Income statement: This is the financial statement of a company which shows all the revenues earned and expenses incurred by the company over a period of time. Generally Accepted Accounting Principle (GAAP): Two generally accepted accounting principles that relates to adjusting the accounts are as follows: The revenue recognition principle The expenses recognition principle The revenue recognition principle: The revenue recognition principle refers to the revenue that should be recognized in the time period, when the performance obligation (sales or services) of the company is completed. The expense recognition principle: The expense recognition principle refers to the expenses that should match with revenue (matching principle) in the period when the company incurred expenses in order to generate the revenue. To prepare: The correct income statement of Company LP for the quarter ended March 31, 2014.

Question

Want to see the full answer?

Answer 1

Question

Chapter 4, Problem 4.6BYP

(a)

To determine

Income statement:

This is the financial statement of a company which shows all the revenues earned and expenses incurred by the company over a period of time.

Generally Accepted Accounting Principle (GAAP):

Two generally accepted accounting principles that relates to adjusting the accounts are as follows:

The revenue recognition principle

The expenses recognition principle

The revenue recognition principle:

The revenue recognition principle refers to the revenue that should be recognized in the time period, when the performance obligation (sales or services) of the company is completed.

The expense recognition principle:

The expense recognition principle refers to the expenses that should match with revenue (matching principle) in the period when the company incurred expenses in order to generate the revenue.

To prepare: The correct income statement of Company LP for the quarter ended March 31, 2014.

(b)

To determine

To explain: The effects of GAAP principle which was not recognized at the time of preparing the income statement.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Compute the net income

I am looking for help with this general accounting question using proper accounting standards.

During 2019, Diamond Solutions earned revenues of $128,000, had expenses of $94,000, purchased assets costing $15,700, and paid dividends of $8,500. What was Diamond Solutions' net income for the year?

Answer 2

Question

Chapter 4, Problem 4.6BYP

(a)

To determine

Income statement:

This is the financial statement of a company which shows all the revenues earned and expenses incurred by the company over a period of time.

Generally Accepted Accounting Principle (GAAP):

Two generally accepted accounting principles that relates to adjusting the accounts are as follows:

The revenue recognition principle

The expenses recognition principle

The revenue recognition principle:

The revenue recognition principle refers to the revenue that should be recognized in the time period, when the performance obligation (sales or services) of the company is completed.

The expense recognition principle:

The expense recognition principle refers to the expenses that should match with revenue (matching principle) in the period when the company incurred expenses in order to generate the revenue.

To prepare: The correct income statement of Company LP for the quarter ended March 31, 2014.

(b)

To determine

To explain: The effects of GAAP principle which was not recognized at the time of preparing the income statement.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 4, Problem 4.6BYP

(a)

To determine

Income statement:

This is the financial statement of a company which shows all the revenues earned and expenses incurred by the company over a period of time.

Generally Accepted Accounting Principle (GAAP):

Two generally accepted accounting principles that relates to adjusting the accounts are as follows:

The revenue recognition principle

The expenses recognition principle

The revenue recognition principle:

The revenue recognition principle refers to the revenue that should be recognized in the time period, when the performance obligation (sales or services) of the company is completed.

The expense recognition principle:

The expense recognition principle refers to the expenses that should match with revenue (matching principle) in the period when the company incurred expenses in order to generate the revenue.

To prepare: The correct income statement of Company LP for the quarter ended March 31, 2014.

(b)

To determine

To explain: The effects of GAAP principle which was not recognized at the time of preparing the income statement.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 4, Problem 4.6BYP

(a)

To determine

Income statement:

This is the financial statement of a company which shows all the revenues earned and expenses incurred by the company over a period of time.

Generally Accepted Accounting Principle (GAAP):

Two generally accepted accounting principles that relates to adjusting the accounts are as follows:

The revenue recognition principle

The expenses recognition principle

The revenue recognition principle:

The revenue recognition principle refers to the revenue that should be recognized in the time period, when the performance obligation (sales or services) of the company is completed.

The expense recognition principle:

The expense recognition principle refers to the expenses that should match with revenue (matching principle) in the period when the company incurred expenses in order to generate the revenue.

To prepare: The correct income statement of Company LP for the quarter ended March 31, 2014.

(b)

To determine

To explain: The effects of GAAP principle which was not recognized at the time of preparing the income statement.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 4, Problem 4.6BYP

(a)

To determine

Income statement:

This is the financial statement of a company which shows all the revenues earned and expenses incurred by the company over a period of time.

Generally Accepted Accounting Principle (GAAP):

Two generally accepted accounting principles that relates to adjusting the accounts are as follows:

The revenue recognition principle

The expenses recognition principle

The revenue recognition principle:

The revenue recognition principle refers to the revenue that should be recognized in the time period, when the performance obligation (sales or services) of the company is completed.

The expense recognition principle:

The expense recognition principle refers to the expenses that should match with revenue (matching principle) in the period when the company incurred expenses in order to generate the revenue.

To prepare: The correct income statement of Company LP for the quarter ended March 31, 2014.

(b)

To determine

To explain: The effects of GAAP principle which was not recognized at the time of preparing the income statement.

Answer 6

Chapter 4, Problem 4.6BYP

(a)

To determine

Income statement:

This is the financial statement of a company which shows all the revenues earned and expenses incurred by the company over a period of time.

Generally Accepted Accounting Principle (GAAP):

Two generally accepted accounting principles that relates to adjusting the accounts are as follows:

The revenue recognition principle

The expenses recognition principle

The revenue recognition principle:

The revenue recognition principle refers to the revenue that should be recognized in the time period, when the performance obligation (sales or services) of the company is completed.

The expense recognition principle:

The expense recognition principle refers to the expenses that should match with revenue (matching principle) in the period when the company incurred expenses in order to generate the revenue.

To prepare: The correct income statement of Company LP for the quarter ended March 31, 2014.

Answer 7

Chapter 4, Problem 4.6BYP

(a)

To determine

Income statement:

This is the financial statement of a company which shows all the revenues earned and expenses incurred by the company over a period of time.

Generally Accepted Accounting Principle (GAAP):

Two generally accepted accounting principles that relates to adjusting the accounts are as follows:

The revenue recognition principle

The expenses recognition principle

The revenue recognition principle:

The revenue recognition principle refers to the revenue that should be recognized in the time period, when the performance obligation (sales or services) of the company is completed.

The expense recognition principle:

The expense recognition principle refers to the expenses that should match with revenue (matching principle) in the period when the company incurred expenses in order to generate the revenue.

To prepare: The correct income statement of Company LP for the quarter ended March 31, 2014.

Answer 8

(b)

To determine

To explain: The effects of GAAP principle which was not recognized at the time of preparing the income statement.

Answer 9

(b)

To determine

To explain: The effects of GAAP principle which was not recognized at the time of preparing the income statement.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 13

Ch. 4 - Prob. 1Q Ch. 4 - Identify and stale two generally accepted...Ch. 4 - Prob. 3Q Ch. 4 - Prob. 4Q Ch. 4 - Prob. 5Q 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. 9Q Ch. 4 - Prob. 10Q

Concept explainers

Videos

To explain: The effects of GAAP principle which was not recognized at the time of preparing the income statement.

Want to see the full answer?

Chapter 4 Solutions