SPRING 2016 EXTRA CREDIT ASSIGNMENT
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spring_2016_extra_credit_assignment_questions.docxINTERMEDIATE ACCOUNTING
EXTRA CREDIT ASSIGNMENT
TOTAL POINTS AVAILABLE: 20 POINTS
INSTRUCTIONS: Students must complete all six parts of the assignment in order to receive extra credit. Your answers must be typed in a professional format. Handwritten assignments will receive a grade of zero. If two or more students submit identical work (answers, formatting, etc.), a grade of zero will be assigned. You are allowed to use your textbook and class notes to complete this assignment.
DUE DATE: E-mailed to professor before 6:30 p.m. on March 28. Work submitted in any other manner will receive a grade of zero.
ASSIGNMENT 1: Using Chapter FOUR Exercise Set B (available in Blackboard folder titled “extra credit”), complete Exercise 4-2B.
ASSIGNMENT 2: Using Chapter FOUR Exercise Set B (available in Blackboard folder titled “extra credit”), complete Exercise 4-12B.
ASSIGNMENT 3: Porter Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2014 an analysis of the accounts and discussions with company officials revealed the following information:
Sales revenue $1,200,000
Earthquake loss (BEFORE TAX) (extraordinary item) 56,000
Selling expenses 128,000
Cash 60,000
Accounts receivable 90,000
Common stock 200,000
Cost of goods sold 701,000
Accumulated depreciation-machinery 180,000
Dividend revenue 8,000
Unearned service revenue 4,400
Interest payable 1,000
Land 370,000
Patents 100,000
Retained earnings, January 1, 2014 290,000
Interest expense 17,000
Administrative expenses 170,000
Dividends declared 24,000
Allowance for doubtful accounts 5,000
Notes payable (maturity 7/1/17) 200,000
Machinery 450,000
Materials 40,000
Accounts payable 60,000
The amount of income taxes applicable to ordinary income was $57,600, excluding the tax effect of the earthquake loss which amounted to $24,000.
Instructions
(a) Prepare a multiple-step income statement.
(b) Prepare a retained earnings statement.
ASSIGNMENT 4: Using Chapter FIVE Exercise Set B (available in Blackboard folder titled “extra credit”), complete Exercise 5-12b.
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