The bookkeeper for the Olson Company prepared the following income statement and retained earnings statement for the
year ended December 31, 2010:
December 31, 2010
Expense and Profits Statement
P4-4 Balance Sheet
The following is a list (in random order) of the December 31, 2010 balance sheet accounts of the International Products Company:
Additional paid-in capital on preferred stock
C2-5 Cost and Expense Recognition
An accountant must be familiar
with the concepts involved in determining earnings of a
company. The amount of earnings reported for a company is
dependent on the proper recognition, in general, of revenue
The Fiorillo Company has the following account balances on December 31, 2010 prior to any adjustments:
Allowance for doubtful accounts
E15-4 Available-for-Sale Securities
At the beginning of 2010, Ace Company had the following portfolio of investments in available-for-sale securities (common stock):
P12-9 R&D Costs
The controller of the Halpern Company prepared the following income statement and balance sheet
at the end of the first year of the company's existence:
Cost of sales
E9-10 Retail Inventory Method
The Harmes Company is a clothing store that uses the retail inventory method. The following information relates
to its operations during 2010:
Inventory, January 1
PM-1 Future Value of an Investment
Using the future value tables, solve the following:
1. What is the future value on December 31, 2014 of a deposit of $35,000 made on December 31, 2010,
assuming interest of 10% compounded annually?
2. What is th
P6-3 Interim Reporting
The Schultz Company prepares interim financial statements at the end of each quarter. The income statement presented at the end of the
first quarter of 2010 is as follows:
Cost of goods sold
C1-9 GAAP Hierarchy
A friend of yours says, I understand there are rules for
financial reporting. But what are these rules, where can a person
find them, and which ones are more important?
Prepare an answer for your friend.
C1-9 GAAP Hierarchy
Enter the appropriate account titles and amounts in the shaded cells below.
A red asterisk (*) will appear to the right of an incorrect amount in the outlined cells.