Exercise 24-02For each of the following subsequent (post-balance-sheet) events, Indicate whether a company should adfust the financlal statements, disclose In notes to the financial statements, or nelther adjust nor disclose.Subsequent (Post-Balance-Sheet) Events1.Settlement of federal tax case at a cost considerably In excess of the amount expected at year-end.2.Introduction of a new product line.3.Loss of assembly plant due to fire.4.Sale of a signlficant portion of the company's assets.5.Retirement of the company president.6.Prolonged employee strike.7.Loss of a signlficant customer.B.ISsuance ofa significant number of shares of common stock.9.Material loss on a year-end recelvable because of a customer's bankruptcy.10.Hiring of a new president.11.Settlement of prior year's litigation agalnst the company (no loss was accrued).12.Merger with another company of comparable size.For thii- question:Open Show Work

Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Exercise 24-02 For each of the following subsequent (post-balance-sheet) events, Indicate whether a company should adjust the financlal statements, disclose in notes to the financial statements, or neither adjust nor disclose. Subsequent (Post-Balance-Sheet) Events 1. Settlement of federal tax case at a cost considerably In excess of the amount expected at year-end. 2. Introduction of a new product line. 3. Loss of assembly plant due to fire 4. Sale of a significant portion of the company's assets. 5. Retirement of the company president 6. Prolonged employee strike. 7. Loss of a significant customer. B. Issuance of a significant number of shares of common stock. 9. Matertal loss on a year-end recelvable because of a customer's bankruptcy. 10. Hiring of a new president. 1. Settlement of prior year's Iitigation agatnst the company (no loss was accrued). 12. Merger with another company of comparable size. Kahow work

Exercise 24-02 For each of the following subsequent (post-balance-sheet) events, Indicate whether a company should adjust the financlal statements, disclose in notes to the financial statements, or neither adjust nor disclose. Subsequent (Post-Balance-Sheet) Events 1. Settlement of federal tax case at a cost considerably In excess of the amount expected at year-end. 2. Introduction of a new product line. 3. Loss of assembly plant due to fire 4. Sale of a significant portion of the company's assets. 5. Retirement of the company president 6. Prolonged employee strike. 7. Loss of a significant customer. B. Issuance of a significant number of shares of common stock. 9. Matertal loss on a year-end recelvable because of a customer's bankruptcy. 10. Hiring of a new president. 1. Settlement of prior year's Iitigation agatnst the company (no loss was accrued). 12. Merger with another company of comparable size. Kahow work

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 8C: Ethics and Sale of Operating Component It is the end of 2019, and, as an accountant for Newell...

