Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 5, Problem 5.2P
Condensed Income Statement. Using the information from P5-1, prepare a condensed, multiple-step income statement with all supporting disclosures.
P5-1. 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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(b)Prepare a vertical analysis of the income statement data for Oriole Corporation for both years. (Round percentages to 1 decimal place, e.g. 12.1%.)
ORIOLE CORPORATIONCondensed Income Statementschoose the accounting period For the Years Ended December 31For the Month Ended December 31December 31
2022
2021
$
Percent
$
Percent
Net sales
$632,300
enter percentages rounded to 1 decimal place
%
$544,800
enter percentages rounded to 1 decimal place
%
Cost of goods sold
456,600
enter percentages rounded to 1 decimal place
%
415,500
enter percentages rounded to 1 decimal place
%
Gross Profit
175,700
enter percentages rounded to 1 decimal place
%
129,300
enter percentages rounded to 1 decimal place
%
Operating expenses
74,100
enter percentages rounded to 1 decimal place
%
44,500
enter percentages rounded to 1 decimal…
P5-7. Multiple-Step, Single-Step, and Condensed Statements of Net Income. Statement of Comprehensive
Income, Two-Statement Approach. Delaney Products, Inc. provided the following information from its
current-year trial balance.
Delaney Products, Inc.
Trial Balance (Partial)
For the Year Ended December 31
Account
Debit
Credit
Common Stock (no par)-Beginning Balance
$ 82,000
Retained Earnings-Beginning Balance
750,000
Accumulated Other Comprehensive Income-Beginning Balance
210,000
Dividends
$ 125
Sales
400,000
Dividend Income
866
Interest Income
4,000
Gain on Disposal of Plant Assets
890
Unrealized Gain on Trading Securities
200
Cost of Goods Sold
25,000
Selling Expenses
5,000
Advertising Expense
Office Salaries Expense
7,000
6,700
Sales Salaries Expense
2,100
Office Supplies Expense
2,000
Accounting and Legal Fees-Administrative
300
Systems Consulting Fees-Administrative
350
Amortization Expense-Administrative
5,500
Depreciation Expense-Administrative
8,250
Interest Expense
900…
Seismic Inc. reported the following results for the year ended June 30, 20Y5:
Retained earnings, July 1, 20Y4
$1,700,000
Net income
311,000
Cash dividends declared
44,000
Stock dividends declared
22,000
Required:
Prepare a retained earnings statement for the fiscal year ended June 30, 20Y5. Be sure to complete the statement heading. Refer to the lists of
Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. A decrease to retained earnings
should be entered as a negative amount.
Chapter 5 Solutions
Intermediate Accounting (2nd Edition)
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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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