Determine the following by preparing a multi-step form of SCI. Bad debts expense Gross Profit Total Expenses Net Income/Loss
Q: An allowance doubtful debts account is created to estimate ___. Select one: A. the expected number…
A: An allowance doubtful debt account is created . Thus the correct option - D: to estimate the amount…
Q: Indicate whether each statement best describes the allowance (A) method or the direct write-off…
A:
Q: Which of the following is True about accounts payable? Accounts payable should not be reported at…
A: Accounts payable refers to the money owed to vendors or suppliers for products or services purchased…
Q: Which of the following best describes the classification and normal balance of the accounts…
A: Accounts receivable account generally shows the amount to be received from the customers against the…
Q: Which of the following is a permanent account? a. Dividends Distributed b. Allowance for Doubtful…
A: Permanent accounts means an account which we do not write off in profit and loss account or trading…
Q: Using the worksheet to prepare financial statements Answer the following questions: Requirements 1.…
A: Worksheet to prepare financial statements- Sometimes the managers use worksheet approach to prepare…
Q: Discuss the (a) focus and (b) financial statement emphasis of the percent of sales and the analysis…
A: Introduction: Financial statements are documents that describe a company's operations and financial…
Q: Which of the following methods may not be appropiate for estimating bad debt expense? a. Percentage…
A: The bad debt expense is created for the debtors which company finds that would not make the full…
Q: A company uses the direct write-off method to account for bad debts. What are the effects on the…
A: Direct write off method indicates that account receivable are directly charged and decreased against…
Q: Withdrawals by an owner are found on the income statement as an expense True False
A: The income statement indicates the profitability of the company. The income statement contains the…
Q: Which situation indicates a net loss within the Income Statement section of the worksheet? a. Total…
A: In an income statement , credits refers to income and debits refers to expenses. Net loss occurs…
Q: What is false about the matching principle? a. Incurred expenses should be matched with earned…
A: Matching principles are those principles which emphasize on matching of revenues of the business…
Q: On credit side of Profit and Loss Account we record: Direct Expenses Direct Income Indirect…
A: What is meant by a Profit and loss account? The statement shows the net profit or loss at the end of…
Q: A net loss is shown on the end-of-period spreadsheet in the credit columns of both the Income…
A: When Income Falls Short of Expenses , It results in Net Loss.
Q: In a current account, the payee is the debtor and the drawee is the creditor. True False
A: Lets understand the basics. Payee is a person on whom payment is needs to make so he is a creditor.…
Q: If total expenses exceed total revenue a net loss is reported on an income statement Select one:…
A: Net Income in the income statement is the residual income attributable to share holders Net income…
Q: A debit balance in the Income Summary account represents a net loss. O True O False
A: The income summary account is a nominal account used to close the temporary accounts of the business…
Q: A. Calculate bad debt B. Journalize the bad debt and the Allowance for doubtful debt C. Post them on…
A: Step 1 Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for…
Q: The journal entry to record the sale of services on credit should include:(a) Debit to debtors and…
A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…
Q: Which situation indicates a net loss within the Income Statement section of the worksheet? Total…
A: Income statement:Income statement is the financial statement which reports revenues and expenses…
Q: Q4 - Which of the following is a method of accounting for Bad Debts? a. Percentage of Sales Method…
A: Bad debts are those kinds of customers that become uncollectible. These are charged in the income…
Q: The estimate of a bad debt expense may be based on the historical relationship between actual bad…
A: Loss from uncollectible accounts means where goods has been sold on credit and amount has not been…
Q: (See chart below for the account titles) Identify or classify the different account titles as to…
A: Current assets: It refers to the assets that are used for less than 1 year and can be easily…
Q: Indicate whether each statement best describes the allowance (A) method or the direct write-off…
A: Allowance method: It is a method for accounting bad debt expense, where uncollectible accounts…
Q: Which item would not appear on a Balance Sheet? a. Gross Profit b. Accounts Receivable c.…
A: Gross Profit - Gross Profit is defined as net sales minus the cost of goods sold. Since it shows…
Q: A bad debt is an expenses to the business and must be charged in the Statement of Profit or Loss and…
A: Bad debt: It can be defined as the receivable that will not be recovered or collected from the…
Q: The debts written off as bad, if recovered subsequently are Oa. Credited to bad debts recovered…
A: Bad debts are part of the accounts receivables which are no longer collectible. This is because the…
Q: Which of the following is most appropriate for IFRS? a. Should disclose all the material information…
A: IFRS stands for International Financial Reporting Standards. It refers to the standard and rules, as…
Q: Sales Returns and Allowances account is report it like
A: Sales returns occur when goods are given back by the customer due to defects in terms of…
Q: When is bad debts expense recorded when using the direct write-off method?
