Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 13, Problem 13E
Summary Introduction
Concept Introduction:
The income statement is one of the four financial statements. The income statement is prepared to know the profitability of the business for a particular accounting period. In the income statement, all the expenses are subtracted from the revenues to calculate the net income earned.
Along with the income statement a separate statement of comprehensive income is prepared to present the extraordinary gains and losses.
To indicate: the sections for the items on income statement.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Accounting
The following information is available for Sage Hill Inc. for the year ended
December 31, 2017:
Loss on discontinued
operations
Rent revenue
Income tax applicable
to continuing
operations
Administrative
expenses
Loss on write-down of
inventory
Gain on sale of
equipment
Unrealized gain on
available-for-sale
securities
$68,000
95,000
314,000
509,000
38,000
39,000
33,000
Retained earnings
January 1, 2017
Selling expenses
Income tax applicable to
loss on discontinued
operations
Cost of goods sold
Sales revenue
Cash dividends declared
Interest expense
200,000 shares were outstanding during all of 2017.
$1,420,000
867,000
24,000
1,672,000
3,760,000
211,000
57,000
Required: 1. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures. 2. Assume that by December 31, 2016, the division had not yet been sold but was considered held for sale. The fair value of the division’s assets on December 31 was $5,000,000. How would the presentation of discontinued operations be different from your answer to requirement 1? 3. Assume that by December 31, 2016, the division had not yet been sold but was considered held for sale. The fair value of the division’s assets on December 31 was $3,900,000. How would the presentation of discontinued operations be different from your answer to requirement 1?
Expenses:
b. Calculate the company's net income for 2019.
$
$
0
0
0
Chapter 13 Solutions
Loose Leaf for Financial Accounting: Information for Decisions
Ch. 13 - Explain the difference between financial reporting...Ch. 13 - Prob. 2DQCh. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Prob. 7DQCh. 13 - Prob. 8DQCh. 13 - Prob. 9DQCh. 13 - Prob. 10DQ
Ch. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - Prob. 13DQCh. 13 - Prob. 14DQCh. 13 - Prob. 15DQCh. 13 - Prob. 16DQCh. 13 - Prob. 17DQCh. 13 - Prob. 1QSCh. 13 - Prob. 2QSCh. 13 - Prob. 3QSCh. 13 - Prob. 4QSCh. 13 - Prob. 5QSCh. 13 - Prob. 6QSCh. 13 - Prob. 7QSCh. 13 - Prob. 8QSCh. 13 - Which of the following gains or losses would...Ch. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - Prob. 3ECh. 13 - Prob. 4ECh. 13 - Prob. 5ECh. 13 - Prob. 6ECh. 13 - Prob. 7ECh. 13 - Prob. 10ECh. 13 - Prob. 12ECh. 13 - Prob. 13ECh. 13 - Prob. 14ECh. 13 - Prob. 15ECh. 13 - Prob. 16ECh. 13 - Prob. 1PSACh. 13 - Prob. 2PSACh. 13 - Prob. 3PSACh. 13 - Prob. 5PSACh. 13 - Prob. 6PSACh. 13 - Selected comparative financial statements of...Ch. 13 - Prob. 2PSBCh. 13 - Prob. 3PSBCh. 13 - Prob. 5PSBCh. 13 - Prob. 6PSBCh. 13 - Prob. 13SPCh. 13 - Prob. 2FSACh. 13 - Prob. 3FSACh. 13 - Prob. 1BTNCh. 13 - Prob. 5BTN
Knowledge Booster
Similar questions
- Unusual income statement items Assume that the amount of each of the following items is material to the financial statements. Classify each item as either normally recurring (NR) or unusual (U) items. If unusual item, then specify if it is a discontinued operations item (DO). a. Interest revenue on notes receivable. b. Gain on sale of segment of the company's operations that manufactures bottling equipment. c.Loss on sale of investments in stocks and bonds. d. Uncollectible accounts expense. e. Uninsured flood loss. (Hood insurance is unavailable because of periodic Hooding in the area.)arrow_forwardThe 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_forwardPresented below is information related to Sunland Company as of and for the year ended December 31, 2017. This was Sunland Company's first year of operations. (Ignore income tax effects.) Sales revenue $ 1,380,000 Cost of goods sold 700,000 Selling and administrative expenses 320,000 Loss on sale of plant assets 68,000 Unrealized gain on available-for-sale investments 17,000 Interest expense 5,800 Interest revenue 3,900 Loss on discontinued operations 2,600 Allocation to noncontrolling interest 8,700 Div declared and paid 27,200arrow_forward
- Presented below is information related to Sunland Company as of and for the year ended December 31, 2017. This was Sunland Company's first year of operations. (Ignore income tax effects.) Sales revenue $ 1,380,000 Cost of goods sold 700,000 Selling and administrative expenses 320,000 Loss on sale of plant assets 68,000 Unrealized gain on available-for-sale investments 17,000 Interest expense 5,800 Interest revenue 3,900 Loss on discontinued operations 2,600 Allocation to noncontrolling interest 8,700 Dividends declared and paid 27,200arrow_forwardThe following information is related to Tamarisk 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 $1,176,000 30,000,000 19,200,000 84,000 5,640,000 984,000 1,492,800 (a1) 132,000 468,000 528,000 108,000 300,000 96,000 Tamarisk Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Tamarisk sold the wholesale operations to Rogers Company. During 2025, there were 500,000 shares of common stock outstanding all year. Prepare a multiple-step income statement. (Round earnings per share to 2 decimal…arrow_forwardThe following information is related to Splish Company for 2020. Retained earnings balance, January 1, 2020 Sales Revenue Cost of goods sold Interest revenue Selling and administrative expenses Write-off of goodwill Income taxes for 2020 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 $1,332,800 34,000,000 21,760,000 95,200 6,392,000 1,115,200 1,691,840 149,600 530,400 598,400 122,400 340,000 108,800 Splish Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Splish sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year.arrow_forward
