Extensive detail and information is contained within the help function of Microsoft Excel and in the provided text.

You should enter your name, date, instructor's name, and course into the cells at the top of the page. This information will be
printed on the top of each page if the template requires more than one page.
If more than one page is required by the template, manual page breaks have been set to provide consistent
presentation.
And information or data which may be required by the solution will be entered in cells with borders to help identify them.
Where a highlighted cell shows "Acct Nbr" enter the appropriate account number, provided in the template and in the text for
that step of the challenge. This is entry may be a "Look to" formula to another cell where that information has been provided
or previously entered.
Where a highlighted cell shows "Account Title" enter the appropriate account title for that step of the challenge. This is a text
entry and most of those cells are set for the proper indentation for that step. Frequently the chart of accounts appropriate to
the challenge is provided and you can use the "look to" formula to reference the appropriate account title without typing it.
Check with your instructor to see if abbreviated account titles are acceptable. For example "A/R" for Accounts Receivable,
"A/P" for Accounts Payable. If your instructor is using a comparison process between workbooks for grading, these
abbreviates may not be acceptable.
Where a highlighted cell shows titles such as "Values," "Amounts," or "Quantities" enter the appropriate numerical value for
that step of the challenge. The cell is formatted for proper presentation of the entered information. If a dollar sign is
appropriate, it should not be entered, Microsoft Excel will place it there through formatting. Commas and significant digits
(decimals) are also set through formatting for common presentation. Since the formatting of the templates is not protected by
any password, you may change any of the formatting found in the templates to meet your desires.
Where a highlighted cell shows titles such as "Formula" you may enter the appropriate formula or enter a numerical value
appropriate for that step of the challenge. Most of the values necessary for the appropriate formula are located on the
template in cells with borders or in other yellow highlighted cells. The formula may be a simple "Look to" formula, an equal
sign and a cell reference, "=E27" or more complex as "=E27*5," or something similar to the time-value-of-money formula.
These are addressed in the tutorial text provided for Microsoft Excel.
Be advised, the template workbooks and worksheets are not protected.
Overtyping any data may remove it.
Each template is set to print with File Name, Page # of # Page(s), the print date, and the print time to assist in
assembly of multiple pages.
All of the cells have been correctly formatted for presentation and should not require any adjustment. For
example, if the text requires one, two, or three significant digits in a presentation, the template has been set for
that presentation in the appropriate cells.
In general, the highlighted cells are the cells which work and effort should be presented. These entries may include date(s),
account title(s), values, memorandum appropriate to the entry, or text answers to questions.
Where a highlighted cell shows "Date" enter the appropriate date for that step of the challenge. This may be any date format
that Microsoft Excel accepts. Some of these formats include "1/1/12", "01/01/12", and "01/01/2012." All of these will return
January 01, 2012, in the format set in the template.
Where a highlighted cell shows titles such as "Formula" you may enter the appropriate formula or enter a numerical value
appropriate for that step of the challenge. Most of the values necessary for the appropriate formula are located on the
template in cells with borders or in other yellow highlighted cells. The formula may be a simple "Look to" formula, an equal
sign and a cell reference, "=E27" or more complex as "=E27*5," or something similar to the time-value-of-money formula.
These are addressed in the tutorial text provided for Microsoft Excel.
Where a highlighted cell shows "Text" enter the appropriate text for that step of the challenge. This may be a memorandum
entry for a journal entry or a lengthy text answer discussing the results of an analysis of a company's financials. These titles
can simply be typed over.
Where a highlighted cell shows titles such as "Journal Number" or "Journ #" you should enter the appropriate number
provided in the template and in the text for that step of the challenge. In general this will appear in instances such as "Record
the following events in General Journal number six."
The print area is defined to fit onto 8 1/2" 11" sheets in portrait or landscape mode as required. Margins are generally set
to no less than 1/2" so most printers can print them without a problem. If you printer cannot accept margins less than 1" you
may have to reformat the margins through Page Setup.
The display may have "Freeze Pane" invoked so column titles remain visible during data entry. This can be removed by
utilizing the View menu and selecting "Unfreeze Panes" under "Freeze Panes."
When negative values are required, enter them by starting with a minus sign, "-". Negative values may be shown as ($400) or
-$400. Negative values in formulas can be created by putting a minus sign in front of the cell reference - "=E10*-E11" will
return a negative value if both cells E10 and E11 contain positive values.
