Income statement or retained earnings statement

Assignment Help Accounting Basics
Reference no: EM13149887

Scenario:

As udit partner for Grupo and Rijo, you are in charge of reveiwing the classification of unusual items that have occurred during the current year. The following material items have come to your attention.

A construction company, at great, expense prepared a major proposal for a government loan. The loan is not approved.

Instruction:

From the foregoing information, indicate in what section of the income statement or retained earnings statement these items should be classified. Provide a brief rationale for your position.

Reference no: EM13149887

Questions Cloud

Advice in the analysis of past operations : Javier Ceenao, president of Halsey Co., is concerned that the method used to account for and write off uncollectible receivables in unsatisfactory. He has asked fo your advice in the analysis of past operations in this are and for recommendations ..
Ending work in process problem : During the period, the Bottling Department completed 60,000 liters, including 3,000 liters of work in process at the beginning of the period. The ending work in process was 5,000 liters. How many liters were started and completed during the period..
Retained earnings balance at the end : Wheeler Corporation had retained earnings of December 31, 2008 of $ 12 million. During 2009, Wheeler's net income was $ 4 million. The retained earnings balance at the end of 2009 was equal to $ 13 million. Therefore, _________
Explain specific heat capacity of a certain monatomic solid : The specific heat capacity of a certain monatomic solid is 0.392J*k^-1*g^-1. The chloride of this element (XCl2) is 52% chlorine by mass.
Income statement or retained earnings statement : From the foregoing information, indicate in what section of the income statement or retained earnings statement these items should be classified. Provide a brief rationale for your position.
Henderson-hasselbalch equation determine the pka for illinic : Using the Henderson-Hasselbalch equation determine the pKa for illinic acid from the following values: At pH 9.02, the concentration of illinic acid and its conjugate base
What is level of inventory : Flying Penguins Corp. has total current assets of $11,845,175, current liabilities of $5,311,020, and a quick ratio of .89. What is its level of inventory?
Authorized stock of a corporation : The authorized stock of a corporation: a. only reflects the initial capital needs of the company. b. is indicated in its by-laws. c. must be recorded in a formal accounting entry. d. is indicated in its charter.
Elemental copper can be produced from the reaction : Show all of your work for each of the following problems. An aluminum nail of mass 5.00g is immersed into a solution of copper(II)nitrate. How many grams of elemental copper can be produced from the reaction

Reviews

Write a Review

Accounting Basics Questions & Answers

  Risk of diversion of customer receipts

Which of the following internal controls most likely would reduce the risk of diversion of customer receipts by an entity's employees?

  Determining the break even point

Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess's break even point.

  Operating leverage-roe-eva

Explain what operating leverage, ROE, EVA are and how they measure performance. Pick another performance measure of your choice and explain it as well.

  Costs-saving-discount rates and net present value

A salesperson from a different computer company claims that his machine, which costs $85,000 and has an estimated service life of four years, will generate annual savings for the city of $32,000.

  Determining amount of additional paid-in capital

Percy Corporation was organized on January 1, 2010, with an authorization of 1,200,000 shares of common stock with a par value of $6 per share. Percy used the cost method to record the purchase and reissuance of the treasury shares. What is the to..

  Investment in crustacean account

Pelican'W s Investment in Crustacean account for 2003 should increase by:

  Materials cost accounting-malbim company

The Malbim Company uses a process costing system and adds materials at the beginning. July 1st has 400 units in the beginning inventory (100% materials). The units in beginning inventory (July 1) are only 75% complete on conversion costs-Calculate..

  What are some typical types of transactions

What are some typical types of transactions that appear in the financing section of the statement of cash flows?

  Statement of net assets for southern state university

Southern State University had the following account balances as of June 30,2012. Debits are not distinguished from credits, so assume all accounts have a "normal" balance: Prepare, in good form, a Statement of Net Assets for Southern State Universi..

  What is brian percentage ownership

JBC Corporation is owned 20 percent by John, 30 percent by Brian, 30 percent by Charlie, and 20 percent by Z Corporation. Z Corporation is owned 80 percent by John and 20 percent by an unrelated party.

  Demonstrating a knowledge of accounting concepts

Managers need to know enough about accounting concepts and their applications, that they can understand and interpret financial data and make the best decisions possible.

  Prepare the general journal entries to record the share

Prepare the general journal entries to record the share issue and the purchase of the land and building on January 1 and the amortization expense on December 31, 20B.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd