information: Operating expenses were $231‚000; Cost of goods sold was $376‚000; Net sales were $940‚000; Interest expense was $32‚000; Gain on sale of a building was $76‚000; Income tax expense was $151‚000. What was Callie’s income before taxes? A. $564‚000 B. $188‚000 C. $377‚000 D. $232‚000 Answer: Income before taxes ($377‚000) equals net sales ($940‚000) minus cost of goods sold ($376‚000)‚ minus operating expenses ($231‚000)‚ minus interest expense ($32‚000)‚ plus gain on
Premium Balance sheet Revenue Generally Accepted Accounting Principles
Country? Suggested approach – financing opportunity: (a) Prepare financial statements for the combined Pacific/High Country (b) Forecast financial statements for 2012-15 for the combined entity. Use the assumptions given in the case for interest expense‚ goodwill‚ and the liability/owner’s equity accounts (c) From a financing standpoint‚ should Pacific acquire High Country? 5. What is your final recommended course of action for Pacific regarding the television program project‚ the equity issue
Premium Stock Income statement Balance sheet
Chapter 13 Segment and Interim Reporting Multiple Choice Questions Wakefield Company uses a perpetual inventory system. In August‚ it sold 2‚000 units from its LIFO-base inventory‚ which had originally cost $35 per unit. The replacement cost is expected to be $45 per unit. The company is planning to reduce its inventory and expects to replace only 1‚500 of these units by December 31‚ the end of its fiscal year. The company replaced 1‚500 units in November at an actual cost of $50 per unit
Premium Income statement Expense Revenue
1. Identify expenses on the income statement that are sales fulfillment expenses and divide them into cost pools. a. Warehouse Expenses: * warehouse personnel expenses‚ warehouse expenses (excluding personnel) * order entry expenses b. Delivery Expenses: Freight‚ delivery truck expenses 2. Find the rate for each cost pool. Activity cost pool | Cost | Activity processed | Average Rate | Warehouse Expense | $2‚000‚000 | 80‚000 | $25.00 | Order Entry Expense | Manual Order
Premium Expense Income statement Profit
d. The potential loss should never be recorded or disclosed as its outcome is determined to be unlikely. 4. The accounting for warranty costs is based on the concept of matching expenses with revenues‚ which requires that the estimated cost of honouring warranty contracts should be recognized as an expense a. when the product is brought in for repairs. b. in the period in which the product was sold. c. at the end of the warranty period. d. only if the repairs are expected
Premium Expense Generally Accepted Accounting Principles Balance sheet
revenue……………………………. | | $225‚000 | Expenses: | | | Advertising expense…………………………... | $ 1‚800 | | Salaries expense………………………………. | 94‚000 | | Office supplies expense………………………. | 1‚200 | | Utilities expense………………………………. | 850 | | Malpractice insurance expense……………….. | 6‚000 | | Office rent expense…………………………… | 24‚000 | | Continuing education expense………………... | 2‚650 | | Depreciation expense: fixtures………………... | 4‚500 | | Miscellaneous expense………………………... | 6‚000 |
Premium Generally Accepted Accounting Principles Revenue Accounts receivable
4‚430‚400 Depreciation Expense 3‚500‚000 Other Variable Overhead 806‚000 Other Fixed Overhead 300‚000 Total Cost of Sales 11‚736‚400 Gross Profit $4‚663‚600 General and Administrative Expenses Salaries and Bonuses Expenses 700‚000 Billing and Collection Expenses 1‚850‚000 Advertising and Promotion 820‚000 Other Administrative Expenses 500‚000 Total
Premium Price Depreciation Income statement
Merchandise held for sale Asset account 3 Describe and illustrate merchandising operations and the two types of inventory systems 4 Balance Sheet Inventory Asset Income Statement Sales revenue Cost of goods sold Expense 5 Cash Purchase inventory Collect cash from customers Accounts receivable Sell inventory Inventory 6 PERIODIC Goods counted periodically to determine quantity Used by small businesses Less popular now
Premium Revenue Inventory Expense
amounted to $18‚200. 5. Cash collected from pledges totaled $91‚000. 6. Salaries were paid in the amount of $47‚000. Included in this amount is the accrued wages payable at the end of 2011. (The portion of wages expense attributable to administrative expense is $15‚000 and fund-raising expense is $2‚000. The remainder is for animal care.) 7. Jefferson Animal Rescue entered an agreement with KDAC‚ Channel 7 News‚ to find more homes for shelter pets. This special adoption program highlights a shelter
Premium Generally Accepted Accounting Principles Asset Depreciation
Q1 - Internal Controls (lecture 3): 15 Marks. ------------------------------------------------- He said he will ask either a petty cash question or a bank reconciliation one but not both. The question will also probably test us on e-controls or cash control for cash receipts and cash payments. What is internal control? It is the organisational plan and all the related measures that an entity adopts to: * safeguard assets * encourage adherence to company policies * promote operational
Premium Depreciation Balance sheet Expense