FINANCIAL ACCT.:TOOLS...(LL)-W/ACCESS
8th Edition
ISBN: 9781119250913
Author: Kimmel
Publisher: WILEY
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 4.1IFRS
(a)
To determine
IFRS:
The International Financial Reporting Standards are issued to have a common language for business affairs globally, to ensure easy understanding and comparing the financial statements across the boundaries of the countries. These IFRS are issued by the IFRS Foundation and the International Accounting Standard Board.
To Explain: The amount of revenue recorded in the financial statements of the Company L by following the notes to the financial statements.
(b)
To determine
To explain: The determination of the provision of product returns in the financial statements of the Company L.
(c)
To determine
To explain: The identification of items those may have some adjustments for deferrals from the consolidated income statement and consolidate
(d)
To determine
To explain: The identification of two items which can be adjusted for accruals from the consolidated income statement of the Company L.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The following information are extracted from the books and records of the Company and its branch. The balances are at December 31,2021, the third year of the corporation’s existence. (see image below). The branch acquires all of its merchandise from the home office. The inventories of the branch at billed prices on January 1, 2021 is P 90,000 and on December 31, 2021 is P100,800. Determine a. The percentage of profit on cost that the home office uses to bill merchandise shipped to branch and b. The balance of the Shipments to Branch account before the books are closed
Alpha company is a trading company that purchases and sales fruits and vegetables. During the year 2020, the company shows the following transactions and events:
Net profit is computed by subtracting operating expenses from the cost of goods sold.
The accountant records merchandise inventory (stock) in the expenses section of the income statement.
The company assumes that physical inventory is not important as it uses the perpetual inventory system during the year.
The driver of the company has access to the inventory, he delivers the merchandise, receives the cash and has access to the company
Required:
For each case, identify the anomaly and propose the correct accounting treatment/answer:
Required:
When should Ski West recognize revenue from the sale of its season passes?
Prepare the appropriate journal entries that Ski West would record on November 6 and December 31.
What will be included in the Ski West 2021 income statement and balance sheet related to the sale of the season pass to Jake Lawson?
Chapter 4 Solutions
FINANCIAL ACCT.:TOOLS...(LL)-W/ACCESS
Ch. 4 - Prob. 1QCh. 4 - Identify and stale two generally accepted...Ch. 4 - Prob. 3QCh. 4 - Prob. 4QCh. 4 - Prob. 5QCh. 4 - Why may the financial information in an unadjusted...Ch. 4 - Distinguish between the two categories of...Ch. 4 - What types of accounts does a company debit and...Ch. 4 - Prob. 9QCh. 4 - Prob. 10Q
Ch. 4 - Prob. 11QCh. 4 - What types of accounts are debited and credited in...Ch. 4 - Prob. 13QCh. 4 - Prob. 14QCh. 4 - Prob. 15QCh. 4 - A company fails to recognize an expense incurred...Ch. 4 - A company makes an accrued revenue adjusting entry...Ch. 4 - Prob. 18QCh. 4 - For each of the following items before adjustment,...Ch. 4 - One-half of the adjusting entry is given below....Ch. 4 - Prob. 21QCh. 4 - Prob. 22QCh. 4 - Prob. 23QCh. 4 - (a) What information do accrual-basis financial...Ch. 4 - What is the relationship, if any, between the...Ch. 4 - Identify the account(s) debited and credited in...Ch. 4 - Prob. 27QCh. 4 - Prob. 28QCh. 4 - What items are disclosed on a post-closing trial...Ch. 4 - Prob. 30QCh. 4 - Indicate, in the sequence in which they are made,...Ch. 4 - Identify, in the sequence in which they are...Ch. 4 - Prob. 33QCh. 4 - Prob. 34QCh. 4 - Prob. 35QCh. 4 - Prob. 36QCh. 4 - Prob. 4.1BECh. 4 - Prob. 4.2BECh. 4 - Prob. 4.3BECh. 4 - Prob. 4.4BECh. 4 - Prob. 4.5BECh. 4 - Prob. 4.6BECh. 4 - Prob. 4.7BECh. 4 - Prob. 4.8BECh. 4 - Prob. 4.9BECh. 4 - Prob. 4.10BECh. 4 - Prob. 4.11BECh. 4 - Prob. 4.12BECh. 4 - Prob. 4.13BECh. 4 - Prob. 4.14BECh. 4 - The required steps in the accounting cycle are...Ch. 4 - Prob. 4.1DIECh. 4 - Prob. 4.2DIECh. 4 - Prob. 4.3DIECh. 4 - Prob. 4.4ADIECh. 4 - Prob. 4.4BDIECh. 4 - The following independent situations require...Ch. 4 - These accounting concepts were discussed in this...Ch. 4 - Prob. 4.3ECh. 4 - Prob. 4.4ECh. 4 - Prob. 4.5ECh. 4 - Prob. 4.6ECh. 4 - Prob. 4.7ECh. 4 - Prob. 4.8ECh. 4 - Prob. 4.9ECh. 4 - Prob. 4.10ECh. 4 - Prob. 4.11ECh. 4 - Prob. 4.12ECh. 4 - Prob. 4.13ECh. 4 - Prob. 4.14ECh. 4 - Prob. 4.15ECh. 4 - Prob. 4.17ECh. 4 - Prob. 4.18ECh. 4 - Prob. 4.20ECh. 4 - Prob. 4.22ECh. 4 - Prob. 4.23ECh. 4 - Prob. 4.2APCh. 4 - Prob. 4.3APCh. 4 - Prob. 4.4APCh. 4 - Prob. 4.5APCh. 4 - Prob. 4.6APCh. 4 - Prob. 4.7APCh. 4 - Prob. 4.1CACRCh. 4 - Prob. 4.2CACRCh. 4 - Prob. 4.3CACRCh. 4 - Prob. 4.4CACRCh. 4 - Prob. 4.1EYCTCh. 4 - Prob. 4.2EYCTCh. 4 - Prob. 4.3EYCTCh. 4 - Prob. 4.4EYCTCh. 4 - Prob. 4.6EYCTCh. 4 - Prob. 4.7EYCTCh. 4 - Prob. 4.8EYCTCh. 4 - Companies prepare balance sheets in order to know...Ch. 4 - Prob. 4.1IFRS
