Advanced Accounting
12th Edition
ISBN: 9781305084858
Author: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Publisher: Cengage Learning
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Question
Chapter 12, Problem 12.8.1P
To determine
Revenues and profits:
Revenues are defined as amount generated from sales.
Profits are defined as excess revenues over expenses incurred whereas loss is define as excess expenses incurred as compared to revenues.
To calculate: Schedule to disclose revenues, operating profit or losses.
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Students have asked these similar questions
To manage its operations, Leaf Company reports to top
management on five different segments which are consolidated
appropriately for the annual financial statements. Information
about each segment included in the current year's consolidated
statements appears in the table below (in 000's):
Sales to outside parties
Intersegment revenues
Outside parties interest income
Intersegment interest income
Operating expenses
Interest expense
Tangible assets
Intangib assets
a. the revenue test,
Tools
$8,220
140
-0-
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5,090
80
1,620
90
Leaf Company has
$305,000 of corporate
expenses that it does not allocate to the segments.
Carry out:
c. the asset test
b. the profit and loss test, and
Batteries Adhesives Plastics
$2,790
170
30
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2,100
20
3,880
470
$830
130
10
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1,390
170
890
-0-
$450
140
-0-
-0-
750
40
730
60
Finance
to determine which segments are separately reportable. Clearly show the
results of each test and your decision on each test.
$-0-
-0-
250
210
20
110
140
870
An entity and its divisions reported the following for the year 20xl:
Sales to unaffiliated customers
38,000,000
15,000,000
Intersegment sales of products similar to those sold to unaffiliated customers
Interest earned on loans to other operating segments
1,600,000
The entity and all of its divisions are engaged solely in manufacturing operations. To qualify as reportable
segment, the segment revenue should at least be what amount?
The following information pertains to Xavier Corp. and its divisions for the year ended 12/31/20:
Sales to unaffiliated customers
$4,000,000
Intersegment sales of products similar to those sold to
unaffiliated customers
900,000
60,000
Interest earned on loans to other operating segments
Xavier and all of its divisions are engaged solely in manufacturing operations. Xavier has a reportable
segment if that segment's revenue exceeds
a. $496,000.
b. $490,000.
$406,000.
$400,000.
C.
d.
Chapter 12 Solutions
Advanced Accounting
Ch. 12 - Prob. 1UTICh. 12 - Prob. 2UTICh. 12 - Prob. 3UTICh. 12 - Prob. 4UTICh. 12 - Prob. 1.1ECh. 12 - Prob. 1.2ECh. 12 - Prob. 1.3ECh. 12 - Prob. 1.4ECh. 12 - Prob. 1.5ECh. 12 - Prob. 1.6E
Ch. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4.1ECh. 12 - Prob. 4.2ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Ratable allocation for nonordinary items. Baxter...Ch. 12 - Prob. 9.1ECh. 12 - Prob. 9.2ECh. 12 - Prob. 9.3ECh. 12 - Prob. 10ECh. 12 - Prob. 12.1PCh. 12 - Prob. 12.2PCh. 12 - Prob. 12.3PCh. 12 - Prob. 12.4PCh. 12 - Prob. 12.5PCh. 12 - Prob. 12.6PCh. 12 - Prob. 12.7.1PCh. 12 - Prob. 12.7.2PCh. 12 - Prob. 12.7.3PCh. 12 - Prob. 12.8.1PCh. 12 - Prob. 12.8.2P
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