rox corporation s multiple step income statement and retained earnings statement for 4373851

Rox Corporation’s multiple-step income statement and retained earnings statement for the year ended December 31, 2016, as developed by its bookkeeper, are shown here: Retained Earnings Statement December 31, 2016 Beginning retained earnings …………… $62,850 Add: Net income ……………….. 7,970 Adjusted retained earnings …………….. $70,820 Less: Loss from theft (net of $ 2,760 income tax credit) …. (6,440) Ending retained earnings …………….. $64,380 You determine that the account balances listed on the statements are correct but are incorrectly classified in certain cases. The company faces a 30% tax rate. No shares of common stock were issued or retired during 2016. Required: 1. Review both statements and indicate where each incorrectly classified item should be classified. 2. Prepare a correct multiple-step income statement for 2016. 3. Determine the correct beginning balance in retained earnings, and then prepare a correct 2016 retained earnings statement. View Solution:
Rox Corporation s multiple step income statement and retained earnings statement for

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