Using Financial Accounting Information
10th Edition
ISBN: 9781337276337
Author: Porter, Gary A.
Publisher: Cengage Learning,
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 1.8.2P
To determine
Concept Introduction:
Retained Earnings are the
To State: Information includes in statement of shareholders equity that doesn’t includes in statement of retained earnings.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Preparing a corporate income statement
ABC Corporation's accounting records include the following items, listed in no particular order, at December 31, 2018:
The income tax rate for ABC Corporation is 39%.
Prepare ABC’s income statement for the year ended December 31, 2018. Omit earnings per share. Use the multi-step format.
Assume a company starts operations on 1/1/2013 with an equity investment of $776,750. The companies next 7 years of financial performance are listed below. Assume that the company has no permanent or temporary differences for the first three fiscal years. During fiscal 2016 the company experiences a net operating loss. The marginal corporate tax rates for each year are located on the Income Statement.
Calculate taxable income (IRS), taxes payable (IRS)and tax expenses (USGAAP).
How should the company accounts for the Net Operating Loss.
Provide all Journal Entries & T-Accounts.
Create a complete set of financial statements (I/S, SRE, B/S, SCF) for the firm for years 2013 through 2019.
INCOME STATEMENT
1/1/13
12/31/13
12/31/14
12/31/15
12/31/16
12/31/17
12/31/18
12/31/19
Cash Sales
-
$776,750
$776,750
$776,750
$119,500
$836,500
$717,000
$746,875
Credit Sales
-
-
-
-
-
-
-
-
Instalment Sales
-
-
-
-
-
-…
ACCOUNTING
Carry out the following practical case:
The company “Inversiones San Remo SAC”, with RUC: 20234125239, began activities in 2005, is dedicated to the manufacture of curtains, operates in its own premises located in La Victoria, has 33 employees (monthly average), and According to the General Shareholders' Meeting, in 2018 they calculated the dividend distribution of 40%.
They request to assemble the Financial Statements with the following information:
Prepare the 2018 Income Statement.
Prepare the Statement of Financial Position 2017 and 2018.
Statement of Cash Flow for the year 2018.
Direct method
Perform the acid test calculation, the two periods and explain what the results found mean
Notes to the Financial Statements:
Selling expenses correspond to depreciation expenses for 2018.
Administrative expenses corresponding to payroll expenses (salaries) for the 2018 financial year.
Financial income corresponds to earnings from the profitability of cash surpluses that…
Chapter 1 Solutions
Using Financial Accounting Information
Ch. 1 - Prob. 1.1ECh. 1 - Prob. 1.2ECh. 1 - Prob. 1.3ECh. 1 - Prob. 1.4.1ECh. 1 - Prob. 1.4.2ECh. 1 - Prob. 1.4.3ECh. 1 - Prob. 1.4.4ECh. 1 - Prob. 1.5.1ECh. 1 - Prob. 1.5.2ECh. 1 - Prob. 1.5.3E
Ch. 1 - Changes in Owners’ Equity The following amounts...Ch. 1 - Prob. 1.6.2ECh. 1 - Prob. 1.6.3ECh. 1 - Prob. 1.7ECh. 1 - Prob. 1.8ECh. 1 - Prob. 1.9ECh. 1 - Prob. 1.10.1ECh. 1 - Prob. 1.10.2ECh. 1 - Prob. 1.10.3ECh. 1 - Prob. 1.10.4ECh. 1 - Prob. 1.10.5ECh. 1 - Prob. 1.10.6ECh. 1 - Prob. 1.11ECh. 1 - Prob. 1.12ECh. 1 - Prob. 1.13ECh. 1 - Prob. 1.14ECh. 1 - Prob. 1.15MCECh. 1 - Prob. 1.16MCECh. 1 - Prob. 1.1PCh. 1 - Prob. 1.2PCh. 1 - Prob. 1.3PCh. 1 - Prob. 1.4.1PCh. 1 - Prob. 1.4.2PCh. 1 - Prob. 1.5.1PCh. 1 - Prob. 1.5.2PCh. 1 - Prob. 1.5.3PCh. 1 - Prob. 1.5.4PCh. 1 - Prob. 1.6.1PCh. 1 - Prob. 1.6.2PCh. 1 - Income Statement and Balance Sheet Green Bay...Ch. 1 - Prob. 1.7.1PCh. 1 - Prob. 1.7.2PCh. 1 - Prob. 1.7.3PCh. 1 - Prob. 1.7.4PCh. 1 - Prob. 1.8.1PCh. 1 - Prob. 1.8.2PCh. 1 - Prob. 1.9PCh. 1 - Prob. 1.10MCPCh. 1 - Prob. 1.1AAPCh. 1 - Prob. 1.2AAPCh. 1 - Prob. 1.3AAPCh. 1 - Prob. 1.4AAPCh. 1 - Prob. 1.5AAPCh. 1 - Prob. 1.5.1AAPCh. 1 - Prob. 1.5.2AAPCh. 1 - Prob. 1.5.3AAPCh. 1 - Prob. 1.5.4AAPCh. 1 - Prob. 1.6.1AAPCh. 1 - Prob. 1.6.2AAPCh. 1 - Prob. 1.6.3AAPCh. 1 - Prob. 1.7.1AAPCh. 1 - Prob. 1.7.2AAPCh. 1 - Prob. 1.7.3AAPCh. 1 - Prob. 1.7.4AAPCh. 1 - Prob. 1.8.1AAPCh. 1 - Prob. 1.8.2AAPCh. 1 - Prob. 1.9AAPCh. 1 - Prob. 1.10AAMCP
