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Please help me with this one? Part Two: FASB Accounting Standards Codification (ASC) Identify the correct codification topic, subtopic, section, and paragraph for each question
Please help me with this one?
Part Two: FASB Accounting Standards Codification (ASC)
- Identify the correct codification topic, subtopic, section, and paragraph for each question to support your response. There is a total of four.
- Evaluate a scenario regarding interim reporting (ASC13-1). Include the following details in your response:
- Determine if the codification allows for exceptions at interim reporting dates.
- Determine what effect differences in interim reporting have on evaluation methods employed by analysts and other users.
- Explain whether it is appropriate to prorate an extraordinary loss in the second quarter over the three remaining quarters of the fiscal year (ASC13-3).
- Determine if interim periods are considered standalone financial statements or an integral part of the annual financial statements under current Generally Accepted Accounting Principles (GAAP) (ASC13-5).
- Explain if you agree or disagree with how interim periods are handled by GAAP (ASC13-5).
- Explain whether additional disclosure requirements are necessary when a company presents only the annual income statement as opposed to a separate fourthquarter interim report (ASC13-6).
\begin{tabular}{|l|l|l|l|} \hline Assets & Audited Balance Sheet & Adjustment & Pro Forma Balance Sheet \\ \hline Cash and receivables & $250,000 & $170,000 & $420,000 \\ \hline Inventories & 260,000 & 140,000 & 400,000 \\ \hline Land & 600,000 & 400,000 & 1,000,000 \\ \hline Buildings \& equipment & 800,000 & 1,000,000 & 1,800,000 \\ \hline Accumulated depreciation & (300,000) & & (300,000) \\ \hline Goodwill & 0 & 230,000 & 230,000 \\ \hline \multicolumn{1}{|c|}{ Total assets } & $1,610,000 & & $3,550,000 \\ \hline Liabilities and Equity & & & \\ \hline Current liabilities & $110,000 & 150,000 & 260,000 \\ \hline Bonds payable & 0 & 350,000 & 350,000 \\ \hline Common stock & 750,000 & 450,000 & 1,200,000 \\ \hline Other contributed capital & 400,000 & 990,000 & 1,390,000 \\ \hline Retained earnings & 350,000 & & 350,000 \\ \hline \multicolumn{1}{l|}{ Total equities } & $1,610,000 & & $3,550,000 \\ \hline \end{tabular}
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