When is it permissible for a reporting entity to treat expenses directly as a reduction to retained earnings, rather than including them as part of the period's profit or loss?
When is it permissible for a reporting entity to treat expenses directly as a reduction to retained earnings, rather than including them as part of the period's profit or loss?
Homework Answers
I think its permissible only when a company declares dividend for it's shareholder's. Dividend payable or paid is not treated as an expense, rather it directly affects the retained earnings by reducing it.
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When is it permissible for a reporting entity to treat expenses directly as a reduction to retained earnings, rather than including them as part of the period's profit or loss?
When is it permissible for a reporting entity to treat expenses directly as a reduction to...
When is it permissible for a reporting entity to treat expenses directly as a reduction to retained earnings, rather than including them as part of the period's profit or loss?
Colorado Rockers (CR) recognizes revenue when it records an asset for a related account receivable, rather...
Colorado Rockers (CR) recognizes revenue when it records an asset for a related account receivable, rather than when the account receivable is collected in cash. CR's practice is an example of: Multiple Choice Cash basis accounting. O The matching principle. O Accrual accounting. O Economic entity. The adjusted trial balance for Starbucks Electric Crane (SEC) Company at December 31, 2021, is presented below: Credit Debit 11,900 164,000 6,400 39,000 440,000 Cash Accounts receivable Prepaid rent Inventory Equipment Accumulated depreciation-equipment Accounts...
could someone help me with a retained earnings statement? Comprehensive Problem 10-1 (Part Level Submission) Pharoah...
could someone help me with a
retained earnings statement?
Comprehensive Problem 10-1 (Part Level Submission) Pharoah Company's balance sheet at December 31, 2018, is presented below Pharoah Company Balance Sheet December 31, 2018 Cash Inventory Prepaid insurance Equipment $30,500 Accounts payable 30,500 Interest payable 6,600 Bonds payable 38,760 Common stock $13,300 2,675 53,500 17,985 18,900 $106,360 Retained earnings $106,360 During 2019, the following transactions occurred 1. Pharoah paid $2,675 interest on the bonds on January 1, 2019 2. Pharoah purchased...
Giving Voices to Values Is This My Place? …Speaking “UP” (A)1 Ben was pleased when he...
Giving Voices to Values Is This My Place? …Speaking “UP” (A)1 Ben was pleased when he was hired out of college, with an accounting degree, to manage the internal and external reporting for a non-profit organization whose work he respected. The organization collected donations of medical supplies from U.S. producers and shipped them to developing countries where the need was great and where they had partnerships with service providers on the ground. It was a small, thinly-staffed office and that...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
Part 5: Forecast of EPS Determine the latest quarterly reporting that company provided. When will be the next...
Part 5: Forecast of EPS Determine the latest quarterly reporting that company provided. When will be the next earnings announcement? Obtain Balance Sheet and Income Statements for all quarterly reporting in current fiscal year. Make your prediction of the next earnings per share (EPS). Be prepared to explain how you arrived to your forecast and what assumptions you made. Hints (procedure). 1. Forecast next quarter Sales based on prior growth and management guidance or any other information you have. 2....
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
Colorado Rockers (CR) recognizes revenue when it records an asset for a related account receivable, rather than when the account receivable is collected in cash. CR's practice is an example of: Multiple Choice Cash basis accounting. O The matching principle. O Accrual accounting. O Economic entity. The adjusted trial balance for Starbucks Electric Crane (SEC) Company at December 31, 2021, is presented below: Credit Debit 11,900 164,000 6,400 39,000 440,000 Cash Accounts receivable Prepaid rent Inventory Equipment Accumulated depreciation-equipment Accounts...
could someone help me with a
retained earnings statement?
Comprehensive Problem 10-1 (Part Level Submission) Pharoah Company's balance sheet at December 31, 2018, is presented below Pharoah Company Balance Sheet December 31, 2018 Cash Inventory Prepaid insurance Equipment $30,500 Accounts payable 30,500 Interest payable 6,600 Bonds payable 38,760 Common stock $13,300 2,675 53,500 17,985 18,900 $106,360 Retained earnings $106,360 During 2019, the following transactions occurred 1. Pharoah paid $2,675 interest on the bonds on January 1, 2019 2. Pharoah purchased...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
Part 5: Forecast of EPS Determine the latest quarterly reporting that company provided. When will be the next earnings announcement? Obtain Balance Sheet and Income Statements for all quarterly reporting in current fiscal year. Make your prediction of the next earnings per share (EPS). Be prepared to explain how you arrived to your forecast and what assumptions you made. Hints (procedure). 1. Forecast next quarter Sales based on prior growth and management guidance or any other information you have. 2....
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
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