Be advised, the template workbooks and worksheets are not protected.

Overtyping any data may remove it.

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.
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.
If more than one page is required by the template, manual page breaks have been set to provide consistent
presentation.
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.
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 "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 "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.

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:
10/19/15
Instructor:
Course:
AC3050
th
Intermediate Accounting, 15 Edition by Kieso, Weygandt, and Warfield

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
omitted).
Administrative expenses
Officers' salaries
Depreciation of office furniture and equipment
Cost of goods sold
Rent revenue
Selling expenses
Delivery expense
Sales commissions
Depreciation of sales equipment
Sales
Income tax
Interest expense

$4,900
3,960
60,570
17,230
2,690
7,980
6,480
96,500
9,070
1,860

Instructions:
(a) Prepare an income statement for the year 2014 using the multiple-step form. Common shares
outstanding for 2014 total
40,550
(000 omitted).
P. Bride Company
Multi-Step Income Statement
For the Year Ended December 31, 2014
(In thousands, except earnings per share)
Sales
Cost of goods sold
Gross Profit
Operating Expenses
Selling expenses
Delivery expense
Sales Commissions
Depreciation of sales equipment
Administrative expenses
Officers' salaries
Depreciation of office furniture and equipment
Income from operations
Other Revenues and Gains
Rent revenue
Other Expenses and Losses

$96,500
60,570
35,930

$2,690
7,980
6,480

$17,150

4,900
3,960

8,860

26,010
9,920

17,230
27,150

Interest expense

1,860

Income before taxes

Income tax
Net income

25,290
9,070
16,220

Earnings per share (16,220/40,550)

$0.40

(b) Prepare an income statement for the year 2014 using the single-step form. Common shares
outstanding for 2014 total
40,550
(000 omitted).
P. Bride Company
Single-Step Income Statement
For the Year Ended December 31, 2014
(In thousands, except earnings per share)
Revenues
Net sales
Rent revenue
Total revenues
Expenses
Cost of Goods Sold
Selling expenses
Administrative expenses
Interest expense
Total expenses
Income before taxes
Income tax
Net income
Earnings per share (16,220/40500)

$96,500
17,230
113,730

$60,570
17,150
8,860
1,860
$88,440
25,290
9,070
$16,220
$0.40

(c) Which one do you prefer? Discuss.

Single-step: I prefer the single step because it puts all revenues together and total, plus all
expenses are together with a total. It is less formulas that I have to put into cells as
well.

Multiple-step:

Name:
Date:
10/18/15
Instructor:
Course:
AC3050
th
Intermediate Accounting, 15 Edition by Kieso, Weygandt, and Warfield

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.
Year
2011
2012
2013

Net income
$40,000
125,000
160,000

Dividends declared
$0
50,000
50,000

The following information relates to 2014:

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
Effective tax rate

$240,000
$25,000
$35,000
$100,000
$25,000
40%

Instructions:
(a) Prepare a 2014 retained earnings statement for Eddie Zambrano Corporation.
Eddie Zambrano Corporation
Retained Earnings Statement
For the Year Ended December 31, 2014
Balance, January 1, as reported
Correction for understatement of depreciation expense
Adjustment for change in inventory methods
Balance, January 1, as adjusted
Add: Net income
Less: Dividends declared
Balance, December 31, 2014

$225,000
35,000
49,000
309,000
144,000
453,000
25,000
$428,000

(b) AssumeEddie Zambrano Corp. restricted retained earnings in the amount of

$70,000
on December 31, 2014. After this action, what would Zambrano report as total retained
earnings in its
December 31, 2014, balance sheet?
$498,000 would be reported as total retained earnings.

Retained earnings

Appropriated
Unappropriated
Total

$70,000
428,000
$498,000

Name:
Date:
10/24/15
Instructor:
Course:
AC3050
th
Intermediate Accounting, 15 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
December 31, 2014
Debits
Purchase Discounts
Cash
Accounts Receivable
Rent Revenue
Retained Earnings
Salaries and Wages Payable
Sales Revenue
Notes Receivable
Accounts Payable
Accumulated Depreciation-Equipment
Sales Discounts
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
Equipment
Bonds Payable
Gain on Sale of Land
Accumulated Depreciation-Buildings
Inventory
Buildings
Purchases
Totals

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

A physical count of inventory on December 31 resulted in an inventory amount of

thus, cost of goods sold for 2014 is
$645,000

$64,000

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.

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.
30,000
shares of common stock are outstanding the entire year.
THOMPSON CORPORATION
Income Statement
For the Year Ended December 31, 2014
Revenues
Net sales
Rent revenue
Gain on sale of land
Total revenues

$1,068,000
18,000
30,000
$1,116,000

Expenses
Cost of Goods Sold
Selling expenses
Administrative expenses
Total expenses

645,000
232,000
99,000
976,000

Income before income taxes

Income taxes
Net income

140,000
53,900
$86,100

Earnings per share

Computation of cost of goods sold:
Merchandise inventory, Jan. 1
purchases
less purchase discounts
Net purchases
add freight in
Merchandise available for sale
Less merchandise inventory, Dec. 31
Cost of goods sold

$2.87

$89,000
$610,000
10,000
600,000
20,000

620,000
709,000
64,000
$645,000

THOMPSON CORPORATION
Statement of Retained Earnings
For the Year Ended December 31, 2014
Retained earnings January 1,
Plus net income
Less cash dividends declared and paid
Retained earnings, December 31,

$160,000
86,100
246,100
86,100
$160,000

Name:
Date:
10/25/15
Instructor:
Course:
AC3050
th
Intermediate Accounting, 15 Edition by Kieso, Weygandt, and Warfield
P4-3 (Irregular Items) Maher Inc. reported income from continuing operations before taxes during
2014 of
$790,000 Additional transactions occurring in 2014 but not considered in the
$790,000.
$790,000 are as follows.
1. The corporation experienced an uninsured flood loss (extraordinary) in the amount of
$90,000
during the year. The tax rate on this item is
46%
2. At the beginning of 2012, the corporation purchased a machine for
$54,000
(salvage
value of
$9,000
) that had a useful life of
6
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
$57,000
(pretax).
4. When its president died, the corporation realized
$150,000 from an insurance policy.
The cash surrender value of this policy had been carried on the books as an investment in the amoun
of
$46,000
(the gain is nontaxable).
5. The corporation disposed of its recreational division at a loss of
$115,000 before taxes.
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
$60,000
method. The effect of this change on prior years is to increase 2012 income by
and decrease 2013 income by
$20,000
before taxes. The FIFO method has been
used for 2014. The tax rate on these items is
40%
Instructions:
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.
120,000
Common shares outstanding for the year are
shares. (Assume a tax rate
of
30%
on all items, unless indicated otherwise.)
MAHER INC.
Income Statement (Partial)
For the Year Ended December 31, 2014
Income from continuing operations before taxes
Income taxes
Income from continuing operations
Discontinued operations
Loss from disposal of recreation division
$115,000
Less applicable inc tax reduction
40,000
Income before extraordinary item
Extraordinary item:
Major casualty loss
90,000
Less applicable inc tax reduction
41,400
Net income

$838,500
293,800
544,700

75,000
469,700

48,600
$421,100

Per share of common stock:

Income from continuing operations
Discontinued operations
Income before extraordinary items
Extraordinary item
Net income
Computation of income from continued operations before taxes:
As previously stated
loss on sale of securities
gain on proceeds of life insurance policy
Error in calculation of depreciation
as calculated
9,000
as corrected
7,500
as restated

$4.54
0.63
3.91
0.41
$3.51

(a)

(b)

Computation of income tax:

Income from continuing operations before tax
Non taxable income (gain on life insurance)
Taxable income
Tax rate
Tax expense

Text as desired.

$790,000
(57,000)
104,000

1,500
$838,500

$838,500
(104,000)
734,500
40%
$293,800