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

  What is the variable cost per unit

Natali Vision sells 5,000 pairs of sunglasses per month at $40 each with a desired profit margin of 25%. Fixed costs are $20,000. What is the variable cost per unit?

  Economic-order-quantity model to determine optimal order

Clothes, Inc., has an average annual demand for red, medium polo shirts of 25,000 units. The cost of placing an order is $80 and the cost of carrying one unit in inventory for one year is $25. a. Use the economic-order-quantity model to determine ..

  Preferred and common stock holders during of four years

Determine the dividends per share and total cash dividends paid to the preferred and common stock holders during each of the four years

  Average number of common shares outstanding

Which of the following is the least likely consideration that management uses when deciding whether to pay a dividend? Is the company's average number of common shares outstanding decreasing?

  Prepare journal entries to record events-debt service funds

a) Prepare journal entries to record the events above in the debt service fund. b) Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the debt service fund for the year ended December 31, 2008

  Bond market price of callaghan motors

Callaghan Motors' bonds have 10 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 8 percent

  What entries would be made to record income tax expenses

Htech Corp. started its operation in 2010 and has a $550,000 net operating loss when the tax rate is 35%. In 2011, the company has $680,000 taxable income and the tax rate is revised to 40% in early 2011.

  How much of an increase in bad loans

Banks have receivables that are the result of investing activities rather than sale or trade. We call these signed documents notes receivable.

  Accounting for extractive industries

Accounting for Extractive Industries Production commences in Site One

  Explain how the process compares to an acquisition

Explain how the process compares to an acquisition (or should we say Statutory Merger) when the acquired subsidiary is dissolved in the year of acquisition.

  Discuss how companies might minimize the risk

Discuss how environment factors such as economics, political, and social factors may influence a business' decision to engage in foreign trade.

  Amount of working capital required

Managing working capital effectively is what keeps good businesses from going bankrupt. So how does management determine the total amount of working capital required?

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