BRIEF EXERCISE 4-1 STARR CO. | Income Statement | For the Year 2012 | Revenues | | | Sales revenue | | $540‚000 | | | | Expenses | | | Cost of goods sold | | $330‚000 | Salaries and wages expense | | 120‚000 | Other operating expenses | | 10‚000 | Income tax expense | | 25‚000 | Total expenses | | 485‚000 | | | | Net income | | $55‚000 | | | | Earnings per share | |
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When reviewing the financial statements and supporting notes of a reporting entity‚ is it possible to establish all the individual types of income or expenses that the entity has incurred or received? If not‚ how does management determine which income and expenses should be disclosed? NZ IAS 1 paragraph 88 requires entities to recognize all items of income and expense occurred in the trading period. However‚ it is impossible to establish all the individual types of income and expenses that incurred
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for year 9. If they had budgeted maybe $2000-$3000 more to this category to get to where their advertising spending was in year 7 when they sold 4000 units‚ their budget of increased sales in year 9 would not be as suspect. In the Budgeted Income Statement‚ Competition Bikes has budgeted $1340038 for Selling‚ General‚ and Administrative Expenses. This is a little high as in year 7‚ when the highest number of units was sold‚ that category totaled $1322075. Sometimes this number is budgeted high
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requires that when assets are acquired‚ they be recorded at __________. B. exchange price paid 6) The income statement and balance sheet columns of Pine Company’s worksheet reflects the following totals: Income Statement Balance Sheet Dr. Cr. Dr. Cr. Totals $58‚000 $48‚000 $34‚000 $44‚000 The net income (or loss) for the period is __________. C. $10‚000 loss 7) The conceptual framework developed by the
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Whose financial statements should we prepare (e.g.‚ the baron‚ vassals‚ farms‚ etc..?) Solution: The financial statements will be prepared for “Vassals” i.e. for Ivan and Frederick and additionally for “Baron”. 2. What financial statements should we prepare? Solution: The financial statements which should be prepared are as following: Income Statement Statement of Retained Earnings Statement of Cash Flows Balance Sheet 3. What period do these statements cover and why (e
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financial statement‚ I would first need to know what my goals are. If I am investing for long-term capital gain‚ then I may want to evaluate if the company is reinvesting and growing. In contrast‚ if I am looking for a steady income from dividends then I may want to know what the dividend yields are along with retained earnings. For the purpose of this assignment‚ I will base my decision as if I were seeking a long-term capital gain investment. Our choices of financial statements covered in
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Which includes proper accounting practices for the preparation and presentation of financial statements that creates a common understanding between preparers and users of financial statements. PFRS for SME are intended for small and medium sized entities that help the owners-managers in making management decisions with the exception in the determination of taxable income and determination of distributable income. 1.2 What are the standards issued by the International Accounting Standard Board
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decision. Trail Balance: Shows the assets and the claims on the assets end of the time and it didn’t show about another time.( can not provide the information that the owners want) Income statements Shows in a details way whether the business is profitable or not. New equity is organized to show the net income (or net loss) of the business for a given time. Ledger work with has single equity account- the capital account. (Record any changes equity)-(not provide sufficient) Analysis
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CHAPTER 2 REPORTING INTERCORPORATE INVESTMENTS AND CONSOLIDATION OF WHOLLY OWNED SUBSIDIARIES WITH NO DIFFERENTIAL ANSWERS TO QUESTIONS Q2-1 (a) An investment in the voting common stock of another company is reported on an equity-method basis when the investor is able to significantly influence the operating and financial policies of the investee. (b) The cost method normally is used for investments in common stock when the investor does not have significant influence and for investments
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financial statements. Solution: Introduction to Financial Statements One of the steps included in the accounting cycle is the preparation of the principal financial statements. They are the Income Statement and the Balance Sheet. These financial statements are a means by which the information accumulated and processed in financial accounting is periodically communicated to the users. Once the worksheet is completed‚ it is easy to prepare the financial statements as the necessary
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