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 .