Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Textbook Question
Chapter 5, Problem 5.2P
Condensed Income Statement. Using the information from P5-1, prepare a condensed, multiple-step income statement with all supporting disclosures.
P5-1. Multiple-Step and Single-Step income Statement, from its current-year
| Bluebird Products, Inc. Trial Balance (Partial) For the Year Ended December 31 |
||
| Account | Debit | Credit |
| Common Stock (no par)—Beginning Balance | 51,456,000 | |
| Retained Earnings—Beginning Balance | 3,200,950 | |
| Accumulated Other Comprehensive Income Beginning Balance | 95,675 | |
| Dividends | $ 76,500 | |
| Sales | 2,200,000 | |
| Interest Income | 34,500 | |
| Dividend Income | 12,300 | |
| Gain on Disposal of Plant Assets | 100,500 | |
| Unrealized Gain on Trading Securities | 86,000 | |
| Unrealized Gain on Available-for-Sale Bonds | 45,600 | |
| Cost of Goods Sold | 750,000 | |
| Selling Expenses | 20,000 | |
| Office Supplies Expense | 123,500 | |
| Sales Salaries Expense | 55.000 | |
| Advertising Expense | 68,900 | |
| Office Salaries Expense | 78,500 | |
| Accounting and Legal Fees—General | 10,425 | |
| Systems Consulting Fees—General | 44,550 | |
| Depreciation Expense—General | 68,000 | |
| Amortization Expense—General | 34,500 | |
| Interest Expense | 23,750 | |
| Loss on Discontinued Operations—Before Tax | 90,000 | |
| Loss on Asset Impairment | 12,350 | |
Required
- a. Prepare a single-step income statement (or the year ended December 31 The tax rate is 40%.
- b. Prepare a multiple-step income statement for the year ended December 31.
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Seismic Inc. reported the following results for the year ended June 30, 20Y5:
Retained earnings, July 1, 20Y4
$1,700,000
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311,000
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44,000
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Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts
at December 31 of the prior year were inventory, $50,900; total assets, $199,400; common stock, $81,000; and retained earnings,
$48,724.)
CABOT CORPORATION
Balance Sheet
December 31 of current year
Liabilities and Equity
Assets
Cash
$ 16,000 Accounts payable
8,200 Accrued wages payable
30, 600 Income taxes payable
40,150 Long-term note payable, secured by mortgage on plant assets
3,050 Common stock
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63,400
81,000
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CABOT CORPORATION
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Sales
Cost of goods sold
Gross profit
Operating expenses
Interest expense
Income before taxes
Income tax expense
For Current Year Ended Decenber 31
$…
The following data were taken from the balance sheet of Nilo Company at the end of two
recent fiscal years:
Current assets:
Cash
Marketable securities
Accounts and notes receivable (net)
Inventories
Prepaid expenses
Total current assets
Current liabilities:
Accounts and notes payable
(short-term)
Accrued liabilities
Total current liabilities
1. Working capital
2. Current ratio
3. Quick ratio
Current Year
Current
Year
$347,700
402,600
164,700
603,900
311,100
$1,830,000
$353,800
256,200
$610,000
Previous Year
$254,400
286,200
95,400
420,300
268,700
$1,325,000
Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick
ratio. Round ratios to one decimal place.
$371,000
159,000
$530,000
Previous
Year
Chapter 5 Solutions
Intermediate Accounting
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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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