Question

Olson Company’s bookkeeper prepared the following income statement and retained earnings statement for the year ended December 31, 2016:
Retained Revenues Statement
For Year Ended December 31, 2016
Beginning retained earnings ................. $59,300
Add: Gain on sale of Division L (net of $1,350 income taxes) ..... 3,150
Recalculated retained earnings ................ $62,450
Add: Net revenues ...................... 18,370
$80,820
Less: Interest expense .................... (3,400)
Ending retained earnings ................... $77,420
The preceding account balances are correct but have been incorrectly classified in certain instances. Assume the income tax amounts are correct and linked to the appropriate items.
Required:
Prepare a corrected 2016 multiple- step income statement and a 2016 retained earnings statement. Before preparing the 2016 retained earnings statement, determine the correct balance as of the beginning of the year.


$1.99
Sales2
Views102
Comments0
  • CreatedOctober 05, 2015
  • Files Included
Post your question
5000