EBK ACCOUNTING PRINCIPLES
13th Edition
ISBN: 9781119411017
Author: Weygandt
Publisher: WILEY
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Edge Co., a toy manufacturer, is in the process of preparing its financial statements for the
year ended December 31, Year 8. Edge expects to issue its Year 8 financial statements on
March 1, Year 9.
For each item, two responses are required. Select from the option lists provided the
appropriate adjustment amount, if any, and whether additional disclosure is required,
either on the face of or in the notes for each financial statement below. Each choice may be
used once, more than once, or not at all. If no adjustment is necessary, select "No entry
required" in the Adjusted amount column and continue to the Additional disclosure
required column.
Show Transcribed Text
5. On January 30, Year 9, Edge issued
$10 million bonds at a premium of $500,000.
6. On February 4, Year 8, the IRS assessed
Edge an additional $400,000 for the Year 4 tax
year. Edge's tax attorneys and tax accountants
have stated that it is likely that the IRS will
agree to a $100,000 settlement.
C
!!!!
Many companies make annual reports available on their corporate websire, often under an Investors tab. Annual reports also can be accessed through the SEC's EDGAR system at www.sec.gov (under Filings, click Company Filings Search, type in Company Name, and under Filing Type, search for 10-K). Access the most recent annual report for the following U.S.-based multinational corporations to complete the requiremects: International Business Machines Corporation. Intel Corporation. Required a. Identify the location(s) in the annual report that provides disclosures related to foreign currency translation and foreign currency hedging. b. Determine whether the company's foreign operations have a predominant functional currency.c. Determine the amount of translation adjustment, if any, reported in other comprehensive income in each of the three most recent years. Explain the sign (positive or negative) of the translation adjustment in each of the three most recent years. Compare the relative…
arkman Sporting Goods is preparing its annual report for its fiscal year. The company's
controller has asked for your help in determining how best to disclose information about the
following items:
Required:
Indicate whether each item should be disclosed (A) in the summary of significant accounting
policies note, (B) in a separate disclosure note, or (C) on the face of the balance sheet.
1. A related-party transaction.2. Depreciation method.3. Allowance for uncollectible accounts.4.
Composition of investments.5. Composition of long-term debt.6. Inventory costing method.7.
Number of shares of common stock authorized, issued, and outstanding.8. Employee benefit
plans.
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