Name: Date:
Instructor: Course:
$4,900
3,960
60,570
17,230
2,690
7,980
6,480
96,500
9,070
1,860
40,550
Amount
Amount
Formula
Amount
Amount
Amount Formula
Amount
Amount Formula Formula
Formula
Amount
Formula
Amount
Other Revenues and Gains
Account Title
Other Expenses and Losses
Account Title
Account Title
Title
Account Title
Account Title
Title
Operating Expenses
Title
Account Title
Account Title
(In thousands, except earnings per share)
Title
Title
Title
outstanding for 2014 total (000 omitted).
P. Bride Company
Multi-Step Income Statement
For the Year Ended December 31, 2014
Sales
Income tax
Interest expense
Instructions:
(a) Prepare an income statement for the year 2014 using the multiple-step form. Common shares
Delivery expense
Sales commissions
Depreciation of sales equipment
E4-5 (Multiple-Step and Single-Step) Two accountants for the firm of Elwes and Wright are
arguing about the merits of presenting an income statement in a multiple-step versus a single-step
format. The discussion involves the following 2014 information related to P. Bride Company ($000
Administrative expenses
Officers' salaries
Depreciation of office furniture and equipment
Intermediate Accounting, 15
th
Edition by Kieso, Weygandt, and Warfield
Cost of goods sold
Rent revenue
Selling expenses
Formula
Amount
Formula
Formula
40,550
Amount
Amount
Formula
Amount
Amount
Amount
Amount
Formula
Formula
Amount
Formula
Formula
(c) Which one do you prefer? Discuss.
Single-step:
Multiple-step:
Title
Net income
Title
Title
Total expenses
Income before taxes
Expenses
Title
Title
Title
Net sales
Title
Total revenues
Single-Step Income Statement
For the Year Ended December 31, 2014
(In thousands, except earnings per share)
Revenues
(b) Prepare an income statement for the year 2014 using the single-step form. Common shares
outstanding for 2014 total (000 omitted).
P. Bride Company
Income before taxes
Account Title
Net income
Title
Name: Date:
Instructor: Course:
Year Net income
2011 $40,000
2012 125,000
2013 160,000
$240,000
$25,000
$35,000
$100,000
$25,000
40%
Amount
Amount
Formula
Amount
Formula
Amount
Formula
$70,000
Amount
Amount Unappropriated
Retained earnings
Appropriated
Title
Add: Net income
Title
Title
(b) AssumeEddie Zambrano Corp. restricted retained earnings in the amount of
on December 31, 2014. After this action, what would Zambrano report as total retained
earnings in its
December 31, 2014, balance sheet?
Enter text answer here.
Retained Earnings Statement
For the Year Ended December 31, 2014
Balance, January 1, as reported
Title
Title
Amount
Eddie Zambrano Corporation
Income before income taxes
Prior period adjustment: Understatement of 2012 depreciation expense.
(Before taxes)
Cumulative decrease in income from change in inventory methods (before taxes)
Dividends declared
Of the dividends declared to date, the amount that will be paid on Jan 15, 2015 is:
Effective tax rate
Instructions:
(a) Prepare a 2014 retained earnings statement for Eddie Zambrano Corporation.
The following information relates to 2014:
E4-12 (Retained Earnings Statement) Eddie Zambrano Corporation began operations on January
1, 2011. During its first 3 years of operations, Zambrano reported net income and declared
dividends as follows.
Dividends declared
$0
50,000
50,000
Intermediate Accounting, 15
th
Edition by Kieso, Weygandt, and Warfield
Amount Total
Name: Date:
Instructor: Course:
Debits Credits
$10,000
$189,700
105,000
18,000
160,000
18,000
1,100,000
110,000
49,000
28,000
14,500
17,500
70,000
232,000
99,000
300,000
53,900
45,000
5,000
14,000
20,000
70,000
140,000
100,000
30,000
19,600
89,000
98,000
610,000
$1,907,600 $1,907,600
$64,000
$645,000
30,000
Instructions:
Prepare a single-step income statement and a retained earnings statement. Assume that the only
changes in retained earnings during the current year were from net income and dividends.
shares of common stock are outstanding the entire year.
Bonds Payable
Gain on Sale of Land
Accumulated Depreciation-Buildings
Inventory
Buildings
Purchases
Totals
A physical count of inventory on December 31 resulted in an inventory amount of
thus, cost of goods sold for 2014 is
Equipment
Sales Returns and Allowances
Notes Payable
Selling Expenses
Administrative Expenses
Common Stock
Income Tax Expense
Cash Dividends
Allowance for Doubtful Accounts
Supplies
Freight-in
Land
Sales Discounts
Purchase Discounts
Cash
Accounts Receivable
Rent Revenue
Retained Earnings
Salaries and Wages Payable
Sales Revenue
Notes Receivable
Accounts Payable
Accumulated Depreciation-Equipment
December 31, 2014
Intermediate Accounting, 15
th
Edition by Kieso, Weygandt, and Warfield
P4-2 (Single-Step Income, Retained Earnings, Periodic Inventory) Presented below is the trial
balance of Thompson Corporation at December 31, 2014.
THOMPSON CORPORATION
Trial Balance
Amount
Amount
Amount
Formula
Amount
Amount
Amount
Formula
Formula
Amount
Formula
Formula
Amount
Amount
Amount
Formula
Amount Formula
Amount
Amount
Formula
Amount
Amount
Formula
Amount
Formula
Less cash dividends declared and paid
Retained earnings, December 31,
Statement of Retained Earnings
For the Year Ended December 31, 2014
Retained earnings January 1,
Plus net income
THOMPSON CORPORATION
Computation of cost of goods sold:
Merchandise inventory, Jan. 1
Account Title
Account Title
Title
Account Title
Title
Less merchandise inventory, Dec. 31
Cost of goods sold
Earnings per share
Expenses
Title
Title
Title
Total expenses
Income before income taxes
Title
Title
Total revenues
THOMPSON CORPORATION
Income Statement
For the Year Ended December 31, 2014
Revenues
Net sales
Title
Title
Name: Date:
Instructor: Course:
2014 of
$790,000.
$790,000
$790,000
$90,000 46%
$54,000 (salvage
value of $9,000 6
$57,000 (pretax).
$150,000
of $46,000
$115,000 before taxes.
$60,000
$20,000
40%
120,000
of 30%
Formula
Formula
Formula
Amount
Formula Formula
Formula
Amount
Formula Formula
Formula
Formula
Title
Title
Title
Title
Title
Title
Net income
Per share of common stock:
Title
Title
Prepare an income statement for the year 2014 starting with income from continuing operations
before taxes. Compute earnings per share as it should be shown on the face of the income
statement.
Common shares outstanding for the year are shares. (Assume a tax rate
on all items, unless indicated otherwise.)
MAHER INC.
Income Statement (Partial)
For the Year Ended December 31, 2014
Title
Title
Income from continuing operations
Instructions:
The cash surrender value of this policy had been carried on the books as an investment in the amount
(the gain is nontaxable).
5. The corporation disposed of its recreational division at a loss of
Assume that this transaction meets the criteria for discontinued operations.
6. The corporation decided to change its method of inventory pricing from average cost to the FIFO
method. The effect of this change on prior years is to increase 2012 income by
and decrease 2013 income by before taxes. The FIFO method has been
used for 2014. The tax rate on these items is
4. When its president died, the corporation realized from an insurance policy.
P4-3 (Irregular Items) Maher Inc. reported income from continuing operations before taxes during
Additional transactions occurring in 2014 but not considered in the
are as follows.
1. The corporation experienced an uninsured flood loss (extraordinary) in the amount of
during the year. The tax rate on this item is
2. At the beginning of 2012, the corporation purchased a machine for
) that had a useful life of years. The bookkeeper used
straight-line depreciation for 2012, 2013, and 2014 but failed to deduct the salvage value in
computing the depreciation base.
3. Sale of securities held as a part of its portfolio resulted in a loss of
Intermediate Accounting, 15
th
Edition by Kieso, Weygandt, and Warfield
Formula
Formula
Formula
Formula
Amount
Amount
Formula
Formula
Formula Formula
Formula
Formula
Formula
Formula
Percentage
Formula
Text as desired.
(b)
Computation of income tax:
Title
Title
Title
Title
Title
Title
Title
(a)
Computation of income from continued operations before taxes:
As previously stated
Title
Title
Title
Title
Title
Title
Title
Title