Fundamental Accounting Principles
23rd Edition
ISBN: 9781259536359
Author: John J Wild, Ken Shaw Accounting Professor, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 4, Problem 13E
Exercise 4-13
Computing the
A1
Use the information in the adjusted trial] balance reported in Exercise 4•11 to compute the current ratio as of the
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Problem 17-6AA (Algo) Income statement computations and format LO A2
[The following information applies to the questions displayed below]
Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31
follow. Assume that the company's income tax rate is 40% for all items.
a. Interest revenue.
b. Depreciation expense-Equipment
c. Loss on sale of equipment
d. Accounts payable.
e. Other operating expenses
f. Accumulated depreciation-Equipment
g. Gain from settlement of lawsuit
h. Accumulated depreciation-Buildings
i. Loss from operating a discontinued segment (pretax)
j. Gain on insurance recovery of tornado damage
k. Net sales
1. Depreciation expense-Buildings
B. Correction of overstatement of prior year's sales (pretax)
n. Gain on sale of discontinued segment's assets (pretax)
o. Loss from settlement of lawsuit
p. Income tax expense
q. Cost of goods sold
Debit
$ 35,400
27,250
107,800
19,650
53,400
17,400
25,150
496,500
Credit
$…
Problem 13-18A (Algo) Vertical analysis LO 13-1
Required
Prepare a vertical analysis of both the balance sheets and Income statements for Year 4 and Year 3.
Complete this question by entering your answers in the tabs below.
Balance Sheet
Prepare a vertical analysis of the income statements for Year 4 and Year 3.
Note: Percentages may not add exactly due to rounding. Round your answers to 2 decimal places. (i.e., .2345 should be
entered as 23.45).
Revenues
Sales (net)
Other revenues
Income
Statement
Total revenues
Expenses
Cost of goods sold
Net income
RUNDLE COMPANY
Vertical Analysis of Income Statements
Selling, general, and administrative expense
Interest expense
Income tax expense
Total expenses
Amount
$ 231,300
8,100
239,400
120,000
53,200
7,800
22.300
203,300
$ 38,100
< Balance Sheet
Percentage of
Total
Amount
Year 3
S 212,000
5,200
217,200
101,700
49,500
7,000
21,300
179,500
%$ 37,700
Income Statement
Percentage of
Total
question 23 attached tot ss belowthanks for help
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Chapter 4 Solutions
Fundamental Accounting Principles
Ch. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - Prob. 3DQCh. 4 - Prob. 4DQCh. 4 - Prob. 5DQCh. 4 - Prob. 6DQCh. 4 - 7. Why are the debit and credit entries in the...Ch. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 10DQ
Ch. 4 - Prob. 11DQCh. 4 - 12. How do reversing entries simplify...Ch. 4 - If a company recorded accrued salaries expense of...Ch. 4 - Prob. 14DQCh. 4 - Prob. 15DQCh. 4 - Prob. 16DQCh. 4 - Prob. 17DQCh. 4 - Prob. 1QSCh. 4 - Prob. 2QSCh. 4 - Prob. 3QSCh. 4 - Prob. 4QSCh. 4 - Prob. 5QSCh. 4 - Prob. 6QSCh. 4 - Prob. 7QSCh. 4 - Prob. 8QSCh. 4 - Prob. 9QSCh. 4 - Prob. 10QSCh. 4 - Prob. 11QSCh. 4 - Prob. 12QSCh. 4 - Exercise 4-1
Extending adjusted account balances...Ch. 4 - Prob. 2ECh. 4 - Prob. 3ECh. 4 - Exercise 4-4 Completing a work sheet Pl The...Ch. 4 - Exercise 4-5 Determining effects of closing...Ch. 4 - Prob. 6ECh. 4 - Exercise 4-7 Preparing a work sheet and recording...Ch. 4 - Prob. 8ECh. 4 - Prob. 9ECh. 4 - Prob. 10ECh. 4 - Prob. 11ECh. 4 - Prob. 12ECh. 4 - Exercise 4-13 Computing the current ratio A1 Use...Ch. 4 - Prob. 14ECh. 4 - Prob. 15ECh. 4 - Prob. 16ECh. 4 - Prob. 17ECh. 4 - Problem 4-1A Applying the accounting cycle C1 C2...Ch. 4 - Prob. 2APSACh. 4 - Prob. 3APSACh. 4 - Prob. 4APSACh. 4 - Problem 4-5A Preparing trial balances, closing...Ch. 4 - Prob. 6APSACh. 4 - Prob. 1BPSBCh. 4 - Prob. 2BPSBCh. 4 - Prob. 3BPSBCh. 4 - Prob. 4BPSBCh. 4 - Prob. 5BPSBCh. 4 - Prob. 6BPSBCh. 4 - Business Solutions P2 P3 (This serial problem...Ch. 4 - Prob. 1GLPCh. 4 - Prob. 2GLPCh. 4 - Prob. 3GLPCh. 4 - Prob. 4GLPCh. 4 - Prob. 5GLPCh. 4 - Prob. 1BTNCh. 4 - Prob. 2BTNCh. 4 - Prob. 3BTNCh. 4 - Prob. 4BTNCh. 4 - Prob. 5BTNCh. 4 - Prob. 6BTNCh. 4 - Prob. 7BTNCh. 4 - Prob. 8BTNCh. 4 - Prob. 9BTN
