Straightarm Inc. is a calendar year corporation its financial statements for the years ended 12/31/24 and 12/31/25 contained the following errors12/31/25 Retained Earnings is in error bySelect oneEnding inventoryDepreciation expensea $75,000O $60,000O $54,000Od $46,000O $42.0002014$15.000 understatement$6,000 understatementFailed to record Uneamed Revenue at 12/31/25 $7,000Straightorm declared a cash dividend of $11,000 on 12/31/25. No journal entry was made in 2025 The dividend was paid on 1/3/26 Straightorm debited Retained Earnings andcredited Cash2025$24,000 overstatement$12.000 understatement

Ending inventory for 2024 is understated which means that the COGS in 2024 is overstated as the…

Straightar inc is a calendar-year corporation its financial statements for the years ended 12/31/24 and 12/31/25 contained the following entors Ending inventory Depreciation expense 12/31/25 Retained Earnings is in error by Select one OA $75,000 Ob $60,000 O $54,000 Od $46,000 O $42.000 2024 $15.000 understatement $6,000 understatement 2025 $24,000 overstatement $12.000 understatement Failed to record Uneamed Revenue at 12/31/25 $7,000 Straightarm declared a cash dividend of $11,000 on 12/31/25 No journal entry was made in 2025 The dividend was paid on 1/3/2 Straightorm debited Retained Earnings and credited Cash

Straightar inc is a calendar-year corporation its financial statements for the years ended 12/31/24 and 12/31/25 contained the following entors Ending inventory Depreciation expense 12/31/25 Retained Earnings is in error by Select one OA $75,000 Ob $60,000 O $54,000 Od $46,000 O $42.000 2024 $15.000 understatement $6,000 understatement 2025 $24,000 overstatement $12.000 understatement Failed to record Uneamed Revenue at 12/31/25 $7,000 Straightarm declared a cash dividend of $11,000 on 12/31/25 No journal entry was made in 2025 The dividend was paid on 1/3/2 Straightorm debited Retained Earnings and credited Cash

