April 19-2011 - PROBLEM 11-4 Net Income...

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Unformatted text preview: PROBLEM 11-4 Net Income Overstated (Understated) $ 3,000 (1,200 ) 1,800 100 (5,300 ) (3,400) 7,100 (8,250 ) (4,550) (14,000 ) $(18,550 ) 1 2 3 4 5 6 7 As Adjusted Retained Earnings dr, (cr.) $ 3,000 19,800 22,800 100 17,200 40,100 6,400 16,800 63,300 16,400 $79,700 Acc. Dep., Semitrucks dr, (cr.) $(30,200) 9,000 (19,800 ) (41,000) 14,400 (17,200 ) (43,800) 14,400 (16,800 ) (46,200) (16,400 ) $(62,600 ) $18,000 21,000 $ 3,000 Semitrucks dr. (cr.) $94,000 40,000 (30,000) _______ 104,000 (18,000) _______ 86,000 42,000 (24,000) _______ 104,000 _______ $104,000 Per Company Books Retained Earnings dr. (cr.) $21,000 21,000 22,500 43,500 (700) 25,050 67,850 30,400 $98,250 Acc. Dep. Semitrucks dr. (cr.) $(30,200) (21,000 ) (51,200) (22,500 ) (73,700) (25,050 ) (98,750) (30,400 ) $(129,150 ) Semitrucks dr. (cr.) $ 94,000 22,000 ________ 116,000 (3,500) ________ 112,500 42,000 (2,500) ________ 152,000 ________ $152,000 = $ 3,600 = 4,400 = 3,000 = 4,800 = 4,000 $19,800 1 Implied fair market value of Truck #3 ($40,000 – $22,000)...
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This note was uploaded on 04/29/2011 for the course ACCT 3001 taught by Professor Erickson during the Spring '10 term at University of Minnesota Duluth.

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April 19-2011 - PROBLEM 11-4 Net Income...

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