Bentley Inc. started business in 2011 and follows ASPE. Effective January 1, 2015, the company decided...

 

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Bentley Inc. started business in 2011 and follows ASPE. Effective January 1, 2015, the company decided to change its method of inventory from FIFO to moving weighted average. The company has a December 31 year end; a tax rate of 30%; and declared no dividends until 2015 when $10,000 were declared and paid in December. Net income for 2015 was calculated to be $98,000 using the moving weighted average method. Year 2011 2012 2013 2014 Net income as reported 73,000 99,000 92,000 97,000 + Excess of COGS of FIFO over moving weighted average inventory methods 35,000 37,000 a) Prepare the statement of retained earnings for the year ended December 31, 2015 assuming that the change in accounting policy was implemented retrospectively. Please make sure your final answer(s) are accurate to 2 decimal places. X +++ 23,000 24,000 Bentley Inc. Statement of Retained Earnings For the Year Ended December 31, 2015 b) Calculate the income tax amount for retained earnings adjusting entry. Please make sure your final answer(s) are accurate to 2 decimal places. Reporting requirement: Adjusting entry is net of tax for $ Bentley Inc. started business in 2011 and follows ASPE. Effective January 1, 2015, the company decided to change its method of inventory from FIFO to moving weighted average. The company has a December 31 year end; a tax rate of 30%; and declared no dividends until 2015 when $10,000 were declared and paid in December. Net income for 2015 was calculated to be $98,000 using the moving weighted average method. Year 2011 2012 2013 2014 Net income as reported 73,000 99,000 92,000 97,000 + Excess of COGS of FIFO over moving weighted average inventory methods 35,000 37,000 a) Prepare the statement of retained earnings for the year ended December 31, 2015 assuming that the change in accounting policy was implemented retrospectively. Please make sure your final answer(s) are accurate to 2 decimal places. X +++ 23,000 24,000 Bentley Inc. Statement of Retained Earnings For the Year Ended December 31, 2015 b) Calculate the income tax amount for retained earnings adjusting entry. Please make sure your final answer(s) are accurate to 2 decimal places. Reporting requirement: Adjusting entry is net of tax for $

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