Connect Access Card for Fundamental Accounting Principles
23rd Edition
ISBN: 9781259693878
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 17, Problem 14E
Exercise 17-14A
Income statement presentation A2
Use the financial data for Randa Merchandising, Inc., in Exercise 17-13 to prepare its income statement for calendar-year 2017. (Ignore the earnings perhare section)
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Instructions
(X
General Journal
Shaded cells have feedback. X
Fava Company began operations in 2018 and used the LIFO inventory method for both financial reporting and income taxes. At the beginning of 2019, the anticipated cost trends
in the industry had changed, so that it adopted the FIFO method for both financial reporting and income taxes. Fava reported revenues of $300,000 and $270,000 in 2019 and
1. Prepare the journal entry to reflect the change on January 1, 2019.
2018, respectively. Fava reported expenses (excluding income tax expense) of $125,000 and $120,000 in 2019 and 2018, which included cost of goods sold of $55,000 and
$45,000, respectively. An analysis indicates that the FIFO cost of goods sold would have been lower by $8,000 in 2018. The tax rate is 21%. Fava has a simple capital structure
General Journal Instructions
with 15,000 shares of common stock outstanding during 2018 and 2019. It paid no dividends in either year.
Required:
How does grading work?
1. Prepare…
Problem 13-3A
The income statement of Whitlock Company is presented here.
WHITLOCK COMPANY
Income Statement
For the Year Ended November 30, 2017
Sales revenue
Cost of goods sold
Beginning inventory
Purchases
Goods available for sale
Ending inventory
Total cost of goods sold
Gross profit
Operating expenses
Net income
Additional information:
$1,936,200
4,401,100
6,337,300
1,456,800
$7,426,700
4,880,500
2,546,200
1,148,400
$1,397,800
1. Accounts receivable increased $207,000 during the year, and inventory decreased $479,400.
2. Prepaid expenses increased $174,000 during the year.
3. Accounts payable to suppliers of merchandise decreased $347,100 during the year.
4. Accrued expenses payable decreased $104,200 during the year.
5. Operating expenses include depreciation expense of $81,300.
Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2017, fo
(15,000).)
Exercise 13-3 (Algo) Computing and analyzing trend percents LO P1
Sales
Cost of goods sold
Accounts receivable
Numerator:
2021
$501,535
253,218-
24,375
Numerator:
Compute trend percents for the above accounts, using 2017 as the base year. For each of the three accounts, state whether the
situation as revealed by the trend percents appears to be favorable or unfavorable.
2020
2019
$ 323,571 $ 251,906
163,436
18,897
129,253
17,198
2021:
2020:
2019:
2018:
2017:
Is the trend percent for Net Sales favorable or unfavorable?
Numerator:
Trend Percent for Net Sales:
1
1
Denominator:
Trend Percent for Cost of Goods Sold:
Denominator:
2021:
2020:
2019:
2018:
2017:
Is the trend percent for Cost of Goods Sold favorable or unfavorable?
Trend Percent for Accounts Receivable:
Denominator:
-2018
$ 176,088
99,294
10,266
2021:
2020:
2019:
2018:
2017:
Is the trend percent for Accounts Receivable favorable or unfavorable?
2017
$ 127,600
63,800
8,702
Trend percent
Trend percent
Trend percent
****at
%
%
%
%…
Chapter 17 Solutions
Connect Access Card for Fundamental Accounting Principles
Ch. 17 - Prob. 1DQCh. 17 - What is the difference between comparative...Ch. 17 - Prob. 3DQCh. 17 - Prob. 4DQCh. 17 - Prob. 5DQCh. 17 - Prob. 6DQCh. 17 - Prob. 7DQCh. 17 - Prob. 8DQCh. 17 - Prob. 9DQCh. 17 - How does inventory turnover provide information...
Ch. 17 - What ratios would you compute to evaluate...Ch. 17 - Why would a company’s return on total assets be...Ch. 17 - Prob. 13DQCh. 17 - Prob. 14DQCh. 17 - Prob. 15DQCh. 17 - Prob. 16DQCh. 17 - Prob. 17DQCh. 17 - Prob. 1QSCh. 17 - Prob. 2QSCh. 17 - Prob. 3QSCh. 17 - Prob. 4QSCh. 17 - Prob. 5QSCh. 17 - Prob. 6QSCh. 17 - Prob. 7QSCh. 17 - Prob. 8QSCh. 17 - Prob. 9QSCh. 17 - Prob. 1ECh. 17 - Exercise 17-2
Identifying financial...Ch. 17 - Prob. 3ECh. 17 - Prob. 4ECh. 17 - Prob. 5ECh. 17 - Prob. 6ECh. 17 - Prob. 7ECh. 17 - Prob. 8ECh. 17 - Prob. 9ECh. 17 - Prob. 10ECh. 17 - Prob. 11ECh. 17 - Prob. 12ECh. 17 - Prob. 13ECh. 17 - Exercise 17-14A Income statement presentation A2...Ch. 17 - Prob. 15ECh. 17 - Prob. 1APSACh. 17 - Prob. 2APSACh. 17 - Prob. 3APSACh. 17 - Prob. 4APSACh. 17 - Prob. 5APSACh. 17 - Prob. 6APSACh. 17 - Prob. 1BPSBCh. 17 - Prob. 2BPSBCh. 17 - Prob. 3BPSBCh. 17 - Prob. 4BPSBCh. 17 - Prob. 5BPSBCh. 17 - Prob. 6BPSBCh. 17 - Prob. 17SPCh. 17 - Prob. 1BTNCh. 17 - Prob. 2BTNCh. 17 - Prob. 3BTNCh. 17 - Prob. 4BTNCh. 17 - Prob. 5BTNCh. 17 - Prob. 6BTNCh. 17 - Prob. 7BTNCh. 17 - Prob. 8BTNCh. 17 - Samsung (Samsung.com), a leading manufacturer of...
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