Mountainside Kafe Corporation
The following is the consolidated statements of income for Mountainside Kafe Corporation for the years ending December 31,2013 and 2014
Refer to the consolidated statements of income for Mountainside Kafe Corporation.
Required:
(1)Notice that Mountainside Kafe reported "Provision for income taxes." What type of account is this? What adjustment would have been made if this accrual were necessary at December 31,2014?
(2)Mountainside Kafe reported $3.1 million and $2.8 million of accrued interest in the liability section of its balance sheet at December 31,2014 and 2013,respectively.How much cash did it pay during 2014 for interest?
(3)Is Mountainside Kafe income statement an "interim statement"? Explain.

Question

Mountainside Kafe Corporation
The following is the consolidated statements of income for Mountainside Kafe Corporation for the years ending December 31,2013 and 2014
  Refer to the consolidated statements of income for Mountainside Kafe Corporation.
Required:
(1)Notice that Mountainside Kafe reported "Provision for income taxes." What type of account is this? What adjustment would have been made if this accrual were necessary at December 31,2014?
(2)Mountainside Kafe reported $3.1 million and $2.8 million of accrued interest in the liability section of its balance sheet at December 31,2014 and 2013,respectively.How much cash did it pay during 2014 for interest?
(3)Is Mountainside Kafe income statement an "interim statement"? Explain.

Quizplus · Accepted Answer

The Answer of Mountainside Kafe Corporation
The following is the consolidated statements of income for Mountainside Kafe Corporation for the years ending December 31,2013 and 2014
  Refer to the consolidated statements of income for Mountainside Kafe Corporation.
Required:
(1)Notice that Mountainside Kafe reported "Provision for income taxes." What type of account is this? What adjustment would have been made if this accrual were necessary at December 31,2014?
(2)Mountainside Kafe reported $3.1 million and $2.8 million of accrued interest in the liability section of its balance sheet at December 31,2014 and 2013,respectively.How much cash did it pay during 2014 for interest?
(3)Is Mountainside Kafe income statement an "interim statement"? Explain.

Mountainside Kafe Corporation The Following Is the Consolidated Statements of Income for Mountainside