Intermediate Accounting project questions.
I Part 1- FASB’s Accounting Standards Codification Please go to: https://asc.fasb.org/home Then use the “Master glossary” search tab at the left to look up the following two terms and answer these two questions using the information under “See Topic(s)”: 1) In what Topic numbers can you find references to “Carryforwards: 2) In what Topic numbers can you find references to “Accounting Change” Part 2 – Using the SEC Edgar Database Go to: http://www.sec.gov/ and Select “FILINGS”, “Company Filings Search” We will look at Procter & Gamble’s latest 10-K filing. Using the Fast Search Feature, Search by its Ticker Symbol:PG. You should see a page with its SEC filings. Click on the “Documents” tab for the 10-K filed on 2019-08-06 (part way down the page) Click on fy181910-kreport.htm at the top of the list for the Form 10-K You should now see the annual report for Procter & Gamble, please navigate through the report to find the following information: 1. Which public accounting firm audited Procter & Gamble’s consolidated financial statements? 2. What is the value of cash and cash equivalents on the balance sheet as of June 30, 2019? (keep in mind the units in which the numbers are expressed) 3. What was Basic (Net) Earnings per Share for the Fiscal Year Ending June 30, 2019? 4. At the time of this filing, who was the Senior Vice President, Comptroller & Treasurer (Principal Accounting Officer) (found in Signatures section) 5. How much were Research & Development (R&D) costs in 2019 (found in Note 1 of the Notes to Financial Statements (footnotes) section) Part 3 – Practice Problems (Chapters 17-20) Alpha reported the following items related to debt and equity investments for the year: - Unrealized Gain – Equity Security (Fair Value Method) $10,000 - Unrealized Gain - Available-for-Sale Debt Security 7,500 - Unrealized Gain - Trading Debt Security 2,500 - Realized Loss - Equity Security (Fair Value Method) (1,500) 1) What is the combined effect of these investments on Net Income for the year (ignore taxes)? 2) What is the combined effect of these investments on Other Comprehensive Income for the year (ignore taxes)? 3)On February 4, 2016, Investor purchased 15% of Investee common stock for $62,000. Investee’s net income for the years ended December 31 2016 and 2017 were $18,000 and $56,000 respectively. Investee declared no dividends during 2016; however, during 2017, the company declared a $70,000 dividend. On December 31, 2016, the fair value of investee’s stock that investor owned had increased to $70,000; in 2017, it increased again to $75,000. What is the carrying value of the investment on investor’s December 31, 2016, balance sheet? 4) Alpha reported $200,000 depreciation on its 2015 tax return; however, it reported $50,000 depreciation expense on its 2015 income statement. The difference in depreciation is a temporary difference that will reverse over time. Assuming its tax rate is constant at 30%, what amount should be added to the deferred income tax liability in its December 31, 2015, balance sheet? 5) Gamma had income before taxes of $500,000 and a tax rate of 35%. Included in this income are $60,000 in municipal bond interest and $10,000 in non-deductible fines and penalties. There are no other book-tax differences. What is its taxable income?