Crippling Corporation had the following transactions during the quarter ended March 31, 2016: Loss from typhoon damage: P210,000 Payment of fire insurance premium for the calendar year 2016: P300,000 What amount should be included in Crippling's income statement for the quarter ended March 31, 2016? Typhoon loss Insurance expense A. 210,000 300,000 C. 52,500 75,000 B. 210,000 75,000 D. O 300,000

Crippling Corporation had the following transactions during the quarter ended March 31, 2016: Loss from typhoon damage: P210,000 Payment of fire insurance premium for the calendar year 2016: P300,000 What amount should be included in Crippling's income statement for the quarter ended March 31, 2016? Typhoon loss Insurance expense A. 210,000 300,000 C. 52,500 75,000 B. 210,000 75,000 D. O 300,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Use the following information from Eiffel Company’s financial statements. 2018 IncomeStatement BalanceSheets Sales $309,000 Cost of Goods Sold (145,000) Operating Expenses, other than Depreciation Expense (27,000) Depreciation expense (16,000) Gain on Sale of Plant Assets 16,000 Net Income $137,000 Dec. 31,2018 Accounts Receivable $45,300 Inventory 1,600 Accounts Payable 22,500 Accured Liabilities 900 Dec. 31, 2017 Accounts Receivable $22,250 Inventory 1,800 Accounts Payable 22,250 Accured Liabilities 1,150 Prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments. Eiffel Company Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2018 Operating…
Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31): 2024 2023 Sales revenue $ 5,300,000 $ 4,400,000 Cost of goods sold 3,040,000 2,180,000 Administrative expense 980,000 855,000 Selling expense 540,000 482,000 Interest revenue 168,000 158,000 Interest expense 236,000 236,000 Loss on sale of assets of discontinued component 120,000 — On July 1, 2024, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2024, for $120,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: 1/1/2024–9/30/2024 2023 Sales revenue $ 580,000 $ 680,000 Cost of goods sold (380,000) (428,000) Administrative expense (68,000) (58,000) Selling expense (38,000) (38,000) Operating income before taxes…
The following information was extracted from the financial statements working papersfile for year ended 31 December 2020 for Dave Song’s Cleaning Services List of balances at 31 December 2020 Debits Credits Capital: D Song 660 000 Drawings 160 000 Land and buildings at cost 582 000 Vehicle at cost 224 000 Accumulated depreciation: Vehicle (1 January2020) 46 000 Bank 360 000 Inventories: Consumables 104 000 Trade receivables 261 200 Allowance for credit losses 13 060 10% Long term loan 320 000 Trade payables 260 000 Fees earned 1 036 600 Rent expense 160 000 Telephone 10 708 Other distribution expenses 454 752 Interest on long term loan 19 000 2 335 660 2 335 660 Additional information not yet taken into account:1. Included in rent expenses is an amount of R68 000 in respect of rent for 2021 whichwas paid and recorded in December 2020.2. The telephone account for December 2020 of R1 540 was received but not yet…
The following information is related to Windsor Company for 2017. Retained earnings balance, January 1, 2017 $998,500 Sales Revenue 26,110,000 Cost of goods sold 16,240,000 Interest revenue 77,200 Selling and administrative expenses 4,748,000 Write-off of goodwill 837,500 Income taxes for 2017 1,254,000 Gain on the sale of investments 111,600 Loss due to flood damage 400,100 Loss on the disposition of the wholesale division (net of tax) 441,500 Loss on operations of the wholesale division (net of tax) 93,200 Dividends declared on common stock 251,800 Dividends declared on preferred stock 85,800 Windsor Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Windsor sold the wholesale operations to Rogers Company. During 2017, there were 494,700 shares of common stock outstanding all year. (a1) Prepare a multiple-step…
The following information was extracted from the records of Lodh Ltd for the year ended 30 June 2021. Lodh LTD Statement of financial position (extract) As at 30 June 2021 Assets Accounts Receivable $50,000 Allowance for doubtful debts (4,000) $46,000 Plant 200,000 Accumulated depreciation - Plant (50,000) 150,000 Liabilities Interest Payable 2,000 Provision for long service leave 10,000 Additional information · The accumulated tax depreciation for machines at 30 June 2021 was $66 667. · Long service leave has not been taken by any employee during the year. · The tax rate is 30%. Required Prepare a (partial) deferred tax worksheet to identify the TTD and DTD from the above information [You are required to input CA (Carrying Amount) and TB (tax Base) only in the response…
Accounting to IAS 12, the following balances were extracted from the books of XYZ Ltd, a manufacturing firm in Ghana on December 31, 2021. i. Profit before Tax GHS100,000 ii. Depreciation of Furniture GHS3,200 iii. Depreciation of Motor Vehicle GHS 5,200 iv. Office rent per annum GHS12,000 v. CEO's residential rent per annum GHS15,000 vi. DVLA fines GHS200 vii. Cost of motor vehicle GHS50,000 viii. Cost of furniture GHS40,000 Required: i. Compute the taxable profit ii. Compute the tax expense assuming previous year's tax outstanding was GHS2,000 due to assessment difference. iii. Total tax expense for the year.