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- Required information Problem 17-6AA (Algo) Income statement computations and format LO A2 [The following information applies to the questions displayed below.] Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31 follow. Assume that the company's income tax rate is 40% for all items. a. Interest revenue b. Depreciation expense-Equipment c. Loss on sale of equipment d. Accounts payable e. Other operating expenses f. Accumulated depreciation-Equipment g. Gain from settlement of lawsuit h. Accumulated depreciation-Buildings i. Loss from operating a discontinued segment (pretax) j. Gain on insurance recovery of tornado damage k. Net sales 1. Depreciation expense-Buildings m. Correction of overstatement of prior year's sales (pretax) n. Gain on sale of discontinued segment's assets (pretax) o. Loss from settlement of lawsuit p. Income tax expense q. Cost of goods sold. Problem 17-6AA (Algo) Part 4 4. What is the amount of…arrow_forwardQ 1arrow_forwardfinancial management ch 17 hw question 3arrow_forward
- Problem 13-17A (Algo) Horizontal analysis LO 13-1 Prepare a horizontal analysis of both the balance sheet and income statement. Complete this question by entering your answers in the tabs below. Analysis Analysis Bal Sheet Inc Stmt Prepare a horizontal analysis of the income statement. (Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. (i.e., .234 should be entered as 23.4).) Revenues MUNOZ COMPANY Horizontal Analysis of Income Statements Year 4 Year 3 Sales (net) Other revenues Total revenues Expenses Cost of goods sold Selling, general, and administrative expenses Interest expense Income tax expense Total expenses Net income (loss) $ $ 230,400 210,200 6,000 8,100 238,500 216,200 118,200 102,400 53,300 49,600 6,400 5,600 21,500 20,500 199,400 178,100 $ 39,100 $38,100 Show lessarrow_forwardGENERALIZATION 5. GE EXERCISES Explain briefly in 5 to 10 sentences only, Write your answers in your notebook. 1. What is accrual basis of accounting? How is it applied in terms of revenues and expenses? 6. 2. Differentiate accrual basis from cash basis accounting. 3. What is the matching principle? Cite an example to expound on this aspect. 4. Explain the periodicity concept. What are the most common forms of annual reporting periods?arrow_forwardQuestion 1The following information was extracted from the financial statement of Barryfor the year ended 31 December 2020. RMSales 437,500Opening inventories 17,500Closing inventories 26,250Cost of sales 262,500Other income 3,750Expenses 61,250Current liabilities 47,250Trade receivables 39,375Bank 8,750Cash 31,500 (b) Calculate the following ratios of Barry Sdn Bhd for the year ended 31December 2020.(i) Gross profit margin(ii) Net profit margin(iii) Current ratioarrow_forward
- Question 1The following information was extracted from the financial statement of Barryfor the year ended 31 December 2020. RMSales 437,500Opening inventories 17,500Closing inventories 26,250Cost of sales 262,500Other income 3,750Expenses 61,250Current liabilities 47,250Trade receivables 39,375Bank 8,750Cash 31,500 (b) Calculate the following ratios of Barry Sdn Bhd for the year ended 31December 2020. (iv) Inventories turnover days(v) Trade receivables turnover daysarrow_forwardProblem 13-17A (Algo) Horizontal analysis LO 13-1 Prepare a horizontal analysis of both the balance sheet and income statement. Complete this question by entering your answers in the tabs below. Analysis Analysis Bal Sheet Inc Stmt Prepare a horizontal analysis of the balance sheet. (Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. (i.e., .234 should be entered as 23.4).) Assets Current assets Cash Marketable securities Accounts receivable (net) || | | |- Inventories MUNOZ COMPANY Horizontal Analysis of Balance Sheets Year 4 Prepaid items Total current assets Investments Plant (net) Land Total long-term assets Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Notes payable Accounts payable Salaries payable Total current liabilities Noncurrent liabilities Bonds payable Other Total noncurrent liabilities Total liabilities Stockholders' equity Preferred stock (par value $10, 4% cumulative, nonparticipating; 7,300…arrow_forwardQuestion 2Alex is currently considering to invest his money in one of the companies between Company A and Company B. The summarized final accounts of the companies for their last completed financial year are as follows: a. Calculate the following ratios for Company A and Company B. State clearly the formulae used for each ratio: v. Payables Payment Period (days)vi. Current Ratiovii. Quick Ratioarrow_forward
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