A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…
Q: Which of the following accounts are characterized as a "contra" account? (Select ALL tha apply) O…
A: Contra account: Contra effect of the transaction recorded on the opposite side
Q: The company estimates 1% of sales revenue should be used to estimate for bad debt expense. what is…
A:
Q: When using the Spreadsheet (work sheet) method to analyze noncash accounts, it is best to start with…
A: Non Cash Items - Non Cash Items are those items that are incurred without considering cash into it.…
Q: In income statement columns of the worksheet, when total credits exceed total debits, there is * O…
A: The income statement shows the net income earned by the company. Debits of the income statement show…
Q: Recording bad debt expense under the allowance method will have what effect on the financial…
A: The allowance method involves setting aside a reserve for bad debts that are expected in the future.…
Q: What are expenses that have been incurred but not recorded in the accounts called? Group of answer…
A: Introduction: A cost incurred by a corporation is a cost paid to suppliers or for items or services…
Q: Several accounts are listed below a. Purchases Returns and Allowances b. Sales Discounts c. Wages…
A:
Q: Bad debt expense is normally reported on the income statement as a(n) a. Operating expense b.…
A: An expense that is recognized as a receivable is no longer collectable is known as a bad debt…
Q: Which of the following accounts has a normal debit balance? A. Interest Revenue B. Inventory C.…
A: All assets and expense accounts normally have debit balance. All liabilities and incomes would…
Q: In profit and loss account, if debit is more than the credit, the difference is [A] net profit [B]…
A: In profit & loss (P&L) account the difference between debit and credit balances is termed as…
Q: If it is known that a debtor cannot pay because of bankruptcy, the amount to be written off is shown…
A: If Debtor becomes bankrupt,then there are chances; that amount will not be recovered or there will…
Determine the following by preparing a multi-step form of SCI.
Gross Profit
Total Expenses
Net Income/Loss
Step by step
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- The comparative balance sheet of Merrick Equipment Co. for Dec. 31, 20Y9 and 20Y8, is:Dec. 31, 20Y9 Dec. 31, 20Y8AssetsCash $70,720 $47,940Accounts receivable (net) 207,230 188,190Inventories 298,520 289,850Investments 0 102,000Land 295,800 0Equipment 438,600 358,020Accumulated depreciation—equipment (99,110) (84,320)Total assets $1,211,760 $901,680Liabilities and Stockholders' EquityAccounts payable (merchandise creditors) $205,700 $194,140Accrued expenses payable (operating expenses) 30,600 26,860Dividends payable 25,500 20,400Common stock, $1 par 202,000 102,000Paid-in capital: Excess of issue price over par—common stock 354,000 204,000Retained earnings 393,960 354,280Total liabilities and stockholders' equity $1,211,760 $901,680The income statement for the year ended December 31, 20Y9, is as follows:Sales $2,023,898Cost of goods sold 1,245,476Gross profit $778,422Operating expenses:Depreciation expense $14,790Other operating expenses 517,299Total operating expenses 532,089Operating…Using these data from the comparative balance sheets of Blossom Company, perform vertical analysis. (Round percentages to 1 decimal place, e.g. 12.5%.) Dec. 31, 2022 Dec. 31, 2021 Amount Percentage Amount Percentage Accounts receivable (net) $424,551 enter Accounts receivable in percentages on Dec. 31, 2022 % $ 333,450 enter Accounts receivable in percentages on Dec. 31, 2022 % Inventory 707,585 enter Inventory in percentages on Dec. 31, 2022 % 589,950 enter Inventory in percentages on Dec. 31, 2022 % Total assets 3,011,000 enter Total assets in percentages on Dec. 31, 2022 % 2,565,000 enter Total assets in percentages on Dec. 31, 2022 %The following information is available from the annualreport of Frixell, Inc.: Currentliabilities . . . . $300,000Operatingincome . . . . . 240,000Net income . . . . 80,000 Currentassets . . . . $ 480,000Average totalassets . . . . 2,000,000Average totalequity . . . . 800,000Which of the following statements are correct? (More thanone statement may be correct.)a. The return on equity exceeds the return on assets.b. The current ratio is 0.625 to 1.
