Question 6 At the end of the first year, what entry is needed to convert the cost method investment account to the simple equity balance? none investment in subsidiary Retained Earnings O Retained Earnings Investment in subsidiary Common Stock Retained Earnings

Question 6 At the end of the first year, what entry is needed to convert the cost method investment account to the simple equity balance? none investment in subsidiary Retained Earnings O Retained Earnings Investment in subsidiary Common Stock Retained Earnings

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

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 1MC: The cumulative effect of an accounting change should generally be reported as an adjustment to the...

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9
The equity method of accounting for investments requires a.the investment to be increased by the reported net income of the investee b.the investment to be reported at its original cost c.a year-end adjustment to revalue the stock to lower of cost or market d.the investment to be increased by the dividends paid by the investee
The cumulative effect of an accounting change should generally be reported as an adjustment to the beginning balance of retained earnings in tin period in which the change is made for a:
Corrections of errors in prior period are included inA. Other comprehensive incomeB. Net incomeC. Retained earningsD. Share premium
4 Comprehensive income includes all changes in equity during a period EXCEPT ______________ Select one: a. those resulting from investments by owners and distributions to owners. b. unrealized gains and losses on available for sale securities. c. gains and losses from irregular items. d. gains and losses from discontinued operations.
Which of the following is a measurement of earnings that represents the profit before interest, taxes, depreciation and amortization are subtracted? A. net income B. retained earnings C. EBITDA D. EPS
S1: In the statement of changes in equity, the effect of the correction of aprior period error is presented separately for each component of equity.S2: Preference share dividend appear under the retained earnings sectionof the statement of changes in equity A. True, TrueB. False, FalseC. True, FalseD. False True
1. Which of the following would appear first in a statement of retained earnings? Choices; Cash dividend Prior period error Net income Share dividend 2. Which of the following does not appear in a statement of retained earnings? Choices; Net loss Preference share dividend Other comprehensive income Prior period error
9. A change in accounting principle requires that the cumulative effect of the change for prior periods be shown as an adjustment to: a. beginning retained earnings of the earliest period presented. b. net income of the period in which the change occurred. c. comprehensive income for the earliest period presented. d. stockholders’ equity of the period in which the change occurred.
8. Realized gains and losses on investments available for sale are reported a. as a current assetb. on the income statementc. on the balance sheet as part of stockholders' equityd. as a contra asset
Can you help me with #11-#13?
Requirement General Journal General Ledger Trial Balance Fair Value Adj Transaction Analysis Fin St Impact For each transaction, indicate the change, if any, in total assets and total equity. If equity changes, indicate whether the change was reflected as a component of net income, or directly within the stockholders' equity portion of the balance sheet. Remember that the change in total assets must agree with the change in total equity. Show less Change in Change in equity: Total assets As a component of net income As a direct component of stockholders' equity Total change in equity Apr. 16) Purchased 4,000 shares of Smith Co. stock at $30 per share. $0 $0 $0 Jul. 7) Purchased 2,500 shares of Edmunds Co. stock at $55 per share. 0 0 Jul. 20) Purchased 1,200 shares of Delray Co. stock at $22 per share. 0 0 Aug. 15) Received an $1.00 per share cash dividend on the Smith Co. stock. 0 Aug. 28) Sold 2,400…