View the step-by-step solution to:

Presented below are the comparative statements for Pannebecker Inc. for the years 2009 and 2010. Sales 2010 $340,000 200,000 2009 $270,000 142,000...

Attached is the file that includes my question. You can count this as three questions. For such to work, I am putting this same question up three times.

Presented below are the comparative statements for Pannebecker Inc.  for the years 2009 and 2010.           2010                2009                   Sales $340,000 $270,000   Cost of sales 200,000 142,000   Gross profit 140,000 128,000   Expenses 88,000 50,000   Net income $52,000 $78,000           Retained Earnings (Jan. 1) $125,000 72,000   Net income 52,000 78,000   Dividends (30,000) (25,000)   Retained Earnings (Dec. 31) $147,000 $125,000 The following additional information is provided:  1. In 2010, Pannebecker Inc. decided to switch its depreciation method from sum-of-the-years'-digits to the straight- line method. The assets were purchased at the beginning of 2009 for $90,000 with an estimated useful life of 4  years and no salvage value. (The 2010 income statement contains depreciation expense of $27,000 on the assets  purchased at the beginning of 2009.)  2. In 2010, the company discovered that the ending inventory for 2009 was overstated by $20,000; ending inventory  for 2010 is correctly stated.  Instructions  Complete the revised income and retained earnings statement for 2009 and 2010 assuming comparative statements.  (Ignore income taxes.)
Background image of page 1

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.


Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question