Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 5.12BE
To determine
To prepare: The statement of net income.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
amount.
An entity reported the following data
for the current year. What net amount
in OCI that may not be recycled to
profit or loss? *
Net sales
Cost of goods sold
Selling expenses
Administrative expenses
P9.500,000
4,000,000
1,000,000
1,200,000
Interest expense
700,000
Gain from expropriation of land
500,000
Income tax
800,000
Income from discontinued operations
Unrealized gain on equity investment at FVOCI
Unrealized loss on futures contract designated as a cash flow hedge
Increase in projected benefit obligation due to actuarial assumptions
Foreign translation adjustment- debit
Revaluation surplus
600,000
900,000
400,000
300,000
100,000
2,500,000
What amount of income will Pinta record during 20y4 under the cost method of accounting?
A.12,800
B. 9,200
C. 15,600
D. 3,600
Kruber corp as at December 31, 2021, the end of its first year of operations has the following details:
Sales revenue RM317,050
Cost of goods sold RM144,760
Selling and administrative expenses RM 49,700
Gain on sale of plant assets RM28,090
Unrealized gain on available-for-sale debt investments was RM 9,890
Interest expense 6,250 Loss on discontinued operations 12,880 Dividends declared and paid 4,760
Compute:
(a) Income from operations
(b) Net income
(c) Comprehensive income
Chapter 5 Solutions
Intermediate Accounting
Ch. 5 - What are the three limitations of the income...Ch. 5 - In what way is the income statement useful for...Ch. 5 - Prob. 5.3QCh. 5 - Prob. 5.4QCh. 5 - What management behavior does the term earnings...Ch. 5 - What is the difference between permanent and...Ch. 5 - Prob. 5.7QCh. 5 - Prob. 5.8QCh. 5 - Prob. 5.9QCh. 5 - Prob. 5.10Q
Ch. 5 - What are the six key items to be reported on the...Ch. 5 - Explain why operating income is an important...Ch. 5 - Prob. 5.13QCh. 5 - Prob. 5.14QCh. 5 - What items are included in net income?Ch. 5 - Are items of other comprehensive income included...Ch. 5 - What two choices must companies make when...Ch. 5 - Prob. 5.18QCh. 5 - Prob. 5.19QCh. 5 - Are companies reporting under U.S. GAAP required...Ch. 5 - What accounts are summarized on the statement of...Ch. 5 - What is financial statement analysis?Ch. 5 - Prob. 5.23QCh. 5 - What are comparative financial statements and why...Ch. 5 - What is the difference between vertical and...Ch. 5 - Prob. 5.26QCh. 5 - Explain the difference between return on equity...Ch. 5 - How is a companys profit margin calculated?Ch. 5 - Prob. 5.1MCCh. 5 - Moore Furniture Inc., a public company, has...Ch. 5 - Beach and Poole, CPA is reviewing income statement...Ch. 5 - Prob. 5.4MCCh. 5 - Allison Corporations current year income from...Ch. 5 - Prob. 5.6MCCh. 5 - Chili Co. had the following balances at December...Ch. 5 - Szuba Corporation reported the following...Ch. 5 - Prob. 5.9MCCh. 5 - Prob. 5.1BECh. 5 - Prob. 5.2BECh. 5 - Advantages and Disadvantages of the Income...Ch. 5 - Identify each of the earnings items as primarily...Ch. 5 - Income Statement Presentation. Place the...Ch. 5 - Statement of Net Income Presentation, IFRS. Which...Ch. 5 - Single-Step Statement of Net Income. Carr...Ch. 5 - Statement of Net Income, IFRS. Using the...Ch. 5 - Multiple-Step Statement of Net Income. Using the...Ch. 5 - Condensed Statement of Net Income. Using the...Ch. 5 - Prob. 5.11BECh. 5 - Prob. 5.12BECh. 5 - Prob. 5.13BECh. 5 - Prob. 5.14BECh. 5 - Computation of Retained Earnings. Taxi Cabs, Inc...Ch. 5 - Computation of Contributed Capital. Using the...Ch. 5 - Prob. 5.17BECh. 5 - Prob. 5.18BECh. 5 - Prob. 5.19BECh. 5 - Ratio Analyses. Green Grasshopper Incorporated is...Ch. 5 - Multiple-Step and Single-Step Statements of Net...Ch. 5 - Condensed Statement of Net Income. Using the trial...Ch. 5 - Prob. 5.3ECh. 5 - Prob. 5.4ECh. 5 - Multiple-step Statement of Net Income. The current...Ch. 5 - Condensed Statement of Net Income. Using the...Ch. 5 - Multiple-step income Statement. Ciara s Cookie...Ch. 5 - Prob. 5.8ECh. 5 - Prepare Statement of Stockholders' Equity. Dane...Ch. 5 - Prepare Statement of Stockholders Equity. Ciaras...Ch. 5 - Prepare a Statement of Stockholders' Equity....Ch. 5 - Prob. 5.12ECh. 5 - Multiple-Step and Single-Step income Statement,...Ch. 5 - Condensed Income Statement. Using the information...Ch. 5 - Multiple-step, Single-step, and Condensed...Ch. 5 - Statement of Net Income Presentation. IFRS....Ch. 5 - Income Statement Presentation, Classification, and...Ch. 5 - Multiple-step, Single-step, and Condensed...Ch. 5 - Statement of Comprehensive Income Single-and...Ch. 5 - Prepare Statement of Stockholders Equity. Use the...Ch. 5 - Prob. 5.9PCh. 5 - Prob. 1JCCh. 5 - Prob. 1FSACCh. 5 - Prob. 2FSACCh. 5 - Prob. 1SSCCh. 5 - Surfing the Standards Case 2: Amounts Paid by...Ch. 5 - Prob. 1BCCCh. 5 - Prob. 2BCC
