Accrual basis of accounting: In accrual Basis of accounting, the company records all the transaction that brings changes in the financial statement of the company. In accrual basis of accounting, the revenue is recognized for the accounting period, in which the goods are sold, or the service performed even if cash is not exchanged. Similarly the expenses are recognized for the accounting period, in which the business incurred expenses even if cash is not exchanged. To identify: The accounts of Company A, which provide evidence that Company A uses accrual accounting. The income statement account of Company A, which would be affected by the adjustments process.

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Answer 1

Question

Chapter 4, Problem 4.3EYCT

(a)

To determine

Accrual basis of accounting:

In accrual Basis of accounting, the company records all the transaction that brings changes in the financial statement of the company. In accrual basis of accounting, the revenue is recognized for the accounting period, in which the goods are sold, or the service performed even if cash is not exchanged. Similarly the expenses are recognized for the accounting period, in which the business incurred expenses even if cash is not exchanged.

To identify: The accounts of Company A, which provide evidence that Company A uses accrual accounting.

The income statement account of Company A, which would be affected by the adjustments process.

(b)

To determine

To identify: The accounts of Company W, which provide evidence that Company W uses accrual accounting.

The accounts of Company W, which provide evidence that Company W uses accrual accounting.

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XYZ Company had the following information as of Dec 31, 2013 and 2014. In Units 2013 2014 Inventory, Jan 1 - 7,000 Production 20,000 18,000 Available for Sale 20,000 25,000 Units Sold 13,000 23,000 Inventory, Dec 31 7,000 2,000 Sale (P20/unit) 260,000 460,000 Variable Cost (P7.5/unit) 150,000 135,000 Fixed Manufacturing Cost 50,000 54,000 Selling and Administrative 45,000 75,000 Selling and administrative expenses are 60% fixed and 40% variable. Required: (1) Prepare the comparative income statements of XYZ company for 2013 and 2014 using A. Variable Costing B. Absorption Costing (2) Prepare the reconciliation of the net income differences Note: Only 100% sure experts solve it correctly. Complete solutions need to get full marks. take your time, but solve fully and accurately. DO NOT USE AI GENERATED.

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What was the net income for the year?

Answer 2

Question

Chapter 4, Problem 4.3EYCT

(a)

To determine

Accrual basis of accounting:

In accrual Basis of accounting, the company records all the transaction that brings changes in the financial statement of the company. In accrual basis of accounting, the revenue is recognized for the accounting period, in which the goods are sold, or the service performed even if cash is not exchanged. Similarly the expenses are recognized for the accounting period, in which the business incurred expenses even if cash is not exchanged.

To identify: The accounts of Company A, which provide evidence that Company A uses accrual accounting.

The income statement account of Company A, which would be affected by the adjustments process.

(b)

To determine

To identify: The accounts of Company W, which provide evidence that Company W uses accrual accounting.

The accounts of Company W, which provide evidence that Company W uses accrual accounting.

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Answer 3

Question

Chapter 4, Problem 4.3EYCT

(a)

To determine

Accrual basis of accounting:

In accrual Basis of accounting, the company records all the transaction that brings changes in the financial statement of the company. In accrual basis of accounting, the revenue is recognized for the accounting period, in which the goods are sold, or the service performed even if cash is not exchanged. Similarly the expenses are recognized for the accounting period, in which the business incurred expenses even if cash is not exchanged.

To identify: The accounts of Company A, which provide evidence that Company A uses accrual accounting.

The income statement account of Company A, which would be affected by the adjustments process.

(b)

To determine

To identify: The accounts of Company W, which provide evidence that Company W uses accrual accounting.

The accounts of Company W, which provide evidence that Company W uses accrual accounting.

Expert Solution & Answer

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Answer 4

Question

Chapter 4, Problem 4.3EYCT

(a)

To determine

Accrual basis of accounting:

In accrual Basis of accounting, the company records all the transaction that brings changes in the financial statement of the company. In accrual basis of accounting, the revenue is recognized for the accounting period, in which the goods are sold, or the service performed even if cash is not exchanged. Similarly the expenses are recognized for the accounting period, in which the business incurred expenses even if cash is not exchanged.

