INTERMEDIATE ACCOUNTING
10th Edition
ISBN: 9781264046249
Author: SPICELAND
Publisher: MCG
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Chapter 17, Problem 17.25Q
To determine
Amortized prior service cost: This is the reduction on the change in pension plan earned in prior years is recognized over the future service of employee.
To indicate: Whether MS Logistics prepares financial statements according to GAAP (Generally Accepted Accounting Principles) or IFRS (International Financial Reporting Standards), based on the information that the company reports $12,000,000 of amortized prior service cost on its income statement
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You have been provided with Leonard Corporation's partial Statement of
Financial Position and the Statement of Comprehensive Income for the year
ended December 31, 2021.
Leonard Corporation
Partial Statement of Financial Position
For the Year Ended December 31, 2021
Accounts receivable -net
Prepaid expenses
Inventory
Property, Plant & Equipment
Accumulated Depreciation
Accounts payable
Income taxes payable
Deferred revenue
2021
Sales.......
Cost of goods sold..
Gross Margin.
Selling, general and admin
Depreciation expense
$440,000
482,000
45,000
31,000
825,000 810,000
2,475,000 2,105,000
2020
(866,000) (823,000)
184,000 197,000
38,000
35,000
47,000
42,000
Leonard Corporation
Statement of Comprehensive Income
For the Year Ended December 31, 2021
Interest expense.....
Gain on sale of PPE
Net income before taxes
Income Tax Expense
Net income and comprehensive income...
$3,560,000
1,950,000
1,610,000
(595,000)
(320,000)
(115,300)
55,400
635,100
95,300
.$539,800
Additional information:…
Required information
[The following information applies to the questions displayed below.]
Selected comparative financial statements of Korbin Company follow.
Sales
Cost of goods sold
Gross profit
Selling expenses
Administrative expenses
Total expenses
Income before taxes
Income tax expense
Net income
Assets
Current assets
KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31
2021
2020
$ 481,724 $369,040
289,998
191,726
68,405
43,355
111,760
Long-term investments
Plant assets, net
Total assets
Liabilities and Equity
Current liabilities
Assets
Current assets
Long-term investments
Plant assets, net
Total assets
Common stock
Other paid-in capital
Retained earnings
Total liabilities and equity
Liabilities and Equity
Current liabilities
Common stock
Other paid-in capital
Retained earnings
Total liabilities and equity
79,966
14,874
52,403
10,743
$ 65,092 $ 41,660
KORBIN COMPANY
Comparative Balance Sheets
December 31
233,233
135,807
50,928
32,476
83,404
2021
2020
$ 56,542
0…
Required Information
P13-6 (Algo) Computing Comparative Financial Statements and ROA Profit Driver Ratios LO 13-3, 13-4,
13-5
[The following information applies to the questions displayed below.]
The comparative financial statements for Chinook Company are below
Income statement
Sales revenue
Cost of goods sold
Gross profit
Operating expenses and interest expense
Pretax income
Income tax
Net income
Balance sheet
Cash
Accounts receivable (net)
Inventory
Property and equipment (net)
Total assets
Current liabilities (no interest)
Long-term liabilities (interest rate: 12%)
Common stock ($5 par value, 6,780 shares outstanding)
Retained earnings
Total liabilities and stockholders' equity
P13-6 Part 1
Year 2
Year 1
$ 204,000
$ 178,500
115,500
101,400
88,500
69,100
57,400
53,700
31,100
15,400
9,400
4,700
$ 21,700
$ 5,400
14,708
41,400
47,100
$ 10,700
$ 7,700
18,700
36,800
39,400
$ 108,600
$ 102,600
$ 16,700
45,700
33,500
12,700
$ 17,700
45,700
33,500
5,700
$ 108,600
$ 102,600
Required:
1.…
Chapter 17 Solutions
INTERMEDIATE ACCOUNTING
Ch. 17 - Prob. 17.1QCh. 17 - Prob. 17.2QCh. 17 - Prob. 17.3QCh. 17 - What is the vested benefit obligation?Ch. 17 - Prob. 17.5QCh. 17 - Prob. 17.6QCh. 17 - Name three events that might change the balance of...Ch. 17 - Prob. 17.8QCh. 17 - Prob. 17.9QCh. 17 - Prob. 17.10Q
Ch. 17 - The return on plan assets is the increase in plan...Ch. 17 - Define prior service cost. How is it reported in...Ch. 17 - Prob. 17.13QCh. 17 - Is a companys PBO reported in the balance sheet?...Ch. 17 - What two components of pension expense may be...Ch. 17 - Prob. 17.16QCh. 17 - Evaluate this statement: The excess of the actual...Ch. 17 - Prob. 17.18QCh. 17 - TFC Inc. revises its estimate of future salary...Ch. 17 - Prob. 17.20QCh. 17 - Prob. 17.21QCh. 17 - Prob. 17.22QCh. 17 - The components of postretirement benefit expense...Ch. 17 - The EPBO for Branch Industries at the end of 2018...Ch. 17 - Prob. 17.25QCh. 17 - Prob. 17.26QCh. 17 - Prob. 17.1BECh. 17 - Prob. 17.2BECh. 17 - Prob. 17.3BECh. 17 - Prob. 17.4BECh. 17 - Prob. 17.5BECh. 17 - Prob. 17.6BECh. 17 - Prob. 17.7BECh. 17 - Prob. 17.8BECh. 17 - Prob. 17.9BECh. 17 - Prob. 17.10BECh. 17 - Net gain LO176 The projected benefit obligation...Ch. 17 - Prob. 17.12BECh. 17 - Prob. 17.13BECh. 17 - Postretirement benefits; determine the APBO and...Ch. 17 - Prob. 17.1ECh. 17 - Prob. 17.3ECh. 17 - Prob. 17.4ECh. 17 - Prob. 17.5ECh. 17 - Prob. 17.6ECh. 17 - Prob. 17.7ECh. 17 - Prob. 17.8ECh. 17 - Prob. 17.9ECh. 17 - Prob. 17.14ECh. 17 - Prob. 17.17ECh. 17 - Prob. 17.23ECh. 17 - Prob. 17.32ECh. 17 - Prob. 17.33ECh. 17 - Prob. 17.1DMPCh. 17 - Prob. 17.2DMPCh. 17 - Prob. 17.3DMPCh. 17 - Prob. 17.5DMPCh. 17 - Prob. 17.6DMPCh. 17 - Prob. 17.8DMPCh. 17 - Prob. 17.9DMPCh. 17 - Prob. 17.11DMPCh. 17 - Prob. 1CCTCCh. 17 - Prob. 2CCTC
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