Financial Accounting
9th Edition
ISBN: 9781259738692
Author: Libby
Publisher: MCG
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Textbook Question
Chapter A, Problem 1CP
Finding Financial Information
Refer to the financial statements of American Eagle Outfitters in Appendix B at the end of this book.
Required:
- 1. What types of securities are included in the short-term investments and the long-term investments reported on the company’s
balance sheet as of the end of fiscal 2014 (statement dated January 31, 2015)? (Hint: The notes to the financial statements may be helpful for this question.) - 2. What is the balance of
goodwill reported by the company at January 31, 2015? What does the change in goodwill from February 1, 2014, imply about corporate acquisition activities in the 2014 fiscal year? Do the notes to the financial statements indicate any acquisition or disposition activity in either fiscal 2013 or 2014? If so, what were the activities?
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Parkman Sporting Goods is preparing its annual report for its 2021 fiscal year. The company’s controller has asked for your help in determining how best to disclose information about the following items:1. A related-party transaction.2. Depreciation method.3. Allowance for uncollectible accounts.4. Composition of investments.5. Composition of long-term debt.6. Inventory costing method.7. Number of shares of common stock authorized, issued, and outstanding.8. Employee benefit plans.Required:Indicate whether the above items should be disclosed (A) in the summary of significant accounting policies note, (B) in a separate disclosure note, or (C) on the face of the balance sheet.
The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Dux Company.
Additional information from Dux's accounting records is provided also.
Assets
Cash
Accounts receivable
Less: Allowance for uncollectible accounts
Dividends receivable
Inventory
Long-term investment
Land
Buildings and equipment
Less: Accumulated depreciation
Liabilities
Accounts payable
Salaries payable
Interest payable
Income tax payable
Notes payable
Bonds payable
Less: Discount on bonds
Shareholders' Equity
Common stock
Paid-in capital-excess of par
Retained earnings
DUX COMPANY
Comparative Balance Sheets
December 31, 2018 and 2017
($ in 900s)
Less: Treasury stock
DUX COMPANY
Income Statement
For Year Ended December 31, 2018
($ in 800s)
Revenues
Sales revenue
Dividend revenue
Expenses
Cost of goods sold.
Salaries expense
Depreciation expense
Bad debt expense
Interest expense
Loss on sale of building
Income tax expense
Net income
$325
9 $334
134
39
33
1
22
6
31
266…
PROVIDE ANSWER IN ENGLISH ONLY USED ATTACHED IMAGE FOR INFORMATION
a. Show how each of these investments are reported on the Munger.Com balance sheet.
b. For assets that are marked to market, indicate where the unrealized value fluctuation is reported(in net income and/or in comprehensive income).
For reference check a) total securities is , $4,220
Chapter A Solutions
Financial Accounting
Ch. A - Prob. 1QCh. A - Explain the difference in accounting methods used...Ch. A - Explain how bonds held to maturity are reported on...Ch. A - Explain the application of the cost principle to...Ch. A - Under the fair value method, when and how does the...Ch. A - Under the equity method, why does the investor...Ch. A - Prob. 7QCh. A - Prob. 8QCh. A - Prob. 9QCh. A - Company X owns 40 percent of Company Y and...
Ch. A - Prob. 2MCQCh. A - Dividends received from stock that is reported as...Ch. A - Prob. 4MCQCh. A - Prob. 5MCQCh. A - When using the equity method of accounting, when...Ch. A - Prob. 7MCQCh. A - Prob. 8MCQCh. A - Which of the following is true regarding the...Ch. A - Prob. 10MCQCh. A - Matching Measurement and Reporting Methods Match...Ch. A - Prob. 2MECh. A - Prob. 3MECh. A - Prob. 4MECh. A - Prob. 5MECh. A - Prob. 6MECh. A - Prob. 7MECh. A - Prob. 8MECh. A - Prob. 9MECh. A - Prob. 10MECh. A - Prob. 11MECh. A - Prob. 1ECh. A - Prob. 2ECh. A - Recording Transactions in the Available-for-Sale...Ch. A - Prob. 4ECh. A - Prob. 5ECh. A - Reporting Gains and Losses in the Trading...Ch. A - Prob. 7ECh. A - Prob. 8ECh. A - Prob. 9ECh. A - Prob. 10ECh. A - Prob. 11ECh. A - Prob. 1PCh. A - Prob. 2PCh. A - Prob. 3PCh. A - Prob. 4PCh. A - Prob. 5PCh. A - Comparing Methods to Account for Various Levels of...Ch. A - Prob. 7PCh. A - Recording Investments for Significant Influence LO...Ch. A - Prob. 9PCh. A - Prob. 10PCh. A - Prob. 11PCh. A - Prob. 1APCh. A - Prob. 2APCh. A - Reporting Passive Investments During January 2017,...Ch. A - Prob. 4APCh. A - Prob. 5APCh. A - Prob. 6APCh. A - Prob. 1CONCh. A - Finding Financial Information Refer to the...Ch. A - Prob. 2CPCh. A - Prob. 3CPCh. A - Prob. 4CPCh. A - Prob. 5CPCh. A - Prob. 6CP
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