80.2K

Verified Solution

Link Copied!

Exercise 22-4 Bonita Company started operations on January 1, 2012, and has used the FIFO method of inventory valuation since its inception. In 2018, it decides to switch to the average cost method. You are provided with the following information. Retained Earnings Net Income (Ending Balance) Under FIFO Under Average Cost Under FIFO 2012 $109,300 $99,300 $101,800 2013 73,600 69,000 172,800 2014 86,500 76,400 257,100 2015 119,500 129,900 307,400 2016 299,300 289,800 625,300 2017 302,300 307,300 745,600 (a) What is the beginning retained earnings balance at January 1, 2014, If Bonita prepares comparative financial statements starting in 2014? Retained earnings, January 1 $ (b) What is the beginning retained earnings balance at January 1, 2017, if Bonita prepares comparative financial statements starting in 2017? Retained earnings, January 1 $ (c) What is the beginning retained earnings balance at January 1, 2018, if Bonita prepares single-period financial statements for 2018? Retained earnings, January 1 Version 4.2 (a) What is the beginning retained earnings balance at January 1, 2014, if Bonita prepares comparative financial statements starting in 2014? Retained earnings, January 1 (b) What is the beginning retained earnings balance at January 1, 2017, if Bonita prepares comparative financial statements starting in 2017? Retained earnings, January 1 $ (c) What is the beginning retained earnings balance at January 1, 2018, if Bonita prepares single-period financial statements for 2018? Retained earnings, January 1 $ (d) What is the net income reported by Bonita in the 2017 income statement if it prepares comparative financial statements starting with 2015? 2017 2015 2016 Net Income $

Answer & Explanation Solved by verified expert

See Answer