Accounts payable Accounts receivable Accumulated depreciation equipment Allowance for uncollectible accounts Amortization expense Cash and cash equivalents Common stock Cost of goods sold Deferred revenue Depreciation expense Dividends Equipment General and administrative expenses Income from discontinued operations, net of taxes Income tax expense Income taxes payable. Interest expense Interest payable Inventory Land investment to be sold in 2024 Notes payable (due 12/31/2023) Patents Prepaid rent Restricted cash to pay notes payable in 2023 Retained earnings Sales revenue Selling expenses Short-term investments Adjusted Trial Balance December 31, 2021 Debits Credits 2,400 3,500 175 8,300 7,200 1,600 600 14,500 1,500 1,600 150 4,000 800 3,325 200 150 2,400 1,200 51,200 5,100 150 13,000 800 1,900 550 100 5,000 4,225 17,975 Post-Closing Trial Balance December 31, 2020 Debits Credits 3,000 2,200 2,290 12,000 2,325 800 3,500 360 0 4,500 150 10,000 900 1,500 0 4,225 800 51,200 24,275 24,275

Accounts payable Accounts receivable Accumulated depreciation equipment Allowance for uncollectible accounts Amortization expense Cash and cash equivalents Common stock Cost of goods sold Deferred revenue Depreciation expense Dividends Equipment General and administrative expenses Income from discontinued operations, net of taxes Income tax expense Income taxes payable. Interest expense Interest payable Inventory Land investment to be sold in 2024 Notes payable (due 12/31/2023) Patents Prepaid rent Restricted cash to pay notes payable in 2023 Retained earnings Sales revenue Selling expenses Short-term investments Adjusted Trial Balance December 31, 2021 Debits Credits 2,400 3,500 175 8,300 7,200 1,600 600 14,500 1,500 1,600 150 4,000 800 3,325 200 150 2,400 1,200 51,200 5,100 150 13,000 800 1,900 550 100 5,000 4,225 17,975 Post-Closing Trial Balance December 31, 2020 Debits Credits 3,000 2,200 2,290 12,000 2,325 800 3,500 360 0 4,500 150 10,000 900 1,500 0 4,225 800 51,200 24,275 24,275

