Answered: What amount shall Forbes Corporation…

Business

Accounting

What amount shall Forbes Corporation shall report as its net income for the year 2021?

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

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 4MC: Marmol Corporation uses the allowance method for bad debts. During 2019, Marmol charged 50,000 to...

See similar textbooks

Similar questions

The net changes in the balance sheet accounts of Amy Corporation for the year 2021 are shown below. Account Debit Credit Cash $ 103,530 Short-term investments $143,990 Accounts receivable 93,058 Allowance for doubtful accounts 15,827 Inventory 88,298 Prepaid expenses 27,132 Investment in subsidiary (equity method) 29,750 Plant and equipment 249,900 Accumulated depreciation 154,700 Accounts payable 96,033 Accrued liabilities 25,585 Deferred tax liability 18,445 8% serial bonds 83,300 Common stock, $10 par 107,100 Additional paid-in capital 178,500 Retained earnings—Appropriation for bonded indebtedness 71,400 Retained earnings—Unappropriated 45,220 $765,884 $765,884 An analysis of the Retained Earnings—Unappropriated account follows: Retained earnings unappropriated, December 31, 2020 $1,547,000 Add: Net income…
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 $1,000 due in four months. The current ratio at year-end is 1.8:1. Required:Determine the following at December 31, 2021: Total Current Asset? Short Term Investment? Retained Earnings?
The general ledger trial balance of Cullen Corporation includes the following accounts at Dec. 31, 2021: Sales revenue P1,200,000 Interest income 24,000 Proceeds on sale of fixed assets 50,000 Written-down value of assets sold 45,000 Valuation gain on trading investments 20,000 Dividends received 5,000 Cost of sales 840,000 Finance expenses 18,000 Selling and distribution expenses 76,000 Administrative expenses 35,000 Income tax expense 85,000 How much should be reported as profit for the year. ended Dec. 31, 2021? a. P285,000 b. P200,000 c. P195,000 d. P150,000
The Statement of Financial Position of Oliver Ltd as at 30 June 2021 showed the following assets and liabilities. 2021 Assets 2$ Cash 3,000 Accounts receivables 85,000 Allowance for doubtful debts (4,000) Inventory 9,500 Prepaid insurance 3,600 Plant 60,000 Accumulated Depreciation - Plant (15,000) Deferred Tax Asset (at 30/06/2020: $1,270) ? Liabilities Accounts Payable 75,000 Provision for Long service leave 2,000 Revenue received in advance 3,000 Deferred Tax Liability (at 30/06/2020: $800) ? Additional information а. Accumulated depreciation of plant for tax purposes was $20,000 as at 30 June 2021. b. The tax rate is 30% Required Prepare the deferred tax worksheet and journal entries to adjust deferred tax accounts as at 30 June 2021.
The trial balance of Rollins Incorporated included the following accounts as of December 31, 2024: Sales revenue Interest revenue Loss on sale of investments Loss on debt investments Gain on projected benefit obligation Cost of goods sold Selling expense Restructuring costs Interest expense General and administrative expense Debits $ 15,000 126,000 3,860,000 340,000 150,000 15,000 240,000 Credits $ 5,300,000 37,000 230,000 The loss on debt investments represents a decrease in the fair value of debt securities and is classified as part of other comprehensive income. Rollins had 100,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 25%. ROLLINS INCORPORATED Statement of Comprehensive Income Required: Prepare a 2024 single, continuous statement of comprehensive income for Rollins Incorporated. Use a multiple-step income statement format. Note: Round Earnings per share answer to 2 decimal places.
The following information was taken from the accounts receivable records of Monty Corporation as at December 31, 2020: OutstandingBalance Percentage Estimatedto be Uncollectible 0 – 30 days outstanding $156,000 0.5% 31 – 60 days outstanding 65,400 2.5% 61 – 90 days outstanding 40,000 4.0% 91 – 120 days outstanding 20,800 6.5% Over 120 days outstanding 5,100 10.0% (a) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a credit balance of $1,280 prior to the adjustment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit (b) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a debit balance of $4,010 prior to the…
Sheridan Corporation had the following 2020 income statement. Revenues $95,000Expenses 63,000 $32,000 In 2020, Sheridan had the following activity in selected accounts. Accounts Receivable1/1/20 20,000Revenues 95,00012/31/20 22,100 Write-offs 900Collections 92,000 Allowance for Doubtful AccountsWrite-offs 900 1/1/20 1,200Bad debt expense 1,90012/31/20 2,200 (a) Prepare Sheridan’s cash flows from the operating activities section of the statement of cash flows using the direct method. Sheridan CorporationStatement of Cash Flows-Direct Method (Partial) $ $ (b) Prepare Sheridan’s cash flows from the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Sheridan CorporationStatement of…
2. Ehrlich Company reported the following information for 2021: Sales revenue $2,500,000 Cost of goods sold 1,750,000 Operating expenses 275,000 Unrealized holding loss on available-for-sale debt securities 85,000 Interest revenue 10,000 Prepare the Comprehensive Income Statement for Ehrlich Company for the year ended 12/31/21.
Culver Corporation had the following 2020 income statement. Revenues $94,000 Expenses 60,000 $34,000 In 2020, Culver had the following activity in selected accounts. Accounts Receivable 1/1/20 20,000 Write-offs A¹ Revenues 94,000 Collections 83,000 12/31/20 29.900 Allowance for Doubtful Accounts Write-offs 1.100 1/1/20 Bad debt expense 1.100 12/31/20 1.000 1,600 1.500
The following information was obtained from shahan co. as of Dec.31 2018. Retain Earning $ 155,000 Deferred income Tax liability $ 30,000 Common Stock ? Long term Debts 95,000 Accounts Payable 35,000 Current maturities of long term debts 25,000 Treasury Stock(at cost) 10,000 Plant Assets 570,000 Long term Investment 200,000 Short Term Investment 75,000 Cash 65,000 Inventories 85,000 Allowance for Bad Debts…
The net changes in the balance sheet accounts of Linda, Inc. for the year 2021 are shown below: Account Debit Credit Cash $ 217,900 Accounts receivable $ 63,100 Allowance for doubtful accounts 11,700 Inventory 195,900 Prepaid expenses 22,300 Long-term investments 147,000 Land 410,000 Buildings 655,000 Machinery 92,000 Office Equipment 30,000 Accumulated depreciation: Buildings 24,500 Machinery 18,100 Office Equipment 15,000 Accounts payable 183,900 Accrued liabilities 75,000 Dividends payable 128,500 Premium on bonds 37,600 Bonds payable 940,000 Preferred stock ($50 par) 74,400 Common stock ($10 par) 160,000 Additional paid-in capital—common 298,400 Retained earnings 67,500 $1,933,900 $1,933,900 Additional information: 1. Net income $165,500 2.…
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