Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)
2nd Edition
ISBN: 9780134833118
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Question
Chapter 21, Problem 21.7P
a.
To determine
To prepare:
b.
To determine
Cumulative effect of the accounting changes made in 2018.
c.
To determine
To prepare: Multiple step income statement for JEC.
d.
To determine
To prepare: The footnote for the accounting changes in 2018.
e.
To determine
To prepare: Retained earnings column of statement of
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Students have asked these similar questions
The net changes in the balance sheet accounts of Amy Corporation for the year 2021 are shown below.
Account
Debit
Credit
Cash
$ 103,530
Short-term investments
$143,990
Accounts receivable
93,058
Allowance for doubtful accounts
15,827
Inventory
88,298
Prepaid expenses
27,132
Investment in subsidiary (equity method)
29,750
Plant and equipment
249,900
Accumulated depreciation
154,700
Accounts payable
96,033
Accrued liabilities
25,585
Deferred tax liability
18,445
8% serial bonds
83,300
Common stock, $10 par
107,100
Additional paid-in capital
178,500
Retained earnings—Appropriation for bonded indebtedness
71,400
Retained earnings—Unappropriated
45,220
$765,884
$765,884
An analysis of the Retained Earnings—Unappropriated account follows:
Retained earnings unappropriated, December 31, 2020
$1,547,000
Add:
Net income…
The following information is provided in the 2021 annual report to shareholders of paris-perfume.com:
Required:
Compute the missing amount in the paris-perfume.com financial statement Information. (Do not round your Intermediate
calculations.)
Accounts receivable
Inventory
Other assets
Total assets
Total liabilities
Total stockholders' equity
Net sales
Cost of goods sold
Net income
Return on assets
Receivables turnover
Inventory turnover
Asset turnover
Return on equity
Profit margin on sales
December 31, 2021
million
72 million
million
million
million
million
For the year ended Dec. 31, 2021
million
million
42 million
10 %
$
$
8.0
12.0
2.7
20 %
5 %
December 31, 2020
75 million
32 million
$
S
S
S
S
$
172 million
279 million
75 million
204 million
Comparative balance sheets for Softech Canvas Goods for 2018 and 2017 are shown below. Softech pays no dividends, and instead reinvests all earnings for future growth.
Comparative Balance Sheets
($ in 000s)
December 31
2018
2017
Assets:
Cash
$
119
$
86
Accounts receivable
215
235
Short-term investments
96
86
Inventory
430
278
Property, plant, and equipment (net)
1,060
895
$
1,920
$
1,580
Liabilities and Shareholders’ Equity:
Current liabilities
$
470
$
325
Bonds payable
275
275
Paid-in capital
745
745
Retained earnings
430
235
$
1,920
$
1,580
Required:1. Determine the return on shareholders’ equity for 2018. (Round your answer to 2 decimal places.)
Chapter 21 Solutions
Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)
Ch. 21 - Are accounting changes permitted in financial...Ch. 21 - How do firms report accounting changes under the...Ch. 21 - Prob. 21.3QCh. 21 - How do firms account for changes in accounting...Ch. 21 - Prob. 21.5QCh. 21 - Prob. 21.6QCh. 21 - Prob. 21.7QCh. 21 - Prob. 21.8QCh. 21 - Do accounting errors that self-correct within two...Ch. 21 - Does a firm need to correct an error that...
Ch. 21 - Prob. 21.1MCCh. 21 - Prob. 21.2MCCh. 21 - Prob. 21.3MCCh. 21 - Prob. 21.4MCCh. 21 - Prob. 21.5MCCh. 21 - Prob. 21.1BECh. 21 - Prob. 21.2BECh. 21 - Prob. 21.3BECh. 21 - Prob. 21.4BECh. 21 - Change in Accounting Principle, Long-Term...Ch. 21 - Prob. 21.6BECh. 21 - Prob. 21.7BECh. 21 - Prob. 21.8BECh. 21 - Prob. 21.9BECh. 21 - Prob. 21.10BECh. 21 - Prob. 21.11BECh. 21 - Prob. 21.12BECh. 21 - Prob. 21.13BECh. 21 - Prob. 21.14BECh. 21 - Change in Accounting Principle, Inventory. Massi...Ch. 21 - Change in Accounting Principle, Long-Term...Ch. 21 - Prob. 21.3ECh. 21 - Change in Accounting Principle, Inventory. Winthur...Ch. 21 - Prob. 21.5ECh. 21 - Prob. 21.6ECh. 21 - Error Analysis and Correction. Feinstein and...Ch. 21 - Prob. 21.8ECh. 21 - Prob. 21.9ECh. 21 - Prob. 21.10ECh. 21 - Change in Accounting Principle, Inventory. Second...Ch. 21 - Prob. 21.2PCh. 21 - Prob. 21.3PCh. 21 - Prob. 21.4PCh. 21 - Prob. 21.5PCh. 21 - Change in Estimate, Inventory, Bad Debt Expense....Ch. 21 - Prob. 21.7PCh. 21 - Cases Judgment Case Judgment Case: Materiality and...Ch. 21 - Prob. 1FSCCh. 21 - Surfing the Standards: Change in Accounting...Ch. 21 - Prob. 1BCC
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