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W3-T1, W3-T2, W3-T3

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1.Team #;Problem: W3-T1, Multiple- and Single Step Income, Retained Earnings (Chapter 4);The trial balance for ABC Corporation at September 30, 2014 is presented below.;Sales Revenue $ 1,732,000;Sales discounts 45,000 Depreciation expense (office furniture and equipment) $ 7,450;Cost of goods sold 932,000 Property tax expense 7,200;Salaries and wages expense (sales) 57,830 Bad debt expense (selling) 3,680;Sales commissions 98,600 Maintenance and repairs expense (administration) 8,230;Travel expense (salespersons) 29,830 Office expense 7,320;Delivery expense 22,300 Sales returns and allowances 65,100;Entertainment expense 15,620 Dividends received 40,000;Telephone and internet expenses (sales) 9,060 Bond interest expense 16,000;Depreciation expense (sales equipment) 4,980 Income tax expense 148,000;Maintenance and repairs expense (sales) 7,300 Depreciation understatement due to error - 2011 (net of tax) 18,300;Miscellaneous selling expenses 4,895 Dividends declared on preferred stock 10,000;Office supplies used 3,680 Dividends declared on common stock 38,000;Telephone and internet expense (administration) 2,910;The retained earnings account had a balance of $ 423,000 at October 1, 2013. There are 85,000;shares of common stock outstanding.;a) Using the multiple-step form, prepare an income statement and a retained earnings statement for the year ending September 30, 2014;ABC Corporation;Income Statement;September 30, 2014;Title Amount;Less;Title Amount;Title Amount Formula;Net Sales Formula;Title Amount;Gross Profit Formula;Operating Expenses;Selling Expenses;Title Amount;Title Amount;Title Amount;Title Amount;Title Amount;Title Amount;Title Amount;Title Amount;Title Amount;Title Amount Formula;Administrative Expenses;Title Amount;Title Amount;Title Amount;Title Amount;Title Amount;Title Amount Formula;Income from operations Formula;Other Revenues and Gains;Title Amount;Formula;Other Expenses and Losses;Title Amount;Income before income tax Formula;Title Amount;Net income Formula;Earnings per share Formula;ABC Corporation;Retained Earnings Statement;For the Year Ended September 30, 2014;Retained earnings, October 1, 2013, as reported Amount;Title Amount;Title Formula;Title Amount;Formula;Less;Title Amount;Title Amount Formula;Retained earnings, September 30, 2014 Formula;b) Using the single-step form, prepare an income statement for the year ended September 30, 2014.;ABC Corporation;Income Statement;September 30, 2014;Revenues;Title Amount;Title Amount;Total revenues Formula;Expenses;Title Amount;Title Amount;Title Amount;Title Amount;Total expenses Formula;Income before income tax Formula;Title Amount;Net income Formula;Earnings per share Formula;2.;Team #;Problem: W3-T2 Long-Term Contract with Overall Loss (Chapter 18);On July 1, 2013, Smith Construction Company, Inc. contracted to build an office building for ABC Corp. for a total contract price of $2,300,000. On July 1, KDH estimated that it would take between 2 and 3 years to complete the building. On December 31, 2015, the building was deemed substantially completed. Following are accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to ABC Corp. for 2013, 2014 and 2015. 3;At 12/31/2013 At 12/31/2014 At 12/31/2015;Contract costs incurred to date $ 200,000 $ 1,500,000 $ 2,450,000;Estimated costs to complete the contract 1,800,000 900,000 -0-;Billings to Trousdale 600,000 1,300,000 2,200,000;Instructions;(a) Using the percentage-of-completion method, prepare schedules to compute the profit or loss be recognized as a result of this contract for the years ended December 31, 2010, 2011, and 2012. (Ignore income taxes).;2013;Costs to date (12/31/13) Amount;Title Amount;Estimated total costs Formula;Percent Complete Formula;Revenue recognized Formula;Costs incurred Amount;Profit recognized in 2013 Formula;2014;Costs to date (12/31/14) Amount;Title Amount;Estimated total costs Formula;Contract price Amount;Total loss Formula;Total loss Formula;Title Amount;Profit (loss) recognized in 2014 Formula;2015;Costs to date (12/31/15) Amount;Title Amount;Estimated total costs Formula;Contract price Amount;Total loss Formula;Total loss Formula;Title Amount;Title Amount Formula;Profit (loss) recognized in 2015 Formula;(b) Using the completed-contract method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 2013, 2014, 2015. (Ignore income taxes.);2013;Profit (Loss) recognized in 2013 Amount;2014;Costs to date (12/31/14) Amount;Title Amount;Estimated total costs Formula;Title Amount;Profit (loss) recognized in 2014 Formula;2015;Costs to date (12/31/15) Amount;Title Amount;Total loss on contract Formula;Title Amount;Loss recognized in 2015 Formula

 

Paper#77711 | Written in 18-Jul-2015

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