INT. ACCOUNTING<CUSTOM>W/CONNECT 2-YEA
8th Edition
ISBN: 9781259767074
Author: SPICELAND
Publisher: MCG CUSTOM
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Textbook Question
Chapter 4, Problem 4.4BE
Multiple -step income statement
• LO4–1, LO4–3
The following is a partial year-end adjusted
| Account Title | Debits | Credits |
| Sales revenue | 300,000 | |
| Loss on sale of investments | 22,000 | |
| Interest revenue | 4,000 | |
| Cost of goods sold | 160,000 | |
| General and administrative expenses | 40,000 | |
| Restructuring costs | 50,000 | |
| Selling expenses | 25,000 | |
| Income tax expense | 0 |
Income tax expense has not yet been recorded. The income tax rate is 40%. Determine the following: (a) operating income (loss), (b) income (loss) before income taxes, and (c) net income (loss).
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P4.4
(LO 2, 3, 4, 5 ) (Multiple- and Single-Step Statements, Retained Earnings Statement) The following account balances were included in the trial balance of Twain Corporation at June 30, 2020.
Sales revenue
$1,578,500
Depreciation expense (office furniture and equipment)
$7,250
Sales discounts
31,150
Cost of goods sold
896,770
Property tax expense
7,320
Salaries and wages expense (sales)
56,260
Bad debt expense (selling)
4,850
Sales commissions
97,600
Maintenance and repairs expense (administration)
9,130
Travel expense (salespersons)
28,930
Delivery expense
21,400
Office expense
6,000
Entertainment expense
14,820
Sales returns and allowances
62,300
Telephone and Internet expense (sales)
9,030
Dividends received
38,000
Depreciation expense (sales equipment)
4,980
Interest expense
18,000
Maintenance and repairs expense (sales)
6,200
Income tax expense
102,000…
Problem 4-5 EFN [LO2]
The most recent financial statements for Assouad, Inc., are shown here:
Income Statement
Balance Sheet
Sales
$
11,900
Current assets
$
6,000
Current liabilities
$
3,600
Costs
8,500
Fixed assets
10,600
Long-term debt
5,100
Taxable income
$
3,400
Equity
7,900
Taxes (24%)
816
Total
$
16,600
Total
$
16,600
Net income
$
2,584
Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 45 percent dividend payout ratio. As with every other firm in its industry, next year’s sales are projected to increase by exactly 17 percent.
What is the external financing needed? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
P4.5 (LO 2, 3, 4, 5) (Unusual or Infrequent Items) Presented below is a combined single-step income and retained earnings statement for Nerwin Company for 2020.
(000 omitted)
Net sales revenue
$640,000
Costs and expenses
Cost of goods sold
$500,000
Selling, general, and administrative expenses
66,000
Other, net
17,000
583,000
Income before income tax
57,000
Income tax
19,400
Net income
37,600
Retained earnings at beginning of period, as previously reported
141,000
Adjustment required for correction of error
(7,000)
Retained earnings at beginning of period, as restated
134,000
Dividends on common stock
(12,200)
Retained earnings at end of period
$159,400
Additional facts are as follows.
1. “Selling, general, and administrative expenses” for 2020 included a charge of $8,500,000…
Chapter 4 Solutions
INT. ACCOUNTING<CUSTOM>W/CONNECT 2-YEA
Ch. 4 - The income statement is a change statement....Ch. 4 - What transactions are included in income from...Ch. 4 - Prob. 4.3QCh. 4 - The correction of a material error discovered in a...Ch. 4 - Prob. 4.4QCh. 4 - Prob. 4.5QCh. 4 - What are restructuring costs and where are they...Ch. 4 - Define intraperiod tax allocation. Why is the...Ch. 4 - How are discontinued operations reported in the...Ch. 4 - Prob. 4.9Q
Ch. 4 - Prob. 4.10QCh. 4 - Define earnings per share (EPS). For which income...Ch. 4 - Prob. 4.13QCh. 4 - Describe the purpose of the statement of cash...Ch. 4 - Prob. 4.15QCh. 4 - Explain what is meant by noncash investing and...Ch. 4 - Distinguish between the direct method and the...Ch. 4 - Prob. 4.19QCh. 4 - Prob. 4.18QCh. 4 - Prob. 4.20QCh. 4 - Prob. 4.1BECh. 4 - Prob. 4.2BECh. 4 - Prob. 4.3BECh. 4 - Multiple -step income statement LO41, LO43 The...Ch. 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. 4.1ECh. 4 - Prob. 4.2ECh. 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 - E 4–16
Statement of cash flows; directly from...Ch. 4 - Prob. 4.17ECh. 4 - Prob. 4.18ECh. 4 - Prob. 4.19ECh. 4 - Prob. 4.20ECh. 4 - Prob. 4.21ECh. 4 - Prob. 4.22ECh. 4 - Prob. 4.23ECh. 4 - Concepts; terminology LO41, LO42, LO43, LO44,...Ch. 4 - Prob. 4.25ECh. 4 - Prob. 4.26ECh. 4 - Prob. 4.27ECh. 4 - Prob. 4.28ECh. 4 - Prob. 1CPACh. 4 - Prob. 2CPACh. 4 - Prob. 3CPACh. 4 - Prob. 4CPACh. 4 - Prob. 5CPACh. 4 - Prob. 6CPACh. 4 - Prob. 7CPACh. 4 - Prob. 1CMACh. 4 - Prob. 2CMACh. 4 - Prob. 4.1PCh. 4 - Prob. 4.2PCh. 4 - Prob. 4.3PCh. 4 - Prob. 4.4PCh. 4 - Prob. 4.5PCh. 4 - Prob. 4.6PCh. 4 - Prob. 4.7PCh. 4 - Prob. 4.8PCh. 4 - Prob. 4.9PCh. 4 - Prob. 4.10PCh. 4 - Prob. 4.11PCh. 4 - Interim financial reporting Appendix 4 Branson...Ch. 4 - Prob. 4.1BYPCh. 4 - Judgment Case 42 Restructuring costs LO43 The...Ch. 4 - Prob. 4.3BYPCh. 4 - Prob. 4.4BYPCh. 4 - Prob. 4.5BYPCh. 4 - Prob. 4.6BYPCh. 4 - Prob. 4.7BYPCh. 4 - IFRS Case 48 Statement of cash flows;...Ch. 4 - Prob. 4.9BYPCh. 4 - Prob. 4.10BYPCh. 4 - Prob. 4.12BYPCh. 4 - Prob. 4.13BYPCh. 4 - Prob. 1AFKC
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