At the end of its first year of operations, and before the adjusting entries at December 31,
Question:
At the end of its first year of operations, and before the adjusting entries at December 31, a company had a balance in accounts receivable of $250,000. The adjustments included a $2,000 write-off of an uncollectible account and recording bad debt expense of $3,500. What should the company report on its balance sheet at December 31, as net accounts receivable?
The purchase of debt securities to be held to maturity would be classified into which of the following categories for purposes of disclosure in the Statement of Cash Flows?
On December 31, 2007, a company discovered that a tract of land (used as a parking lot), purchased for $20,000 cash on January 1, 2005, was debited in full to the Office Building account. The building was being depreciated over 20 years (straight-line) with no residual value. The income tax rate was 40 percent. The 2007 correction of prior years' error (net of income tax) was a:
A review of the December 31, 2006, financial statements of a corporation revealed that under the caption "Exceptional and infrequent losses," a total of $130,000 was reported. Further analysis revealed that the $130,000 in losses was comprised of the following items:
(1) A loss of $25,000 incurred in the abandonment of equipment formerly used in the business.
(2) An unusual and infrequent occurrence, a loss of $37,500 was sustained as a result of damage to a warehouse by a falling meteorite.
(3) During 2006, several factories were shut down during a major strike by employees. Shutdown expenses totalled $60,000.
(4) Uncollectible accounts receivable of $7,500 were written off as uncollectible.
(5) Foreign exchange - translation gains: $10,000
(6) Decline in market value of Available-for-sale securities: $15,000
Ignoring income taxes, what amount would be shown as Other Comprehensive Income (Loss) on the statement of Comprehensive Income?
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso