Intermediate Accounting: Reporting and Analysis
2nd Edition
ISBN: 9781285453828
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Textbook Question
Chapter 5, Problem 18E
Classifications Where would each of the following items most likely be reported in a company’s financial statements? Assume the monetary amount of each item is material.
- 1.
Bad debts expense - 2. Sales discounts taken
- 3.
Depreciation expense on sales equipment - 4. Loss from operations of discontinued Division В
- 5. Earnings per share
- 6. Gain on sale of land
- 7. Administrative salaries
- 8. Cash dividends declared and paid on common stock
- 9. Gain from sale of discontinued Division В
- 10. Loss on sale of equipment
- 11. Advertising expense
- 12. Merchandise inventory (ending)
- 13. Loss from write-off of obsolete inventory
- 14. Cash paid to acquire equipment
- 15. Unrealized increase in fair value of available-for-sale securities
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Where would each of the following items most likely be reported in a company's financial statements? Assume the monetary amount of each item is material.
1.
Bad debts expense
2.
Sales discounts taken
3.
Depreciation expense on sales equipment
4.
Loss from operations of discontinued Division B
5. Earnings per share
6.
Gain on sale of land
7.
Administrative salaries
8.
Cash dividends declared and paid on common stock
9.
Gain from sale of discontinued Division B
10. Loss on sale of equipment
11. Advertising expense
12. Merchandise inventory (ending)
13. Loss from write-off of obsolete inventory
14. Cash paid to acquire equipment
15. Unrealized increase in fair value of available-for-sale securities
Assume an income statement with the following classifications:
A. Revenues
B. Cost of goods sold
C. Distribution expenses
D. General & administrative expenses
E. Other revenues and expenses
F. Income tax on income from continuing operations
G. Gain from disposal of discontinued operations
H. Income tax on gain from discontinued operations
I.
None of the above
Indicate by letter how each of the following should be classified:
1. Advertising expense
2. Amortization of a patent held as an investment
3. Cash dividend received on short-term investment
4. Depreciation on plant that manufactures good for sale (prior to sale of the
(spoob
5. Freight on sales
6. Income tax effect of loss on sale of plant
7. Income tax on gain on sale of short-term investment in securities
8. Interest expense
9. Interest revenue
10. Loss on sale of patent
11. Dividend revenue from investment
12. Salary of
13. Sales
14. Sales returns
15. Services sold
company president
Which of the following statements best describes the retained earnings?
Retained earnings is equal to the cash account less dividends paid
Retained earnings are the undistributed earnings of the company
Retained earnings represent unused cash of the company
Retained earnings is the measurement of all distributed earnings
Chapter 5 Solutions
Intermediate Accounting: Reporting and Analysis
Ch. 5 - In general, how does the income statement help...Ch. 5 - Prob. 2GICh. 5 - Define income under the capital maintenance...Ch. 5 - Prob. 4GICh. 5 - What is net income?Ch. 5 - What three things must a company determine to...Ch. 5 - Prob. 7GICh. 5 - Prob. 8GICh. 5 - Prob. 9GICh. 5 - Give an example and explanation for each of the...
Ch. 5 - Define expenses. What do expenses measure?Ch. 5 - Prob. 12GICh. 5 - Define gains and losses. Give examples of three...Ch. 5 - Prob. 14GICh. 5 - What items are included in a companys income from...Ch. 5 - How are unusual or infrequent gains or losses...Ch. 5 - What is interperiod tax allocation?Ch. 5 - Prob. 18GICh. 5 - Prob. 19GICh. 5 - Prob. 20GICh. 5 - Prob. 21GICh. 5 - Prob. 22GICh. 5 - Prob. 23GICh. 5 - Prob. 24GICh. 5 - Prob. 25GICh. 5 - Prob. 26GICh. 5 - Prob. 27GICh. 5 - Prob. 28GICh. 5 - Prob. 29GICh. 5 - Prob. 30GICh. 5 - Prob. 31GICh. 5 - Prob. 32GICh. 5 - What is the rate of return on common equity? What...Ch. 5 - Prob. 34GICh. 5 - Prob. 35GICh. 5 - Which of the following is expensed under the...Ch. 5 - The following information is available for Cooke...Ch. 5 - The following information is available for Wagner...Ch. 5 - Prob. 4MCCh. 5 - A loss from the sale of a component of a business...Ch. 5 - In a statement of cash flows, receipts from sales...Ch. 5 - Brandt Corporation had sales revenue of 500,000...Ch. 5 - Refer to RE5-1. Prepare a single-step income...Ch. 5 - Shaquille Corporation began the current year with...Ch. 5 - Dorno Corporation incurred expenses during the...Ch. 5 - Niler Corporation reported the following after-tax...Ch. 5 - Jordan Corporation reported retained earnings of...Ch. 5 - Prob. 7RECh. 5 - Prob. 8RECh. 5 - Amelias Bookstore reported net income of 62,000...Ch. 5 - Prob. 10RECh. 5 - Prob. 1ECh. 5 - Prob. 2ECh. 5 - Prob. 3ECh. 5 - Cost of Goods Sold and Income Statement Schuch...Ch. 5 - Prob. 5ECh. 5 - Prob. 6ECh. 5 - Prob. 7ECh. 5 - Prob. 8ECh. 5 - Prob. 9ECh. 5 - Prob. 10ECh. 5 - Prob. 11ECh. 5 - Prob. 12ECh. 5 - Prob. 13ECh. 5 - Prob. 14ECh. 5 - Prob. 15ECh. 5 - Prob. 16ECh. 5 - Prob. 17ECh. 5 - Classifications Where would each of the following...Ch. 5 - Prob. 19ECh. 5 - Common-Size Analyses Meagley Company presents the...Ch. 5 - Prob. 21ECh. 5 - Prob. 22ECh. 5 - Prob. 23ECh. 5 - Prob. 24ECh. 5 - Prob. 25ECh. 5 - Prob. 26ECh. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - Financial Statement Violations of U.S. GAAP The...Ch. 5 - Rox Corporations multiple-step income statement...Ch. 5 - Prob. 7PCh. 5 - Prob. 8PCh. 5 - Prob. 9PCh. 5 - The following is an alphabetical list of accounts...Ch. 5 - Financial Statement Deficiencies The following is...Ch. 5 - Prob. 12PCh. 5 - Prob. 13PCh. 5 - Prob. 14PCh. 5 - Prob. 15PCh. 5 - Prob. 16PCh. 5 - Prob. 17PCh. 5 - Prob. 18PCh. 5 - Prob. 19PCh. 5 - Prob. 20PCh. 5 - Prob. 21PCh. 5 - Prob. 22PCh. 5 - Prob. 23PCh. 5 - Prob. 1CCh. 5 - Prob. 2CCh. 5 - Prob. 3CCh. 5 - Prob. 4CCh. 5 - Nonrecurring Items Lynn Company sells a component...Ch. 5 - Prob. 6CCh. 5 - Accrual Accounting GAAP requires the use of...Ch. 5 - Prob. 8CCh. 5 - Prob. 9CCh. 5 - Prob. 10CCh. 5 - Prob. 12C
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