- XYZ provided the following financial information: XYZBalance SheetAs of 12/31/19 Assets: Liabilities and Equity: Cash and marketable securities $27,476 Accounts payable and accruals $154,860 Accounts receivable $143,519 Short-term notes payable $21,255 Inventory $212,379 Total current liabilities $176,115 Total current assets $383,374 Long term debt $155,510 Net plant and equipment $602,704 Total liabilities $331,625 Goodwill and other assets $42,422 Common stock $312,719 Retained earnings $384,156 Total assets $1,028,500 Total liabilities and equity $1,028,500 In addition, it was reported that the firm had a net income of: $158,402 and net sales of: $4,272,431 Calculate the following ratios for this firm (Use 365 days for calculation. Round answers to 2 decimal places, e.g. 52.75.): Current Ratio ? times…The following is a partial listing of accounts for XYZ, Inc., for the year ended December 31, 2020. Required: Prepare multiple step income statement for the year of 2020. Finished Goods Current Maturities of Long-Term Debt Accumulated Depreciation Accounts Receivable $ 38,872 2,515 19,960 Sales Revenue 6,273 127,260 Treasury Stock 251 Prepaid Expenses 2,199 Deferred Taxes (long-term liability) 8,506 Interest Expense 2,410 Allowance for Doubtful Accounts 915 Retained Earnings 18,951 Raw Materials 9,576 Accounts Payable 19,021 Cash and Cash Equivalents 8,527 Sales Salaries Expense 872 Cost of Goods Sold 82,471 Investment in Unconsolidated 3,559 Subsidiaries Income Taxes Payable 8,356 Work In Process 1,984 Additional Paid-In Capital 9,614 Equipment 41,905 Long-Term Debt 15,258 Rent Income 2,468 Common Stock 3,895 Notes Payable (short-term) 6,156 Income Tax Expense 2,461Using this data, compute the company’s value of interest coverage ratio:Net Income: 140Income tax expense: 110Interest expense: 50a) 6b) 3.75c) 4.75d) 6.25
- The following information relates to SE10-5 through SE10-7: (in millions) Net sales... Cost of goods sold SE10-7. Gross profit. Selling and administrative expenses Income from operations Interest expense.. EVANS & SONS, INC. Income Statement For Years Ended December 31, 2019 and 2018 Income before income taxes Income tax expense. Net income (in millions) Assets Current assets Cash and cash equivalents Accounts receivable Inventory.. Other current assets. Total current assets Property, plant, & equipment (net) Other assets. Total Assets Liabilities and Stockholders' Equity Current liabilities. Long-term liabilities. Total liabilities.. EVANS & SONS, INC. Balance Sheet December 31, 2019 and 2018 Stockholders' equity - common. Total Liabilities and Stockholders' Equity.. 2019 9,800 (5,500) 4,300 (2,800) 1,500 (300) $ 1,200 2019 100 900 500 400 2018 1,900 2,600 5,700 $10,200 9,300 (5,200) 4,100 (2,700) (220) (200) $980 $950 1,400 $ (250) 1,150 2018 300 800 650 250 2,000 2,500 5,900 $10,400…How is the year-end balance of the NCI in Net Income (NCINI) account calculated? O A) NC1% of S's book/reported net income - NCI's % of Amort of Differential. B) NCI% of S's book/reported net income - NCI's % of Amort of Differential - NCI's% of