Scenic View Foods Corporation
The following consolidated statements of income are for Scenic View Foods Corporation for the years ending December 31,2017 and 2018:

-Refer to the consolidated statements of income for Scenic View Foods Corporation.
Required
(1)Notice that Scenic View Foods reported "Provision for income taxes." What type of account is this? What adjustment would have been made if this accrual were necessary at December 31,2018?

(2)Scenic View Foods' reported $3.1 million and $2.8 million of accrued interest in the Liability section of its balance sheet at December 31,2018 and 2017,respectively.How much cash did it pay during 2017 for interest?

(3)Is Scenic View Foods income statement an "interim statement"? Explain.

Question

Scenic View Foods Corporation
The following consolidated statements of income are for Scenic View Foods Corporation for the years ending December 31,2017 and 2018:
 
-Refer to the consolidated statements of income for Scenic View Foods Corporation.
​Required
(1)Notice that Scenic View Foods reported "Provision for income taxes." What type of account is this? What adjustment would have been made if this accrual were necessary at December 31,2018?
​
(2)Scenic View Foods' reported $3.1 million and $2.8 million of accrued interest in the Liability section of its balance sheet at December 31,2018 and 2017,respectively.How much cash did it pay during 2017 for interest?
​
(3)Is Scenic View Foods income statement an "interim statement"? Explain.

Quizplus · Accepted Answer

The Answer of Scenic View Foods Corporation
The following consolidated statements of income are for Scenic View Foods Corporation for the years ending December 31,2017 and 2018:
 
-Refer to the consolidated statements of income for Scenic View Foods Corporation.
​Required
(1)Notice that Scenic View Foods reported "Provision for income taxes." What type of account is this? What adjustment would have been made if this accrual were necessary at December 31,2018?
​
(2)Scenic View Foods' reported $3.1 million and $2.8 million of accrued interest in the Liability section of its balance sheet at December 31,2018 and 2017,respectively.How much cash did it pay during 2017 for interest?
​
(3)Is Scenic View Foods income statement an "interim statement"? Explain.