Advanced Financial Accounting
Advanced Financial Accounting
12th Edition
ISBN: 9781259916977
Author: Christensen, Theodore E., COTTRELL, David M., Budd, Cassy
Publisher: Mcgraw-hill Education,
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Chapter 13, Problem 13.12E
To determine

Introduction: Interim reporting is made in between the fiscal year. It is made before the completion of fiscal year in mostly public corporation for taking various decisions for the remaining period. Mostly quarterly and half yearly report is prepared.

The acceptability of the method proposed for interim report for the given cases.

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I am resubmitting this question as I am getting flagged that there is information missing.    Losses have been incurred at Millard Corporation for some time. In an effort to isolate the problem and improve the company’s performance, management has requested that the monthly income statement be segmented by sales region. The company’s first effort at preparing a segmented statement is given below. This statement is for May, the most recent month of activity.     Sales Region   West Central East Sales $ 311,000     $ 803,000     $ 699,000   Regional expenses (traceable):                       Cost of goods sold   95,000       243,000       317,000   Advertising   103,000       244,000       235,000   Salaries   52,000       51,000       107,000   Utilities   8,800       15,600       14,400   Depreciation   25,000       31,000       27,000   Shipping expense   12,000       29,000       39,000   Total regional expenses   295,800       613,600       739,400…
Notes: The following have not yet been recorded in the trial balance accounts:i) Patronic Manufacturing provides for depreciation on equipment at 20% on a reducing balance basis. This should be recorded in production expenses. ii) Depreciation on motor vehicles is charged at 20% on a straight-line basis. This should be recorded in distribution expenses. iii) The directors have decided that the doubtful debt provision should be set at 4% of the value of the trade receivables at the year end. iv) Accounting fees relating to the year ended 31 December 2022 are estimated at £8,000. No bill has yet been received. Accountancy costs should be recorded in administration expenses. v) Inventory at 31 December 2022 is valued at £130,240.
Scenario The accounting manual contains instructions for recording sales transactions in the relevant accounting period, and CAIN Corp has excellent control rules and activities connected to authorisation of transactions for accounting entry. Every Friday at 5 p.m., the corporation shuts the accounting process in order to generate weekly management reports. The year-end date (cut-off date) is December 31, which fell on a Monday this year. The accounting, on the other hand, was completed as normal until Friday, and the accounts were closed for the year on Jan 4.a trail of paper All of the entries, including sales invoices, cash receipts, and shipping papers, were properly dated after December 31. The trial balance used to construct the financial statements, however, was dated December 31. Because the Friday shutdown was usual, no one noticed the lapse of a few days. Amount Over the January 1-4 period, CAIN recorded sales of P672,000 and a gross profit of P268,800. A total of P800,000 in…

Chapter 13 Solutions

Advanced Financial Accounting

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