Special reporting issues lo 8 comprehensive income

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Special Reporting Issues LO 8 Comprehensive Income Combined statement V. Gill Inc. Combined Statement of Comprehensive Income For the Year Ended December 31, 2012 Sales revenue 800,000 $ Cost of goods sold 600,000 Gross profit 200,000 Operating expenses 90,000 Net income 110,000 Unrealized holding gain, net of tax 30,000 Comprehensive income 140,000 $
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Special Reporting Issues LO 8 Explain how to report other comprehensive income. Comprehensive Income Statement of Stockholder’s Equity Illustration 4-20
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Special Reporting Issues LO 8 Explain how to report other comprehensive income. Comprehensive Income Balance Sheet Presentation Illustration 4-21 Presentation of Accumulated Other Comprehensive Income in the Balance Sheet Regardless of the display format used, the accumulated other comprehensive income of $90,000 is reported in the stockholders’ equity section of the balance sheet.
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The single-step income statement emphasizes a. the gross profit figure. b. total revenues and total expenses. c. extraordinary items more than it is emphasized in the multiple-step income statement. d. the various components of income from continuing operations. Review Single-Step Format LO 2 Prepare a single-step income statement.
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Review A separation of operating and non operating activities of a company exists in a. both a multiple-step and single-step income statement. b. a multiple-step but not a single-step income statement. c. a single-step but not a multiple-step income statement. d. neither a single-step nor a multiple-step income statement. Multiple-Step Format LO 3 Prepare a multiple-step income statement.
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Irregular transactions such as discontinued operations and extraordinary items should be reported separately in a. both a single-step and multiple-step income statement. b. a single-step income statement only. c. a multiple-step income statement only. d. neither a single-step nor a multiple-step income statement. Review LO 4 Explain how to report irregular items. Reporting Irregular Items
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Review Gains and losses that bypass net income but affect stockholders' equity are referred to as a. comprehensive income. b. other comprehensive income. c. prior period income. d. unusual gains and losses. Special Reporting Issues LO 8 Explain how to report other comprehensive income.
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Review The FASB decided that the components of other comprehensive income must be displayed a. in a second separate income statement. b. in a combined income statement of comprehensive income. c. as a part of the statement of stockholders‘ equity. d. Any of these options is permissible. Special Reporting Issues LO 8 Explain how to report other comprehensive income.
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RELEVANT FACTS u Presentation of the income statement under GAAP follows either a single-step or multiple-step format. IFRS does not mention a single- step or multiple-step approach. Extraordinary items are prohibited under IFRS.
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