Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Question
Chapter 5, Problem 5.12BE
To determine
To prepare: The statement of net income.
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Students have asked these similar questions
amount.
An entity reported the following data
for the current year. What net amount
in OCI that may not be recycled to
profit or loss? *
Net sales
Cost of goods sold
Selling expenses
Administrative expenses
P9.500,000
4,000,000
1,000,000
1,200,000
Interest expense
700,000
Gain from expropriation of land
500,000
Income tax
800,000
Income from discontinued operations
Unrealized gain on equity investment at FVOCI
Unrealized loss on futures contract designated as a cash flow hedge
Increase in projected benefit obligation due to actuarial assumptions
Foreign translation adjustment- debit
Revaluation surplus
600,000
900,000
400,000
300,000
100,000
2,500,000
An entity reported the following data
for the current year. What amount
should be reported as income from
continuing operations?
Net Sales $ 9.500,000 Cost of Goods Sold 4.000.000 Selling Expenses 1,000,000
Administrative Expenses 1,200.000 Interest Expense 700.000 Gain from expropriation of
Land 500.000 Income Tax 800.000 Income from Discontinued Operations 600,000
Unrealized Gain on Equity Investment at FVOCI 900,000 Unrealized Loss on future
contracts designated as Cash Flow Hedge 400.000 Increase in projected benefit obligation
due to actuarial assumptions 300,000 Foreign Translation Adjustment – Debit 100,000
Revaluation Surplus 2.500.000
Preparing a consolidated income statement
For the year ended December 31, 20Y2, the operating results of Paley Corporation and its wholly owned
subsidiary, Sims Enterprises, are as follows:
Sales
Cost of goods sold
Gross profit
Operating expenses
Operating income
Interest revenue
Interest expense
Net income
Sales
Paley
Sims
Corporation Enterprises
3,200,000
(1,900,000)
1,300,000
(750,000)
550,000
20,000
During 20Y2, Sims Enterprises sold and received payment of $80,000 for merchandise that was purchased by
Paley Corporation. The merchandise sold to Paley cost Sims Enterprises $45,000. Paley Corporation sold the
merchandise to another (nonaffiliated) company for $110,000.
Cost of goods sold
Gross profit
a. Prepare a consolidated income statement for Paley Corporation and Subsidiary. Hint: Eliminate the effect of the
intercompany sale.
570,000
Net income
900,000
(550,000)
350,000
(125,000)
225,000
Operating expenses
Operating income
Other revenue and expense:
Interest revenue
Interest…
Chapter 5 Solutions
Intermediate Accounting
Ch. 5 - What are the three limitations of the income...Ch. 5 - In what way is the income statement useful for...Ch. 5 - Prob. 5.3QCh. 5 - Prob. 5.4QCh. 5 - What management behavior does the term earnings...Ch. 5 - What is the difference between permanent and...Ch. 5 - Prob. 5.7QCh. 5 - Prob. 5.8QCh. 5 - Prob. 5.9QCh. 5 - Prob. 5.10Q
Ch. 5 - What are the six key items to be reported on the...Ch. 5 - Explain why operating income is an important...Ch. 5 - Prob. 5.13QCh. 5 - Prob. 5.14QCh. 5 - What items are included in net income?Ch. 5 - Are items of other comprehensive income included...Ch. 5 - What two choices must companies make when...Ch. 5 - Prob. 5.18QCh. 5 - Prob. 5.19QCh. 5 - Are companies reporting under U.S. GAAP required...Ch. 5 - What accounts are summarized on the statement of...Ch. 5 - What is financial statement analysis?Ch. 5 - Prob. 5.23QCh. 5 - What are comparative financial statements and why...Ch. 5 - What is the difference between vertical and...Ch. 5 - Prob. 5.26QCh. 5 - Explain the difference between return on equity...Ch. 5 - How is a companys profit margin calculated?Ch. 5 - Prob. 5.1MCCh. 5 - Moore Furniture Inc., a public company, has...Ch. 5 - Beach and Poole, CPA is reviewing income statement...Ch. 5 - Prob. 5.4MCCh. 5 - Allison Corporations current year income from...Ch. 5 - Prob. 5.6MCCh. 5 - Chili Co. had the following balances at December...Ch. 5 - Szuba Corporation reported the following...Ch. 5 - Prob. 5.9MCCh. 5 - Prob. 5.1BECh. 5 - Prob. 5.2BECh. 5 - Advantages and Disadvantages of the Income...Ch. 5 - Identify each of the earnings items as primarily...Ch. 5 - Income Statement Presentation. Place the...Ch. 5 - Statement of Net Income Presentation, IFRS. Which...Ch. 5 - Single-Step Statement of Net Income. Carr...Ch. 5 - Statement of Net Income, IFRS. Using the...Ch. 5 - Multiple-Step Statement of Net Income. Using the...Ch. 5 - Condensed Statement of Net Income. Using the...Ch. 5 - Prob. 5.11BECh. 5 - Prob. 5.12BECh. 5 - Discontinued Operations. Jojo, Inc. held a...Ch. 5 - Prob. 5.14BECh. 5 - Prob. 5.15BECh. 5 - Prob. 5.16BECh. 5 - Computation of Retained Earnings. Taxi Cabs, Inc...Ch. 5 - Computation of Contributed Capital. Using the...Ch. 5 - Prob. 5.19BECh. 5 - Prob. 5.20BECh. 5 - Prob. 5.21BECh. 5 - Ratio Analyses. Green Grasshopper Incorporated is...Ch. 5 - Multiple-Step and Single-Step Statements of Net...Ch. 5 - Condensed Statement of Net Income. Using the trial...Ch. 5 - Prob. 5.3ECh. 5 - Prob. 5.4ECh. 5 - Multiple-step Statement of Net Income. The current...Ch. 5 - Condensed Statement of Net Income. Using the...Ch. 5 - Multiple-step income Statement. Ciara s Cookie...Ch. 5 - Prob. 5.8ECh. 5 - Prepare Statement of Stockholders' Equity. Dane...Ch. 5 - Prepare Statement of Stockholders Equity. Ciaras...Ch. 5 - Prepare a Statement of Stockholders' Equity....Ch. 5 - Profitability Analyses. Use the following excerpt...Ch. 5 - Multiple-Step and Single-Step income Statement,...Ch. 5 - Condensed Income Statement. Using the information...Ch. 5 - Multiple-step, Single-step, and Condensed...Ch. 5 - Statement of Net Income Presentation. IFRS....Ch. 5 - Income Statement Presentation, Classification, and...Ch. 5 - Prob. 5.6PCh. 5 - Multiple-step, Single-step, and Condensed...Ch. 5 - Statement of Comprehensive Income Single-and...Ch. 5 - Prepare Statement of Stockholders Equity. Use the...Ch. 5 - Prob. 5.10PCh. 5 - Prob. 1JCCh. 5 - Prob. 1FSCCh. 5 - Prob. 2FSCCh. 5 - Prob. 1SSCCh. 5 - Surfing the Standards Case 2: Amounts Paid by...Ch. 5 - Prob. 1BCCCh. 5 - Prob. 2BCC
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