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Statement of Retained Earnings for The Coca-Cola Company The Coca-Cola Company and Subsidiaries reported the following amounts in various statements included in its Form 10-K for the year ended December 31, 2013. (All amounts are stated in millions of dollars.) Required Prepare a statement of retained earnings for The Coca-Cola Company for the year ended December 31, 2013. The Coca-Cola Company does not actually present a statement of retained earnings in its annual report. Instead, it presents a broader statement of shareholders equity. Describe the information that would be included on this statement that is not included on a statement of retained earnings.arrow_forwardAt the beginning of its fiscal year on April 1, 2018, Extra Vienna Oil Corp, had a balance of $4,740.000 in its retained earnings account. The company generated its highest net income ever of $4,150,750, so it paid large dividends of $975,000 and $750,000 to its preferred and common shareholders, respectively. Required: Prepare the March 31, 2019 (fiscal year end) retained earnings statement for Extra Vienna Oil Corp.arrow_forwardThe following information pertains to KPMJ Ltd and covers questions 11 – 21: KPMJ Ltd is a company incorporated in 2017 and has a 28 February financial year- end. The company’s accountant presented the following information to you as the accounting officer of the company: KPMJ LTD EXTRACT OF BALANCES AS AT 28 FEBRUARY 2022: Retained earnings (1 March 2021) Share capital: Ordinary shares (1 March 2021) Inventory (1 March 2021) Trade receivables control Petty cash R 200,900 600,900 34,700 244,200 5,900 Loan: PWA Bank SARS (income tax) (Dr) Land and buildings at revaluation Equipment at cost Accumulated depreciation: Equipment Revaluation surplus (1 March 2021) Income received in advance Allowance for credit losses Bank (Dr) Trade payables control Auditor's remuneration Sales Carriage on sales Settlement discount received Allowance for settlement discount granted Purchases Salaries and wages Carriage on purchases Directors’ remuneration Settlement discount granted Stationery Telephone…arrow_forward
- ABC Corporation's accounting records include the following items, listed in no particular order, at December 31, 2024: Other Income and (Expenses) $7,200 Cost of Goods Sold $30,000 Net Sales $81,000 Operating Expenses $25,000 Gain on Discontinued Operations $3,600 The income tax rate for ABC Corporation is 21%. Prepare ABC's income statement for the year ended December 31, 2024. Omit earnings per share. Prepare the income statement through the income before taxes, then complete the income statement through the net income. ABC Corporation Income Statement Year Ended December 31, 2024 Costs of Goods Sold $___________ Discontinued Operations (less applicable tax) $___________ Income Tax Expense $___________ Operating Expenses $___________ Other Income and (Expenses) $___________ Net Sales $___________ Income Before Income Taxes $___________arrow_forwardACCOUNTING Carry out the following practical case: The company “Inversiones San Remo SAC”, with RUC: 20234125239, began activities in 2005, is dedicated to the manufacture of curtains, operates in its own premises located in La Victoria, has 33 employees (monthly average), and According to the General Shareholders' Meeting, in 2018 they calculated the dividend distribution of 40%. They request to assemble the Financial Statements with the following information: Prepare the Statement of Financial Position 2017 and 2018. Notes to the Financial Statements: Selling expenses correspond to depreciation expenses for 2018. Administrative expenses corresponding to payroll expenses (salaries) for the 2018 financial year. Financial income corresponds to earnings from the profitability of cash surpluses that the company had in the 2018 period. Financial expenses for the 2018 period correspond to interest paid on working capital loans. Make all the discounts by law that you consider for…arrow_forwardBarch Enterprises develops and produces cleaning products. Presented below is the company's statement of shareholders' equity from its annual report: BARCH ENTERPRISES Consolidated Statements of Shareholders' Equity and Comprehensive Income For year ended December 31 Accumulated Additional Unearned Other Total Common Compen- Accumulated Comprehensive Shareholders' Equity $32,267 Paid-In Stock Income (Loss) Сapital $311,735 Amounts in thousands sation Deficit Balance – January 1 $254 ($21) ($279,747) $46 - Unearned compensation amortized 26 26 Common shares issued 332 334 Stock option exercises 39 (39) Stock purchased and retired (7) (2,896) (2,903) Net income 431 431 Translation adjustment 242 242 Balance – December 31 $249 $309,210 ($34) ($279,316) $288 $30,397 Prepare a list of the key events that impacted Barch's shareholders' equity. Where possible, explain why the transaction occurred.arrow_forward
