Intermediate Accounting
9th Edition
ISBN: 9781259722660
Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 4, Problem 4.2E
Income statement format; single step and multiple step
• LO4–1, LO4–5
| Account Title | Debits | Credits |
| Sales revenue | 1,300,000 | |
| Interest revenue | 30,000 | |
| Gain on sale of investments | 50,000 | |
| Cost of goods sold | 720,000 | |
| Selling expenses | 160,000 | |
| General and administrative expenses | 75,000 | |
| Interest expense | 40,000 | |
| Income tax expense | 130,000 |
100,000 shares of common stock were outstanding throughout 2018.
Required:
1. Prepare a single-step income statement for 2018, including EPS disclosures.
2. Prepare a multiple-step income statement for 2018, including EPS disclosures.
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A moodle1.du.edu.om
P Flag question
Some selected financial statement
items belonging to Mirbat Company
are given in the table below.
According to this information, which
of the following is Receivables
Turnover ratio?
Average Receivables
15,000
Sales
77,000
Gross Profit
30,000
Non-current Assets
80,000
Sales returns
2,000
Shareholders' Equity
65,000
Select one:
а. 3.33
O b. 0.20
c. 5.13
O d. 5
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II
The adjusted trial balance for China Tea Company at December 31, 2021, is presented below:
Accounts
Debit
$20,000
162,000
9,000
28,000
370,000
Credit
Cash
Accounts receivable
Prepaid rent
Supplies
Equipment
Accumulated depreciation
Accounts payable
Salaries payable
Interest payable
Notes payable (due in two years)
$125,000
16,000
3,800
1,700
30,000
190,000
99,300
Common stock
Retained earnings
Dividends
26,000
Service revenue
Salaries expense
Advertising expense
Rent expense
Depreciation
Interest expense
Utilities expense
500,000
182,000
79,000
11,000
38,000
2,800
38,000
$ 965,800
nse
Totals
$965,800
Prepare a classified balance sheet for China Tea Company as of December 31, 2021. (Amounts to be deducted
with a minus sign.)
CHINA TEA COMPANY
Balance Sheet
20
F3
000
F4
II
F8
F2
F5
F6
F7
F9
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#
2$
%
&
*
2
4
6
7
9.
W
Y
U
Net Sales
COGS
Net Income
Accounts Receivable
Inventory
Current Assets
Fixed Assets
Total Assets
Current Liabilities
Long-Term Debt
Total Liabilities
Shareholder's Equity
Number of Shares Outstanding
now Transcribed Text
1
10586
1582
2936
3333
1
7929
7294
15223
3026
288
3314
11909
7493
G
C
2
4048
2025
21
230
44
299
1281
1580
369
245
614
966
48
Questions
1. What company collects its receivables the slowest?
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3
213
66
7
9
16
68
12
80
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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 - 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 - What is meant by a change in accounting principle?...Ch. 4 - Prob. 4.10Q
Ch. 4 - The correction of a material error discovered in a...Ch. 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. 4.18QCh. 4 - Prob. 4.19QCh. 4 - Show the calculation of the following...Ch. 4 - Show the DuPont frameworks calculation of the...Ch. 4 - Prob. 4.22QCh. 4 - Prob. 4.23QCh. 4 - Prob. 4.1BECh. 4 - Multiple -step income statement LO41, LO43 Refer...Ch. 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 - Discontinued operations LO44 Refer to the...Ch. 4 - Discontinued operations LO44 Refer to the...Ch. 4 - Prob. 4.10BECh. 4 - Prob. 4.11BECh. 4 - Prob. 4.12BECh. 4 - Statement of cash flows; indirect method LO48 Net...Ch. 4 - Prob. 4.14BECh. 4 - Prob. 4.15BECh. 4 - Profitability ratios LO410 The 2018 income...Ch. 4 - Prob. 4.17BECh. 4 - Inventory turnover ratio LO410 During 2018, Rogue...Ch. 4 - Operating versus Nonoperating Income LO41 Pandora...Ch. 4 - Income statement format; single step and multiple...Ch. 4 - Income statement format; single step and multiple...Ch. 4 - Multiple-step continuous statement of...Ch. 4 - Income statement presentation LO41, LO45 The...Ch. 4 - Prob. 4.6ECh. 4 - Income statement presentation; discontinued...Ch. 4 - Discontinued operations; disposal in subsequent...Ch. 4 - Discontinued operations; disposal in subsequent...Ch. 4 - Earnings per share LO45 The Esposito Import...Ch. 4 - Comprehensive income LO46 The Massoud Consulting...Ch. 4 - Prob. 4.12ECh. 4 - Prob. 4.13ECh. 4 - IFRS; statement of cash flows LO48, LO49 Refer to...Ch. 4 - Prob. 4.15ECh. 4 - Prob. 4.16ECh. 4 - Statement of cash flows; indirect method LO48...Ch. 4 - Prob. 4.18ECh. 4 - Prob. 4.19ECh. 4 - Statement of cash flows; indirect method LO48...Ch. 4 - Statement of cash flows; direct method LO48 Refer...Ch. 4 - Prob. 4.22ECh. 4 - Prob. 4.23ECh. 4 - Concepts; terminology LO41, LO42, LO43, LO44,...Ch. 4 - Inventory turnover; calculation and evaluation ...Ch. 4 - Evaluating efficiency of asset management LO410...Ch. 4 - Profitability ratios LO410 The following...Ch. 4 - Prob. 4.28ECh. 4 - Prob. 4.29ECh. 4 - Prob. 4.30ECh. 4 - Prob. 4.31ECh. 4 - Prob. 4.32ECh. 4 - Comparative income statements; multiple-step...Ch. 4 - Discontinued operations LO44 The following...Ch. 4 - Income statement presentation; Discontinued...Ch. 4 - Restructuring costs; Discontinued operations;...Ch. 4 - Income statement presentation; Restructuring...Ch. 4 - Income statement presentation; Discontinued...Ch. 4 - Income statement presentation; statement of...Ch. 4 - Multiple-step statement of income and...Ch. 4 - Statement of cash flows LO48 The Diversified...Ch. 4 - Integration of financial statements; Chapters 3...Ch. 4 - Statement of cash flows; indirect method LO48...Ch. 4 - Calculating activity and profitability ratios ...Ch. 4 - Use of ratios to compare two companies in the same...Ch. 4 - Creating a balance sheet from ratios; Chapters 3...Ch. 4 - Prob. 4.15PCh. 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 - Judgment Case 49 Income statement presentation;...Ch. 4 - Prob. 4.10BYPCh. 4 - Integrating Case 412 Balance sheet and income...Ch. 4 - Prob. 4.13BYPCh. 4 - Prob. 4.17BYPCh. 4 - Prob. 4.18BYPCh. 4 - Continuing Cases Target Case LO43, LO44, LO46,...
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