The Year 1 financial statements of Bice Company reported net income for the year ended December 31, Year 1, of $2 million. On July 1, Year 2, subsequent to the issuance of the Year 1 financial statements, Bice changed from an accounting principle that is not generally accepted to one that is generally accepted. If the generally accepted accounting principle had been used in Year 1, net income for the year ended December 31, Year 1, would have been decreased by $1 million. On August 1, Year 2, Bice discovered a mathematical error relating to its Year 1 financial statements. If this error had been discovered in Year 1, net income for the year ended December 31, Year 1, would have been increased by $500,000. What amount, if any, should be included in net income for the year ended December 31, Year 2, because of the items noted above? A. $1,000,000 decrease. B. $500,000 increase. C. $0. D. $500,000 decrease.
| The Year 1 financial statements of Bice Company reported net income for the year ended December 31, Year 1, of $2 million. On July 1, Year 2, subsequent to the issuance of the Year 1 financial statements, Bice changed from an accounting principle that is not generally accepted to one that is generally accepted. If the generally accepted accounting principle had been used in Year 1, net income for the year ended December 31, Year 1, would have been decreased by $1 million. On August 1, Year 2, Bice discovered a mathematical error relating to its Year 1 financial statements. If this error had been discovered in Year 1, net income for the year ended December 31, Year 1, would have been increased by $500,000. What amount, if any, should be included in net income for the year ended December 31, Year 2, because of the items noted above? | |
| A. | $1,000,000 decrease. |
| B. | $500,000 increase. |
| C. | $0. |
| D. | $500,000 decrease. |
Related questions
| At January 1, 2016, CanadayCorporation had outstanding the following securities: |
| 730 million common shares | |
| 50 million 5% cumulativepreferred shares, $50 par | |
| 6% convertible bonds, $2,000million face amount, convertible into 60 million common shares | |
| The following additionalinformation is available: |
| ⢠| On September 1, 2016, Canadaysold 84 million additional shares of common stock. |
| ⢠| Incentive stock options to purchase 50 million shares of commonstock after July 1, 2015, at $10 per share were outstanding at thebeginning and end of 2016. The average market price of Canadayâscommon stock was $25 per share during 2016. |
| ⢠| Canaday's net income for the year ended December 31, 2016, was$1,528 million. The effective income tax rate was 40%. |
| Required: |
| 1. &2. | Calculate basic and diluted earnings per common share for theyear ended December 31, 2016. (Enter your answers inmillions (i.e., 10,000,000 should be entered as 10).) |
2
Information from the financial statements of Henderson-NilesIndustries included the following at December 31, 2016: |
| Common sharesoutstanding throughout the year | 100 | million | |
| Convertiblepreferred shares (convertible into 30 million shares ofcommon) | 65 | million | |
| Convertible 10%bonds (convertible into 21.5 million shares of common) | $ | 2,600 | million |
Henderson-Nilesâ net income for the year ended December 31,2016, is $920 million. The income tax rate is 40%. Henderson-Nilespaid dividends of $3 per share on its preferred stock during2016. |
| Required: |
Compute basic and diluted earnings per share for the year endedDecember 31, 2016. (Enter your answers in millions (i.e.,10,000,000 should be entered as 10).) |
VERY important to have accuracy forthese..thanks
Ryan's Cars had the following accounts andamounts in its financial statements on December 31, 2010. Assumethat all balance sheet items reflect account balances at December31, 2010, and that all income statement items reflect activitiesthat occurred during the year then ended.
| Interest expense | $ | 34,000 |
| Paid-in capital | 87,000 | |
| Accumulated depreciation | 32,000 | |
| Notes payable (long-term) | 289,000 | |
| Rentexpense | 71,000 | |
| Merchandise inventory | 834,000 | |
| Accounts receivable | 186,000 | |
| Depreciation expense | 12,000 | |
| Land | 123,000 | |
| Retained earnings | 426,480 | |
| Cash | 139,000 | |
| Costof goods sold | 1,759,000 | |
| Equipment | 65,000 | |
| Income tax expense | 231,480 | |
| Accounts payable | 101,000 | |
| Sales revenue | 2,519,000 | |
| Required: | |
| (a) | Calculate the difference between current assets and currentliabilities for Ryan's Cars at December 31, 2010. (Omit the "$" sign in yourresponse.) |
| Difference | $ |
| (b) | Calculate the total assets at December 31, 2010. (Omit the "$" sign in yourresponse.) |
| Total assets | $ |
| (c) | Calculate the earnings from operations (operating income) for theyear ended December 31, 2010. (Omitthe "$" sign in your response.) |
| Operating income | $ |
| (d | Calculate the net income (or loss) for the year ended December 31,2010. (Omit the "$" sign in yourresponse.) Select one (Net income/Net loss) $________
|