To identify: The accounts of Company A, which provide evidence that Company A uses accrual accounting.

The income statement account of Company A, which would be affected by the adjustments process.

(b)

To determine

To identify: The accounts of Company W, which provide evidence that Company W uses accrual accounting.

The accounts of Company W, which provide evidence that Company W uses accrual accounting.

Expert Solution & Answer

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Answer 5

Chapter 4, Problem 4.3EYCT

(a)

To determine

Accrual basis of accounting:

In accrual Basis of accounting, the company records all the transaction that brings changes in the financial statement of the company. In accrual basis of accounting, the revenue is recognized for the accounting period, in which the goods are sold, or the service performed even if cash is not exchanged. Similarly the expenses are recognized for the accounting period, in which the business incurred expenses even if cash is not exchanged.

To identify: The accounts of Company A, which provide evidence that Company A uses accrual accounting.

The income statement account of Company A, which would be affected by the adjustments process.

(b)

To determine

To identify: The accounts of Company W, which provide evidence that Company W uses accrual accounting.

The accounts of Company W, which provide evidence that Company W uses accrual accounting.

Answer 6

Chapter 4, Problem 4.3EYCT

(a)

To determine

Accrual basis of accounting:

In accrual Basis of accounting, the company records all the transaction that brings changes in the financial statement of the company. In accrual basis of accounting, the revenue is recognized for the accounting period, in which the goods are sold, or the service performed even if cash is not exchanged. Similarly the expenses are recognized for the accounting period, in which the business incurred expenses even if cash is not exchanged.

To identify: The accounts of Company A, which provide evidence that Company A uses accrual accounting.

The income statement account of Company A, which would be affected by the adjustments process.

Answer 7

Chapter 4, Problem 4.3EYCT

(a)

To determine

Accrual basis of accounting:

In accrual Basis of accounting, the company records all the transaction that brings changes in the financial statement of the company. In accrual basis of accounting, the revenue is recognized for the accounting period, in which the goods are sold, or the service performed even if cash is not exchanged. Similarly the expenses are recognized for the accounting period, in which the business incurred expenses even if cash is not exchanged.

To identify: The accounts of Company A, which provide evidence that Company A uses accrual accounting.

The income statement account of Company A, which would be affected by the adjustments process.

Answer 8

(b)

To determine

To identify: The accounts of Company W, which provide evidence that Company W uses accrual accounting.

The accounts of Company W, which provide evidence that Company W uses accrual accounting.

Answer 9

(b)

To determine

To identify: The accounts of Company W, which provide evidence that Company W uses accrual accounting.

The accounts of Company W, which provide evidence that Company W uses accrual accounting.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 4 - Prob. 1Q Ch. 4 - Identify and stale two generally accepted...Ch. 4 - Prob. 4Q Ch. 4 - Prob. 5Q Ch. 4 - Prob. 6Q Ch. 4 - Why may the financial information in an unadjusted...Ch. 4 - Distinguish between the two categories of...Ch. 4 - What types of accounts does a company debit and...Ch. 4 - Prob. 10Q Ch. 4 - Prob. 11Q

Solution Summary: The author identifies two accounts that would be affected by the adjustments process in the income statement of Company W.

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To identify: The accounts of Company W, which provide evidence that Company W uses accrual accounting.

The accounts of Company W, which provide evidence that Company W uses accrual accounting.

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Chapter 4 Solutions

Solution Summary: The author identifies two accounts that would be affected by the adjustments process in the income statement of Company W.

Concept explainers

Videos

To identify: The accounts of Company W, which provide evidence that Company W uses accrual accounting. The accounts of Company W, which provide evidence that Company W uses accrual accounting.

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Chapter 4 Solutions

To identify: The accounts of Company W, which provide evidence that Company W uses accrual accounting.

The accounts of Company W, which provide evidence that Company W uses accrual accounting.