The following partial information from the accounting records of Kendall Roman Co. as at December 31, 2020,
Question:
The following partial information from the accounting records of Kendall Roman Co. as at December 31, 2020, the end of company's fiscal year, has been collected:
Accounts receivable (Balance at Dec 31, 2020)_______________________________$60040
Accumulated Depreciation-Furniture(Balance at January 1, 2020)______________$50010
Cash (Balance at Dec 31, 2020)______________________________________________$20100
Common Stock (Balance at January 1, 2020)___________________________________$40280
Cost of Goods Sold (of the year 2020)_______________________________________$250740
Earnings before interest and taxes (of the year 2020)_______________________$180350
Furniture (Balance at January 1, 2020)______________________________________$160330
Inventory (Balance at Dec 31, 2020_Unadjusted)______________________________$45350
Loan (Balance at Jan 01, 2020)______________________________________________$80540
Net Income (of the year 2020)_______________________________________________$90150
Retained Earnings (Balance at January 1, 2020)______________________________$60080
Supplies (Balance at Dec 31, 2020_Unadjusted)_______________________________$4060
Additional Information
a. At the end of the year, Supplies actually on hand is $2360.
b. Depreciation @ 10% is to be charged on Furniture using the reducing-balance method.
c. The company has declared 5% Cash Dividend on its Common Stock.
d. The annual interest rate on the Loan is 2%.
e. Physical check on December 31, 2020 reveals that inventory actually on hand is $44,800.
Calculate the following using all the relevant information given above:
(1) Retained Earnings Balance at the end of December 31, 2020 unanswered.
(2) Earnings Before Taxes (EBT) for the year ended December 31, 2020 unanswered.
(3) Accumulated Depreciation-Furniture Balance at the end of December 31, 2020 unanswered.
(4) Cost of Goods Sold for the year ended December 31, 2020 unanswered.
(5) Total Current Assets at the end of December 31, 2020 unanswered.
Expert Answer:
Q 1 Answer Before computing the retained earnings balance at the end of December 31 2020 two adjustments are to be needed for the unadjusted balance of inventory and supplies at December 31 2020 Adjus... View the full answer
