Given below is an unadjusted trial balance for Lane Company at the end of the accounting...
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Given below is an unadjusted trial balance for Lane Company at the end of the accounting period. Account Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Prepaid insurance Land Building Accumulated depreciation-building Office equipment Accumulated depreciation-office equipment Accounts payable Interest payable Long-term note payable Common stock, $2 par Paid-in capital in excess of par value Retained earnings Sales Cost of goods sold Sales salaries expense Advertising expense Doubtful accounts expense Miscellaneous selling expense Administrative salaries expense Utilities expense Interest expense Insurance expense Depreciation expense-building Depreciation expense-office equipment Miscellaneous administrative expenses Totals Debits 20,950 60,000 43,756 8,000 40,000 200,000 120,000 208,000 78,000 24,000 5,200 76,000 8,244 2,000 6,000 5,500 905,650 Credits 800 12,000 6,000 38,405 72,000 50,000 65,000 124,445 537,000 905,650 Additional Information: 1. 2. 3. REQUIRED: 1. 2. 2. A perpetual inventory system is used. For simplicity, there will be only 5 adjustments: Doubtful accounts, insurance, the two depreciation items, and interest. Additional accounts (not included on the trial balance) will be Income tax expense and Income tax payable. (It is not necessary to add these accounts to the trial balance.) For simplicity, the assumption will be that income tax payable equals income tax expense. 3. Construct a workbook of 3 sheets. Sheet I will be the input section. Sheet 2 will automatically calculate a 10-column worksheet. Sheet 3 will automatically calculate a multiple-step income statement (including EPS). Name your file Lanel and save your work periodically. SHEET 1: Design an input section containing all of the accounts shown in the unadjusted trial balance. The input section should be able to accept changes in balances for all the listed accounts. Even if the unadjusted amount in an account to be adjusted is zero, the spreadsheet should add the zero amount to the adjustment. (Although the unadjusted amount may be zero for this period, it may be a non-zero amount in subsequent periods.) Additionally, the input section should facilitate easy input of the 5 adjustments. Only one input of each adjustment should be used. (That is, do not require the entry of both a debit and credit.) Label the sheet 1 tab as "Input." DO NOT REQUIRE THE ADJUSTMENTS TO BE ENTERED IN THE BODY OF THE TRIAL BALANCE. SHEET 2: Label the tab for sheet 2 as Worksheet. When an input section is used, it is desirable to have only cell references and formulas in the output sections (worksheet and income statement). An exception might be made for the calculation of income tax expense since the tax rates are not likely to change often. HOWEVER, FOR THIS ASSIGNMENT, PUT THE INCOME LEVELS AND TAX RATES IN THE INPUT SECTION. Thus, only cell references and formulas will be in the output section. Examples of a 10-column worksheet are attached. Place the income tax calculation in the cell which calculates the income tax expense in the "Adjustments" column. For simplicity, assume an income tax rate of 20% for income up to $50,000 and a rate of 30% for income over $50,000. For example, the income tax amount for pretax income of $70,000 is $16,000. SHEET 3: Sheet 3 should automatically calculate and display a multiple-step income statement in good form based on the worksheet section. (All numbers displayed on sheet 3 will come from cell references and formulas.) A sample income statement is attached. Given below is an unadjusted trial balance for Lane Company at the end of the accounting period. Account Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Prepaid insurance Land Building Accumulated depreciation-building Office equipment Accumulated depreciation-office equipment Accounts payable Interest payable Long-term note payable Common stock, $2 par Paid-in capital in excess of par value Retained earnings Sales Cost of goods sold Sales salaries expense Advertising expense Doubtful accounts expense Miscellaneous selling expense Administrative salaries expense Utilities expense Interest expense Insurance expense Depreciation expense-building Depreciation expense-office equipment Miscellaneous administrative expenses Totals Debits 20,950 60,000 43,756 8,000 40,000 200,000 120,000 208,000 78,000 24,000 5,200 76,000 8,244 2,000 6,000 5,500 905,650 Credits 800 12,000 6,000 38,405 72,000 50,000 65,000 124,445 537,000 905,650 Additional Information: 1. 2. 3. REQUIRED: 1. 2. 2. A perpetual inventory system is used. For simplicity, there will be only 5 adjustments: Doubtful accounts, insurance, the two depreciation items, and interest. Additional accounts (not included on the trial balance) will be Income tax expense and Income tax payable. (It is not necessary to add these accounts to the trial balance.) For simplicity, the assumption will be that income tax payable equals income tax expense. 3. Construct a workbook of 3 sheets. Sheet I will be the input section. Sheet 2 will automatically calculate a 10-column worksheet. Sheet 3 will automatically calculate a multiple-step income statement (including EPS). Name your file Lanel and save your work periodically. SHEET 1: Design an input section containing all of the accounts shown in the unadjusted trial balance. The input section should be able to accept changes in balances for all the listed accounts. Even if the unadjusted amount in an account to be adjusted is zero, the spreadsheet should add the zero amount to the adjustment. (Although the unadjusted amount may be zero for this period, it may be a non-zero amount in subsequent periods.) Additionally, the input section should facilitate easy input of the 5 adjustments. Only one input of each adjustment should be used. (That is, do not require the entry of both a debit and credit.) Label the sheet 1 tab as "Input." DO NOT REQUIRE THE ADJUSTMENTS TO BE ENTERED IN THE BODY OF THE TRIAL BALANCE. SHEET 2: Label the tab for sheet 2 as Worksheet. When an input section is used, it is desirable to have only cell references and formulas in the output sections (worksheet and income statement). An exception might be made for the calculation of income tax expense since the tax rates are not likely to change often. HOWEVER, FOR THIS ASSIGNMENT, PUT THE INCOME LEVELS AND TAX RATES IN THE INPUT SECTION. Thus, only cell references and formulas will be in the output section. Examples of a 10-column worksheet are attached. Place the income tax calculation in the cell which calculates the income tax expense in the "Adjustments" column. For simplicity, assume an income tax rate of 20% for income up to $50,000 and a rate of 30% for income over $50,000. For example, the income tax amount for pretax income of $70,000 is $16,000. SHEET 3: Sheet 3 should automatically calculate and display a multiple-step income statement in good form based on the worksheet section. (All numbers displayed on sheet 3 will come from cell references and formulas.) A sample income statement is attached.
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appears to be a prompt for an accounting assignment that requires creating a threesheet workbook to complete an adjusted trial balance and income statement for Lane Company Heres a breakdown of what t... View the full answer
Related Book For
Financial and managerial accounting
ISBN: 978-1118016114
1st edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
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