Knowledge Booster
Similar questions
- The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019: Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of owners equity. 3. Prepare a balance sheet, assuming that the current portion of the note payable is 50,000. 4. Briefly explain how multiple-step and single-step income statements differ.arrow_forwardOn March 31, 2019, the balances of the accounts appearing in the ledger of Racine Furnishings Company, a furniture wholesaler, are as follows: a. Prepare a multiple-step income statement for the year ended March 31, 2019. b. Compare the major advantages and disadvantages of the multiple-step and single-step forms of income statements.arrow_forwardFedEx Corporation had the following revenue and expense account balances (in millions) for a recent year ending May 31: a.Prepare an income statement. b.Compare your income statement with the income statement that is available at the FedEx Corporation Web site, (http://investors.fedex.com). Click on Annual Report and Download Annual Report. What similarities and differences do you see?arrow_forward
- PLEASE PROVIDE WELL EXPLAINED , COMPUTED AND FORMULATED ANSWER WITH STEPS AND WORKING Star Inc. ships merchandise on consignment to The Party Place, a retailer on February 13, 2020. The cost of the merchandise is $26,000, and Star Inc. pays the freight cost of $1,900 to ship the goods to the retailer. On November 30, 2020 (The Party Place accounting year end), The Party Place notifies Star Inc. that 65% of the merchandise has been sold for $72,000. The Party Place retains a 10% commission as well as $3,900, which represents advertising costs it paid, and remits the balance owing to Star Inc. Please make sure your final answer(s) are accurate to 2 decimal places. a) Complete the journal entries required by Star Inc. for the above transactions. Enter an appropriate description b) Complete the journal entries required by The Party Place for the above transactions on their accounting year end. Enter an appropriate description when entering the transactions in the journal. Dates must be…arrow_forwardSeveral accounts and amounts from the financial statements of a recently opened Blue Rifle Coffee appear below for the year ending December 31, Year 1. Use the information provided to determine the answers to the following questions: A. What is the total amount owed to Blue Rifle Coffee by its customers at the end of the year? B. How much are total current assets? C. How much does Blue Rifle Coffee owe to its short-term creditors at December 31, Year 1? D. How much of Blue Rifle Coffee’s profit did it distribute to shareholders during Year 1? E. Prepare an income statement for Year 1 for Blue Rifle Coffee.arrow_forwardCompany «Julian» was founded in 2015 as a LLC. The main activity of the company is selling the vacuum cleaners. You were hired as an independent expert to prepare the financial statements for 2018 year. Required: Prepare the adjusting journal entries. Show all the calculations. Write the name of entries and account numbers. Complete the General Journal. Additional data: Reporting date for the company – December 31, 2018. The company should prepare the financial statements according to International Accounting Standards (IAS/IFRS). The company uses the periodic inventory system. All the initial entries were made in 2018. The reporting currency – current units (CU) You have to analyze the following transactions: The company uses the periodic inventory system of inventory accounting and the FIFO costing method. On December 1, 2018 the company had 30 units of inventory costing 51,000 CU per unit. During December there were made the following purchases: December 6 – 10 units for…arrow_forward
