Lee Corporation

lee side Corporation began operations in January of 2004. In 2007 an erroneousness was discovered in the 2005 financial statements that had depreciation expense set forth by $25,000 before a task wander of 40%. Lee Corporation similarly made a allowance in the method apply to value memorial. The trade resulted in a cumulative strike in income of $35,000 with a appraise rate of 40%. Lee Corporation also interpret dividends of $100,000 to be paid in early 2008. Income before levyes for 2007 was $240,000 with an in effect(p) tax rate of 40%, making net income for 2007 $144,000. The interest journal entries ar indispensable to immortalize these transactions and straddle other comprehensive income. bear requital15,000 Deferred Taxes10,000 Accumulated disparagement25,000 To record the switch over in depreciation, net of the tax rate. Retained Earnings21,000 Deferred Taxes14,000 Inventory35,000 To record the change in inventory military rank method, net of the tax rate for 2007. Retained Earnings100,000 Dividends payable100,000 To record capital dividends decl bed in 2007, to be paid Jan 15, 2008. Lee acquired a Canadian subsidiary for CA $100,000 which is the value of the sole plus of land that the subsidiary owned. The rally rates obtained from www.x-rates.com for the years 2004 2007 are stated below.

Amount in Amount in YearCanadian $U.S. $Factor 2004100,00083,065.50.830655 2005100,00086,136.40.861364 2006100,00085,888.50.858885 2007100,000101239.501.012395 Journal entries for the distant give-and-take adjustments for years 2005 2007 are as follows. Investment in appurtenant3070.90 cumulative translation Adjustment3070.90 To record transform adjustment for 2005 (86,136.40 83,065.50) Cumulative translation Adjustment247.90 Investment in secondary 247.90 To record exchange adjustment for 2006 (85,888.50 - 86,136.40) Investment in appurtenant15351.00 Cumulative translation Adjustment15351.00 To record...If you requirement to get a complete essay, order it on our website: Ordercustompaper.com

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