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Common stock were outstanding the entire year Forta Company presents you with the following account balances taken from the December 31, 2010, trial balance. Required: Prepare a single-step income statement in proper form. Sales $200,000 Cost of Goods Sold 80,000 Cash 10,000 Selling Expenses 20,000 General and Administrative Expenses 15,000 Interest Income 3,000 Interest Expense 2,000 Accounts Receivable 15,000 Retained Earnin ...

Other / Other 26 Mar 2016

Extraordinary item on the income statement 1. If the disposal of a segment meets the criteria of a disposal of a segment, then: a. the loss on disposal is an extraordinary item b. the loss on disposal is categorized as "other expense" c. the results of operations of the segment will be reported in conjunction with the gain or loss on disposal d. the disposal qualifies as a change in entity, and prior years' statements presented on comp ...

Other / Other 26 Mar 2016

Under IFRS, equipment may be revalued TRUE/FALSE 1. The accounting standard provides considerable flexibility in reporting comprehensive income. 2. Since the number of shares changes under both a stock dividend and a stock split, any ratio based on the number of shares must be restated. 3. Noncontrolling interest reflects income from ownership of noncontrolling shareholders in the equity of consolidated subsidiaries less than whol ...

Other / Other 26 Mar 2016

The income statement for Lifeline Products in single-step format The income statement for Lifeline Products in single-step format follows. Lifeline Products Income Statement For the Year Ended December 31, 2010 Revenues: Sales $3,000,000 Rent Income 14,000 $3,014,000 Costs and Expenses: Cost of Sales 2,370,000 Selling and Administrative Expenses 322,000 Interest Expense 48,000 Loss on the Sale of P ...

Other / Other 26 Mar 2016

Earnings per share is the earnings per share of outstanding common stock TRUE/FALSE 1. Retained earnings, an account on the balance sheet, represents the undistributed earnings of the corporation. 2. Earnings per share is the earnings per share of outstanding common stock. 3. Presenting an item after tax, with the related tax deducted, is called net-of-tax presentation. 4. Equity earnings (losses) are the proportio ...

Other / Other 26 Mar 2016

Stockholders' equity of Anamanda Company at September 30 1. The stockholders' equity of Anamanda Company at September 30, 2010, is presented below: Common Stock, par value $10, authorized 500,000 shares; 200,000 shares issued and outstanding $2,000,000 Paid-In Capital in Excess of Par 300,000 Retained Earnings 1,300,000 $3,600,000 On October 1, 2010, the Board of Directors of Anamanda declared a 10% stock dividend to be distrib ...

Other / Other 26 Mar 2016

Stock of Investee Company and Investee Company reports 1. If Investor Company owns 20% of the stock of Investee Company and Investee Company reports profits of $100,000, then Investor Company reports equity income of: a. $80,000 b. $20,000 c. $40,000 d. $60,000 e. none of the answers are correct 2. Which of the following items on the income statement is not disclosed net of tax? a. unusual or infrequent item disclosed separately ...

Other / Other 26 Mar 2016

Algary, Inc. uses the following financial statements Assume that Algary, Inc. uses the following financial statements for the year ended December 31, 2010. BS-Balance Sheet IS-Income Statement RE-Retained Earnings Categories on these statements follow: A. Current Assets B. Investments C. Fixed Assets D. Intangible Assets E. Current Liabilities F. Long-Term Liabilities G. Stockholders' Equity H. Sales and Other Operating Rev ...

Other / Other 26 Mar 2016

Company discontinues and disposes of a component segment MULTIPLE CHOICE 1. Gross profit is the difference between: a. net income and operating income b. revenues and expenses c. sales and cost of goods sold d. income from continuing operations and discontinued operations e. gross sales and sales discounts 2. Which of the following would be included in operating income? a. interest income for a manufacturing firm b. rent i ...

Other / Other 26 Mar 2016

Determine the consolidated net income Canco Inc. owns 70% of Supersonics and consolidates this subsidiary. In 2010, Supersonics earned $100,000 after tax and Canco earned $1,000,000. Without consideration of minority interests, the stockholders' equity of Supersonics at the end of 2010 was $1,200,000. Required: a. Determine the minority share of earnings in 2010. b. Determine the consolidated net income. c. Determine the minority int ...

Other / Other 26 Mar 2016