Intermediate Accounting_Chapter 4 Spreadsheet answer_kieso

8/18/2019 Intermediate Accounting_Chapter 4 Spreadsheet answer_kieso

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BE4-1Starr Co. in 2014

Sales Revenues 540,000.00

Cost of goods sold 330,000.00

Salaries and wages exense 120,000.00!n"o#e tax exense 25,000.00

!n"rease in value of "o#an$ reutat 15,000.00

%t&er oerating exenses 10,000.00

'nreali(ed gain on value of atents 20,000.00

)nswer to *uestion

Sales 540,000.00


+ross rot 210,000.00

Selling exenses. 120,000.00

)d#inistrative exen 10,000.00 130,000.00

!n"o#e efore in"o#e tax 0,000.00

!n"o#e tax 25,000.00

/et in"o#e. 55,000.00

Earnings er s&are 0.55

BE4-3 relate to Be4-2

Revenues

Net sales 2,400,000.00

Interest revenue 31,000

Total revenues 2,431,000

Expenses


2/55

Cost of goods sold 1,450,000.00

Sellng expenses 2!0,000

"d#nstratve expenses 212,000

Interest expense 45,000

In$o#e tax expense% 133,200

Total expenses 2,120,200

Net n$o#e &310,!00

Earnngs per s'are%% &1,03(,000.00

BE4-5

Sta"$ Cororation for 2014

!n"o#e efore taxes ,300,000.00

unusual and infreuent retax loss 0,000.00

tax rate 0.3

Co##on sto" %utstanding 5,000,000.00

)nswer to *uestion

Income before income tax and extraordinary

item 6,300,000.00

Income tax expense 1,890,000

Income before extraordinary item 4,410,000

Extraordinary item—lo 770,000.00

ess! "pplicable inco #31,000 $39,000

%et income &3,871,000

Earnin's per s(are


3/55

Income before extraordinary item 0.88

Extraordinary loss, net of tax )0.11

%et income 0.77

BE4-ollis Cororation in 2014

/et in"o#e 1,000,000.00

referred sto" dividend 250,000.00

6eig&ted average "o##on s&ares oustanding 170,000.00

)nswer to *uestion

/et in"o#e 1,000,000.00referred sto" dividend 250,000.00

6eig&ted average "o##on s&ares o 170,000.00

er s&are 3.75


4/55

BE4-10 relate t BE4-07

8and error dis"overed 0,000.00

)nswer to *uestion

*+-"% /+*+"-I+%

etained Earnin's tatement

or t(e 2ear Ended ecember 31, #010

etained earnin's, an5ary 1, as report 67$,000.00

/orrection for oerstatement of expenses in

prior period net of tax 80,000

etained earnin's, an5ary 1, as ad5st 7$$,000

"dd! %et income 1,400,000

#,1$$,000

ess! /as( diidends 7$,000

etained earnin's, ecember 31 ,080,000


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BE4-2

%ustanding Sto" 100,000.00

)ns

BE4-4


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BE4-

)ns


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BE4-7

)ns


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BE4-11

)ns


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Bris$ Cororation

/et Sales 2,400,000.00

!nterest Revenue 31,000.00

Cost of +oods Sold 1,450,000.00)d#inistrative Exenses 212,000.00

Selling Exense 20,000.00

!nterest Exense 45,000.00

9ax ra"et 0.30

"o##on sto" s&ares aut&ori(ed 100,000.00

S&ares issued oustanding 0,000.00

er to *uestion

/et sales......................................... 2,400,000.00

Cost of goods sold ........................... 1,450,000.00

+ross rot..................................... 750,000.00

Selling exenses ....... 20,000.00

)d#inistrative exen 212,000.00 472,000.00

45,000 45,000.00

%t&er in"o#e and exense

!nterest revenue............................... 31,000.00

!n"o#e fro# oerations................... 47,000.00

!nterest exense ............................. 45,000.00!n"o#e efore in"o#e tax............... 444,000.00

!n"o#e tax :;444,000 < 30=>......... 133,200.00

/et in"o#e ...................................... 310,00.00

Earnings er s&are .......................... 4.44

?inle$ Cororation @uring 2014

!n"o#e fro# Continuing %eration 10,00,000.00

@isosed after tax loss 17,000.00

rior disosal on loss 315,000.00

Co##on sto" oustanding 10,000,000.00


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)nswer to *uestion

Income from contin5in' operations 10,600,000.00

iscontin5ed operations

oss from operation of discontin5ed

resta5rant diision net of tax 31$,000.00

oss from disposal of resta5rant diision net of tax 189,000 $04,000

%et income 10,096,000.00

Earnin's per s(are

Income from contin5in' operations &1.06

iscontin5ed operations, net of tax )0.0$

%et income &1.01

6illia#son Co#an$ during 2014

retax !n"o#e under ?!?% :2012> 10,000.00

retax !n"o#e under ?!?% :2013> 10,000.00

6eig&ted average re-tax in"o#e :2012> 145,000.00

6eig&ted average re-tax in"o#e :2013> 10,000.00

Reorted retax in"o#e 10,000.00

9ax Rate 0.3

er to *uestion

Income before income tax 180,000.00 14$,000.00 170,000.00

Income tax 30: $4,000 43,$00 $1,000

%et Income 1#6,000.00 101,$00.00 119,000.00

#010 #009 #008


11/55

ort#an Cororation Aear earning

Retained Earnings 5,000.00

/et in"o#e in 2014 1,400,000.00

Cas& dividends de"lared 5,000.00

er to *uestion

Retaned earnngs, )anuar* 1 (+5,000.00 "dd Net n$o#e 1,400,000

2,0+5,000

-ess Cas' dvdends +5,000

Retaned earnngs, e$e#/er 31 &2,000,000


12/55

Ri"&ards !n" an. 2014

Co##on Sto" 0,000.00

ur"&ased Euit$ Se"urit$ 20,000.00

Re"eived "as& dividends 3,000.00

unreali(ed gain on se"urities 4,000.00

er to *uestion

a %et income iidend reen5e 3,000.00

b %et income 3,000.00

;nreali


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17/55

E4-1

Cas& 7,000.00

)""ounts Re"eivale :net> 45,000.00

!nventor$ 12,000.00

!nvest#ents :4,000.00>

)nswer to *uestion

/omp5tation of net income

/(an'e in assets! 79,000.00 4$,000.00 1#7,000.00/(an'e in liabilities! 8#,000.00 $1,000.00

/(an'e in stoc=(olders> e?5ity!

/(an'e in stoc=(olders> e?5ity acco5nted

for as follo@s!

%et increase 173,000.00

Increase in common stoc= 1#$,000.00

Increase in additional paid)in capi 13,000

ecrease in retained earnin's d5e to

diidend declaration )19,000

%et increase acco5nted for 117,000.00

Increase in retained earnin's d5e to net

income $4,000.00


18/55

E4-3Rent Revenue ,500.00

!nterest Exense 12,00.00

Beginning Retained earnings 114,400.00

ending retained earning 134,000.00

dividend revenue 1,000.00

sales return and allowan"es 12,400.00

allo"ation to non"ontrolling interest 1,000.00

a"(i rodu"ts Co.

)nswer to *uestion

a Total net revenue

Sales 30,000.00

-ess Sales ds$ounts +,!00.00

Sales returns 12,400 20,200

Net sales 3(,!00

vdend revenue +1,000

Rental revenue (,500Total net revenue &44+,300

/ Net n$o#e

Total net revenue fro# a &44+,300

Expenses

Cost of goods sold 1!4,400.00

Sellng expenses ,400

"d#nstratve expenses !2,500

Interest expense 12,+00

Total expenses 3+,000

In$o#e /efore n$o#e tax (!,300

In$o#e tax 31,000

Net n$o#e &3+,300


19/55

E4-5Elwes and 6rig&t related to . Bride Co#an$

)d#inistrative exense

% "ersD salaries 4,700.00

@ere"iation of o "e furniture and 3,70.00


Rent revenue 1,230.00

Selling exense

@eliver$ exense 2,70.00

Sales "o##issions ,70.00

@ere"iation of sales eui#ent ,40.00

Sales revenue 7,500.00

!n"o#e tax 7,00.00

!nterest exense 10

Transportatonout -

)nswer to *uestion

AEB-E /+*"%2

Income tatementor t(e 2ear Ended ecember 31, #010

In t(o5sands, except earnin's per s(are

Sales (,500.00

Cost of goods sold (0,5+0

ross proft 35,30

peratng Expenses Sellng expenses

Sales $o##ssons +,!0.00

epr. of sales e6up#ent (,4!0

Transportatonout 2,(0 &1+,150

"d#nstratve expenses

ff$ers7 salares 4,00

epr. of off$e furn. and e6up. 3,(0 !,!(0

In$o#e fro# operatons ,20

a 5ltiple)tep orm


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t'er Revenues and ans

Rental revenue 1+,230

2+,150

t'er Expenses and -osses

Interest expense 1,!(0

In$o#e /efore n$o#e tax 25,20

In$o#e tax ,0+0

Net n$o#e &1(,220

Earnngs per s'are &14,+10 8 40,550 &0.40

8atifa S&oe Co.

E4-Rent revenue 27,000.00

!nterest exense 1,000.00aret are"iation on land aove " 31,000.00

Salaries and wages exense :selling> 114,00.00

Sulies :selling> 1,00.00

!n"o#e tax 3,400.00

Salaries and wages exense :ad#ini 135,700.00

%t&er ad#inistrative exenses 51,00.00


/et sales 70,000.00

@ere"iation on lant assets :0= se 5,000.00

Cas& dividends de"lared 1,000.00

Co##on sto" s&ares 20,000.00

)nswer to *uestion

9E"T:ERS;N S:E C.

a


21/55

In$o#e State#ent

=or t'e >ear Ended e$e#/er 31, 2010

Net sales

Cost of goods sold

ross proft

peratng Expenses

Sellng expenses

9ages and salares 114,!00.00

epr. exp. +0? @ &(5,000 45,500


22/55

E4-7Calderon Cor. for t&e $ear 2014.

Net sales 1,300,000.00 9rteoff of nventor* due to

Cost of goods sold +!0,000.00 epre$aton expense o#tt

Sellng expenses (5,000.00 Casualt* loss extraordnar

"d#nstratve expenses 4!,000.00 Cas' dvdends de$laredvdend revenue 20,000.00 Retaned earnngs at e$e

Interest revenue +,000.00 Effe$tve tax rate of 34? on

ustandng s'ares (0,000.00

a Calderon Corp. for t'e *ear 2014.

In$o#e State#ent


Sales Revenue

Net sales 1,300,000.00

Cost of goods sold +!0,000

ross proft 520,000

peratng Expenses

Sellng expenses (5,000.00

"d#nstratve expenses 4!,000 113,000

In$o#e fro# operatons 40+,000


vdend revenue 20,000

Interest revenue +,000 2+,000

434,000


9rteoff of nventor* due to

o/soles$en$e !0,000

In$o#e /efore n$o#e tax and extraordnar*

te# 354,000In$o#e tax 120,3(0

In$o#e /efore extraordnar* te# 233,(40

Extraordnar* te#

Casualt* loss 50,000

-ess "ppl$a/le tax redu$to 1+,000 33,000

Net n$o#e &200,(40

;er s'are of $o##on sto$A

In$o#e /efore extraordnar* te#


23/55

&1(+,(40 8 (0,000 3.!

Extraordnar* te#, net of tax 3.344

Net n$o#e &134,(40 8 (0,000 0.55


24/55

)""ounts a$ale :51,000.00>

Bonds a$ale 2,000.00

Co##on Sto" 125,000.00

aid-in Caital in ex"ess of ar- "o##on sto" 13,000.00@ividend de"laration aid 17,000.00

47,000.00C 204,000.00C

31,000.00

173,000.00 in"rease


25/55

Sales @is"ounts ,00.00

Selling Exenses 77,400.00

Sales Revenue 370,000.00

!n"o#e 9ax exenses 31,000.00

Cost of +oods Sold 14,400.00

)d#inistrative Exenses 2,500.00

vdends de$lared

Endng retaned earnngs 134,000.00

Begnnng retaned earnngs 114,400

Net n$rease 1,(00

-ess Net n$o#e fro# / 3+,300

vdends de$lared &1+,+00


26/55

Co##on sto" s&are oustanding 40550

9EBSTER C


27/55

In$o#e tax ,0+0

Net n$o#e &1(,220

Earnngs per s'are &0.40

Selling 0. )d#in 0.3


28/55

!0,000.00

4(,000

4!4,000

1++,00.00

20+,100

,000

2,000

12!,000

1!,000

110,000

3+,400

&+2,(00

&3.(3


29/55

o/soles$en$e !0,000.00

ed /* a$$dent n 2013 55,000.00

te# /efore taxes 50,000.00

45,000.00/er 31, 2013 !0,000.00

all te#s 0.34

B Calderon Corp. for t'e *ear 2014.

Retaned Earnngs State#ent


Retaned earnngs, )an. 1, as reported

Corre$ton for overstate#ent of net n$o#e n

perod depre$aton error net of &13,(00 t

Retaned earnngs, )an. 1, as adusted

"dd Net n$o#e

-ess vdends de$lared

Retaned earnngs, e$. 31


30/55


31/55

E4-2 Giel Co#an$ at @e"e#er

Sales revenue

Cost of goods sold

Selling and ad#inistrative exens

+ain on sale of lant assets'nreali(ed gain on availale-for-s

!nterest exense

8oss on dis"ontinued oerations

)llo"ation to non"ontrolling intere

@ividends de"lared and aid

)nswer to *uestion

ales reen5e.

/ost of 'oods sold

Dross profit

ellin' and administratie expenses

+t(er income and expense

Dain on sale of plant assets

Income from operations

Interest expense

Income from contin5in' operations

oss on discontin5ed operations.

%et income

"llocation to non)controllin' interes

%et income attrib5table to controllin

%et income

;nreali


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E4-48eRoi ones !n"

Beginning inventor$

inventor$ de"rease

Sales @is"ounts

Co##on sto" s&ares

!ntereste Exense

tax rate

Cost of goods sold

)d#inistrative exense :.2 of C%

+ross sales :.0 of C%+S>

%erating exenses

)nswer to *uestion

Revenues

Net sales &ad#n expensesD.0!1+00

ExpensesCost of goods sold

Sellng expenses


Interest expense

Total expenses

In$o#e /efore n$o#e tax

In$o#e tax

Net n$o#e

Earnngs per s'are d


33/55

E4-aria Con"&ita )lon(o

)nswer to *uesti

Sales Revenue Sales

-ess Sales returns and alloan$e

Sales ds$ounts

Net sales revenue

Cost of goods sold

ross proft

peratng Expenses

Sellng expenses "d#n. and general expenses

In$o#e fro# operatons


Interest revenue


Interest revenue

Cas'

Sales revenue

"$$ounts re$eva/le

;repad nsuran$e

Sales returns and alloan$es

"lloan$e for dou/tful a$$ounts

Sales ds$ounts

-andE6up#ent

Buldngs

Cost of goods sold


34/55

Interest expense

In$o#e /efore tax and extraordnar* t

In$o#e tax &1,000 @ .34


Extraordnar* te#Floss fro# eart'6u

-ess "ppl$a/le tax redu$ton &120,0Net n$o#e

;er s'are of $o##on sto$A


In$o#e /efore extraordnar* te# 8

Extraordnar* te# net of taxNet n$o#e &52,140 8 100,000

E4-

Cas'


Sellng expenses

Net sales

Cost of goods sold

Cas' dvdends de$lared 2014

Cas' dvdends pad 2014

s$ontnued operatons loss /efore n$o#e taxes

epre$aton expense, not re$orded n 2013

Retaned earnngs, e$e#/er 31, 2013

Tax rate

ustandng s'ares

%et sales

ess! /os


35/55

Income be

Income ta

%et incom

Income fr

before income tax

Income ta

Income fr

iscontin

tax of &1#,000

%et incom

&

Ea

In

&70,000 G #

o

%e


36/55

!0,000.00

pror

3(,300

43,+00

200,(40

1,144,340

45,000

&1,0,340


37/55


38/55

310,000.00

140,000.00

s 50,000.00

30,000.00le invest#ents 10,000.00

,000.00

12,000.00

t 40,000.00

5,000.00

310,000.00

140,000.00

170,000.00

$0,000

1#0,000

30,000

&1$0,000

,000.00

;144,000.00

1#,000.00

;132,000.00

t 40,000.00

' s(are(olders &9#,000.00

&13#,000.00

financial assets 10,000.00

14#,000

13#,000

5,0000 &1#7,000


39/55

72,000.00

0.20

1,000.00

20,000.00

20,000.00

0.30

500,000.00

0.20

0.0

0.

0 &1,233,000

500,000.00

400,000.00

100,000.00

20,000.00

1,020,000

213,000

(3,00

&14,100

+.455


40/55

or

51,000 2!,000

1,3!0,000 155,000

150,000 14,000

20,000 1+0,000

150,000 100,000

+,000 +,000

45,000 32,000

100,000 (0,000200,000 100,000

140,000

(21,000 150,000

500,000

21,000

on

&1,3!0,000

&150,000

45,000 15,000

1,1!5,000

(21,000

5(4,000

14,000+,000 21,000

2+3,000

& !(,000

35,000

; ,000 "$$u#ulated depre$atonFe6up#ent& 40,000

"$$u#ulated depre$atonF/uldngs

Notes re$eva/le

Sellng expenses

"$$ounts pa*a/le

Bonds pa*a/le

"d#nstratve and general expenses

"$$rued la/ltes

Interest expenseNotes pa*a/le

-oss fro# eart'6uaAe da#age

extraordnar* te#

Co##on sto"

Retained earnings


41/55

(0,000

# 2,000

101,((0

1+,340

150,000

51,000 ,000&!,340

oustandng s'are 1.+34

0.&0.!

50,000.00

100,000.00

!0,000.00

540,000.00

210,000.00

20,000.00

15,000.00

40,000.00

30,000.00

0,000.00

0.30

10,000.00

$40,000.00

t of 'oods sold )#10,000

"dministratie expenses )100,000

ellin' expenses )80,000


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iscontin5ed operations)loss )40,000

fore income tax 110,000

33,000

&77,000

m contin5in' operations 150,000.00

HHH

m contin5in' operations HHH

ed operations, less applicable income

HHH

HHH

0,000 F &40,000

rnin's per s(are!

ome from contin5in' operations

,000 &10.$0

ss on discontin5ed operations, n )7.7

t Income &4#,000 G #0,000 .80


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46/55


47/55

Tax rate 0.34

outstanding s&ares 100000


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4-1

Retaned earnngs /alan$e, )anuar* 1, 2014 &!0,000

Sales revenue 25,000,000

Cost of goods sold 1(,000,000

Interest revenue +0,000Sellng and ad#nstratve expenses 4,+00,000

9rteoff of goodll !20,000

In$o#e taxes for 2014 1,244,000

an on t'e sale of nvest#ents nor#al re$urrng 110,000

-oss due to flood da#ageFextraordnar* te# net of tax 30,000

-oss on t'e dsposton of t'e 'olesale dvson net of tax 440,000

-oss on operatons of t'e 'olesale dvson net of tax 0,000

@ividends de"lared on "o##on sto" 250,000

@ividends de"lared on referred sto" !0,000

ustandng S'ares 500,000

)nswer to role# *uestions

I/I%+% /+*"%2

Income tatement

or t(e 2ear Ended ecember 31, #010

ales $,000,000

/ost of 'oods sold 16,000,000

Dross profit 9,000,000

ellin' and administratie expenses 4,700,000

Income from operations 4,300,000

+t(er reen5es and 'ains

Interest reen5e &70,000

Dain on t(e sale of inestments 110,000 180,000

+t(er expenses and losses

Arite)off of 'ood@ill 8#0,000

Income from contin5in' operations before income tax 3,660,000Income tax 1,#44,000

Income from contin5in' operations #,416,000

iscontin5ed operations

oss on operations, net of tax 90,000

oss on disposal, net of tax 440,000 $30,000

Income before extraordinary item 1,886,000

Extraordinary item—loss from flood

dama'e, net of tax 390,000


53/55

%et income &1,496,000


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Earnngs per s'are

In$o#e fro# $ontnung operatons 4.(+2

s$ontnued operatons

-oss on operatons, net of tax &0.1!

-oss on dsposal, net of tax 0.!! &1.0(

In$o#e /efore extraordnar* te# 3.(12

Extraordnar* loss, net of tax 0.+!

Net n$o#e 2.!32

Retaned earnngs, )anuar* 1 &!0,000

"dd Net n$o#e 1,4(,000

2,4+(,000

-ess vdends ;referred sto$A &!0,000

Co##on sto$A 250,000 330,000

Retaned earnngs, e$e#/er 31 &2,14(,000


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Intermediate Accounting_Chapter 4 Spreadsheet answer_kieso

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