Plan Y 902,200 739,900 Plan Z 584,600 713,200
How will Lahey report these multiple plans in its financial statements?
Question 22
For 2012, Sampsell Inc. computed its annual postretirement expense as $ 278,680. Sampsell ‟ s contribution to the plan during 2012 was $ 185,750. Prepare Sampsell ‟ s 2012 entry to record postretirement expense.
Question 23
Wertz Corporation decided at the beginning of 2012 to change from the completed-contract method to the percentage-of-completion method for financial reporting purposes. The company will continue to use completed-contract method for tax purposes. For years prior to 2012, pre-tax income under the two methods was as follows: percentage-of-completion $ 143,000, and completed-contract $ 65,800. The tax rate is 32 %. Prepare Wertz ‟ s 2012 journal entry to record the change in accounting principle.
Question 24
In 2012, Bailey Corporation discovered that equipment purchased on January 1, 2010, for $ 50,000 was expensed at that time. The equipment should have been depreciated over 5 years, with no salvage value. The effective tax rate is 29 %. Prepare Hiatt ‟ s 2012 journal entry to correct the error.
Question 25
At January 1, 2012, Beilder Company reported retained earnings of $ 2,027,300. In 2012, Beilder discovered that 2011 depreciation expense was understated by $ 442,300. In 2012, net income was $ 931,270 and dividends declared were $ 204,310. The tax rate is 38 %. Complete the 2012 retained earnings statement for Beilder Company.