It is December 31, 2015, and Vision Consulting Inc. is preparing adjusting entries at the end of the accounting year. The company owns two different types of trucks. Assume a net income of $70,000 and cash dividends declared andpaid of $10,000 for 2015. The company's corporate tax rate is 10%. The following situations confront the company accountant.a) For each truck, give the required entry to correct retained earnings for prior years, including any income tax effects - books are closed. Enter an appropriate description when entering the transactions in the journal. Dates must beentered in the format dd/mmm (ie. January 15 would be 15/Jan).Please make sure your final answer(s) are accurate to 2 decimal places.Truck 1 cost $34,000 on January 1, 2013. It should be depreciated on a straight-line basis over an estimated useful life of 10 years with a $12,000 residual value. At December 31, 2015, the accountant discovered that, in error, thetruck was never depreciated. Books are still open for 2015 therefore the correct current year depreciation expense has already been recorded for 2015 fiscal year.Entry to correct the prior period error through retained earnings, including income tax effects - prior year books closed:General JournalPage G2PR Debit CreditDateAccount/Explanation+ -Truck 2 cost $36,000 on January 1, 2011. In error, the $36,000 truck cost was expensed in 2011. The truck should be depreciated on a straight-line basis over a estimated useful life of 5 years with a $12,000 residual value. Books arestill open for 2015 therefore the correct current year depreciation expense has already been recorded for 2015 fiscal year.Entry to correct the prior period error through retained earnings, including income tax effects - prior year books closed:Page G2PR Debit CreditGeneral JournalDateAccount/Explanation+ -b) Assume that there was a balance of $50,000 in opening retained earnings on January 1, 2015 and that Vision Consulting Inc. follows ASPE. Present the statement of retained earnings for the year ended December 31, 2015.Please make sure your final answer(s) are accurate to 2 decimal places.Vision Consulting Inc.Statement of Retained EarningsFor the year ended December 31, 2015c) REQUIRED DISCLOSURES:The statement of retained earnings requires a supplementary disclosure regarding any prior period correction involving income taxes. Report this disclosure below. Please make sure your final answer(s) are accurate to the nearestwhole number.Cumulative error correction, net of $income tax

Name: It is December 31, 2015, and Vision Consulting Inc. is preparing adju
Uploaded: 2024-03-05T11:50:36.000Z
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Description: It is December 31, 2015, and Vision Consulting Inc. is preparing adjusting entries at the end of the accounting year. The company owns two different types of trucks. Assume a net income of $70,000 and cash dividends declared andpaid of $10,000 for 2