INTERMEDIATE ACCOUNTING (LCPO)
10th Edition
ISBN: 9781264473441
Author: SPICELAND
Publisher: MCG
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Chapter 1, Problem 1CCTC
Target Case
• LO1–9
Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended January 30, 2016, are available in the Connect. This material also is available under the Investor Relations link at the company’s website (www.target.com).
Required:
1. What amounts did Target report for the following items for the year ended January 30, 2016?
a. Total Revenues
b. Income from current operations
c. Net income or net loss
d. Total assets
e. Total equity
2. What was Target’s basic earnings per share for the year ended January 30, 2016?
3. Why do you think Target has chosen to have its fiscal year end on January 30, as opposed to December 31?
4. Regarding Target’s audit report:
a. Who is Target’s auditor?
b. Did Target receive a “clean” (unmodified) audit opinion?
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The information below relates to questions 1- 11.
Emily and Sibusisiwe are two sisters of the Nkoane family who have recently qualified as chartered accountants. The two sisters are in a partnership, trading as Nkoene and Associates, rendering audit and business advisory services. The partners share profits and losses in
the ratio of 3:2. The following information was extracted from the accounting records of the partnership:
Trial balance of Nkoane and Associates as at 30 June 2021, the end of the financial year:
R
Capital: Emily
Capital: Sibusisiwe
Current account: Emily (Dr)
324 000
216 000
5 000
Current account: Sibusisiwe (Cr)
15 000
Land and buildings at cost
450 000
Vehicles at cost
210 000
Furniture and fittings at cost
57 600
Accumulated depreciation: Vehicles
Accumulated depreciation: Furniture and fittings
35 025
11 675
Stationery consumed
31 000
Trade receivables control
25 000
Trade payables control
13 000
Drawings: Emily
Drawings: Sibusisiwe
36 500
29 000
Fuel and…
_______ accounting standards require companies to group items within OCI based on __________:
U.S. GAAP; whether they will be reclassified subsequently into net income or whether they will be subsequently reclassified into income when specific conditions are met.
IFRS; whether they will be reclassified subsequently into net income or whether they will be subsequently reclassified into income when specific conditions are met.
U.S. GAAP; their expected future categorization on the income statement into income from continuing operations and discontinued operations.
IFRS; their expected future categorization on the income statement into income from continuing operations and discontinued operations.
Chapter 1 Solutions
INTERMEDIATE ACCOUNTING (LCPO)
Ch. 1 - Prob. 1.1QCh. 1 - What is meant by the phrase efficient allocation...Ch. 1 - Identify two important variables to be considered...Ch. 1 - What must a company do in the long run to be able...Ch. 1 - Prob. 1.5QCh. 1 - Prob. 1.6QCh. 1 - Prob. 1.7QCh. 1 - Prob. 1.8QCh. 1 - Prob. 1.9QCh. 1 - Prob. 1.10Q
Ch. 1 - Prob. 1.11QCh. 1 - Prob. 1.12QCh. 1 - Prob. 1.13QCh. 1 - Prob. 1.14QCh. 1 - Prob. 1.15QCh. 1 - Explain what is meant by: The benefits of...Ch. 1 - Prob. 1.17QCh. 1 - Briefly define the financial accounting elements:...Ch. 1 - Prob. 1.19QCh. 1 - What is the going concern assumption?Ch. 1 - Prob. 1.21QCh. 1 - Prob. 1.22QCh. 1 - What are two advantages to basing the valuation of...Ch. 1 - Describe how revenue recognition relates to...Ch. 1 - What are the four different approaches to...Ch. 1 - In addition to the financial statement elements...Ch. 1 - Briefly describe the inputs that companies should...Ch. 1 - Prob. 1.28QCh. 1 - Prob. 1.29QCh. 1 - Prob. 1.30QCh. 1 - Prob. 1.31QCh. 1 - Prob. 1.32QCh. 1 - Accrual accounting LO12 Cash flows during the...Ch. 1 - Financial statement elements LO17 For each of the...Ch. 1 - Prob. 1.3BECh. 1 - Basic assumptions and principles LO17 through...Ch. 1 - Prob. 1.5BECh. 1 - Prob. 1.6BECh. 1 - Accrual accounting LO12 Listed below are several...Ch. 1 - Accrual accounting LO12 Listed below are several...Ch. 1 - Prob. 1.3ECh. 1 - Prob. 1.4ECh. 1 - Prob. 1.5ECh. 1 - Financial statement elements LO17 For each of the...Ch. 1 - Concepts; terminology; conceptual framework LO17...Ch. 1 - Prob. 1.8ECh. 1 - Prob. 1.9ECh. 1 - Prob. 1.10ECh. 1 - Basic assumptions and principles LO18, LO19...Ch. 1 - Prob. 1.12ECh. 1 - Prob. 1.13ECh. 1 - Prob. 1.14ECh. 1 - Prob. 1.15ECh. 1 - Prob. 1.1DMPCh. 1 - Research Case 12 Accessing SEC information through...Ch. 1 - Prob. 1.7DMPCh. 1 - Prob. 1.8DMPCh. 1 - Prob. 1.9DMPCh. 1 - Prob. 1.10DMPCh. 1 - Real World Case 115 Elements; disclosures; The...Ch. 1 - Prob. 1.12DMPCh. 1 - Target Case LO19 Target Corporation prepares its...
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