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

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Unusual income statement items Assume that the amount of each of the following items is material to the financial statements. Classify each item as either normally recurring (NR) or unusual (U) items. If unusual item, then specify if it is a discontinued operations item (DO). a. Interest revenue on notes receivable. b. Gain on sale of segment of the company's operations that manufactures bottling equipment. c.Loss on sale of investments in stocks and bonds. d. Uncollectible accounts expense. e. Uninsured flood loss. (Hood insurance is unavailable because of periodic Hooding in the area.)
Classification of Cash Flows The following are several items that might be disclosed on a companys statement of cash flows presented using the indirect method. a. Net income b. Depreciation expense c. Issuance of common stock d. Loss on disposal of equipment e. Purchase of a building f. Decrease in accounts payable g. Converted bonds into common stock h. Sale of long-term investment i. Payment of interest j. Increase in inventory Required: 1. Indicate whether each item should be classified as a cash flow from operating activities, cash flow from investing activities, cash flow from financing activities, or noncash investing and financing activity. 2. CONCEPTUAL CONNECTION Why is the proper classification of cash flows important?
Choose the incorrect statement below:A. Recognition for depreciation under the cash basis of accounting is different from that of the accrual basis of accounting.B. Deferred income is income already received but not yet earned.C. At the end of the accounting period, adjustments are made for accruals and prepayments in order to convert the cash records to accrual records.D. To compute for the sales on account, the beginning balance of trade accounts and notes receivable is deducted from the total of trade accounts and notes receivable, ending balance, collection of trade accounts and notes receivable, sales returns, discounts, and allowances and accounts written off.
HYPERINFLATIONARY FINANCIAL STATEMENTSProblem 42. Indicate whether the item is a monetary or non-monetary item:__Cash and Cash Equivalents__Loans and receivables__FAFVPL Bonds Receivables__FAAC Bonds Receivables__Investments in Shares of Stocks__Property, Plant and Equipment__Inventory__Investment Property__Prepaid asset__Intangible asset__Deferred tax asset__Accounts payable__Income tax payable__Deferred tax liability__Interest payable__Unearned revenue__Accrued expenses__Notes payable__Loans payable
Which of the statements is Not True about operating cash flowsa) Depreciation expenses are subtracted from cash outflowsb) Increases in inventories are deducted from cost of the goods soldc) It is equal to cash collected from sales - cash outflows for production costs- cash outflows for operating expenses – cash outflows for financial expenses – cash outflows for taxesd) Increases in the trade receivables are deducted from net sales
A company wishing to increase earnings in the current period may choose to:A . decrease the useful life of depreciable assets.B . lower estimates of uncollectible accounts receivables.C . classify a purchase as an expense rather than a capital expenditure.
Assume an income statement with the following classifications: RevenuesCost of goods soldDistribution expensesGeneral & administrative expensesOther revenues and expensesIncome tax on income from continuing operationsGain from disposal of discontinued operationsIncome tax on gain from discontinued operationsNone of the above Indicate by letter how each of the following should be classified: Advertising expense Amortization of a patent held as an investment Cash dividend received on short-term investment Depreciation on plant that manufactures good for sale (prior to sale of the goods) Freight on sales Income tax effect of loss on sale of plant Income tax on gain on sale of short-term investment in securities Interest expense Interest revenue Loss on sale of patent Dividend revenue from investment Salary of company president Sales Sales returns Services sold
Assume an income statement with the following classifications: a. Revenuesb. Cost of goods soldc. Distribution expensesd.General & administrative expensese. Other revenues and expensesf. Income tax on income from continuing operationsg. Gain from disposal of discontinued operationsh. Income tax on gain from discontinued operationsi. None of the above Indicate by letter how each of the following should be classified: Income tax effect of loss on sale of plant Income tax on gain on sale of short-term investment in securities Interest expense Interest revenue Loss on sale of patent Dividend revenue from investment Sales returns Services sold
Non-cash charges that are added back to profit in determining cash provided by operations under the indirect method do not include:a. depreciation expense.b. an increase in inventory.c. amortisation expense.d. loss on sale of equipment.
Please no written by hand solutions when using the indirect method to calculate and report net cash from or used in operating activities, which of the following is subtracted from profit? a. decrease in wages payable b. depreciation expense c. amortisation of intangible assets d. bad debt expense e. decrease in merchandise inventory
Hi pls, make an income statement (ignore taxes), statement of retained earnings, and ending balance sheet. Trial balances (amount in Php) Particulars Debit amount Credit amount Accounts payable Accounts receivable Share capital, common stock Cash Notes payable Property, plant and equipment Accumulated depreciation Allowances for doubtful debts Inventories Prepaid expense Goodwill Estimated tax liability Marketable securities Accrued expense Patents and trademarks Bonds payable Investments Deferred revenue Other liabilities(long term) Retained earnings - 4325 - 11660 - 6200 - - 1750 1250 100 - 1750 - 500 - 1500 - - - 1965 - 9990 - 800 - 3100 540 - - - 750 - 1000 - 2000 - 1650 1000 6240
What to put in the income statement based on this list? InventoryBuildings & ImprovementsAccumulated Depreciation - Buildings & ImprovementsFurniture & FixturesAccumulated Depreciation - Furniture & FixturesOffice EquipmentAccumulated Depreciation - Office EquipmentAccounts PayableLoans PayableAccrued LiabilitiesSalaries PayableEmployee Benefits PayablePaid-Up Share Capital - CommonAdditional Paid in CapitalRetained EarningsSalesFees and Surcharges & FinesOther Income & GainsMiscellaneous IncomeCost of SalesInterest ExpenseOffice Supplies ExpenseTravel and TransportationTaxes and LicensesProfessional FeesRent ExpenseMeeting and ConferencesBad Debts ExpenseDepreciation Expense - B&IDepreciation Expense - FFDepreciation Expense - OEEmployees Benefit ExpenseSalaries & WagesCommunicationMiscellaneous ExpensesIncome Summary