INTERMEDIATE ACCOUNTING
8th Edition
ISBN: 9780078025839
Author: J. David Spiceland
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 4, Problem 4.12P
Interim financial reporting
• Appendix 4
Branson Electronics Company is a small, publicly traded company preparing its first quarter interim report to be mailed to shareholders. The following information for the quarter has been compiled:
| Revenues | $180,000 | |
| Cost of goods sold | 35,000 | |
| Operating expenses: | ||
| Fixed | $59,000 | |
| Variable | 48,000 | 107,000 |
Fixed operating expenses include payments of $50,000 to an advertising firm to promote Branson through various media throughout the year. The income tax rate for Branson’s level of operations in the first quarter is 30%, but management estimates the effective rate for the entire year will be 36%.
Required:
Prepare the income statement to be included in Branson’s first quarter interim report.
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Snider Corporation, a publicly traded company, is preparing the interim financial data which it will issue to its stockholders and the Securities and Exchange Commission (SEC) at the end of the first quarter of the 2020–2021 fiscal year. Snider's financial accounting department has compiled the following summarized revenue and expense data for the first quarter of the year.
Sales revenue
$60,000,000
Cost of goods sold
36,000,000
Variable selling expenses
1,000,000
Fixed selling expenses
3,000,000
Included in the fixed selling expenses was the single lump-sum payment of $2,000,000 for television advertisements for the entire year.
Instructions
Snider Corporation must issue its quarterly financial statements in accordance with generally accepted accounting principles regarding interim financial reporting.
Explain whether Snider should report its operating results for the quarter as if the quarter were a separate reporting period in and of itself, or as if the quarter…
Branson Electronics Company is a small, publicly traded company preparing its first quarter interim report to be
mailed to shareholders. The following information for the quarter has been compiled:
$180,000
35,000
Revenues
Cost of goods sold
Operating expenses:
Fixed
$59,000
48,000
107,000
Variable
Fixed operating expenses include payments of $50,000 to an advertising firm to promote Branson through
various media throughout the year. The income tax rate for Branson's level of operations in the first quarter is
30%, but management estimates the effective rate for the entire year will be 36%.
Required:
Prepare the income statement to be included in Branson's first quarter interim report.
Joplin Laminating Corporation reported income before income taxes during the first three quarters, and management’s estimates of the annual effective tax rate at the end of each quarter as shown below:
Quarter First Second ThirdIncome before income taxes $50,000 $40,000 $100,000Estimated annual effective tax rate 22% 25% 24%
Required:Determine the income tax expense to be reported in the income statement in each of the three quarterly reports.
Chapter 4 Solutions
INTERMEDIATE ACCOUNTING
Ch. 4 - The income statement is a change statement....Ch. 4 - What transactions are included in income from...Ch. 4 - Prob. 4.3QCh. 4 - The correction of a material error discovered in a...Ch. 4 - Prob. 4.4QCh. 4 - Prob. 4.5QCh. 4 - What are restructuring costs and where are they...Ch. 4 - Define intraperiod tax allocation. Why is the...Ch. 4 - How are discontinued operations reported in the...Ch. 4 - Prob. 4.9Q
Ch. 4 - Prob. 4.10QCh. 4 - Define earnings per share (EPS). For which income...Ch. 4 - Prob. 4.13QCh. 4 - Describe the purpose of the statement of cash...Ch. 4 - Prob. 4.15QCh. 4 - Explain what is meant by noncash investing and...Ch. 4 - Distinguish between the direct method and the...Ch. 4 - Prob. 4.19QCh. 4 - Prob. 4.18QCh. 4 - Prob. 4.20QCh. 4 - Prob. 4.1BECh. 4 - Prob. 4.2BECh. 4 - Prob. 4.3BECh. 4 - Multiple -step income statement LO41, LO43 The...Ch. 4 - Prob. 4.5BECh. 4 - Prob. 4.6BECh. 4 - Prob. 4.7BECh. 4 - Prob. 4.8BECh. 4 - Prob. 4.9BECh. 4 - Prob. 4.10BECh. 4 - Prob. 4.11BECh. 4 - Prob. 4.12BECh. 4 - Prob. 4.13BECh. 4 - Prob. 4.1ECh. 4 - Prob. 4.2ECh. 4 - Prob. 4.3ECh. 4 - Prob. 4.4ECh. 4 - Prob. 4.5ECh. 4 - Prob. 4.6ECh. 4 - Prob. 4.7ECh. 4 - Prob. 4.8ECh. 4 - Prob. 4.9ECh. 4 - Prob. 4.10ECh. 4 - Prob. 4.11ECh. 4 - Prob. 4.12ECh. 4 - Prob. 4.13ECh. 4 - Prob. 4.14ECh. 4 - Prob. 4.15ECh. 4 - E 4–16
Statement of cash flows; directly from...Ch. 4 - Prob. 4.17ECh. 4 - Prob. 4.18ECh. 4 - Prob. 4.19ECh. 4 - Prob. 4.20ECh. 4 - Prob. 4.21ECh. 4 - Prob. 4.22ECh. 4 - Prob. 4.23ECh. 4 - Concepts; terminology LO41, LO42, LO43, LO44,...Ch. 4 - Prob. 4.25ECh. 4 - Prob. 4.26ECh. 4 - Prob. 4.27ECh. 4 - Prob. 4.28ECh. 4 - Prob. 1CPACh. 4 - Prob. 2CPACh. 4 - Prob. 3CPACh. 4 - Prob. 4CPACh. 4 - Prob. 5CPACh. 4 - Prob. 6CPACh. 4 - Prob. 7CPACh. 4 - Prob. 1CMACh. 4 - Prob. 2CMACh. 4 - Prob. 4.1PCh. 4 - Prob. 4.2PCh. 4 - Prob. 4.3PCh. 4 - Prob. 4.4PCh. 4 - Prob. 4.5PCh. 4 - Prob. 4.6PCh. 4 - Prob. 4.7PCh. 4 - Prob. 4.8PCh. 4 - Prob. 4.9PCh. 4 - Prob. 4.10PCh. 4 - Prob. 4.11PCh. 4 - Interim financial reporting Appendix 4 Branson...Ch. 4 - Prob. 4.1BYPCh. 4 - Judgment Case 42 Restructuring costs LO43 The...Ch. 4 - Prob. 4.3BYPCh. 4 - Prob. 4.4BYPCh. 4 - Prob. 4.5BYPCh. 4 - Prob. 4.6BYPCh. 4 - Prob. 4.7BYPCh. 4 - IFRS Case 48 Statement of cash flows;...Ch. 4 - Prob. 4.9BYPCh. 4 - Prob. 4.10BYPCh. 4 - Prob. 4.12BYPCh. 4 - Prob. 4.13BYPCh. 4 - Prob. 1AFKC
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