Chapter 14.2 Application

YasinAkilli-StudentVersion_Chapter14ApplicationProblems.xlsx

Home >Business & Finance homework help >Accounting homework help >Chapter 14.2 Application

Instructions

TITLE	F14-2	Beginning an 8-column work sheet for a merchandising business
F14-3	Analyzing and recording a merchandise inventory adjustment on a worksheet
STEPS	1.	Read all of the steps before completing the spreadsheet.
2.	Click the Application Problem 14-2, 14-3 tab to view the blank data file.
3.	Key your name in cell B2.
4.	Key, For Month Ended December 31, 20-- (use the current year), in cell C5.
5.	Cells containing [F] require a formula. Create and key formulas to total the Trial Balance columns.
6.	Cells containing [L] require a logical formula. Use the logical formula described on page 443 in your textbook.
The IF function is another type of logical formula. IF functions compare two values and produce one result if the comparison is TRUE and an alternate result if the comparison is FALSE.
Try using an IF function in step 6. The result should show the amount of the variance if the column totals are out of balance or OK if they are in balance. Consult Help if you need assistance with IF functions.
7.	Key the adjusting entries for Supplies--Office, Supplies--Store, Prepaid Insurance and Merchandise Inventory on the appropriate line of the Adjustments Debit or Credit column. Use column E for a debit amount and Column G for a credit amount.
8.	Key the letter of the adjustment, in parenthesis, on the appropriate line of column D for debit entry and column F for a credit entry. [Hint: to avoid the © symbol when keying "c", add an extra space in the ( c).]
This data file will also be used to complete Application Problems 14-3 through 14-6.
STEPS	9.	Key the adjusting entries for Allowance for Uncollectible Accounts and Depreciation on the appropriate line of the Adjustments Debit or Credit column. Use column E for a debit amount and Column G for a credit amount.
10.	Create formulas to extend the amounts from the Trial Balance and Adjustments columns to the Income Statement (except Federal Income Tax Expense) and Balance Sheet columns. Extend Federal Income Tax Expense from cell J70.
11.	Create formulas to subtotal the columns. Calculate Federal Income Tax Expense using the ROUND function.
12.	Calculate the Federal Income Tax Expense adjustment and extend the amounts to the Income Statement columns.
13.	Calculate Net Income After Federal Income Tax. Create formulas to calculate the remaining column totals. Extend the amount to the appropriate Balance Sheet column.
14.	Check to see that all sets of columns are in balance. Make corrections as needed.
15.	Print the spreadsheet.

Application Problem 14-2, 14-3

Problem Number: F14-2 and F14-3
Student's Name:
Branson Amusement Company
Work Sheet
Application Problem 14-2	Application Problems 14-3 to 14-6
Trial Balance	Adjustments	Income Statement	Balance Sheet
Account Title	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	17,560.75	0.00	[F]
Petty Cash	300.00	0.00	[F]
Accounts Receivable	14,710.98	0.00	[F]
Allow. for Uncoll. Accounts	0.00	498.59	[F]
Merchandise Inventory	236,314.63	0.00	[F]
Supplies--Office	[F]
Supplies--Store	4,349.44	0.00	[F]
Prepaid Insurance	6,000.00	0.00	[F]
Office Equipment	33,712.88	0.00	[F]
Acc. Depr.--Office Equipment	0.00	11,860.98	[F]
Store Equipment	38,807.02	0.00	[F]
Acc. Depr.--Store Equipment	0.00	14,709.08	[F]
Accounts Payable	[F]
Federal Income Tax Payable	0.00	0.00	[F]
Emp. Income Tax Pay.--Fed.	0.00	948.10	[F]
Social Security Tax Payable	0.00	724.41	[F]
Medicare Tax Payable	0.00	169.42	[F]
Sales Tax Payable	0.00	1,755.93	[F]
Unemp. Tax Pay.--Federal	0.00	24.00	[F]
Unemp. Tax Pay.--State	0.00	162.00	[F]
Health Ins. Premiums Pay.	0.00	902.50	[F]
U.S. Savings Bonds Payable	0.00	76.00	[F]
United Way Donations Pay.	0.00	71.25	[F]
Dividends Payable	0.00	3,150.00	[F]
Capital Stock	0.00	52,500.00	[F]
Retained Earnings	0.00	96,689.21	[F]
Dividends	12,600.00	0.00	[F]
Income Summary	0.00	0.00	[F]
Sales	0.00	843,536.68	[F]
Sales Discount	2,515.25	0.00	[F]
Sales Returns and Allow.	8,482.25	0.00	[F]
Purchases	369,724.80	0.00	[F]
Purchases Discount	[F]
Purch. Returns and Allow.	0.00	9,022.15	[F]
Advertising Expense	14,516.00	0.00	[F]
Cash Short and Over	7.72	0.00	[F]
Credit Card Fee Expense	6,158.15	0.00	[F]
Depr. Exp.--Office Equipment	0.00	0.00	[F]
Depr. Exp.--Store Equipment	0.00	0.00	[F]
Insurance Expense	0.00	0.00	[F]
Miscellaneous Expense	4,345.00	0.00	[F]
Payroll Taxes Expense	15,375.03	0.00	[F]
Rent Expense	22,800.00	0.00	[F]
Salary Expense	[F]
Supplies Expense--Office	0.00	0.00	[F]
Supplies Expense--Store	0.00	0.00	[F]
Uncollectible Accounts Exp.	0.00	0.00	[F]
Utilities Expense	4,051.06	0.00	[F]
Fed. Income Tax Expense	48,000.00	0.00	[F]
[F]	[F]	[F]	[F]	[F]	[F]	[F]	[F]
Net Inc. after Fed. Income Tax	[F]	[F]
[F]	[F]	[F]	[F]
Column Verification	[L]	[L]	[L]	[L]
Application Problem 14-6
Before Federal Income Tax	Federal Income Tax	Rate
Total of Income Statement Credit	[F]	First $50,000	15%	[F]
Total of Income Statement Debit	[F]	Next $25,000	25%	[F]
Net Income Before Federal Taxes	[F]	Next $25,000	34%	[F]
[F]	-	100,000.00 =	[F]	39%	[F]
Total Federal Income Tax	[F]