ACC 550 CA5-1 - In an examination of Arenes Corporation as...

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Unformatted text preview: In an examination of Arenes Corporation as of December 31, 2010, you have learned that the following situations exist. No entries have been made in the accounting records for these items. 1. The corporation erected its present factory building in 1995. Depreciation was calculated by the straight-line method, using an estimated life of 35 years. Early in 2010, the board of directors conducted a careful survey and estimated that the factory building had a remaining useful life of 25 years as of January 1, 2010. 2. An additional assessment of 2009 income taxes was levied and paid in 2010. 3. When calculating the accrual for officers’ salaries at December 31, 2010, it was discovered that the accrual for officers’ salaries for December 31, 2009, had been overstated. 4. On December 15, 2010, Arenes Corporation declared a cash dividend on its common stock outstanding, ...
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