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Business, 02.10.2019 02:20 yami4458

Pyramid issued 50,000 $1 par, common shares for $230,000 when the business began, and there have been no changes in paid-in capital since then. dividends were not paid the first year, but $10,000 cash dividends were paid in both 2017 and 2018. required: 1. prepare the journal entry to record the change in accounting principle. 2. prepare the 2018–2017 comparative income statements beginning with income before income taxes. 3. prepare the 2018–2017 comparative statements of shareholders’ equity. (hint: the 2016 statements reported retained earnings of $36,000. this is $60,000 – [$60,000 × 40%].)

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Pyramid issued 50,000 $1 par, common shares for $230,000 when the business began, and there have bee...

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