Exam 4: Income Statement and Related Information

Perry Corp. reports operating expenses in two categories: (1) selling and (2) general and administrative. The adjusted trial balance at December 31, 2014, included the following expense accounts: One-half of the rented premises is occupied by the sales department.How much of the expenses listed above should be included in Perry's selling expenses for 2014?

For the year ended December 31, 2014, Transformers Inc. reported the following: What would Transformers report as the ending balance of Retained Earnings?

Multiple-step income statement.Presented below is information related to Farr Company. InstructionsPrepare in good form a multiple-step income statement for the year 2015. Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year.

The occurrence which most likely would have no effect on 2014 net income (assuming that all amounts involved are material) is the

The following information was extracted from the accounts of Essex Corporation at December 31, 2014: What should be the balance of retained earnings at December 31, 2014?

Income statement and retained earnings statement.Porter Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2014 an analysis of the accounts and discussions with company officials revealed the following information: The amount of income taxes applicable to ordinary income was $57,600, excluding the tax effect of the earthquake loss which amounted to $24,000. Instructions (a) Prepare a multiple-step income statement. (b) Prepare a retained earnings statement.

Gross billings for merchandise sold by Lang Company to its customers last year amounted to $11,720,000; sales returns and allowances were $370,000, sales discounts were $175,000, and freight-out was $140,000. Net sales last year for Lang Company were

The income statement is useful in assessing the risk or uncertainty of achieving future cash flows.

Under IFRS, both revenues and expenses and other income and expenses are reported as part of income from operations.

Korte Company reported the following information for 2014: For 2014, Korte would report comprehensive income of

Leonard Corporation reports the following information:Correction of overstatement of depreciation expense Leonard should report retained earnings, 12/31/14, at

Moorman Corporation reports the following information:Correction of understatement of depreciation expense Moorman should report retained earnings, 12/31/14, as adjusted at

Ortiz Co. had the following account balances: What would Ortiz report as total revenues in a single-step income statement?

Calculation of net income from the change in stockholders' equity.Presented below is certain information pertaining to Edson Company. Compute the net income for the year.

If a company prepares a consolidated income statement, IFRS requires that net income be reported for:

Lantos Company had a 40 percent tax rate. Given the following pre-tax amounts, what would be the income tax expense reported on the face of the income statement?

The components of other comprehensive income can be reported in the statement of comprehensive income.

Companies use intraperiod tax allocation for all of the following items except

The phrase "income from continuing operations" is used only when gains or losses on discontinued operations occur.

Earnings management generally makes income statement information more useful for predicting future earnings and cash flows.