Question

15.

Using the following information from an annual report, prepare a Comparative (horizontal) analysis of the consolidated statements of earnings. (Round percentage answers to one decimal place.) 3 pts (In millions except per share data) June 30, 2010 June 30, 2009 Net sales $12,862 $11,170 Cost of sales     8,321     8,191 Gross margin $ 4,541 $ 2,979 Operating expenses: Selling expenses General and Administrative expenses $2,043     978      $2,000          955   Total operating expenses $ 3,021 $ 2,955 Income (loss) from operations $ 1,520 $      24      Other Income and (expenses)      100         93 Earnings (loss) before income taxes $ 1,620 $   117 Income taxes        561          26 Net earnings (loss) $   1,059 $     91 Basic earnings (loss) per share $   10.98 $      2.28

16. A corporation issued $100,000 of 10% bonds for $103,000. What is the journal entry to record the issuance of the bonds.

Answer 1

Answer-15)-

HORIZONTAL ANALYSIS
FOR THE YEAR ENDED JUNE 30,2010
$ in million	JUNE 30,2010	JUNE 30,2009	INCREASE/(DECREASE)
PARTICULARS	AMOUNT	AMOUNT	AMOUNT	PERCENTAGE
	$	$
Sales	12862	11170	1692	15.1%
Less- Cost of sales	8321	8191	130	1.6%
Gross profit	4541	2979	1562	52.4%
Less-Selling expenses	2043	2000	43	2.2%
General & Administrative expenses	978	955	23	2.4%
Total operaing expenses	3021	2955	66	2.2%
Income before income taxes	1520	24	1496	6233.3%
Add- Other income	100	93	7	7.5%
Income before income taxes	1620	117	1503	1284.6%
Less- Income tax expense	561	26	535	2057.7%
Net income	1059	91	968	1063.7%

Answer-16)- The journal entry to record the issuance of the bonds =

S.No.	ACCOUNTS TITLES & EXPLANATION	DEBIT	CREDIT
		$	$
1	Bank	103000
	Premium on bonds payable		3000
	Bonds payable		100000
	(Being entry recorded for bonds issued on premium)