Knowledge Booster
Similar questions
- Current Attempt in Progress The following information was taken from the records of Windsor Inc. for the year 2025: Income tax applicable to income from continuing operations $175,780, income tax applicable to loss on discontinued operations $23,970, and unrealized holding gain on available-for-sale debt securities (net of tax) $14,100. Gain on sale of equipment Loss on discontinued operations Administrative expenses Rent revenue Loss on write-down of inventory $89,300 70,500 225,600 37,600 56,400 Shares outstanding during 2025 were 100,000. (a) Cash dividends declared Retained earnings January 1, 2025 Cost of goods sold Selling expenses Sales revenue $141.000 WINDSOR INC. Income Statement 1,320,000 799,000 282,000 1,786,000 Prepare a single-step income statement (with respect to items in Income from operations). (Round earnings per share to 2 decimal places, e.g. 1.48. Enter other revenue and gains before other expenses and losses)arrow_forwardPreparing a consolidated income statement For the year ended December 31, 20Y2, the operating results of Paley Corporation and its wholly owned subsidiary, Sims Enterprises, are as follows: Sales Cost of goods sold Gross profit Operating expenses Operating income Interest revenue Interest expense Net income Sales Paley Sims Corporation Enterprises 3,200,000 (1,900,000) 1,300,000 (750,000) 550,000 20,000 During 20Y2, Sims Enterprises sold and received payment of $80,000 for merchandise that was purchased by Paley Corporation. The merchandise sold to Paley cost Sims Enterprises $45,000. Paley Corporation sold the merchandise to another (nonaffiliated) company for $110,000. Cost of goods sold Gross profit a. Prepare a consolidated income statement for Paley Corporation and Subsidiary. Hint: Eliminate the effect of the intercompany sale. 570,000 Net income 900,000 (550,000) 350,000 (125,000) 225,000 Operating expenses Operating income Other revenue and expense: Interest revenue Interest…arrow_forwardplease no copy past answer in detailarrow_forward
- Lee Min Jae Company reported net income of P7,410,000 for the current year. The following items are included in the net income: Unrealized gain on foreign translation 540,000 Gain on early retirement of bonds payable 2,200,000 Adjustment of profit of prior year for error in depreciation (net of tax) 750,000 Loss on fire (1,400,000) What amount should be reported as adjusted net income? B. P6,500,000 A. P6,120,000 C. P8,160,000 D. P8,700,000arrow_forwardIncome Statement Sections During the current year, Dale Corporation sold a segment of its business at a gain of $378,000 Until it was sold, the segment had a current period operating loss of $135,000. The company had $1,530,000 from continuing operations for the current year. Prepare the lower part of the income statement, beginning with the $1,530,000 income from continuing operations. Follow tax allocation procedures, assuming that all changes in income are subject to a 40% income tax rate. Disregard earnings per share disclosures. (Round all calculations to nearest dollar amount.) Dale Corporation Partial Income Statement Current Year Income from continuing operations Discontinued operations Loss from operations of discontinued segment (net of tax) $ Gain on disposal of discontinued segment (net of tax) Net income $ 81,000 * 81,000 * $ $ 1,530,000 226,800 * 1,676,800 *arrow_forwardThe financial statements of Harry Ltd and its subsidiary Olivia Ltd have been extracted from their financial records at 30 June 2023 and are presented below. Harry Ltd $ Olivia Ltd $ Sales 839 250 725 000 Cost of goods sold (580 000) (297 500) Gross profit 259 250 427 500 Dividends received 116 250 - Management fee revenue 33 125 Gain on sale of plant 43 750 Less Expenses Administration (38 500) (48 375) Depreciation (30 625) (71 000) Management fee - (33 125) Other expenses (126 375) (96 250) Profit before tax 256 875 178 750 Tax expense (76 875) (52 750) Profit after tax 180 000 126 000 Retained earnings 1 July 2022 399 250 299 000 579 250 425 000 Dividends paid (171 750) (116 250) Retained earnings 30 June 2023 407 500 308 750 Statement of financial position Harry Ltd $ Olivia Ltd $ Shareholders’ equity Retained earnings 407 500 308 750 Share capital 437 500 250 000 Current liabilities Accounts payable 57 875 Tax payable 100 000 31 250 Non-current liabilities Loans 236 000 145 000…arrow_forward
