User Account

All Pages

The miles company books for its previous errors

Assignment Help Accounting Basics
Reference no: EM13869252

Miles Company began 2010 with a retained earnings balance of $142,400. During an examination of its accounting records on December 31, 2010, the company found it had made the following material errors, for both financial reporting and income tax reporting, during 2009.
1. Depreciation expense of $15,000 inadvertently had been recorded twice for the same machine.
2. No accrual had been made at year end for interest; therefore, interest expense had been understated by $4,000.The Miles Company's net income during 2010 was $60,000. The company has been subject to a 30% income tax rate for the past several years. It declared and paid dividends of $13,000 during 2010.

Required:
1. Prepare whatever journal entries in 2010 are necessary to correct the Miles Company books for its previous errors. Make your corrections directly to the retained earnings account.
2. Prepare the statement of retained earnings for 2010.

Reference no: EM13869252

Questions Cloud

Dividends on this preferred stock were paid : Jamieson Company earned net income of $43,800 during 2010. At the beginning of 2010 it had 10,000 shares of common stock outstanding;
About healthsouth used unethical accounting measures : HealthSouth used unethical accounting measures
How are they linking gender violence to the border : Read and summarize Falcon and Fregoso's articles. Be sure to address: How are they linking gender violence to the border? How do they think capitalism and national security contribute to gender violence? What do they think is the importance of tra..
How much does the disk slow down the cpu : The CPU normally fetches and executes one 32-bit in- struction every 1 nsec. How much does the disk slow down the CPU?
The miles company books for its previous errors : Miles Company began 2010 with a retained earnings balance of $142,400. During an examination of its accounting records on December 31, 2010, the company found it had made the following material errors, for both financial reporting and income tax repo..
Which strategy you choose on a modern disk : You could do it from the outside in or the inside out. Does it matter which strategy you choose on a modern disk? Explain your answer.
What is the latitude of the tropic of capricorn : What do we call the amount of time it takes the Earth to orbit the Sun? At what time of year is the sun directly overhead at the tropic of cancer? What is the latitude of the Tropic of Capricorn? Which latitude on Earth's surface receives the most su..
What is the capacity for user data in mode one : What is the exact data capacity (in bytes) of a mode-2 CD-ROM containing the now-standard 80-min media? What is the capacity for user data in mode 1?
Improving construction estimate in kingdom of saudi arabia : One of the assessments that you have to do is writing and submitting a term paper. The theme of the paper is 'Improving construction estimate in the Kingdom of Saudi Arabia.' You should choose your own topic within the theme. To help you choosing a..

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd