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 "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:
Intermediate Accounting, 15 Edition by Kieso, Weygandt, and Warfield
th

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 $4,900
Depreciation of office furniture and equipment 3,960
Cost of goods sold 60,570
Rent revenue 17,230
Selling expenses
Transportation-out 2,690
Sales commissions 7,980
Depreciation of sales equipment 6,480
Sales 96,500
Income tax 9,070
Interest expense 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)

Title Amount
Title Amount
Title Formula

Operating Expenses
Title
Account Title Amount
Account Title Amount
Account Title Amount Formula
Title
Account Title Amount
Account Title Amount Formula Formula
Title Formula

Other Revenues and Gains

Account Title Amount
Formula
Other Expenses and Losses
Account Title Amount

345808204.xlsx, E4-5, Page 3 of 9, 02/18/2017, 17:12:05

Name: Date:
Instructor: Course:
Income before taxes Formula
Account Title Amount
Net income Formula

Title Formula

(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 Amount
Title Amount
Total revenues Formula

Expenses
Title Amount
Title Amount
Title Amount
Title Amount
Total expenses Formula

Income before taxes Formula

Title Amount
Net income Formula

Title Formula

(c) Which one do you prefer? Discuss.

Single-step:

Multiple-step:

345808204.xlsx, E4-5, Page 4 of 9, 02/18/2017, 17:12:05

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

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 Net income Dividends declared

2013 $40,000 $0
2014 125,000 50,000
2015 160,000 50,000

The following information relates to 2014:

Income before income taxes $240,000
Prior period adjustment: Understatement of 2012 depreciation expense.
(Before taxes) $25,000
Cumulative decrease in income from change in inventory methods (before taxes) $35,000
Dividends declared $100,000
Of the dividends declared to date, the amount that will be paid on Jan 15, 2015 is: $25,000
Effective tax rate 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 Amount
Title Amount
Title
Amount
Title Formula
Add: Net income Amount
Formula
Title Amount
Title Formula

(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?

Enter text answer here.

Retained earnings
Appropriated Amount
Unappropriated Amount
Total Amount

345808204.xlsx, E4-12, Page 5 of 9, 02/18/2017, 17:12:05

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

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 Credits
Purchase Discounts $10,000
Cash $189,700
Accounts Receivable 105,000
Rent Revenue 18,000
Retained Earnings 160,000
Salaries and Wages Payable 18,000
Sales 1,100,000
Notes Receivable 110,000
Accounts Payable 49,000
Accumulated Depreciation-Equipment 28,000
Sales Discounts 14,500
Sales Returns 17,500
Notes Payable 70,000
Selling Expenses 232,000
Administrative Expenses 99,000
Common Stock 300,000
Income Tax Expense 53,900
Cash Dividends 45,000
Allowance for Doubtful Accounts 5,000
Supplies 14,000
Freight-in 20,000
Land 70,000
Equipment 140,000
Bonds Payable 100,000
Gain on Sale of Land 30,000
Accumulated Depreciation-Building 19,600
Inventory 89,000
Building 98,000
Purchases 610,000
Totals $1,907,600 $1,907,600

A physical count of inventory on December 31 resulted in an inventory amount of $64,000

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

345808204.xlsx, Problem 4-2, Page 6 of 9, 02/18/2017, 17:12:05

Name: Date:
Instructor: Course:
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.
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 Amount
Title Amount
Title Amount
Total revenues Formula

Expenses
Title Amount
Title Amount
Title Amount
Total expenses Formula

Income before income taxes Formula

Title Amount
Title Formula

Earnings per share Formula

Computation of cost of goods sold:

Merchandise inventory, Jan. 1 Amount
Account Title Amount
Account Title Amount
Title Formula
Account Title Amount Formula
Title Amount
Less merchandise inventory, Dec. 31 Amount
Cost of goods sold Formula

THOMPSON CORPORATION
Statement of Retained Earnings
For the Year Ended December 31, 2014

Retained earnings January 1, Amount

Plus net income Amount
Formula
Less cash dividends declared and paid Amount
Retained earnings, December 31, Formula

345808204.xlsx, Problem 4-2, Page 7 of 9, 02/18/2017, 17:12:05

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

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 amount
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
method. The effect of this change on prior years is to increase 2012 income by $60,000
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.
Common shares outstanding for the year are 120,000 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
Title Formula
Title Formula
Income from continuing operations Formula
Title
Title Amount
Title Formula Formula
Title Formula
Title
Title Amount
Title Formula Formula
Net income Formula

Per share of common stock:

Title Formula
Title Formula
Title Formula
Title Formula

345808204.xlsx, Problem 4-3, Page 8 of 9, 02/18/2017, 17:12:05

Name: Date:
Instructor: Course:
Title Formula

Computation of income from continued operations before taxes:

(a)

As previously stated Amount

Title Amount
Title Formula
Title
Title Formula
Title Formula Formula
Title Formula

(b)
Computation of income tax:
Title Formula
Title Formula
Title Formula
Title Percentage
Title Formula

Text as desired.

345808204.xlsx, Problem 4-3, Page 9 of 9, 02/18/2017, 17:12:05