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  • Enter The Appropriate Amounts in The Shaded Cells in Columns D and F

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    Elsa Mendoza
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    D: $1,550,000 F: $1,435,000 This document provides pro forma income statements for Bodie Corporation for the years 2001 and 2000 that reflect what net income and retained earnings would have been if a new depreciation method had always been used. The summary is to enter $1,550,000 in cell D7 and $1,435,000 in cell F7 of the pro forma statements to show the expenses and net income amounts that would have resulted from consistent use of the new depreciation method.

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    s20-19

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    D: $1,550,000 F: $1,435,000 This document provides pro forma income statements for Bodie Corporation for the years 2001 and 2000 that reflect what net income and retained earnings would have been if a new depreciation method had always been used. The summary is to enter $1,550,000 in cell D7 and $1,435,000 in cell F7 of the pro forma statements to show the expenses and net income amounts that would have resulted from consistent use of the new depreciation method.

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    7 views1 page

    Enter The Appropriate Amounts in The Shaded Cells in Columns D and F

    Uploaded by

    Elsa Mendoza
    D: $1,550,000 F: $1,435,000 This document provides pro forma income statements for Bodie Corporation for the years 2001 and 2000 that reflect what net income and retained earnings would have been if a new depreciation method had always been used. The summary is to enter $1,550,000 in cell D7 and $1,435,000 in cell F7 of the pro forma statements to show the expenses and net income amounts that would have resulted from consistent use of the new depreciation method.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
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    of 1

    20-19

    Name: SOLUTION Enter the appropriate amounts in the shaded cells in columns D and F. Bodie Corporation Comparative Income and Retained Earnings Statements For the Years Ended December 31 2001 $ 4,600,000 2,357,000 $ 2,243,000 1,589,600 $ 653,400 98,000 751,400 2000 $ 4,350,000 2,294,500 $ 2,055,500 1,533,000 $ 522,500

    Sales Cost of goods sold Gross profit Expenses Operating income before cumultive effect of change in depreciation method Cumulative effect of change in depreciation method Net income Beginning retained earnings Net income Dividends Ending retained earnings

    522,500

    $ 1,452,000 751,400 (157,000) $ 2,046,400

    $ 1,077,500 522,500 (148,000) $ 1,452,000

    The change in depreciation methods is a change in accounting principle and requires a cumulative effect adjustment as well as pro forma statements to reflect the income that would have been reported had the new depreciation method been in effect for the prior years shown. Bodie Corporation Pro Forma Income and Retained Earnings Statements For the Years Ended December 31 2001 $ 4,600,000 2,357,000 $ 2,243,000 1,589,600 $ 653,400 $ 1,550,000 653,400 (157,000) $ 2,046,400 2000 $ 4,350,000 2,294,500 $ 2,055,500 1,435,000 $ 620,500 $ 1,077,500 620,500 (148,000) $ 1,550,000

    Sales Cost of goods sold Gross profit Expenses Net income Beginning retained earnings Net income Dividends Ending retained earnings

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