nn E4-6 (Multiple-Step and Extraordinary Items) The following balances were taken from the books ofMaria Conchita Alonzo Corp. on December 31, 2014.$ 86,00051,0001,380,000150,00020,000150,000$ 40,00028,000155,000194,000170,000100,00097,00032,00060,000Interest revenueAccumulated depreciation-equipmentAccumulated depreciation-buildingsCashSales revenueNotes receivableAccounts receivablePrepaid insuranceSales returns and allowancesAllowance for doubtful accountsSelling expensesAccounts payableBonds payableAdministrative and general expenses7,00045,000100,000200,000140,000621,000Sales discountsAccrued liabilitiesLandInterest expenseEquipmentBuildingsCost of goods soldNotes payableLoss from earthquake damage(extraordinary item)100,000150,000500,00021,000Common stockRetained earningsAssume the total effective tax rate on all items is 34%.InstructionsPrepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year.

Multiple-step income statement is a format for preparing income statement by grouping income and…

Answered: multiple-step income statement

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter4: Accounting For Retail Operations

Section: Chapter Questions

Problem 4.4.4P: Multiple-step income statement and report form of balance sheet The following selected accounts and...

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Multiple-step income statement and report form of balance sheet The following selected accounts and their current balances appear in the ledger of Prescott Inc. for the fiscal year ended September 30. 20Y8: Instructions Briefly explain how multiple-step and single-step income statements differ.
Multiple-step income statement and report form of balance sheet The following selected accounts and their current balances appear in the ledger of Prescott Inc. for the fiscal year ended September 30. 20Y8: Instructions Prepare a multiple-step income statement.
Missing amounts from Financial statements The financial statements at the end of Network Realty, Inc.’s first month of operations are shown below. 11y analyzing the interrelationships among the financial statements, fill in the proper amounts for (a) through (s).
The comparative balance sheet of Coulson, Inc. at December 31, 20Y2 and 20Y1, is asfollows:Dec. 31, 20Y2 Dec. 31, 20Y1AssetsCash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 300,600 $ 337,800Accounts receivable (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 704,400 609,600Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 918,600 865,800Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,600 26,400Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 990,000 1,386,000 Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,980,000 $ 990,000Accumulated depreciation—buildings . . . . . . . . . . . . . . . . . . . . . (397,200) (366,000)Equipment . . . . . . . . . . . . . . . . . . .…
E5-2 (L02,3) (Classification of Balance Sheet Accounts) Presented below are the captions of Faulk Company’s balancesheet.(a) Current assets.(b) Investments.(c) Property, plant, and equipment.(d) Intangible assets.(e) Other assets.Instructions(f) Current liabilities.(g) Noncurrent liabilities.(h) Capital stock.(i) Additional paid-in capital.(j) Retained earnings.Indicate by letter where each of the following items would be classified.1. Preferred stock.2. Goodwill.3. Salaries and wages payable.4. Accounts payable.5. Buildings.6. Equity investments (trading).7. Current maturity of long-term debt.8. Premium on bonds payable.9. Allowance for doubtful accounts.10. Accounts receivable.11. Cash surrender value of life insurance.12. Notes payable (due next year).13. Supplies.14. Common stock.15. Land.16. Bond sinking fund.17. Inventory.18. Prepaid insurance.19. Bonds payable.20. Income taxes payable.
GL2-14 Complete the full accounting cycle The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $ 3,600 Accounts Receivable 8,600 Supplies 2,600 Equipment 18,000 Accumulated Depreciation $ 4,400 Accounts Payable 2,400 Utilities Payable 3,400 Deferred Revenue 0 Common Stock 14,000 Retained Earnings 8,600 Totals $ 32,800 $ 32,800 The following is a summary of the transactions for the year: 1. January 24 Provide plumbing services for cash, $11,000, and on account, $56,000. 2. March 13 Collect on accounts receivable, $44,000. 3. May 6 Issue shares of common stock in exchange for $10,000 cash. 4. June 30 Pay salaries for the current year, $31,200. 5. September 15 Pay utilities of $3,400 from 2020 (prior year). 6.…
