Morlan Corporation is preparing its December 31, 2025, financial statements. Two events that occurred between December 31, 2025,and March 10, 2026, when the statements were issued, are described below.1.A liability, estimated at $160,000 at December 31, 2025, was settled on February 26, 2026, at $170,000.2.A flood loss of $80,000 occurred on March 1, 2026.What effect do these subsequent events have on 2025 net income?BIUT₂ T²Ix |!!!IIIE =IIá[།*O Word(s)

Settlement of Liability:Event Description: A liability estimated at $160,000 as of December 31,…

Answered: Morlan Corporation is preparing its…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 10MC

See similar textbooks

Similar questions

The following December 31, 2024, fiscal year-end account balance information is available for the Stonebridge Corporation: Cash and cash equivalents Accounts receivable (net) $ 6,300 33,000 73,000 Inventory Property, plant, and equipment (net) 185,000 Accounts payable 52,000 Salaries payable Paid-in capital 24,000 165,000 The only asset not listed is short-term investments. The only liabilities not listed are $43,000 notes payable due in two years and related accrued interest payable of $1,000 due in four months. The current ratio at year-end is 1.5:1. Required: Determine the following at December 31, 2024: 1. Total current assets 2. Short-term investments 3. Retained earnings
The NOT A CHANCE Company had a bad financial condition caused by deficiency of liquid asset. On June 30, 2020, the following information was available: The assets amounted to P520,000 (includes cash - 20,000; accounts receivable – 50,000; Inventory - 230,000, equipment P 200,000, and patent for the balance). The liabilities to be liquidated amounted to 550,000 (salaries – 20,000; taxes payable 65,000; accounts payable 100,000 and notes payable 365,000) During the six-month period ending December 31, 2020, the trustee sold all inventories for P180,000 cash, collected only 80% of the accounts receivable with balance written off; and paid off accounts payable and all liabilities with priorities, as well as P 5,000 for estate administration expense. 15.How much is the ending cash balance on December 31, 2020? A. 20,000 35,000 С. 50,000 60,000 В. D.
The following December 31, 2021, fiscal year-end account balance information is available for the Stonebridge Corporation: Cash and cash equivalents $ 6,400 Accounts receivable (net) 34,000 Inventory 74,000 Property, plant, and equipment (net) 190,000 Accounts payable 53,000 Salaries payable 14,000 Paid-in capital 170,000 The only asset not listed is short-term investments. The only liabilities not listed are $44,000 notes payable due in two years and related accrued interest of $1,000 due in four months. The current ratio at year-end is 1.8:1. Required:Determine the following at December 31, 2021: Total Current Asset? Short Term Investment? Retained Earnings?
In its December 31, 2020, balance sheet Oakley Corporation reported as an asset, “Net notes and accounts receivable, $7,100,000.” What other disclosures are necessary?
The accounting records of Sunland Inc. show the following data for 2025: 1. Life insurance expense on officers was $7,000. 2. Equipment was acquired in early January for $432,000. Straight-line depreciation over a 6-year life is used, with no salvage value. For tax purposes, Sunland used a 30% rate to calculate depreciation. 3. Interest revenue on municipal bonds totaled $3,600. 4. Product warranties were estimated to be $93,000 in 2025. Actual repair and labor costs related to the warranties in 2025 were $24,000. The remainder is estimated to be paid evenly in 2026 and 2027. 5. 6. Sales on an accrual basis were $494,000. For tax purposes, $385,000 was recorded on the installment-sales method. Fines incurred for securities violations were $10,300. 7. Pretax financial income was $468,000. The tax rate is 30%. Your answer is partially correct. Prepare a schedule starting with pretax financial income in 2025 and ending with taxable income in 2025. (Enter negative amounts using either a…
The following December 31, 2024, fiscal year-end account balance information is available for the Stonebridge Corporation: Cash and cash equivalents Accounts receivable (net) Inventory Property, plant, and equipment (net) Accounts payable Salaries payable Paid-in capital The only asset not listed is short-term investments. The only liabilities not listed are $36,000 notes payable due in two years and related accrued interest payable of $1,000 due in four months. The current ratio at year-end is 1.6:1. Required: Determine the following at December 31, 2024: 1. Total current assets 2. Short-term investments 3. Retained earnings $ EA $ EA $ 99,200 1,600 $ 5,600 26,000 66,000 150,000 45,000 17,000 130,000 21,800
