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?
Answer to relevant QuestionsFor each of the following accounts, determine its classification on the balance sheet using the following classifications. Use OOE for other owners’ equity items that are not contributed capital or retained earnings. Put ...Prepare the long- term liability section of the balance sheet. Use the following information: Phelan Enterprises has a building that cost $ 987,000 when it was purchased five years ago. This building is being depreciated using the straight- line depreciation method over its useful life of 30 years. Recently the ...Gfeller Enterprises began fiscal 2010 with the following shareholders’ equity information: • Common stock shares issued 39,598,900, $ 0.01 par value, paid-in capital in excess of par value, $ 640,078,000. • Retained ...Explain the importance of the sections of the statement of cash flows.
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