50.1K

Verified Solution

Link Copied!

Requirement 2: Choculator's preliminary 2018 net income was $300,000 without considering the entries in a-e. Determine the correct 2018 net income by adjusting this amount for amounts in items a-e, if any. Preliminary 2018 net income (ignore taxes) $300,000 a. b. c. d. Correct 2018 net income Requirement 3: Choculator's December 31, 2017, retained earnings balance was $800,000. Determine the December 31, 2018 retained earnings balance. Requirement 4: Complete the December 31, 2018 unclassified balance sheet for Choculator by including the: (1) 12-31-18 ending balances in asset/contra-asset accounts found in items a-e (OTHER THAN CASH) (2) 12-31-18 retained earnings balance. Assume Cash and other amounts shown below are correct. ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Cash $150,000 Other liabilities $ 556,000 Stockholders' equity Common stock $ 500,000 2 6 Total stockholders' equity Other assets 400.000 Requirement 2: Choculator's preliminary 2018 net income was $300,000 without considering the entries in a-e. Determine the correct 2018 net income by adjusting this amount for amounts in items a-e, if any. Preliminary 2018 net income (ignore taxes) $300,000 a. b. c. d. Correct 2018 net income Requirement 3: Choculator's December 31, 2017, retained earnings balance was $800,000. Determine the December 31, 2018 retained earnings balance. Requirement 4: Complete the December 31, 2018 unclassified balance sheet for Choculator by including the: (1) 12-31-18 ending balances in asset/contra-asset accounts found in items a-e (OTHER THAN CASH) (2) 12-31-18 retained earnings balance. Assume Cash and other amounts shown below are correct. ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Cash $150,000 Other liabilities $ 556,000 Stockholders' equity Common stock $ 500,000 2 6 Total stockholders' equity Other assets 400.000

Answer & Explanation Solved by verified expert

See Answer