Several months after Ames Company's 2011 financial statements were issued, Ames disposed of a segment of the business that accounted for 20% of its revenues in 2011. Ames presented information showing approximately what the 2011 numbers would have looked like if the sale had occurred earlier. This presentation is referred to as O Pro forma financial information O None of the above/below O Prospective financial information O Historical financial statements

Several months after Ames Company's 2011 financial statements were issued, Ames disposed of a segment of the business that accounted for 20% of its revenues in 2011. Ames presented information showing approximately what the 2011 numbers would have looked like if the sale had occurred earlier. This presentation is referred to as O Pro forma financial information O None of the above/below O Prospective financial information O Historical financial statements

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 5RE: Bloom Company had beginning unadjusted retained earnings of 400,000 in the current year. At the...

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Comprehensive: Income Statement and Retained Earnings Milwaukee Manufacturing Company presents the following partial list of account balances, after adjustments, as of December 31, 2019: The following information is also available but is not reflected in the preceding accounts: a. The company sold Division E (a major component of the company) on August 2, 2019. During 2019, Division E had incurred a pretax loss from operations of 16,000. However, because the acquiring company could vertically integrate Division E into its facilities, Milwaukee Manufacturing was able to recognize a 42,000 pretax gain on the sale. b. On January 2, 2019, without warning, a foreign country expropriated a factory of Milwaukee Manufacturing which had been operating in that country. As a result of that expropriation, the company has incurred a pretax loss of 30,000. c. The common stock was outstanding for the entire year. A cash dividend of 1.20 per share was declared and paid in 2019. d. The 2019 income tax expense totals 31,050 and consists of the following: Required: 1. As supporting documents for Requirement 2, prepare separate supporting schedules for selling expenses and for general and administrative expenses (include depreciation expense where applicable in these schedules). 2. Prepare 2019 multiple-step income statement for Milwaukee Manufacturing. 3. Prepare a 2019 retained earnings statement. 4. Next Level What was Milwaukee Manufacturings return on common equity for 2019 if its average shareholders equity during 2019 was 500,000? What is your evaluation of this return on common equity if its target for 2019 was 15%? 5. Next Level Discuss how Milwaukee Manufacturings income statement in Requirement 2 might be different if it used IFRS.
Bloom Company had beginning unadjusted retained earnings of 400,000 in the current year. At the beginning of the current year, Bloom changed its inventory method from LIFO to FIFO, and the cumulative effect (net of taxes) of this change was 28,000. In addition, Bloom earned net income of 150,000 and paid dividends of 30,000 in the current year. Prepare Blooms retained earnings statement for the current year.
Income Statement and Retained Earnings Huff Company presents the following items derived from its December 31, 2019, adjusted trial balance: The following information is also available for 2019 and is not reflected in the preceding accounts: 1. The common stock has been outstanding all year. A cash dividend of 1.28 per share was declared and paid. 2. Land was sold at a pretax gain of 6,300. 3. Division X (a major component of the company) was sold at a pretax gain of 4,700. It had incurred a 9,500 pretax operating loss during 2019. 4. A tornado, which is an unusual event in the area, caused a 5,400 pretax loss. 5. The income tax rate on all items of income is 30%. 6. The average shareholders equity is 90,000. Required: 1. Prepare a 2019 multiple-step income statement for Huff. 2. Prepare a 2019 retained earnings statement. 3. Compute the 2019 return on common equity (Net Income 4 Average Shareholders Equity).
Comprehensive: Income Statement and Supporting Schedules The following s a partial list of the account balances, after adjustments, of Silvoso Company on December 31, 2019: The following information is also available: 1. The company declared and paid a 0.60 per share cash dividend on its common stock. The stock was outstanding the entire year. 2. A physical count determined that the December 31, 2019, ending inventory is 34,100. 3. A tornado destroyed a warehouse, resulting in a pretax loss of 12,000. The last tornado in this area had occurred 10 years earlier. 4. On May 1, 2019, the company sold an unprofitable division (R). From January through April, Division R (a major component of the company) had incurred a pretax operating loss of 8,700. Division R was sold at a pretax gain of 10,000. 5. The company is subject to a 30% income tax rate. Its income tax expense for 2019 totals 4,230. The breakdown is as follows: 6. The company had average shareholders equity of 150,000 during 2019. Required: 1. As supporting documents for Requirement 2, prepare separate supporting schedules for cost of goods sold, selling expenses, general and administrative expenses, and depreciation expense. 2. Prepare a 2019 multiple-step income statement for Silvoso. Include any related note to the financial statements. 3. Prepare a 2019 retained earnings statement. 4. Next Level What was Silvosos return on common equity for 2019? What is your evaluation of Silvosos return on common equity if last year it was 10%?
Presented below is information related to Watt Company in its first year of operation. Thefollowing information is provided at December 31, 2015, the end of its first year.Sales revenue €420,000Cost of good sold 210,000Selling and administrative expenses 75,000Gain on sale of plant assets 45,000Unrealized gain on non-trading securities 15,000Financing costs 10,000Loss on discontinued operations 20,000Allocation to non-controlling interest 60,000Dividends declared and paid 12,000 Instructions:Compute the following (a) income from operations, (b) net income, (c) net income attributable to Watt Company shareholders, (d) comprehensive income, and (e) retained earnings balance at December 31, 2015.
Sutton Company purchased 10% of the outstanding stock of Roberts Company on January 1, 2012. Roberts reported net income of $155,000 and declared dividends of $40,000 during 2012. How would these events be reported by Sutton using the cost method?
The following is a partial trial balance for General Lighting Corporation as of December 31, 2018 Account title Sales revenue 2,350,000 Interest revenue 80,000 Loss on sale of investments 22,500 Cost of goods sold 1,200,000 Loss from write-down of inventory due to obsolescence 200,000 Selling expenses 300,000 General and…
Presented below is information related to Viel Company at December 31, 2017, the end of its first year of operations. Sales revenue $310,000 Cost of goods sold 140,000 Selling and administrative expenses 50,000 Gain on sale of plant assets 30,000 Unrealized gain on non-trading equity securities 10,000 Interest expense 6,000 Loss on discontinued operations 12,000 Allocation to non-controlling interest 40,000 Dividends declared and paid 5,000 InstructionsCompute the following: (a) income from operations, (b) net income, (c) net income attributable to Viel Company controllingshareholders, (d) comprehensive income, and (e) retained earnings balance at December 31, 2017. (Ignore income taxes.)
Below are selected accounts taken from the adjusted trial balance at Sherri’s Designs on December 31, 2015.Operating Expense $1,000Sales Revenue $5,000Inventory, January 1, 2015 $1,600Purchases $1,200Interest Revenue $250Loss on disposal of a discontinued component of the business (pre-tax) $400Inventory, December 31, 2015 $750Income Tax Expense $660Sheri’s Designs has 2,000 share of common stock outstanding and net income per share for2015 was $0.63. The income tax rate is 30%.Required: b.Prepare a multiple-step income statement
Below are selected accounts taken from the adjusted trial balance at Sherri’s Designs on December 31, 2015.Operating Expense $1,000Sales Revenue $5,000Inventory, January 1, 2015 $1,600Purchases $1,200Interest Revenue $250Loss on disposal of a discontinued component of the business (pre-tax) $400Inventory, December 31, 2015 $750Income Tax Expense $660Sheri’s Designs has 2,000 share of common stock outstanding and net income per share for2015 was $0.63. The income tax rate is 30%.Required:a. Prepare a single-step income statement
Extra-Ordinaire, Inc., sells a single product (Pulsa) exclusively through newspaper advertising. The comparative income statements and balance sheets are for the past two years. Additional Information The following information regarding the company’s operations in 2011 is available from the company’s accounting records: Early in the year the company declared and paid a $4,000 cash dividend. During the year marketable securities costing $15,000 were sold for $11,000 cash, resulting in a $4,000 nonoperating loss. The company purchased plant assets for $20,000, paying $8,000 in cash and issuing a note payable for the $12,000 balance. During the year the company repaid a $10,000 note payable, but incurred an additional $12,000 in long-term debt as described in 3, above. The owners invested $35,000 cash in the business as a condition of the new loans described in paragraphs 3 and 4 , above. requried: Prepare a cash flow statement using indirect method
Below are selected accounts taken from the adjusted trial balance at Sherri’s Designs on December 31, 2015.Operating Expense $1,000Sales Revenue $5,000Inventory, January 1, 2015 $1,600Purchases $1,200Interest Revenue $250Loss on disposal of a discontinued component of the business (pre-tax) $400Inventory, December 31, 2015 $750Income Tax Expense $660 Sheri’s Designs has 2,000 share of common stock outstanding and net income per share for 2015 was $0.63. The income tax rate is 30%. Required:b. Prepare a multiple-step income statement