~~~~~Income Statement~~~~~ You only need to finish IS tab.


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Apr 21, 2014. ~~~~~Income Statement~~~~~ You only need to finish IS tab. Actually the IS almost done, just need finish earnings per share part at the bottom under IS tab. ATTACHMENT PREVIEW Download attachment project.xls Do 11 Steps for 2014, each Step in separate Excel Tab (following the Year 2 & Year 1 Tabs below, unchanged except for Members names above) in order & each titled as shown below (in blue): 1) JE’s & AJE’s: Record with Date, Reference # & explanation (with calcs), rounding to $’s (no cents). 2) GL: Post all entry info to accounts in proper FS order & use "Beg" or JE Ref. # for each amount. (Important Note: Input all real acct beg. balances & check that GL balances before posting 2nd Year JE’s). 3) ATB: Prepare Adjusted Trial Balance at 12/31/14 with all accounts in FS order. 4) Tax AJE: Prepare Tax Worksheet (sample in Project BB Tab) and update Steps 1 to 3 for Tax AJE. 5) IS: Prepare Income Statement for 2014 (including comparative, side-by-side columns) . 6) SSE: Prepare 2014 Statement of Stockholders’ Equity (with comparative top/bottom schedules & no CI) 7) BS SE: Prepare Stockholders’ Equity Section of 12/31/14 BS (with comparative, side-by-side columns). 8) SCI: Prepare 2014 Statement of Comprehensive Income (with comparative side-by-side columns). 9) SCFs: Prepare 2014 SCFs using Direct Method (with comparative columns & Indirect Method in Notes). 10) Selective Notes: Prepare only: 1) Accounting Policies, 2) EPS Reconciliation, 3) All SCFs disclosures. 11) CJE: Prepare Closing Entry (only simpler one, without Income Summary account). Note: Project steps require neither a complete BS (only SE Section) nor a 10-Column Worksheet. Events for Owl Co., during 2014 (their 2nd Fiscal Year), are as follows: 1/1/2014 Pay bond interest, then 60% of bonds convert (Owl uses BV Method; MV: $2.70 CS & 105 Bonds) 2/15 Receive MJM div (70% DRD for tax). Client billed $10k on 6/21/13 pays $2,000 and "skips town". 3/5 Collect all accounts receivable to date, and pay last year’s divs and income tax (as estimated). 4/29 Complete work for advance fees received 6/21/13, pay consultants, & pay bldg note interest. 5/27 Pay $1,000 taking Zip Co. to dinner & sign 36-month consulting contract for $2.6 million. Reissue 80% of remaining treasury shares at $3 each, which remains at $3 per share thru 12/31/14. 6/6 Receive semi-annual PA State bond interest and pay $500 to City of Phila. for trash violations. Establish an employee pension plan with 2014 as 1st year. Funding to be based on 2% of total book revenues at each year end. For tax, assume only amount actually funded is deductible. 7/2 Pay semi-annual bond interest payment & pay $10,000 to Phila. for real estate & BU&O taxes. Buy $25,000 of supplies on credit because only $1,000 of supplies are now left. 8/30 Pay off car loan & interest to date plus $600 bank penalty for late principal payment. Receive $1,000,000 advance fees; by 12/31, 55% of work is completed & consultants are paid. 9/28 Pay $9,000 for next 6-months of executive life insurance premiums and pay to renew another 18 months of building insurance at a 10% increase from the last rate. 10/1 Pay $238,000 to Lessor Co. as 1st annual payment on the signing of a 3-year, noncancelable computer lease to begin 11/1. Each annual payment includes $25,200 for tax and insurance, and Owl will pay maintanance cost for the equipment. Lessor Co. bought the computers for $700,000, used an implicit lease rate of 8%, and expects the life of the computers to be 4 years before they become obsolete. Owl’s incremental borrowing rate is 10%. If capitalized, Owl will use the simplest method to expense. Assume that there are no book-tax differences with this lease. 11/13 Incur $429,000 of costs for 36-month Zip contract, paying 70% now, rest on credit, & progress bill Zip Co. for 90% of cost to d…

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