Reference no: EM131660732

Question 1 - In 2017, Metlock Corporation discovered that equipment purchased on January 1, 2015, for $52,000 was expensed at that time. The equipment should have been depreciated over 5 years, with no salvage value. The effective tax rate is 30%. Metlock uses straight-line depreciation.

Prepare Metlock's 2017 journal entry to correct the error.

Question 2 - Concord Co. reports the following information for 2017: sales revenue $767,500, cost of goods sold $505,000, operating expenses $84,800, and an unrealized holding loss on available-for-sale securities for 2017 of $52,000. It declared and paid a cash dividend of $12,650 in 2017.

Concord Co. has January 1, 2017, balances in common stock $360,700; accumulated other comprehensive income $86,400; and retained earnings $91,890. It issued no stock during 2017.

Prepare a statement of stockholders' equity.