Accrual Accounting and Income Determination - Pearson Learning ...

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$College of Marin Study Guide for Math 95 A,B - Pearson Learning ...$

86 CHAPTER 2 Accrual Accounting and Income DeterminationNOT AVAILABLE FORELECTRONIC VIEWINGISBN: 0-536-06624-8Financial Reporting and Analysis, Third Edition, by Lawrence Revsine, Daniel W. Collins, and W. Bruce Johnson.Copyright © 2005 by Pearson Education, Inc. Published by Prentice Hall.
Exercises 87On September 1, 2005, Revsine Co. approved a plan to dispose of a segment of its business. Revsineexpected that the sale would occur on March 31, 2006, at an estimated gain of $350,000. The segmenthad actual and estimated operating profits (losses) as follows:Assume the marginal tax rate is 30%.Realized loss from 1/1/05 to 8/31/05 $(300,000)Realized loss from 9/1/05 to 12/31/05 (200,000)Expected profit from 1/1/06 to 3/30/06 400,000Required:In its 2005 income statement, what should Revsine report as profit or loss from discontinued operations(net of tax effects)?E2 – 12Determining loss ondiscontinued operationsNOT AVAILABLE FORELECTRONIC VIEWINGRequired:Classify the following costs as period or product costs. If a product cost, indicate which will be matchedwith sales as part of cost of goods sold, and which will be shown as a direct deduction from sales.Depreciation on office buildingInsurance expense for factory buildingProduct liability insurance premiumTransportation charges for raw materialsFactory repairs and maintenanceRent for inventory warehouseCost of raw materialsFactory wagesSalary to chief executive officerDepreciation on factoryBonus to factory workersSalary to marketing staffAdministrative expensesBad debt expenseAdvertising expensesResearch and developmentWarranty expenseElectricity for plantE2 – 15Determining period versusproduct costsISBN: 0-536-06624-8The following information is provided for Kelly Plumbing Supply.Cash received from customers during December 2005 $387,000Cash paid to suppliers for inventory during December 2005 $131,000Cash received from customers includes November accounts receivables of $139,000. Sales totaling$141,000 were made on account during December and are expected to be collected in January 2006.Cash paid to suppliers in December included payments of $19,000 for inventory purchased and usedin November. All inventory purchased in December and $39,000 of inventory purchased in Novemberwas used in December.Required:What is gross profit for the month of December under accrual accounting?E2 – 16Converting from cash toaccrual basisFinancial Reporting and Analysis, Third Edition, by Lawrence Revsine, Daniel W. Collins, and W. Bruce Johnson.Copyright © 2005 by Pearson Education, Inc. Published by Prentice Hall.
Page 1 and 2: Because of permissions issues, some
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Page 9 and 10: Measuring Profit Performance: Reven
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Page 13 and 14: Income Statement Format and Classif
Page 15 and 16: ules provide detailed guidance rega
Page 17 and 18: If either of these two conditions i
Page 19 and 20: 11, 2001. Clearly, the events of 9-
Page 21 and 22: Frequency and Magnitude of Various
Page 27 and 28: percentage-of-completion method, or
Page 29 and 30: Why are changes in estimates “cor
Page 31 and 32: Comprehensive Income 71Assume that
Page 33 and 34: Summary 73EXHIBIT 2.10Deere & Compa
Page 35 and 36: Appendix 75Transaction 1:Assets = L
Page 37 and 38: Appendix 77As the pluses and minuse
Page 39 and 40: Appendix 79Adjusting entries like t
Page 41 and 42: Appendix 81EXHIBIT 2.12Chicago Corp
Page 43 and 44: Appendix 83revenue in cash-basis in
Page 45: Exercises 85NOT AVAILABLE FORELECTR
Page 49 and 50: Exercises 89Additional facts gleane
Page 51 and 52: for the year (250,000 shares). The
Page 53 and 54: Problems/Discussion Questions 93NOT
Page 55 and 56: Problems/Discussion Questions 95In
Page 57 and 58: Problems/Discussion Questions 97($
Page 59 and 60: Expenses and losses:Cost of goods s
Page 61 and 62: Cases 101CASESThe Mohegan Tribe is
Page 63 and 64: Cases 103ISBN: 0-536-06624-8Over th
Page 65 and 66: In March Year 3 the contents of one

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