Linden Corporation started operations on January 1, 2009, and has used the FIFO cost formula since its

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Linden Corporation started operations on January 1, 2009, and has used the FIFO cost formula since its inception. In 2015, it decides to switch to the weighted average cost formula. You are provided with the following information.
Linden Corporation started operations on January 1, 2009, and has

Instructions
Answer the following, ignoring tax considerations.
(a) What is the beginning retained earnings balance at January 1, 2011, if Linden prepares comparative financial statements starting in 2011?
(b) What is the beginning retained earnings balance at January 1, 2014, if Linden prepares comparative financial statements starting in 2014?
(c) What is the beginning retained earnings balance at January 1, 2015, if Linden prepares single-period financial statements for 2015?
(d) What is the net income reported by Linden in the 2014 income statement if it prepares comparative financial statements starting in 2012?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Intermediate Accounting

ISBN: 978-1118300855

10th Canadian Edition Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

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