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 5.6E
Condensed Statement of Net Income. Using the information provided in E5-5 prepare a condensed, multiple-step statement of net income for Boley Boxes. Inc that includes all supporting schedules.
E5-5 Multiple-step Statement of Net Income. The current year’s statement of net income for Boley Boxes Inc. in a single-step format follows.
Boley Boxes. Inc Income Statement For the Year Ended December 31 | ||
Revenues and Gains | ||
Sales | $875,650 | |
interest income | 325 | |
Dividend Income | 780 | |
Gain on Sale of Investment Securities | 4,300 | |
Unrealized Gain on Tradino Securities | 6,000 | |
Total Revenues and Gains | $887,055 | |
Expenses and Losses | ||
Cost of Goods Sold | $45,000 | |
Selling Expenses | 32,560 | |
Sales Salaries Expense | 14,567 | |
Advertising Expense | 16,400 | |
2500 | ||
Amortzation Exponso—General | 1680 | |
Office Salaries Expense | 19,400 | |
Office Supplies Expense | 23,000 | |
Loss on Asset impairment | 3,450 | |
Legal Fees—General | 2,150 | |
Accounting Fees—General | 4300 | |
Interset Expense | 5,000 | |
income Tax Expense at 40% • 40% × ($887,055 − $170,007) = 40% × $717,048 = $286,819 |
286,819 | |
Total Expenses and Losses | (456,826) | |
Income from Continuing Operations | $430,229 | |
Gain on Discontnued Operations—Net of tax | _2,700 | |
Net Income | $432,929 |
Prepare Boleys income statement using a multiple-step format.
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Assume the following sales data for a company:
Line Item Description
Amount
Current year
$891,303
Preceding year
515,759
What is the percentage increase in sales from the preceding year to the current year?
Required information
[The following information applies to the questions displayed below.]
Jordan Sales Company (organized as a corporation on April 1, 2017) has completed the accounting cycle for the second
year, ended March 31, 2019. Jordan also has completed a correct trial balance as follows:
JORDAN SALES COMPANY
Trial Balance
At March 31, 2019
Account Titles
Debit
Credit
Cash
$ 58,000
Accounts receivable
49,000
1,000
34,000
Office supplies inventory
Automobiles (company cars)
Accumulated depreciation, automobiles
Office equipment
Accumulated depreciation, office equipment
Accounts payable
Income taxes payable
Salaries and commissions payable
Note payable, long-term
Capital stock (par $1; 33,000 shares)
Paid-in capital
Retained earnings (on April 1, 2018)
Dividends declared and paid during the current year
Sales revenue
$ 14,000
3,000
1,000
22,000
2,000
33, 0өө
33,000
5,000
7,500
10,500
99,000
Cost of goods sold
Operating expenses (detail omitted to conserve time)
Depreciation…
The following are the financial statement JNC Ltd. for the year ended 31 March 2020:
JNC Ltd.
Income statement
For the year ended 31 March 2020
$”M”
Revenue
1276.50
Cost of sales
(907.00)
369.50
Distribution costs
(62.50)
Administrative expenses
(132.00)
175.00
Interest received
12.50
Interest paid
(37.50)
150.00
Tax
(70.00)
Profit after tax
80.00
JNC Ltd.
Statement of financial position as at 31 March
2020
2019
$”M”
$”M”
ASSETS:
Non- current assets:
Property, plant and equipment
190
152.5
Intangible assets
125
100
Investments
12.5
Current assets:
Inventories
75
51
Receivables
195
157.5
Short-term investment
25
Cash in hand
1
0.5
Total assets
611
474
Equity and liabilities:
Equity:
Share capital
(10 million ordinary shares of $ 10 per value)
100
75
Share premium
80
75
Revolution reserve
50
45.5
Retained earnings
130
90
Non-current liabilities:
Loan
85
25…
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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