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

HELP ME
View Policies Current Attempt in Progress For its fiscal year ending October 31, 2025, Cullumber Corporation reports the following partial data. Income before income taxes Income tax expense (20% × $390,600) Income from continuing operations Loss on discontinued operations Net income $502,200 78,120 424,080 111,600 $312,480 The loss on discontinued operations was comprised of a $46,500 loss from operations and a $65,100 loss from disposal. The income tax rate is 20% on all items. (a) Prepare a correct partial income statement, beginning with income before income taxes. CULLUMBER CORPORATION Income Statement (Partial)
Statement of Profit and Loss and Other Comprehensive Income for the years ended 31 December 2024 2023 R'000 R'000 Turnover 1287052 934052 Operating Profit 137342 81768 Net Finance Cost 39264 20862 Operating Profit before taxation 98078 60906 Income tax expense 7027 3048 Profit for the Year 91051 57858 3502 2237 Operating profit includes Depreciation and loss on sale of fixed asset 5/12 Required: a) Prepare the cash flows from operating activities for the company for 2024 using the available information (10 Marks) b) Perform a financial review of the company based on calculating the following financial ratios and explain how it may be interpreted. Debt equity ratio Times interest earned Current ratio Debtors average collection period Inventory turnover Your answer should include an overall assessment of the company (25 Marks) c) List the audit steps to verify the existence of inventory (10 Marks)
Exercise 5-9 During the next fiscal year ending June 30. 2020, Texas Company will mmake substantial investments in new product lines and in a modernization program. Significant changes to be made during the year are listed below: 1. Equipment with a net b0ok value of P86,000 will be sold during the year. 2. All of the capital stock of Ohio Company will be exchanged with 5,000 shares of Texas Company at a time when the market value is P40 per share. P250,000 cash will also be given as part payment. 3. Bonds having a face value of P1,000,000 will be issued on June 30, 2020 at 98%. 4. Trading securities carried at market value of P200,000 will be sold for P215,000. 5. New equipment will be purchased during the year. 6. A new building will be purchased at a cost of P1,000,000, although there are no building retirements. 7. Cash dividends will be paid to stockholders. The financial statements forccast for the year ended June 30, 2020 are given next page:
Steele Inc. Consolidated Statements of Income (in thousands except per share amounts) 2023 2022 2021 Net sales $7,245,088 $6,944,296 $6,149,218 Cost of goods sold (5,286,253) (4,953,556) (4,355,675) Gross margin $1,958,835 $1,990,740 $1,793,543 General and administrative expenses (1,259,896) (1,202,042) (1,080,843) Special and nonrecurring items 2,617 0 0 Operating income $701,556 $788,698 $712,700 Interest expense (63,685) (62,398) (63,927) Other income 7,308 10,080 11,529 Gain on sale of investments 0 9,117 0 Income before income taxes $645,179 $745,497 $660,302 Provision for income taxes 254,000 290,000 257,000 Net income $391,179 $455,497 $403,302 Steele Inc. Consolidated Balance Sheets (in thousands) ASSETS Dec. 31, 2023 Dec. 31, 2022 Current assets: Cash and equivalents $320,558 $41,235 Accounts receivable 1,056,911 837,377 Inventories 733,700…
None
Genatron Manufacturing Corporatio Balancs Sh出出t 2017 216 ASSETS Cach $41,752 $51,878 Accts. recelvable 260, 499 200,543 Inventory 450,460 Total current assets B02, 735 702,181 Fixed asset, nct 300, 100 $1,202, 735 $1,002, 381 LIABILITIES AND EQUITY Accts. paysble $172,648 $131,068 Bank loan 91,013 91,013 Accrusis 70,000 50, 000 Total current Isbllties 333,661 272.081 Long-term deot, 12% 398,220 290,301 Common stock, $10 par 300,000 Capital surplus 44,555 44,555 Retained crninga 126,299 95,444 Total liabiliiti &oulty 51.202,735 51,002,381 2017 2016 Net sales Cost of peocS So0 388,411 Gross profit E72.274 Experses: General ancasm nistrative 50.000 Market ng cod ost rer cs 44.5E5 Ceprec at cn v (a) Calculate Genatron's dollar amount of net working capital in each year. Interest E5.024 Earnings tetsre taxes 267.055 227.266 2017 2016 Incometaxes 75 145 Net working capital et ncome %24
Subject: accounting
Im the context of Imfilation Accountimg System adjust the ffollowing Statement of Pudfit und LOES and Balance Sheet under the "Current Purchasing Power' (or CPP) method tto ascertain fhe changes in Net Profit and Reserve. STATEMENT OF PROFIT AND LOSS ffor the year ended 31st December, 2015 $ ('000) 500 Sales 80 Opening Stock Purchases 420 500 70 430 Less : Closing Stock 70 Gross Profit Depreciation (buildings) Admünüstration 25 30 40 Net Profit BALANCE SHEET as at 31st December, 2015 $ ('O00) Share Capital 200 Reserve 200 400 Land 140 200 Building Less : Depreciation 45 155 Stock Debtors 70 40 Cash 30 140 Less : Creditors 35 105 400 Following data are given : (1) Closing stock was acquired during last quarter of 2015 and opening stock during the last quarter of 2014. (2) The land and buildings were acquired and the capital issued during 1992. The buildings are depreciated straight lime over 40 years. ((3) The relevant retail price indices are (@) 2007 average (b) 2014 last quarter…
The financial statements of a ltd and b ltd at 1 july 2020 are as follows. A Ltd B Ltd cash 25000 plant 60000 35000 Accumulated depreciation (15000) (120000) inventories 12000 24000 Account receivable 20000 36000 goodwill 0 10000 Total assets 102600 117000 Account payable 1800 17000 Net assets 100800 100000 Share capital Retained earnings 50000 81000 General reserve 8800 4000 Total equity 2000 15000 100800 100000 All the assets and liabilities of B Ltd were recorded for fair value except for the following assets. Plant 47000(Fair value) Inventory 22000(Fair value) A Ltd agreed to pay B Ltd $6000 in cash plus 16000 fully paid shares having a fair value of $7.5 per share. The business combination was completed and B ltd liquidation. Cash of liquidation amounted to $1200. A Ltd incurred legal and accounting costs amounted to $482 in relation to the…
selected data for 2020: Retained Eamings, January 1, 2020 $900,000 Net Income 88,200 Stock dividends declared 14,280 During the year, the company changed its inventory method from FIFO to LIFO which had resulted in a net of tax 11,000 decrease in income Cash dividends declared 21,000 During 2020, the company discovered that the 2019 10,000 depreciation expense were overstated by a pretax amount of Tax rate 30% Based on the data above, Retained Earnings at December 31, 2020 was: * $951,920 $952,220 $948,920
Simple Income Statement The following are selected items derived from Dibb Company’s adjusted trial balance on December 31, 2019: Loss on sale of land $5000 Cost of goods sold $130,000 Sales (net) $198000 Operating expenses $45000 Twelve thousand shares of common stock were outstanding the entire year. Required: Assuming a 30% income tax rate on all items of income, prepare Dibb’s 2019 income statement using (1) a multi-ple-step format