Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 5, Problem 5.1P
Multiple-Step and Single-Step income Statement, from its current-year
| Bluebird Products, Inc. Trial Balance (Partial) For the Year Ended December 31 |
||
| Account | Debit | Credit |
| Common Stock (no par)—Beginning Balance | 51,456,000 | |
| Retained Earnings—Beginning Balance | 3,200,950 | |
| Accumulated Other Comprehensive Income Beginning Balance | 95,675 | |
| Dividends | $ 76,500 | |
| Sales | 2,200,000 | |
| Interest Income | 34,500 | |
| Dividend Income | 12,300 | |
| Gain on Disposal of Plant Assets | 100,500 | |
| Unrealized Gain on Trading Securities | 86,000 | |
| Unrealized Gain on Available-for-Sale Bonds | 45,600 | |
| Cost of Goods Sold | 750,000 | |
| Selling Expenses | 20,000 | |
| Office Supplies Expense | 123,500 | |
| Sales Salaries Expense | 55.000 | |
| Advertising Expense | 68,900 | |
| Office Salaries Expense | 78,500 | |
| Accounting and Legal Fees—General | 10,425 | |
| Systems Consulting Fees—General | 44,550 | |
| 68,000 | ||
| Amortization Expense—General | 34,500 | |
| Interest Expense | 23,750 | |
| Loss on Discontinued Operations—Before Tax | 90,000 | |
| Loss on Asset Impairment | 12,350 | |
Required
- a. Prepare a single-step income statement (or the year ended December 31 The tax rate is 40%.
- b. Prepare a multiple-step income statement for the year ended December 31.
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Profitability Ratios
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December 31
Total assets
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Current Position Analysis
The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years:
Current Year
Previous Year
Current assets:
Cash
$620,200
$495,600
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718,100
557,600
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293,700
185,800
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314,200
179,900
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161,800
115,100
Total current assets
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Current liabilities:
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$394,400
$413,000
Accrued liabilities
285,600
177,000
Total current liabilities
$680,000
$590,000
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Current Year
Previous Year
1. Working capital
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$fill in the blank 2
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fill in the blank 3
fill in the blank 4…
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Current assets:
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Marketable securities
517,400
419,000
Accounts and notes receivable (net)
211,700
139,600
Inventories
1,071,800
807,000
Prepaid expenses
552,200
516,000
Total current assets
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Current liabilities:
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Chapter 5 Solutions
Intermediate Accounting (2nd Edition)
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 - Discontinued Operations. Jojo, Inc. held a...Ch. 5 - Prob. 5.14BECh. 5 - Prob. 5.15BECh. 5 - Prob. 5.16BECh. 5 - Computation of Retained Earnings. Taxi Cabs, Inc...Ch. 5 - Computation of Contributed Capital. Using the...Ch. 5 - Prob. 5.19BECh. 5 - Prob. 5.20BECh. 5 - Prob. 5.21BECh. 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 - Profitability Analyses. Use the following excerpt...Ch. 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 - Prob. 5.6PCh. 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. 5.10PCh. 5 - Prob. 1JCCh. 5 - Financial Statement Analysis Case 1: Vertical...Ch. 5 - Prob. 2FSCCh. 5 - Prob. 1SSCCh. 5 - Surfing the Standards Case 2: Amounts Paid by...Ch. 5 - Prob. 1BCCCh. 5 - Prob. 2BCC
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