- On March 15, Drexel Corp. provides goods to a retailer through consignment where Drexel Corp. retains ownership of the goods until the goods are sold to the retailer’s customer. Sale to the final customer is documented when the goods are scanned at the cash register of the retailer. Drexel Corp. receives a daily report on the number of units sold by the retailer to the end customer. Any unsold product can be returned to Drexel Corp. at any time. Drexel Corp. has the right through the contract to recall any goods shipped and to transfer the goods to another retailer as a way to increase the rate of sales to the final customer. After the sale of the products to the final customer, the retailer cannot return the items to Drexel Corp. During March, Drexel Corp. transferred 600 units to the retailer, and the retailer sold 500 units. The product cost Drexel Corp. $80 per unit and the product was sold for $115 per unit to the end customer. The retailer sent a payment to Drexel Corp. for the…arrow_forwardAn entity operates a customer loyalty program granting customers points for every purchase they make with the entity. During 2020, the total number of points actually redeemed equaled that of the total estimated points to be redeemed. The entity, however, still reported a balance for the unearned revenue from points as of yearend 2020. Which of the following would explain this? a. The estimation for redemption was not accurately done. b. There must have been points granted prior to 2020. c. The accountant must have missed this topic in his BAFACR4X class. d. This is natural since not all points granted are redeemed.arrow_forwardTitle Use the information for Sorpon Corporation in E18-6, and assume that the company reports accounting. Description Use the information for Sorpon Corporation in E18-6, and assume that the company reports accounting income of $180,000 in each of 2012 and 2013, and no reversing differences other than the one identified in E18-6. In addition, assume now that Sorpon Corporation was informed on December 31, 2012, that the enacted rate for 2013 and subsequent years is 35%. In BE Sorpon Corporation purchased equipment very late in 2011. Based on generous capital cost allowance rates provided in the Income Tax Act, Sorpon Corporation claimed CCA on its 2011 tax return but did not record any depreciation as the equipment had not yet been put into use. This temporary difference will reverse and cause taxable amounts of $25,000 in 2012, $30,000 in 2013, and $40,000 in 2014. Sorpon s accounting income for 2011 is $200,000 and the tax rate is 40% for all years. There are no future tax…arrow_forward
- Alpha company is a trading company that purchases and sales fruits and vegetables. During the year 2020, the company shows the following transactions and events: 1) The company uses the perpetual inventory system to account for its inventory at December 31, 2020 and its financial statements are disclosed without delay. 2) The company records sales when cash is received from customers and delay expenses for the next year. 3) For credit purchase transactions, the accountant debit (merchandise inventory) and credit (accounts receivable). 4) The company assumes the freight charges to its customers. The accountant debit (freight in expenses) and credit (merchandise inventory). 5) One customer returned fruits to Alpha that were damaged. The accountant of the company debit (purchase returns) and credit (accounts payable). 6) The cost of goods sold is determined after each sale asfollow: beginning inventory – purchases + ending inventory. 7) Net profit is computed by…arrow_forwardOn June 15, 2022, Lucas Corporation accepted delivery of merchandise which it purchased on account. As of June 30, Lucas had not recorded the transaction or included the merchandise in its inventory. The effect of this on its statement of financial position for June 30, 2022 would bearrow_forwardThe following are the balances of the liability accounts of ACT 206 Company as of December 31,2021:Accounts payable - P 500,000(recognized for purchase of inventories, including a debit balance in the suppliers account of P 20,000) The following are not yet reflected in the balance of accounts payable above:- Upon receipt of the invoice on December 28,2021 for goods costing P 75,000, the accounting staff of ACT 206 Company recorded the purchase in the accounts. It was determined that the goods were shipped FOB Destination and were received on January 1,2022.-Goods with invoice cost of P 125,000 which were shipped fob shipping point on December 31,2021 from a vendor were lost in transit. On January 2, 2022, ACT 206 filed a claim against the shipping company.Notes payable - P 750,000, composed of the following: - 10% , P 100,000 interest bearing note , issuance date: Jan.1,2019 ; due: December 31,2023 ( interest is payable annually) - 12%,P 500,000, interest bearing note , issuance…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Cengage Learning