Intermediate Accounting, 17th Edition
17th Edition
ISBN: 9781119503682
Author: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Publisher: WILEY
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American Rare Coins (ARC) was formed on January 1, 2018. Additional data for the year follow:
(Click the icon to view the data.)
Read the requirements.
(…)
Requirement 1. What is the purpose of the statement of cash flows?
The purpose of the statement of cash flows is to show where cash came from and how cash was spent during the period.
Requirement 2. Prepare ARC's income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all expenses listed together.
American Rare Coins
Income Statement
More info
Year Ended December 31, 2018
Revenue:
Sales Revenue
660,000
a. On January 1, 2018, ARC issued no par common stock for $450,000.
Expenses:
b. Early in January, ARC made the following cash payments:
1.
For store fixtures, $53,000
Cost of Goods Sold
$ 250,000
2.
For merchandise inventory, $340,000
Rent Expense
20,000
3.
For rent expense on a store building, $20,000
Salaries and Wages Expense
96,000
c. Later in the year, ARC…
Sagada Company's summary of cash records show the following for the year 2022, its first year of operation: CASH: Cash receipts - debit, P 3,840,000 Cash disbursements - credit, P 2,475,000 December 31 balance, P 1,365,000 You are contacted by the management to compute its net income using the accrual basis of accounting. During the process of preparation, the following were identified by you that will impact your computation: Property, plant and equipment are depreciated on a straight line basis. Annual depreciation is P 630,000. Prepaid insurance of P 108,000 was recognized as expense when it was paid. One-thirds of the balance is for year 2023. The entire amount of P 1,080,000 which was received as advance rental for office space in its building was recognized as rent income when received. Twenty five percent of the amount will be earned in 2023. Employees are due P 162,000 at the end of 2022. Uncollected interest from investment at the end of 2022 is P 190,200. It is estimated that…
Frontier Rare Coins (FRC) was formed on January 1, 2024. Additional data for the year follow:
i (Click the icon to view the data.)
Read the requirements.
Requirement 1. What is the purpose of the statement of cash flows?
The purpose of the statement of cash flows is to show where cash came from and how cash was spent during the period.
Requirement 2. Prepare FRC's income statement for the year ended December 31, 2024. Use the single-step format, with all revenues listed together and all expenses listed together.
Frontier Rare Coins
Income Statement
Year Ended December 31, 2024
Revenue:
Expenses:
Total Expenses
Net Income
More info
(...)
a. On January 1, 2024, FRC issued no par common stock for $550,000.
b. Early in January, FRC made the following cash payments:
1.
For store fixtures, $54,000
2.
3.
For merchandise inventory, $240,000
For rent expense on a store building, $15,000
c.
Later in the year, FRC purchased merchandise inventory on account for $242,000.
Before year-end, FRC paid…
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