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HW - Ch 20-2 Prepare journal entries to record the effects on Shannon’s accounting records at December 31, 2021, for each of the items described above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in whole dollars not in thousands of dollars.) (1) Record the gain on sale of investment with an original cost of $186,000 for $232,000 (2) Record the adjustment of equity securities for the investment of $232,000 as on the date of sale. (3) Record the fair value adjustment. (4) Record the loss-lawsuit. (5) Record correction of inventory error. (6) Record correct assets that were incorrectly expensed. (7) Record the 2021 adjusting entry for depreciation. (8) Record the income tax expense.
CALCULATOR PRINTER VERSION 1 BACK NEX Brlef Exercise 22-02 At the beginning of 2020, Riverbed Construction Company changed from the completed-contract method to recognizing revenue over time (percentage-of-completion) for financial reporting purposes. The company will continue to use the completed-contract method for tax purposes. For years prior to 2020, pretax income under the two methods was as follows: percentage-of-completion $117,300, and completed-contract $77,700. The tax rate is 35%. Riverbed has a profit-sharing plan, which pays all employees a bonus at year-end based on 1% of pretax income. Compute the indirect effect of Riverbed's change in accounting principle that will be reported in the 2020 income statement, assuming that the profit-sharing contract explicitly requires adjustment for changes in income numbers. Indirect effect
63. Analyze the following: I – All entities that issue an annual report may issue interim financial report. II – One indicator that sale of a noncurrent asset held for sale is highly probable is that there is an active program to locate a buyer and a complete plan must have been initiated. III – When a component of an entity was discontinued during the current year, the loss on discontinued operation should exclude associated employee termination cost. Given these, we can conclude that: Group of answer choices Only statements I and II are false. Statement II is true. Statement III is not false. Only statements II and III are true.
Required information Exercise 11-23 (Algo) Change in estimate; useful life and residual value of equipment [LO11-2, 11-5] [The following information applies to the questions displayed below.] Wardell Company purchased a mainframe on January 1, 2019, at a cost of $57,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $6,000. On January 1, 2021, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $1,200. Exercise 11-23 (Algo) Part 1 Required: 1. Prepare the year-end journal entry for depreciation in 2021. No depreciation was recorded during the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answer to nearest whole dollar.) X Answer is complete but not entirely correct. No Event General Journal Debit Credit 1 1 Depreciation expense 4,500 X Accumulated…
Brlef Exercise 22-06 In 2020, Kingbird Corporation discovered that equipment purchased on January 1, 2018, for $57,000 was expensed at that time. The equipment should have been depreciated over 5 years, with no salvage value. The effective tax rate is 30%. Kingbird uses straight-line depreciation. Prepare Kingbird's 2020 journal entry to correct the error. (CrediIt account titles are automatically Indented when amount Is entered. Do not Indent manually. If no entry Is required, select "No Entry" for the account titles and enter0 for the amounts.) Account Titles and Explanation Debit Credit
Assessment Task 6 - 1 1. Pine Corporation's books showed pretax income of P600,000 for the year ended December 31, 20x1. In the computation of federal income taxes, the following data were considered: Gain on involuntary conversion (expropriation) P350,000 Depreciation deducted for tax purposes in excess of depreciation deducted for book purposes 50,000 Estimated tax payments during 20x1 70,000 Income tax rate 30% What amount should Pine report as its current income tax liability on its December 31, 20x1, balance sheet? 2. For the year ended December 31, 20x1, Mont Co.'s books showed income of P600,000 before provision for income tax expense. To compute taxable income for taxation purposes, the following items should be noted: Income from exempt municipal bonds P60,000 Depreciation deducted for tax purposes in excess of depreciation recorded on the books 120,000 Proceeds received from life insurance on death of officer 100,000 Estimated tax payments Enacted corporate tax rate 30% What…
Exercise 22-10 Listed below are various types of accounting changes and errors.For each change or error, indicate how it would be accounted for using the following code: 1. Change in a plant asset’s salvage value. select a type of accounting approach 2. Change due to overstatement of inventory. select a type of accounting approach 3. Change from sum-of-the-years’-digits to straight-line method of depreciation. select a type of accounting approach 4. Change from presenting unconsolidated to consolidated financial statements. select a type of accounting approach 5. Change from LIFO to FIFO inventory method. select a type of accounting approach 6. Change in the rate used to compute warranty costs. select a type of accounting approach 7. Change from an unacceptable accounting principle to an acceptable accounting principle. select a type of accounting approach 8. Change in a patent’s…
Joni Shamrock Inc. has the following amounts reported in its general ledger at the end of the current year. Organization costs Trademarks Discount on bonds payable Deposits with advertising agency for ads to promote goodwill of company Excess of cost over fair value of net identifiable assets of acquired subsidiary Cost of equipment acquired for research and development projects; the equipment has an alternative future use Costs of developing a secret formula for a product that is expected to be marketed for at least 20 years $23,600 15,300 36,600 11,600 76,600 86,600 Total amount reported for intangible assets $ 82,200 (a) On the basis of the information above, compute the total amount to be reported by Shamrock for intangible assets on its balance sheet at year-end.
In-class exercise 16-2 33 Ajax, Ltd. expects pretax accounting income in 2018, 2019, and 2020 of $100M each. Ajax purchased equipment in 2018 for $60M that has a three-year life and no salvage value. For tax purposes, the depreciation will be deducted over 2018-20 as follows: $35M, $15M, and $10M, respectively. For financial reporting purposes, depreciation is straight-line at $20M for each of 2018-2020. Tax rates are 20% in 2018 and 2019, and 15% in 2020. a. Prepare journal entry at the end of 2018 to account for income tax; b. During 2019, Congress reduced the tax rate to 13% effective in 2020. Prepare journal entry at the end of 2019 to account for income tax.
declinin 7. Prepare a depreciation schedule to be used for tax purposes for a $1,170,000 office building. The office building is placed in service in the fifth month of the company's tax year. The cost of the land is not included in the $1,170,000. Ignore any special depreciation allowances. Jean
QUESTION 16Which of the following statements with respect to the depreciation of property under MACRS in incorrect?A.Under the half-year convention, one-half year of depreciation is allowed in the year the property is placed in service.B.In some cases, when a taxpayer places a significant amount of property in service during the las quarter of the year, real property must be depreciated using a mid-quarter convention.C.The cost of property to which the MACRS rate is applied is not reduced for estimated salvage value.D.If a taxpayer elects to use the straight-line method of depreciation for property in the 5-year class, all other 5 year class property acquired during the year must also be depreciated using the straight-line method.E.Real property acquired after 1986 must be depreciated using the straight-line method.
38 - What are the receivables that can be collected in a year or more than the normal operating period, stocks to be consumed, advance payments to be used, financial, tangible and intangible assets and assets subject to special depletion to be used for more than one year?A) Returning AssetB) CapitalC) EquityD) SourceE) Fixed Asset