The 2023 annual report for Pronghorn Industries Inc. contained the following information: Dec. 31, 2022 Dec. 31, 2023 Total assets 561,000 605,000Total liabilities 65,400 88,900Net revenue 410,000 530,000Net income 54,000 32,000 (a) Calculate the asset turnover ratio for 2023. (Round answer to 2 decimal places, e.g. 52.75.) b) Calculate the profit margin on sales for 2023. c) Calculate the rate of return on assets using total assets for 2023. d) Calculate the rate of return on assets using profit margin for 2023
For its fiscal year ending October 31, 2022, Pina Colada Corp. reports the following partial data shown below. Income before income taxes Income tax expense (20% x $382,200) Income from continuing operations Loss on discontinued operations Net income $491,400 76,440 414,960 109,200 $305,760 The loss on discontinued operations was comprised of a $45,500 loss from operations and a $63,700 loss from disposal. The income tax rate is 20% on all items. Prepare a correct statement of comprehensive income, beginning with income before income taxes. PINA COLADA CORP. Partial Statement of Comprehensive Income V V V >
During 2017, Egyptian Mau Company construct building costing P18,500,000. The weighted average accumulated expenditures on the building during 2017 totaled P7,800,000. The entity borrowed P4,000,000 at 7% on January 1, 2017. Funds not needed for construction were temporarily invested in short-term securities, and earned P120,000 interest revenue. In addition to the construction loan, the entity had two other notes outstanding during the year, P3,000,000, 10-year, 10% note payable dated October 1, 2015, and a 5-year P2,000,000, 8% note payable dated November 2, 2015. What amount of interest should be capitalized on December 31, 2017? A. 574,000 B. 620,000 C. 509,600 D. 629,600
The Statement of Financial Position of Hawkeye as at 30 June 2022 showed the following assets and liabilities: 2022 $ Assets Cash Accounts receivables Allowance for doubtful debts Inventory Rent Receivable Plant Accumulated Depreciation - Plant Deferred Tax Asset Liabilities Accounts Payable Unearned rent revenue Provision for annual leave Deferred Tax Liability Additional information 15 000 30,000 (3,000) 13,500 7,000 100,000 (40,000) ? 19,000 5,000 2,500 ? 2021 $ 12 500 40,000 (5,000) 10,500 7,500 100,000 (30,000) 3,400 16,000 3,500 2,000 5,200 a. Accumulated depreciation of plant for tax purposes was $55,000 as at 30 June 2022. b. The tax rate is 30%. Required Prepare the deferred tax worksheet and journal entries to adjust deferred tax accounts as at 30 June 2022.
Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31): Sales revenue Cost of goods sold Administrative expense Selling expense Interest revenue Interest expense Loss on sale of assets of discontinued component 2024 2023 $5,250,000 $4,350,000 2,170,000 3,030,000 970,000 845,000 530,000 472,000 167,000 157,000 234,000 Sales revenue Cost of goods sold Administrative expense Selling expense Operating income before taxes On July 1, 2024, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2024, for $116,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: 234,000 116,000 1/1/2024-9/30/2024 $ 570,000 (375,000) (67,000) (37,000) $ 91,000 2023 $ 670,000 (422,000) (57,000) (37,000) $ 154,000 In addition to the…
PinishNa Inc. has determined the following information related to operations for 2025: Revenue from sales 7,000,000 Expenses 4,000,000 Income before income taxes 3,000,000 In reviewing the records, you discovered the following items: During 2025, the company discovered an error in depreciation in 2024. The correction of this error, which has not been recorded, will result in an increase in depreciation for 2024 of P200,000. During 2025, the company sustained a loss of P400,000 because of flood, which destroyed its inventory. The company charged retained earnings and credited inventory for P400,000. How much is the correct profit before tax for the year 2025?