Gary’s TV had the following accounts and amounts in its financial statements on December 31, 2022. Assume that all balance sheet items reflect account balances at December 31, 2022, and that all income statement items reflect activities that occurred during the year then ended. Interest expense $ 4,900 Paid-in capital 13,200 Accumulated depreciation 3,800 Notes payable (long-term) 43,000 Rent expense 10,200 Merchandise inventory 114,000 Accounts receivable 34,000 Depreciation expense 1,900 Land 27,000 Retained earnings 142,500 Cash 30,500 Cost of goods sold 228,000 Equipment 18,000 Income tax expense 42,000 Accounts payable 21,000 Net sales 350,000 Required: Calculate the difference between current assets and current liabilities for Gary’s TV at December 31, 2022. Calculate the total assets at December 31, 2022. Calculate the earnings from operations (operating income) for the year ended December 31, 2022. Calculate the net income (or loss) for the…
On August 1, 2020, the business accounts of Peter and Senen appear below:Assets Peter SenenCash P11,000 P22,354Accounts receivable 84,536 217,890Inventories 100,035 240,102Land 603,000 428,267Buildings 200,345 384,789Other Assets 22,000 23,600Total P1,020,916 P1,317,002Liabilities and CapitalAccounts payable P178,940 P243,650Notes payable 200,000 345,000Peter, Capital 641,976Senen, Capital 728,352Total P1,020,916 P1,317,002Peter and Senen agreed to form a partnership contributing their respective assets and liabilitiessubject to the following adjustments:Accounts receivable of P20,000 and P35,000 are uncollectible in Peter and Senen’s respectivebooks.Inventories of P5,500 and P6,700 are worthless in Peter and Senen’s respective booksOther Assets of P2,200 and P3,600 in Peter and Senen’s books are written off.After five days Ethel was offered to join Peter and Senen and will contribute for a 20% interestin the firm. They also agreed to divide profits and losses in the ratio of 4:4:2…
The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows:Dec. 31, 20Y2 Dec. 31, 20Y1AssetsCash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 918,000 $ 964,800Accounts receivable (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 828,900 761,940Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,268,460 1,162,980Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,340 35,100Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315,900 479,700Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,462,500 900,900Accumulated depreciation—buildings . . . . . . . . . . . . . . . . . . . . . . . . . . .…
P2-4A The trial balance of Avtar Sandhu Co. shown below does not balance.AVTAR SANDHU CO.Trial BalanceJune 30, 2017 Debit CreditCash $ 3,340Accounts Receivable $ 2,812Supplies 1,200Equipment 2,600Accounts Payable 3,666Unearned Service Revenue 1,100Owner’s Capital 8,000Owner’s Drawings 800Service Revenue 2,480Salaries and Wages Expense 3,200Utilities Expense 810 $12,522 $17,486Each of the listed accounts has a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.1. Cash received from a customer in payment of its account was debited for $580, and Accounts Receivable was credited for the same amount. The actual collection was for $850.2. The purchase of a computer on account for $710 was recorded as a debit to Supplies for $710 and a credit to Accounts Payable for $710.3. Services were performed on account for a client for $980. Accounts Receivable was debited for $980, and Service Revenue was credited for $98.4. A debit posting to…
Some selected balances of DD Co. for year ended Dec-31-2019 are as follows with theirnormal balances before adjustments:Cash and Cash Equivalent Br 20,000 Owners’ Capital 40,000Notes Receivables45,000Retained Earnings75,000Office Supplies12,000Sales Revenues640,000Prepaid Insurance72,000Interest Income12,000Inventory (Average Cost)24,000Cost of Goods Sold320,000Fixed Assets120,000Selling Expenses21,000Accum. Depr- Fixed assets36,000Salary and Wages Expense105,000Unearned Rent (Liability)56,000Rent Expense15,000Requireda. Prepare the necessary adjusting entries for the following items as not yet recorded on Dec-31-2019:i. The office supplies consumed during the year is Br 8,000ii. The Unexpired part of insurance is only Br 26,000iii. Br 30,000 is earned sales revenues from the unearned advance collectioniv. Salary and wages accrued as on 31-Dec-2019 amounts to be Br 18,000v. Depreciation Expenses allocated for the year amounts to be Br 15,000vi. There are accrued interest of Br 8,000 on…
From the data below for the Sorta Company, prepare the closing entries for the year ended December 31, 20--. Cash dividends$105,000Sales987,000Sales returns and allowances5,200Interest revenue3,700Factory overhead (debit)205,300Factory overhead (credit)205,300Cost of goods sold674,200Wages expense112,000Supplies expense5,300Depreciation expense—office equipment4,200Utilities expense5,700Bad debt expense1,300Advertising expense6,300Interest expense4,700Income tax expense61,950

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