中级会计习题 coprehensiveexam_e.docVIP

COMPREHENSIVE EXAMINATION E PART 5 (Chapters 18-21) Approximate Problem Topic Time E-I Long-Term Contracts. 15 min. E-II Installment Sales Method. 20 min. E-III Deferred Income Taxes. 25 min. E-IV Pensions. 15 min. E-V Leases. 25 min. 100 min. Problem E-I — Long-Term Contracts. Edwards Company contracted on 4/1/12 to construct a building for $2,300,000. The project was completed in 2014. Additional data follow: 2012 2013 2014 Costs incurred to date $ 560,000 $1,350,000 $1,900,000 Estimated cost to complete 1,040,000 450,000 — Billings to date 500,000 1,800,000 2,300,000 Collections to date 400,000 1,300,000 2,200,000 Instructions (a) Calculate the income recognized by Edwards under the percentage-of-completion method of accounting in each of the years 2012, 2013, and 2014. (b) Prepare all necessary entries for the year 2013. (c) Present the balance sheet disclosures at December 31, 2013. Proper headings or subheadings must be indicated. Problem E-II — Installment Sales Method. Garber, Inc. accounts for all sales of its merchandise on the installment basis. Following is the unadjusted trial balance at 12/31/14: Cash $ 89,200 Installment Accounts Receivable—2012 170,000 Installment Accounts Receivable—2013 400,000 Installment Accounts Receivable—2014 750,000 Inventory, 1/1/14 78,000 Repossessed Merchandise 22,000 Accounts Payable $ 136,000 Deferred Gross Profit—2012 84,000 Deferred Gross Profit—2013 175,000 Common Stock 600,000 Retained Earnings 406,200 Installment Sales 1,000,000 Purchases 738,000 Loss on Repossession 4,000 Operating Expenses 150,000 $2,401,200 $2,401,200 Additional Data: 2012 Gross Profit Rate = 32%; Inventory 12/31/14 = $159,000; Repossessed merchandise 12/31/14 = $14,000; Merchandise sold in 2013 was repossessed in 2014 and the following entry was prepared (assume correctly): Deferred Gross Profit—2013 14,000 Repossessed Merchandise 22,000 Loss on