- For each of the items listed below, indicate how it should be treated in the financial statements. 1. The company incurred a loss from impairment of plant assets. select a financial statement classification 2. Obsolete inventory was written off. This was the first loss of this type in the company's history. select a financial statement classification 3. Loss on the disposal of a component of the business. select a financial statement classification 4. Recognition of income earned last year which was inadvertently omitted from last year's income statement. select a financial statement classification 5. The company sold one of its warehouses at a loss. select a financial statement classification…arrow_forwardYou have partial information from an entity financial statements as follows: Accounts receivable Allowance for doubtful accounts Inventory FV-NI Investments Accounts payable Unearned revenues Equipment Accumulated depreciation - equipment Sales Cost of goods sold Depreciation expense Bad debt expense Loss on sale of equipment Loss on sale of FV-NI investments Holding gain- FV-NI investments Note also the following: Accounts written off that were recoved during 2024: $ $ $ $ $ 2024 4,450,000 $ (198,000) $ 3,820,000 $ 1020000 2,740,000 $ 365,000 $ 200,000 -98,000 $ $ $ $ $ 2023 3,690,000 (165,000) 4,490,000 925000 2,630,000 430,000 189,000 -89,000 20,560,000 9,250,000 10,000 356,000 5,500 5000 33000 25,000 Required 1) Calculate the cash collected from customers in 2024. 2) Calculate the cash paid to suppliers for purchase of inventory. 3) One FV-NI investment was sold during the year. Its carrying value at the beginning of the year was: $ 125,000 Calculate the NET cash generated/used up…arrow_forwardExtendicare Inc. reported the following selected information (in thousands): Revenues Net income (excluding discontinued business income) Net income (including discontinued business income) Other comprehensive income (loss) Total comprehensive income With discontinued income: Profit margin Without discontinued income: Profit margin With OCI: Profit margin 2021 $1,216,758 Without discontinued income and without OCI: Profit margin 9,012 11,504 1,659 13,163 2020 $1,103,544 42,450 (a) Calculate the profit margin with and without the effect of the discontinued income and comprehensive income for each year (Round answers to 1 decimal place, e.g. 5.2%.) 54,189 (2,154) 52,035 2021 % % % % 2020arrow_forward
- Note Valuation. The Hastings Company is a multinational manufacturer of electrical equipment and components. Selected financial information is as follows: Consolidated Statements of Income For Period Ended (In millions) Net sales Operating income Interest expense Other income (expense), net Noncontrolling interests Earnings before income taxes (Benefit) provision for income taxes Earnings from continuing operations Discontinued operations (net of tax) Net earnings Abbreviated Consolidated (in millions) 2020 2019 $12,586.60 $12,476.88 680.16 1416.22 2018 $10,164.70 1403.61 (331.89) (238.55) 46.54 (253.00) (6.80) 4.03 (20.10) (51.09) (37.83) 400.26 1079.78 1131.26 399.23 (3.77) 369.72 404.03 710.06 732.03 0.00 160.16 36.40 $404.03 $870.22 $768.43 2020 $910.00 $3,770.91 Balance Sheet 2020 2019 $14,382.81 $14,368.38 Total assets Long-term debt Shareholders' equity Total liabilities and stockholders' equity $14,382.81 $14,368.38 Note 8-Long-Term Debt and Credit Facilities 2019 (in millions)…arrow_forward19. Fuschia Company is a calendar year corporation. Its financial statements for the years 2018 and 2017 contained errors as follows: 2017 P400,000 understated 200,000 overstated 350,000 overstated 2018 Ending inventory Depreciation expense 500,000 understated Rent income Unearned rent income 350,000 understated P300,000 overstated Assume that no correcting entries were made at December 31, 2017. By how much will 2018 profit before income taxes be overstated because of the foregoing errors? A. P850,000 B. P800,000 C. P750,000 D. P250,000 20. Assume that no correcting entries were made in both 2017 and 2018. For how much was the retained earnings understated or overstated as of December 31, 2018? A. P600,000 overstated B. P800,000 overstated C. P1,050,000 overstated D. P200,000 understatedarrow_forwardCurrent Attempt in Progress - Your answer is partially correct. The following information is available for Crane Corp. for the year ended December 31, 2027. Other revenues and gains Other expenses and losses Cost of goods sold Sales discounts Net Sales Sales Revenue Less Sales Returns and Allowances Sales Discounts Prepare a multiple-step income statement for Crane Corp. Cost of Goods Sold Gross Profit Operating Expenses Other Expenses and Losses Income from Operations Other Revenues and Gains Net Income /(Loss) $23,700 eTextbook and Media 3,020 287,400 3,530 Sales revenue Operating expenses Sales returns and allowances CRANE CORP. Income Statement For the Year Ended December 31, 2027 $754,000 217,890 10,500 10500 3530 i 232200 23700 754000 QUROSO 740470 287400 i 453070 217890 i 3020 255900arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial Reporting, Financial Statement Analysis...FinanceISBN:9781285190907Author:James M. Wahlen, Stephen P. Baginski, Mark BradshawPublisher:Cengage Learning
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Survey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Financial Reporting, Financial Statement Analysis...
Finance
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning