W3-T1, W3-T2, W3-T3

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w3_assignment.xls

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Instructions

Instructions for the Microsoft Excel Templates

This workbook (and only this workbook) should be submitted for grading.

Assignment detail and information is contained within this workbook.

You should enter your name into the cell at the top of the page.

Each worksheet contains the identification of the problem or exercise.

In general, the yellow highlighted cells are the cells which work and effort should be presented.

All formatting should have been accomplished to provide satisfactory presentation. See the text for additional assistance in formatting.

Place the proper account title in the cell where the word "Account title" appears on the template.

Place the value in the cell where the word "Value" or "Amount" appears on the template. A formula may be placed in some of these cells.

Write a formula into cells where the word "Formula" appears.

Place the explanation for the entry in the cell where the word "Text Explanation" appears on the template.

The print area is defined to fit onto 8 1/2" X 11" sheets in portrait or landscape mode as required.

The problem is formatted for whole dollars with comma separations (no cents) except where required.

Negative values may be shown as ($400) or -$400.

Consider using "Split" panes to assist in copy and paste of data.

Much of the exercises and problems can have data entered by the "look to" or "=A34" type formula where cell A34 contains the data to be entered. This precludes typing and data entry errors.

W3-T1

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

W3-T2

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

W3-T3

Team #:
Problem:	W3-T3 Recognition of Profit - Percentage of Completion (Chapter 18)
In 2012, Smith Construction Company agreed to construct an apartment building at a price of $2,400,000. The information regarding the costs and billings on this contract are shown below.
			2012	2013	2014
	Costs incurred to date		$ 560,000	$ 1,200,000	$ 1,570,000
	Estimated costs yet to be incurred		$ 1,040,000	$ 400,000	$ - 0
	Customer billings to date		$ 300,000	$ 1,000,000	$ 2,400,000
	Collection of billings to date		$ 240,000	$ 640,000	$ 1,880,000
Instructions:
(a) Assuming the percentage of completion method is used, compute the amount of gross profit to be recognized in 2012 and 2013.
Gross Profit Recognized in 2012
Contract Price		Amount
Costs:
Costs to Date		Amount
Estimated Additional Costs		Amount
Total Costs		Formula
Total Estimated Profits		Formula
Percentage Completion to Date		Formula
Gross Profit Recognized in 2012		Formula
Gross Profit Recognized in 2013
Contract Price		Amount
Costs:
Costs to Date		Amount
Estimated Additional Costs		Amount
Total Costs		Formula
Total Estimated Profits		Formula
Percentage Completion to Date		Formula
Total Gross Profit Recognized		Formula
Less: Gross Profit Recognized in 2012		Amount
Gross Profit Recognized in 2013		Formula
(b) Prepare the jounal entries for 2013.
Account Title	Amount
Account Title		Amount
Account Title	Amount
Account Title		Amount
Account Title	Amount
Account Title		Amount
Account Title	Amount
Account Title	Amount
Account Title		Amount
(c) For 2013, show how the details related to the construction contract would be disclosed on the balance sheet and the income statement.
Income Statement (Partial)
Title	Amount
Balance Sheet (Partial)
December 31, 2013
Current Assets:
Title	Amount	(1)
Title	Amount	(2)
Computation Amount #1
Computation Amount #2