Sarasota Corporation's balance sheet at the end of 2024 included the following items. Current assets (Cash $82,000) $236,480 Current liabilities $151,480 Land 31,100 Bonds payable 101,480 Buildings 121,480 Common stock 181,100 Equipment 91,100 Retained earnings 45,100 Accum. depr.-buildings (31,480) Total $479,160 Accum. depr.-equipment (11,000) Patents 41,480 Total $479,160 The following information is available for 2025. 1. Net income was $55,350. 2. Equipment (cost $21,480 and accumulated depreciation $9,480) was sold for $11,480. 3. Depreciation expense was $5,480 on the building and $10,480 on equipment. 4. Patent amortization was $2,500. 5. Current assets other than cash increased by $29,000. Current liabilities increased by $14,480. 6. An addition to the building was completed at a cost of $28,480. 7. A long-term investment in stock was purchased for $16,000. 8. Bonds payable of $51,100 were issued. 9. Cash dividends of $30,000 were declared and paid. 10. Treasury stock was…
Oriole Inc. is a private company reporting under ASPE. The following selected account balances were reported in Oriole Inc.’s financial statements at year end: 2021 2020 Cash $ 18,300 $ 8,200 Buildings 831,000 729,000 Equipment 391,000 340,200 Land 89,000 48,000 Accumulated depreciation—buildings 302,000 285,500 Accumulated depreciation—equipment 119,000 89,000 Dividends payable 5,950 2,400 Mortgage payable 542,600 582,600 Notes payable 337,000 306,000 Common shares: 5,340 shares in 2021; 3,940 in 2020 536,000 407,000 Retained earnings 195,000 96,000 Cash dividends declared 22,000 7,600 Depreciation expense—buildings 23,000 39,700 Depreciation expense—equipment 47,205 25,350 Gain on sale of equipment 840 0 Loss on sale of building 8,300 0 Interest expense 47,650 43,550 Additional information: 1. Purchased $72,000 of equipment for $8,800 cash and a note payable for…
Given the data in the following table, the company spent $_____ on new Fixed Assets in 2023. • NOTE: The table below applies to questions 5 to 11 (it is included on each of these questions). The balance sheet accounts listed below are the only items on the company's balance sheet for each year and the income statement accounts are the only items on the company's income statement for each year. Item Accounts payable Accounts receivable Accruals Cash Common Stock COGS Depreciation expense Interest expense Inventories Long-term debt Net fixed assets Notes payable Operating expenses (excl. depr.) Retained earnings Sales Taxes 2022 570 530 1,020 320 2,020 4,020 220 190 3,020 1,520 2,720 770 320 ??? 5,020 140 2023 370 ??? 1.120 570 2,270 4,260 370 210 3,270 1,670 2,520 600 450 820 6,020 160
The following December 31, 2021, fiscal year-end account balance information is available for the Stonebridge Corporation: Cash and cash equivalents $ 5,000Accounts receivable (net) 20,000Inventory 60,000Property, plant, and equipment (net) 120,000Accounts payable 44,000Salaries payable 15,000Paid-in capital 100,000 The only asset not listed is short-term investments. The only liabilities not listed are $30,000 notes payable due in two years and related accrued interest of $1,000 due in four months. The current ratio at year-end is 1.5:1.Required:Determine the following…
The following information is available for Oriole Corporation for 2025. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $118,000. This difference will reverse in equal amounts of $29,500 over the years 2026-2029. 2. Interest received on municipal bonds was $10,000. 3. Rent collected in advance on January 1, 2025, totaled $58,800 for a 3-year period. Of this amount, $39,200 was reported as unearned at December 31, 2025, for book purposes. 4. The tax rates are 20% for 2025 and 17% for 2026 and subsequent years. 5. Income taxes of $173,000 are due per the tax return for 2025. 6. No deferred taxes existed at the beginning of 2025. Compute taxable income for 2025. Taxable income for 2025 $ Compute pretax financial income for 2025. Pretax financial income for 2025 $ 865000 953800 Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2025 and 2026. Assume taxable income was $365,000 in…
The following information is available for Oriole Corporation for 2025. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $118,000. This difference will reverse in equal amounts of $29,500 over the years 2026-2029. 2. Interest received on municipal bonds was $10,000. 3. Rent collected in advance on January 1, 2025, totaled $58,800 for a 3-year period. Of this amount, $39,200 was reported as unearned at December 31, 2025, for book purposes. 4. The tax rates are 20% for 2025 and 17% for 2026 and subsequent years. 5. Income taxes of $173,000 are due per the tax return for 2025. 6. No deferred taxes existed at the beginning of 2025. Compute taxable income for 2025. Taxable income for 2025 $ Compute pretax financial income for 2025. Pretax financial income for 2025 $ 865000 953800 Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2025 and 2026. Assume taxable income was $365,000 in…

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS