Financial & Managerial Accounting
13th Edition
ISBN: 9781285866307
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 13MJ, Problem 2IFRS
(a)
To determine
Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create accounting principles for the implementation of financial information reporting in the Country U.
International Financial Reporting Standards (IFRS): IFRS are a set of international accounting standards which are framed, approved, and published by International Accounting Standards Board (IASB) for the preparation and disclosure of international financial reports.
To explain: The differences in the presentation of
(b)
To determine
To compare: The financial statement terms used by Company L and MJ International
(c)
To determine
To discuss: The term ‘revaluation reserves’ reported in equity section by Company L
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Use the info below to answer the following questions: A company reports the following information as of December 31, Year 1: Sales revenue $ 900,000 Cost of goods sold 600,000 Operating Expenses 150,000 Unrealized Holding Gain on Trading securities 70,000 Unrealized Holding Gain on AFS securities 60,000What amount should the company report as net income as of December 31, Year 1?
What amount should the company report as comprehensive income as of December 31, Year 1?
The income statement and comparative Statement of Financial Positions of MacTavish Ltd. are shown below.Income Statement for the year ended December 31, 20x4Sales $ 1,420,000Cost of goods sold (1,110,000)Depreciation expense (55,000)Interest expense (22,000)Operating expenses (178,000)Gain on sale of capital assets 10,000Income tax expense (19,000)Net income $ 46,000Statement of Financial Position as at December 31 20x420x4 20x3Cash $ 71,000 $ 80,000 Accounts receivable 191,000 169,000 Inventory 303,000 324,000 Prepaid expenses 18,000 26,000Capital assets 640,000 612,000 Accumulated depreciation (301,000) (253,000) $922,000 $958,000Accounts payable $ 149,000 $ 243,400 Interest payable 41,000 36,000 Income taxes payable 8,000 12,000 Deferred revenue 25,000 17,000Bonds payable – net 226,000 229,600Common shares 317,000 300,000 Retained earnings 156,000 120,000 $922,000 $958,000
Additional information1. The bonds payable have a face value of…
Presented below is information related to Anderson Company for 2022.
Sales revenueCost of goods soldInterest expenseSelling and administrative expensesLoss from write-off of goodwillGain on the sale of investmentsLoss due to flood damageLoss on the disposition of the wholesale division Loss on operations of the wholesale division Dividends declared on ordinary shares Dividends declared on preference shares
25,000,000 16,000,000 70,000 4,700,000 820,000 110,000 390,000 800,000 150,000 250,000 60,000
Anderson decided to discontinue its entire wholesale operations and to retain its manufacturing operations. On September 15, Anderson sold the wholesale operations to Rogers Company. During 2022, there were 500,000 ordinary shares outstanding all year.
Prepare an income statement for the year ended 31 December 2022. Applicable tax rate is 30%.
Chapter 13MJ Solutions
Financial & Managerial Accounting
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