The mortgage payable is payable in semiannual installments of $4,800 each plus interest. The next payment is due on October 31, 2013. Interest has been properly accrued and is included in accrued expenses.
Balance sheet is June 30, 2013
Accrued Expenses are 46,000
I need help in what to put for current maturities of long term debt in the current liabilities section and also what amount to put for mortgage payable in long term liabilities

First you have to calculate the amount of Mortgage Payable is due within one year or one accounting cycle. You have one payment that is due on Oct 31, 2013 and one that will be due in 6 months, which will be on Apr 30, 2014. These are two payments that will be due within one year, so take your mortgage payment times 2 to get your current portion of long-term debt due. Then subtract the current portion from your long-term to get your long-term debt balance.

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Originally Posted by pready

First you have to calculate the amount of Mortgage Payable is due within one year or one accounting cycle. You have one payment that is due on Oct 31, 2013 and one that will be due in 6 months, which will be on Apr 30, 2014. These are two payments that will be due within one year, so take your mortgage payment times 2 to get your current portion of long-term debt due. Then subtract the current portion from your long-term to get your long-term debt balance.

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You helped me so much it really means a lot I was crying over this inside.

I have been stuck on this for so long, I need help in how to calculate income (loss) from operations of discontinued operations for 2013 and 2012. Please breakdown with steps , thanks so much .
Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31):

2013 2012
Sales $ 4,450,000 $ 3,550,000
Cost of goods sold 2,870,000 2,010,000
Administrative expenses 810,000 685,000
Selling expenses 370,000 322,000
Interest revenue 151,000 141,000
Interest expense 202,000 202,000
Loss on sale of assets of discontinued component 54,000 —

On July 1, 2013, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2013, for $54,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows:

1/1/13-9/30/13 2012
Sales $ 410,000 $ 510,000
Cost of goods sold (295,000 ) (326,000 )
Administrative expenses (51,000 ) (41,000 )
Selling expenses (21,000 ) (31,000 )

Operating income before taxes $ 43,000 $ 112,000


In addition to the account balances above, several events occurred during 2013 that have not yet been reflected in the above accounts:
1. A fire caused $51,000 in uninsured damages to the main office building. The fire was considered to be an infrequent but not unusual event.
2. An earthquake caused $101,000 in property damage to one of Reed's factories. The amount of the loss is material and the event is considered unusual and infrequent.
3. Inventory that had cost $41,000 had become obsolete because a competitor introduced a better product. The inventory was sold as scrap for $5,000.
4. Income taxes have not yet been accrued.

Required:

Prepare a multiple-step income statement for the Reed Company for 2013, showing 2012 information in comparative format, including income taxes computed at 40% and EPS disclosures assuming 400,000 shares of common stock. (Amounts to be deducted should be indicated with a minus sign.Round EPS answers to 2 decimal places.)

What do YOU think ?
While we're happy to HELP we won't do all the work for you.
Show us what you have done and where you are having problems..

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Originally Posted by Curlyben

What do YOU think ?
While we're happy to HELP we wont do all the work for you.
Show us what you have done and where you are having problems..

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True, OK what I think is 54,000 loss plus op income before tax of 219000 but this was wrong

I don't know how to calculate extraordinary loss I thought it would have been 101,000
Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31):

2013 2012
Sales $ 4,450,000 $ 3,550,000
Cost of goods sold 2,870,000 2,010,000
Administrative expenses 810,000 685,000
Selling expenses 370,000 322,000
Interest revenue 151,000 141,000
Interest expense 202,000 202,000
Loss on sale of assets of discontinued component 54,000 —

On July 1, 2013, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2013, for $54,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows:

1/1/13-9/30/13 2012
Sales $ 410,000 $ 510,000
Cost of goods sold (295,000 ) (326,000 )
Administrative expenses (51,000 ) (41,000 )
Selling expenses (21,000 ) (31,000 )

Operating income before taxes $ 43,000 $ 112,000


In addition to the account balances above, several events occurred during 2013 that have not yet been reflected in the above accounts:
1. A fire caused $51,000 in uninsured damages to the main office building. The fire was considered to be an infrequent but not unusual event.
2. An earthquake caused $101,000 in property damage to one of Reed’s factories. The amount of the loss is material and the event is considered unusual and infrequent.
3. Inventory that had cost $41,000 had become obsolete because a competitor introduced a better product. The inventory was sold as scrap for $5,000.
4. Income taxes have not yet been accrued.

Required:

Prepare a multiple-step income statement for the Reed Company for 2013, showing 2012 information in comparative format, including income taxes computed at 40% and EPS disclosures assuming 400,000 shares of common stock. (Amounts to be deducted should be indicated with a minus sign.Round EPS answers to 2 decimal places.)

Hi, I need help in calculating the loss from earthquake I put 101,000 , and (101,000) but this was marked wrong. I am pasting all the info I was given :


Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31):

2013 2012
Sales $ 4,450,000 $ 3,550,000
Cost of goods sold 2,870,000 2,010,000
Administrative expenses 810,000 685,000
Selling expenses 370,000 322,000
Interest revenue 151,000 141,000
Interest expense 202,000 202,000
Loss on sale of assets of discontinued component 54,000 —

On July 1, 2013, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2013, for $54,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows:

1/1/13-9/30/13 2012
Sales $ 410,000 $ 510,000
Cost of goods sold (295,000 ) (326,000 )
Administrative expenses (51,000 ) (41,000 )
Selling expenses (21,000 ) (31,000 )

Operating income before taxes $ 43,000 $ 112,000


In addition to the account balances above, several events occurred during 2013 that have not yet been reflected in the above accounts:
1. A fire caused $51,000 in uninsured damages to the main office building. The fire was considered to be an infrequent but not unusual event.
2. An earthquake caused $101,000 in property damage to one of Reed’s factories. The amount of the loss is material and the event is considered unusual and infrequent.
3. Inventory that had cost $41,000 had become obsolete because a competitor introduced a better product. The inventory was sold as scrap for $5,000.
4. Income taxes have not yet been accrued.