- An entity reported the following data for the current year. What amount should be reported as income from continuing operations? Net Sales $ 9.500,000 Cost of Goods Sold 4.000.000 Selling Expenses 1,000,000 Administrative Expenses 1,200.000 Interest Expense 700.000 Gain from expropriation of Land 500.000 Income Tax 800.000 Income from Discontinued Operations 600,000 Unrealized Gain on Equity Investment at FVOCI 900,000 Unrealized Loss on future contracts designated as Cash Flow Hedge 400.000 Increase in projected benefit obligation due to actuarial assumptions 300,000 Foreign Translation Adjustment – Debit 100,000 Revaluation Surplus 2.500.000arrow_forwardncome Statement SectionsDuring the current year, Dale Corporation sold a segment of its business at a gain of $198,000. Until it was sold, the segment had a current period operating loss of $77,000. The company had $820,000 income from continuing operations for the current year. Prepare the lower part of the income statement, beginning with the $820,000 income from continuing operations. Follow tax allocation procedures, assuming that all changes in income are subject to a 40 percent income tax rate. Disregard earnings per share disclosures. Do not use negative signs with any of your answers. Income from Continuing Operations Answer Discontinued Operations Loss from operations of discontinued segment Answer Gain on disposal of discontinued segment Answer Answer Net Income Answerarrow_forward1. Scroll Inc., a wholly owned subsidiary of Pirn, Inc. began operations on January 1, 20x2. The followinginformation is from the condensed 20x2 income statements of Pirn and Scroll:Pirn ScrollSales P500,000 P300,000Cost of goods sold (350,000) (270,000)Gross profit P150,000 P30,000Depreciation (40,000) (10,000)Other expenses (60,000) (15,000)Income from operations 50,000 P 5,000Gain on sale of equipment to Scroll 12,000Income before taxes P62,000 P 5,000Equipment purchased by Scroll from Pirn for P36,000 on January 1, 20x2, is depreciated using the straightlinemethod over four years. What amount should be reported as depreciation expense in Pirn’sconsolidated income statements?A. 50,000 C. 44,000B. 47,000 D. 41,000 2. Upper Company holds 60 percent of Lower Company’s voting shares. During the preparation ofconsolidated financial statements for 20x4, the following eliminating entry was made:Retained earnings, January 1 10,000Land 10,000Which of the following statements is correct?A.…arrow_forward
- Tookey Ltd sold inventory items (with a cost of $75 000) to its parent Milky Ltd for $135 000. One third of the inventory items were sold by Milky Ltd to external parties before the financial year end. Ignoring taxes, which of the following statements is correct with respect to this transaction only? a. Consolidated sales will decrease by $75 000 Ob. Consolidated sales will decrease by $95 000 c. Consolidated profit will decrease by $20 000 d. Consolidated profit will decrease by $40 000 e. Consolidated profit will decrease by $60 000 O Oarrow_forwardNonearrow_forwardPresented below is information related to Anderson Company for 2022. Sales revenueCost of goods soldInterest expenseSelling and administrative expensesLoss from write-off of goodwillGain on the sale of investmentsLoss due to flood damageLoss on the disposition of the wholesale division Loss on operations of the wholesale division Dividends declared on ordinary shares Dividends declared on preference shares 25,000,000 16,000,000 70,000 4,700,000 820,000 110,000 390,000 800,000 150,000 250,000 60,000 Anderson decided to discontinue its entire wholesale operations and to retain its manufacturing operations. On September 15, Anderson sold the wholesale operations to Rogers Company. During 2022, there were 500,000 ordinary shares outstanding all year. Prepare an income statement for the year ended 31 December 2022. Applicable tax rate is 30%.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning