Chapter 1, Problem 11E

The following information is taken from the records of Baklava Bakery for the year 2019. A. Calculate net income or net loss for January. B. Calculate net income or net loss for February. C. Calculate net income or net loss for March. D. For each situation, comment on how a stakeholder might view the firms performance. (Hint: Think about the source of the income or loss.)

Four different proprietorships, Jupiter, Mars, Saturn, and Venus, show the same balance sheet data at the beginning and end of a year. These data, exclusive of the amount of owners equity, are summarized as follows: On the basis of the preceding data and the following additional information for the year, determine the net income (or loss) of each company for the year. (Hint: First, determine the amount of increase or decrease in owners equity during the year.) Jupiter:The owner had made no additional investments in the business and had made no withdrawals from the business. Mars:The owner had made no additional investments in the business but had withdrawn 36,000. Saturn:The owner had made an additional investment of 60,000 but had made no withdrawals. Venus:The owner had made an additional investment of 60,000 and had withdrawn 36,000.

Listed below are the current Accounting Assumptions and Principles                               Economic Entity Assumption   Monetary Unit Assumption   Historical Cost Principle           Going Concern Assumption   Revenue Recognition Principle   Full Disclosure Principle           Time Period Assumption   Matching Principle                                   Required:                   For the following situations, identify whether the situation represents a violation or a correct application of GAAP, and which assumption/principle is applicable.                                       a. In May 2021, Regent Corporation recorded as revenue $5,000 received in advance from a customer for a job that would be completed in June 2021.                     Violation: (Yes/No)                 Applicable Assumption/Principle:                                     b. Sally Maze made sure to keep her personal expenditures separate from her marketing company books.…

The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2019: 1. Prepare a multiple-step income statement.2. Prepare a statement of owner’s equity.3. Prepare a balance sheet, assuming that the current portion of the note payable is$7,000.4. Briefly explain how multiple-step and single-step income statements differ.

The adjusted trial balance of Pacific Scientific Corporation on December 31, 2021, the end of the company's fiscal year, contained the following income statement items ($ in millions): sales revenue, $2,106; cost of goods sold, $1,240; selling expense, $126; general and administrative expense, $105; interest expense, $40; and gain on sale of investments, $45. Income tax expense has not yet been recorded. The income tax rate is 25%. Prepare a multiple-step income statement for 2021. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

The following selected data for the Food Factory Corporation were gathered by the accountants for the year ended December 31, 2020, who are responsible for preparing the financial statements:                             Cost of goods sold $47,300                         Depreciation expense 14,100                         Other operating expenses 15,700                         Loss on sale of investments 1,900                         Gain on sale of capital assets 6,200                         Sales revenue 99,700                         Interest revenue 7,100                         Dividend revenue 3,200                         Salary expense 24,700                         Interest expense 5,200                         Income tax expense 2,700                         Net income 4,600                                                                                                             The cash account began the year with a balance of $32,500 and…

The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year ended December 31, 2024 ($ in thousands): sales revenue, $19,100; cost of goods sold, $8,100; selling expenses, $1,490; general and administrative expenses, $990; interest revenue, $250; interest expense, $220. Income taxes have not yet been recorded. The company’s income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company’s income statement every year. The company’s controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2024 ($ in thousands). All transactions are material in amount. Investments were sold during the year at a loss of $410. Schembri also had an unrealized gain of $520 for the year on investments in debt securities that qualify as components of comprehensive income. One of the company’s factories…

The following items are taken from the financial statements of the Ivanhoe Service for the year ending December 31, 2021: What are total current assets at December 31, 2021? [ $ 41500; $ 25800; $ 31600; $ 35600 ] The following items are taken from the financial statements of the Al-Salam Co. for the year ending December 31, 2014: What are total current assets at December 31, 2014?

Portions of the financial statements for Myriad Products are provided below.  MYRIAD PRODUCTS COMPANYIncome StatementFor the Year Ended December 31, 2021($ in millions)     Sales   780 Cost of goods sold   273 Gross margin   507 Salaries expense 120   Depreciation expense 86   Amortization expense 5   Interest expense 26   Loss on sale of land 4 241 Income before taxes   266 Income tax expense   133 Net Income   133         MYRIAD PRODUCTS COMPANYSelected Accounts from Comparative Balance SheetsDecember 31, 2021 and 2020($ in millions)           Year           2021 2020 Change Cash $ 120 118 2 Accounts receivable   249 259 (10) Inventory   449 468 (19) Accounts payable   185 170 15 Salaries payable   92 104 (12) Interest payable   52 38 14 Income tax payable   42 28 14           Required:Prepare the cash flows from the operating activities section of the statement of cash flows for Myriad Products Company using the indirect…