S's dividends. C) NCI% of S's book/reported net income + NCI's % of Amort of Differential. D) NC1% of S's book/reported net income - NCI's % of Amort of Differential + NCI's% of S's dividends.You have been provided with Leonard Corporation's partial Statement of Financial Position and the Statement of Comprehensive Income for the year ended December 31, 2021. Leonard Corporation Partial Statement of Financial Position For the Year Ended December 31, 2021 Accounts receivable -net Prepaid expenses Inventory Property, Plant & Equipment Accumulated Depreciation Accounts payable Income taxes payable Deferred revenue 2021 Sales....... Cost of goods sold.. Gross Margin. Selling, general and admin Depreciation expense $440,000 482,000 45,000 31,000 825,000 810,000 2,475,000 2,105,000 2020 (866,000) (823,000) 184,000 197,000 38,000 35,000 47,000 42,000 Leonard Corporation Statement of Comprehensive Income For the Year Ended December 31, 2021 Interest expense..... Gain on sale of PPE Net income before taxes Income Tax Expense Net income and comprehensive income... $3,560,000 1,950,000 1,610,000 (595,000) (320,000) (115,300) 55,400 635,100 95,300 .$539,800 Additional information:…
- Hsu Company reported the following on its income statement: Income before income taxes Income tax expense Net income $356,883 107,065 $249,818 Interest expense was $73,432. Hsu Company's times interest earned ratio (rounded to two decimal places) is Oa. 5.86 times Ob. 3.4 times Oc. 4.86 times Od. 2.4 timesThe following are the financial statement JNC Ltd. for the year ended 31 March 2020: JNC Ltd. Income statement For the year ended 31 March 2020 $”M” Revenue 1276.50 Cost of sales (907.00) 369.50 Distribution costs (62.50) Administrative expenses (132.00) 175.00 Interest received 12.50 Interest paid (37.50) 150.00 Tax (70.00) Profit after tax 80.00 JNC Ltd. Statement of financial position as at 31 March 2020 2019 $”M” $”M” ASSETS: Non- current assets: Property, plant and equipment 190 152.5 Intangible assets 125 100 Investments 12.5 Current assets: Inventories 75 51 Receivables 195 157.5 Short-term investment 25 Cash in hand 1 0.5 Total assets 611 474 Equity and liabilities: Equity: Share capital (10 million ordinary shares of $ 10 per value) 100 75 Share premium 80 75 Revolution reserve 50 45.5 Retained earnings 130 90 Non-current liabilities: Loan 85 25…Comparitive balance sheet of Hillard Co. as of Dec 31, 2020 and 2021 is as under: Assets 2020 2021 Liabilities Cash Accounts Receivable Inventory Fixed Assets Investments Sales Cost of Goods Sold Gross profit 16,425 12,300 Salaries expenses Depreciation expense Income tax expense Admin. Expenses Net profit 16,100 163,000 13,500 221,325 28,025 10,600 Income statement for the year 2021 is as under: 18,400 206,300 9,200 272,525 829,400 614,450 214,950 12,900 11,600 1,150 164,400 24,900 Accounts Payable Salaries Payable Income tax payable Loans Payable Retained earnings Please prepare the cash flow statement using the indirect method. 2020 26,900 2,400 1,600 106,250 84,175 221,325 2021 33,450 3,100 2,050 113,250 120,675 272,525