ACC 421 Week 3 ACC 421 Week 3 Individual Assignment P1,P2,P3 And P4 Click Here to Buy the Tutorial http://www.uoptutorial.com/index.php?route=product/product &path=157&product_id=2152 For more course tutorials visit
Submit Submitresponses to the individual assignment for week 3 posted in the Course-Materials forum. Problem 1: Grading: This problem is worth a total of 18.75 points. There are 23grading elements each worth 18.75 x 2/3 / 23 = 0.5435 points. There are 18.75 x 1/3 = 6.25 points available for effort. The following are general ledger balances of the RTQ Company as of December 31, 2013: Cost of goods sold Fair Market Value appreciation on land above cost Cash dividends declared and paid Rental revenue Administrative salaries Sales salaries Sales supplies expense Interest expense on notes payable Depreciation expense on sales related assets
$585,000 42,000 32,000 32,000 86,000 92,000 22,000 50,000 34,000
Depreciation expense on administrative related assets Other administrative expense Net sales Income tax
46,000 22,000 1,078,000 42,000
The company had 49,000 shares of common stock issued and outstanding during the entire year. The company ends its fiscal accounting year on December 31. Instructions: A: Prepare a multiple-step income statement in good form. B: Prepare a single-step income statement in good form.
Problem 2: Grading: This problem is worth a total of 18.75 points. There are 22grading elements each worth 18.75 x 2/3 / 22 = 0.5682 points. There are 18.75 x 1/3 = 6.25 points available for effort. The following information pertains to the BBR Company for the year ending December 31, 2010: Administrative expenses Cash dividends declared Cost of goods sold Extraordinary gain Extraordinary loss Income tax applicable to continuing operations Income tax applicable to extraordinary gain Income tax applicable to extraordinary loss
$303,000 189,000 1,074,000 120,000 76,000 236,200 40,800 25,700
Income tax applicable to discontinued operations Loss on discontinued operations Rent revenue Retained earnings, January 1, 2010 Sales Selling expenses Unrealized holding gain on available-for-sale securities Common shares outstanding during 2010
32,200 95,000 51,000 758,000 2,400,000 379,000 19,000 126,000
Instructions: A: Prepare a single-step income statement for 2010. B: Prepare a retained earnings statement for 2010. C: Show how comprehensive income is reported using the second income statement format. The company ends its fiscal accounting year on December 31. Problem 3: Grading: This problem is worth a total of 18.75 points. There are 16grading elements each worth 18.75 x 2/3 / 16= 0.7813 points. There are 18.75 x 1/3 = 6.25 points available for effort. The PNK Company is in the business of construction. In 2016 it negotiated a contract with the TAT Company to build a new factory building for the TAT Company. The negotiated total contract price of the factory building was agreed to be $5,200,000 As the construction progressed through completion, the following information was compiled: 2016
Contract billings to date Collections to date Costs incurred to date Estimated costs to complete
$1,040,000 936,000 1,387,000 2,080,000
$3,120,000 2,808,000 3,241,000 572,000
$5,200,000 4,940,000 3,709,000 0
Instructions: A. Assuming that the PNK Company uses the percentage-ofcompletion method to account for long term contracts: 1. For each year, compute the amount of gross profit that should be recognized. 2. Prepare all necessary journal entries that the PNK Company should record for 2017. B. Assuming that the PNK Company uses the completed-contract method to account for long term contracts: 1. For each year, compute the amount of gross profit that should be recognized. The PNK Company closes it fiscal accounting year on December 31.
Problem 4: Grading: This problem is worth a total of 18.75 points. There are 5grading elements each worth 18.75 x 2/3 / 5 = 2.5000 points. There are 18.75 x 1/3 = 6.25 points available for effort. The KDG Company constructs buildings. It entered into a three-year contract in 2014 to construct a building for a total contract price of $2,500,000 The company uses the percentage-of- completion method to recognize income under long term construction contracts; and recognizes income each year based on the proportion of cost incurred to the total estimated costs for the contract. Financial statement information pertaining to the contract as of December 31, 2014 follows: Income Statement Income recognized
Balance Sheet Accounts receivable Construction in progress Less: Contract billings Cost of uncompleted contract in excess of billings
$53,800 $162,500 153,800 8,700
Instructions: A.Compute the initial estimated total income on this contract?
B.Compute the total amount actually collected on this contract in 2014. The company ends it fiscal accounting year on December 31. Note: Ignore the effect of income taxes.