Required:
Prepare a multiple-step income statement for the Reed Company for 2013, showing 2012 information in comparative format, including income taxes computed at 40% and EPS disclosures assuming 400,000 shares of common stock. (Amounts to be deducted should be indicated with a minus sign.Round EPS answers to 2 decimal places.)

On May 1, 2011 Garcia paid $1200 for 12 month rent and recorded transaction in income statement account.


The question asked for answer to adjusting entry on December 31, 2011 and answer was $400 debit to prepaid rent.

I did $1200/12 = 100 per month but don't see where 400 would come from

You used 8 months of rent, from May 1 to Dec 31. So 4 month from Jan 1, 2012 to May 1, 2012 has to be taken from your rent expense and transferred to Prepaid Rent because you have not used 4 months of rent out of the 12 months of the rent that is in Rent Expense.

Can someone please guide me through with steps? I am confused on how $12,000 is obtained:
My thoughts/work : I did not get very far because I don't know how long the $1000 is being paid for, it says per month, but is it for 1/2 years? 36,000 - 1000 = 35,000 is random thought in my head, but I just can't see how the 12,000 is derived.

On January 1st of current year, Lafferty signs contract to rent building for $1000 per month. On that date, Lafferty pays $36,000 for rent. What is amount of prepaid rent that should be classified as current asset?


Thanks in advance :)

On January 1 , Year 1, Reinquist borrowed $100,000 by signing 5 year N/P with annual interest 8%. Terms of contract require Reinquist to repay principal over 5 years with payment of $20,000 at end of each year. On December 31, Reinquist made first payment plus interest. On January 1, Year 2 what portion of note should be classified as non-current liabilities?


Answer was $60,000 but I don't get how or why.

Year one was paid, so the $100,000 loan balance is now $80,000

For year to the current portion due is $20,000 so $80,000 total due minus the $20,000 current portion due equals $60,000 non-current balance due.

When the rent was paid in advance the $36,000 was classified as Prepaid Rent. Of the $36,000 paid in advance $12,000 is for one year worth of rent calculated as $1,000 per month times 12 months, which would be classified as a current asset. The other $24,000 would be a non-current asset.

A current asset is an asset that is cash or something that can be converted into cash within one year or once accounting cycle.

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Originally Posted by pready

Year one was paid, so the $100,000 loan balance is now $80,000

For year 2 the current portion due is $20,000 so $80,000 total due minus the $20,000 current portion due equals $60,000 non-current balance due.

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Thank you so much pready i study 9 hrs a day for accounting and am not trying to be lazy, I want to be a CPA , I am 20 years old, and overall you have been a great help I cannot thank you enough.

Hi I need some help with steps on this, I don't know how to set this up right, and get the answer of $84,000 gain.
Carol has component that is discontinued operation. Revenues : 100,000 Expenses : 160,000. Component sold with resulting gain of $200,000. Tax rate is 40%. What is total gain/ loss on discontinued operations (net-of-tax effects) that will be reported on income statement?


My work : I thought I would do 100,000 - 160,000 and then subtract that from 200,000 and find 40% of that but this was wrong

Hi I am stuck on another problem , my work : I always think I have to subtract revenues minus expenses and then subtract that from loss/gain.

Crimson Corp has component that is discontinued operations. Revenues : 200,000 Expenses : 240,000. Component sold as resulting loss : 160,000. Tax Rate : 30%. What is income tax benefit for discontinued operations?

Answer was 60,000 but I don't get how or why?

Component sold for $160,000 times 30% tax rate.

Total of revenues of $200,000 minus expenses of $240,000 times the 30% tax rate.

Now just add the two amounts together.

Start with the gain on sale of $200,000 minus net loss of $60,000 (revenues of $100,000 minus expenses of $60,000). This is your net gain.

Now take your net gain of $140,000 times the 40% tax rate equals your tax savings of $56,000

Net gain of $140,000 minus tax savings of $56,000 equals net gain reported of $84,000

On September 1, 2009, Jacob Furniture Mart enters into a tentative agreement to sell the assets of its office equipment division. This division comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes. The division's contribution to Jacob's operating income for 2009 was a $3 million loss before taxes. Jacob has an average tax rate of 30%.

Required: Consider independently the appropriate accounting by Jacob under the three scenarios below.

123. Scenario 1: Assume that Jacob sold the division's assets on December 31, 2009, for $24 million. The book value of the division's assets was $19 million at that date. Under these assumptions, what would Jacob report in its 2009 income statement regarding the office equipment division? Explain where this information would be presented.
Scenario 1: Jacob would report $1.4 million ($2,000,000 net of $600,000 in taxes) as income from discontinued operations. This income would be reported as a separate item between income from continuing operations and net income in Jacob's income statement.


I don't get where the 2,000,000 comes from