P3-59A – Entry Explanations (Castaway)
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
Journalize the end of the current accounting period for each situation.
Journalize the end of the current accounting period for each situation.
Given condensed income statements for two different years along with book values and contributions in those years… prepare three revised income statements.
Given a preliminary income statement along with additional information regarding expenses, discontinued operations, tax rate, and outstanding shares… prepare a revised income statement with continued and discontinued components.
Given information regarding revenues and expenses during the quarter… prepare the income statement that would be included in the quarter interim report.
Given the purchase price listed along with cash flows throughout the year… calculate the present value and determine whether they should purchase the restaurant or not.
Given the amount of cash flows per year, the number of years, the estimated cost after, and the interest rates for different increments of years… determine the maximum purchase price.
Given three different situations that are missing either the number of years, interest rate, or payment amount … calculate each missing value.
Given the current assets and allowances for two consecutive years… compute the amount of bad debts written off, the bad debt expense, the accounts receivable information, and the bad debt expense in the income statement.
Given the accounts receivable, calculation of the accounts receivables, bad debt expense, sales returned, and net sales… calculate the gross accounts receivables, write-offs, gross sales, and cash collections.
Given the inventory, net purchases, net sales, and gross profit ratio… calculate the estimated cost of topping lost in fire along with determining what factors could cause the estimates to be over or understated.