NIM : MAT81766
MATKUL : FINANCIAL ACCOUNTING
KELAS : A
Exercise 24.1
(Subsequent Events)
Keystone Corporation issued its financial statements for the year ended December 31, 2019,
on March 10, 2020. The following events took place before the statements were authorized for
issue early in 2020.
a. On January 10, 10.000 ordinary shares of $ 5 par value were issued at $ 66 per share
b. On March 1, Keystone determined after negotiations with the taxing authorities that income taxes payable
for 2019 should be $ 1.320.000. At December 31, 2019, income taxes payable were recorded at $ 1.100.000.
Discuss how the preceding subsequent events should be reflected in the 2019 financial statements.
a. The issuance of ordinary shares that didn't exist at the balance sheet date but arose subsequent to that date.
Therefore, no reporting and no adjustment to financial statements is recorded. However, this event should be
disclosed either in a note, a supplemental schedule, or even proforma financial data.
b. The changed estimate of income taxes payable is an example of subsequent event which provides additional
evidence about conditions that existed at the balance sheet date. Therefore, Keystone should adjustment
income tax expense in 2019 by $ 220.000 ($ 1.320.000 - $ 1.100.000). In the balance sheet, income taxes payable
should be increased and retained earnings decreased by $ 220.000
Exercise 24.3
(Segmented Reporting)
LaGrace SpA is involved in four separe industries. The following information is available for each
of the four segments.
a. Revenue Test
1. Revenue Test
Revenue Test = 10% x ($ 40.000 + $ 75.000 + $ 580.000 + $ 35.000 + $ 55.000)
Revenue Test = 10% x $ 785.000
Revenue Test = $ 78.500
(Segment C ($ 580.000) meet this test).
A B C Other Totals
External Revenues $ 40.000 $ 55.000 $ 480.000 $ 90.000 $ 665.000
Intersegment Revenues - $ 20.000 $ 100.000 - $ 120.000
Total Revenues $ 40.000 $ 75.000 $ 580.000 $ 90.000 $ 785.000
Cost of Goods Sold $ 19.000 $ 50.000 $ 270.000 $ 49.000
Operating Expenses $ 10.000 $ 40.000 $ 235.000 $ 41.000
Total Expenses $ 29.000 $ 90.000 $ 505.000 $ 90.000
Operating Profit (Loss) $ 11.000 $ (15.000) $ 75.000 $ 11.000 $ 82.000
Identifiable Assets $ 35.000 $ 80.000 $ 500.000 $ 115.000 $ 730.000
Problem 24.2
Reconciliation of Revenues
Total Segment Revenues $ 785.000
Revenues of Immaterial Segments $ (90.000)
Elimination of Intersegment Revenues $ (120.000)
Revenues from Reportable Segments $ 575.000
Reconciliation of Assets
Total Segment Assets $ 730.000
Assets of Immaterial Segments $ (115.000)
Assets from Reportable Segments $ 615.000