Principle (Net of Tax)
Retained Earnings, January 1, as Adjusted
Add V: Net Income /(Loss)
Less : Cash Dividends Declared
Retained Earnings, December 31
$14,400
170,700
43,600
55,000
Prepare a corrected retained earnings statement. Coronado Corp. normally sells investments of the type mentioned above. FIFO
inventory was used in 2025 to compute net income. (List items that increase adjusted retained earnings first.)
54,000
52,100
252,400
62,400
$
$618,450
$
389,800
1,008,250
314,800
$693,450
618450
52100
(55000)
615550
535100
62400 i
1088250
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