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ch24_sol - Name Solution Date Instructor Course...

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e2198da11056adcbc057843b8d72e7092300cf16.xlsx, Exercise 24-2 Solution, Page 1 of 8, 03/29/2012, 01:32:42 Name: Solution Date: Instructor: Course: 2. Introduction of a new product line. 3. Loss of assembly plant due to fire. 4. Sale of a significant portion of the company's assets. 5. Retirement of the company president. 6. Issuance of a significant number of shares of common stock. 7. Loss of a significant customer. 8. Prolonged employee strike. 9. Material loss on a year-end receivable because of customer's bankruptcy. 10. Hiring of a new president. 11. Settlement of prior year's litigation against the company. 12. Merger with another company of comparable size. 1 a 7 c 2 c 8 c 3 b 9 a 4 b 10 c 5 c 11 a 6 b 12 b Intermediate Accounting , 14 th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse E24-2 (Post-Balance-Sheet Events) For each of the following subsequent (post-balance-sheet) events, indicate whether a company should (a) adjust the financial statements, (b) disclose in notes to the financial statements, or (c) neither adjust nor disclose. 1. Settlement of federal tax case at a cost considerably in excess of the amount expected at year-end.
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e2198da11056adcbc057843b8d72e7092300cf16.xlsx, Exercise 24-2, Page 2 of 8, 03/29/2012, 01:32:42 Name: Date: Instructor: Course: 2. Introduction of a new product line. 3. Loss of assembly plant due to fire. 4. Sale of a significant portion of the company's assets. 5. Retirement of the company president. 6. Issuance of a significant number of shares of common stock. 7. Loss of a significant customer. 8. Prolonged employee strike. 9. Material loss on a year-end receivable because of customer's bankruptcy. 10. Hiring of a new president. 11. Settlement of prior year's litigation against the company. 12. Merger with another company of comparable size. 1 Enter letter 7 Enter letter 2 Enter letter 8 Enter letter 3 Enter letter 9 Enter letter 4 Enter letter 10 Enter letter 5 Enter letter 11 Enter letter 6 Enter letter 12 Enter letter Intermediate Accounting , 14 th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse E24-2 (Post-Balance-Sheet Events) For each of the following subsequent (post-balance-sheet) events, indicate whether a company should (a) adjust the financial statements, (b) disclose in notes to the financial statements, or (c) neither adjust nor disclose. 1. Settlement of federal tax case at a cost considerably in excess of the amount expected at year-end.
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e2198da11056adcbc057843b8d72e7092300cf16.xlsx, Exercise 24-3 Solution, Page 3 of 8, 03/29/2012, 01:32:42 Name: Solution Date: Instructor: Course: W $60,000 $15,000 $167,000 X 10,000 1,500 83,000 Y 23,000 (2,000) 21,000 Z 9,000 1,000 19,000 $102,000 $15,500 $290,000 Instructions: Determine which of the operating segments are reportable based on the: Revenue test: 10% × $102,000 = $10,200. Segments W ($60,000) and Y ($23,000) both meet this test. Operating profit test: 10% × ($15,000 + $1,500 + $1,000) = $1,750. Segments W ($15,000) and Y ($2,000 absolute amount) both meet this test.
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