SHADOW BONE Company reported net income of P7,500,000 for the current year: The auditor raised questions about the following amounts that has been included in net income: Unrealized loss on foreign currency translation Gain on early retirement of bonds payable Debit adjustment of profit of prior year for error in depreciation, net of tax effect Loss from fire. 500,000 2,200,000 750,000 1,400,000
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What amount should be reported as adjusted net income for the current year?
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- The Company reported net income of P7,410,000 for the current year. The following items are included in the net income:Unrealized gain on foreign translation540,000 Gain on early retirement of bonds payable 2,200,000 Adjustment of profit of prior year for error in depreciation (net of tax) 750,000Loss on fire (1,400,000). What amount should be reported as adjusted net income?JDW Corporation reported the following for 20X1: net sales $2,929,500; cost of goods sold $1,786,995; selling and administrative expenses $585,900; unrealized holding loss on available-for-sale securities (considered other comprehensive income) $22,000; a positive foreign currency translation adjustment $26,250 (considered other comprehensive income); and an unrealized loss from pension adjustment (considered other comprehensive income) $7,000. JDW’s tax rate was 21%. Ignore income taxes related to amounts in other comprehensive income. prepare a statement of comprehensive income using the two-statement format. Ignore earnings per share.The financial statements of Calico Corporation, for the May 31 year-end, included the following information relating to their allowance for doubtful accounts: Balance in allowance at the beginning of the year $278 million, accounts written off during the year of $116 million, balance in allowance at the end of the year $271 million. What did Calico Corporation report as bad debt expense for the year? Select one: a. $155 million b. $109 million c. None of the above d. $162 million e. $123 million
- ABC Company’s statement financial statement shows a deficit on retained earningsamounting to P260,000. To eradicate the said deficiency, the company was to authorized bythe commission to have the revaluation of its assets and liabilities. The following were therevaluation:a. The receivable balance will be decreased to P40,000.b. The total fixed assets from its book value of P1,900,000 shall be revalued for P1,500,000and the P700,000 accumulated depreciation attached from the original book value shall bezero out.c. P50,000 of the other liabilities account shall not be recognized.Required:a. Prepare the necessary entries for the revaluation of assets and liabilities in the quasireorganization activity.b. Prepare the statement of financial position as of January 1, 2020 after the revaluationprocess.dog subject-Accounting Sanders Inc. reported net income of $880,000 for the year ended December 31. The company had a pretax unrealized holding gain on debt securities of $22,400 and a pretax loss on foreign currency translation adjustment of $64,000. The company’s tax rate is 25%. Prepare a separate statement of comprehensive income beginning with net income. Use a negative sign to indicate a loss. Sanders Inc. Statement of Comprehensive Income For the Year Ended December 31 Net Income Answer Unrealized holding gain on debt security investment, net of tax Answer Loss on foreign currency translation adjustment, net of tax savings Answer Comprehensive income This is a table questionThe Massoud Consulting Group reported net income of $1,354,000 for its fiscal year ended December 31, 2021. In addition, during the year the company experienced a positive foreign currency translation adjustment of $240,000 and an unrealized loss on debt securities of $80,000. The company’s effective tax rate on all items affecting comprehensive income is 25%. Each component of other comprehensive income is displayed net of tax.Required:Prepare a separate statement of comprehensive income for 2021.
- The following are the changes in the accounts of BTS Co. during the period:· Accounts receivable- P240,000 increase· Prepaid assets- P600,000 increase· Inventory- P1,500,000 decrease· Notes payable- P800,000 decreaseAdditional information:During the year, BTS Co. obtained a bank loan of P2,000,000 and paid interest of P100,000. Interest of P80,000 is accrued on December 31, 2021. Interest payable at the end of 2020 amounted to P120,000. In 2021, a shareholder donated an equipment with historical cost of P1,000,000 and carrying amount of P800,000 to BTS Co. The fair value of the equipment is P600,000. BTS declared dividends in 2021 of P160,000.How much is the profit (loss) for the year?8. An entity reported net income of P7,400,000 for the current year. The auditor raised questions about thefollowing amounts that had been included in net income:Equity in earnings of an associate – 25% interest 1,500,000Dividend received from the associates 400,000Unrealized loss on equity investment at FVOCI ( 550,000)Gain on early retirement of bonds payable 2,200,000Adjustment of profit of prior year for error in depreciation, net of tax effect ( 750,000)Loss from fire (1,400,000)Gain from change in fair value attributable to the credit risk of financialliability designated at FVPL 500,000 What amount should be reported as adjusted net income?a. 8,300,000 c. 9,500,000b. 7,800,000 d. 8,800,000The Massoud Consulting Group reported net income of $1,354,000 for its fiscal year ended December 31, 2018.In addition, during the year the company experienced a positive foreign currency translation adjustment of$240,000 and had unrealized losses on investment securities of $80,000. The company’s effective tax rate on allitems affecting comprehensive income is 30%. Each component of other comprehensive income is displayed netof tax.Required:Prepare a separate statement of comprehensive income for 2018.
- A company failed to record unrealized gains of $28 million on its available for sale debt security investments. Its tax rate is 25%. As a result of this error, comprehensive income would be:At the beginning of the current year, Malice Company reported allowance for doubtful accounts of P300,000. During the current year, the entity charged P650,000 to doubtful accounts expense, wrote off P450,000 of uncollectible accounts receivable, and unexpectedly recovered P100,000 of bad debts written off in the prior year. What is the allowance for doubtful accounts at year-end?Ruby Company sold accounts receivable without recourse with face amount of Php5,000,000. The factor withheld 10% of the accounts factored as protection against customer returns and other adjustments. The entity had previously established an allowance for doubtful accounts of Php100,000 for these accounts. By year-end, the entity had collected the factor's holdback there being no customer returns and other adjustment. How much is the Commission charged by the factor if the loss on factoring amounted to Php600,000?