Week 3 problems DOCX

Title	Week 3 problems
Author	Tania Busby
Pages	2
File Size	20.1 KB
File Type	DOCX
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Summary

P4-4 The following account balances were included in the trial balance of Twain Corporation at June 30, 2014. Sales revenue $1,578,500 Depreciation expense (office furniture and $ Sales discounts 31,150 equipment) 7,250 Cost of goods sold 896,770 Property tax expense 7,320 Salaries and wages expense...

Description

P4-4 The following account balances were included in the trial balance of Twain Corporation at June 30, 2014. Sales revenue $1,578,500 Depreciation expense (ofce furniture and equipment) $ 7,250 Sales discounts 31,150 Cost of goods sold 896,770 Property tax expense 7,320 Salaries and wages expense (sales) 56,260 Bad debt expense (selling) 4,850 Sales commissions 97,600 Maintenance and repairs expense (administration) 9,130 Travel expense (salespersons) 28,930 Delivery expense 21,400 Ofce expense 6,000 Entertainment expense 14,820 Sales returns and allowances 62,300 Telephone and Internet expense (sales) 9,030 Dividends received 38,000 Depreciation expense (sales equipment) 4,980 Interest expense 18,000 Maintenance and repairs expense (sales) 6,200 Income tax expense 102,000 Miscellaneous selling expenses 4,715 Depreciation understatement due to error— 2011 (net of tax) 17,700 Ofce supplies used 3,450 Telephone and Internet expense (administration) 2,820 Dividends declared on preferred stock 9,000 Dividends declared on common stock 37,000 The Retained Earnings account had a balance of $337,000 at July 1, 2013. There are 80,000 shares of common stock outstanding. Instructions (a) Using the multiple-step form, prepare an income statement and a retained earnings statement for the year ended June 30, 2014. (b) Using the single-step form, prepare an income statement and a retained earnings statement for the year ended June 30, 2014 P18-2 Shanahan Construction Company has entered into a contract beginning January 1, 2014, to build a parking complex. It has been estimated that the complex will cost $600,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $900,000. The following data pertain to the construction period. 2014 2015 2016 Costs to date $270,000 $450,000 $610,000 Estimated costs to complete 330,000 150,000 -0- Progress billings to date 270,000 550,000 900,000 Cash collected to date 240,000 500,000 900,000 Instructions (a) Using the percentage-of-completion method, compute the estimated gross proft that would be recognized during each year of the construction period. (b) Using the completed-contract method, compute the estimated gross proft that would be recognized during...