- The following information is related to Nash Company for 2025. Retained earnings balance, January 1, 2025 Sales revenue Cost of goods sold Interest revenue Selling and administrative expenses Write-off of goodwill Income taxes for 2025 Gain on the sale of investments Loss due to flood damage. Loss on the disposition of the wholesale division (net of tax) Loss on operations of the wholesale division (net of tax) Dividends declared on common stock Dividends declared on preferred stock (a1) $901,600 23,000,000 14,720,000 Nash Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Nash sold the wholesale operations to Rogers. Company. During 2025, there were 500,000 shares of common stock outstanding all year. + 64,400 4,324,000 754,400 1,144,480 101,200 358,800 404,800 82,800 230,000 73,600 Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g.…arrow_forwardSandhill Corporation recently filed the following financial statements with the SEC. Sandhill CorporationIncome Statement for the FiscalYear Ended July 31, 2017 Net sales $83,489 Cost of products sold 59,385 Gross profit $24,104 Selling, general, and administrative expenses 10,640 Depreciation 1,208 Operating income (loss) $12,256 Interest expense 740 Earnings (loss) before income taxes $11,516 Income taxes 4,031 Net earnings (loss) $7,485 What are the company’s current ratio and quick ratio? (Round answers to 2 decimal places, e.g. 52.75.) Current ratio Quick ratioarrow_forwardOriole Corporation recently filed the following financial statements with the SEC. Look at the image for the balance sheet and more! Oriole CorporationIncome Statement for the FiscalYear Ended July 31, 2017 Net sales $77,630 Cost of products sold 55,218 Gross profit $22,412 Selling, general, and administrative expenses 9,893 Depreciation 1,124 Operating income (loss) $11,395 Interest expense 688 Earnings (loss) before income taxes $10,707 Income taxes 3,748 Net earnings (loss) $6,959 Use the DuPont identity to calculate the return on equity (ROE). In the process, calculate the following ratios: net profit margin, total asset turnover, equity multiplier, EBIT return on assets (EROA), and return on assets. (Do not round intermediate calculations. Round answers to 2 decimal places, e.g. 52.75 or 52.75%.) Net profit margin % Total asset turnover Equity multiplier EBIT return on assets % Return on assets %…arrow_forward
- Gray Company lists the following shareholders equity items on its December 31, 2018, balance sheet: The following stock transactions occurred during 2019: Required: 1. Prepare journal entries to record the preceding transactions. 2. Prepare the December 31, 2019, shareholders equity section (assume that 2019 net income was 225,000).arrow_forwardIncluded in the December 31, 2018, Jacobi Company balance sheet was the following shareholders equity section: The company engaged in the following stock transactions during 2019: Required: 1. Prepare journal entries to record the preceding transactions. 2. Prepare the December 31, 2019, shareholders equity section (assume that 2019 net income was 270,000).arrow_forwardThe unqualified quarterly statement of income issued by Bailey Corporation to its stockholders are usually prepared on the same basis as annual statements. This statement is referred to as: a. O b. C. d. Billing Statement Qualified Opinion Report Interim Financial Statements Annual Financial Statementsarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
- Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Dividend explained; Author: The Finance Storyteller;https://www.youtube.com/watch?v=Wy7R-Gqfb6c;License: Standard Youtube License