# CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 13-1 Work Sheet for a Corporation.

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 13-1 Work Sheet for a Corporation

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 2 LESSON 13-1 ORGANIZATION EXPENSE ADJUSTMENT 1.Increase the expense. 2.Decrease the asset. 1 2 page 371

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 13-1 FEDERAL INCOME TAX EXPENSE ADJUSTMENT 1.Increase the expense. 2.Increase the liability. 1 2 page 371

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 13-1 CALCULATING FEDERAL INCOME TAX EXPENSE page 372 Calculating Net Income before Federal Income Tax Income Statement Credit Column Total Income Statement Debit Column Total before Federal Income Tax = Net Income before Federal Income Tax – \$883,782.75\$752,647.48=\$131,135.27 –

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 13-1 CALCULATING FEDERAL INCOME TAX EXPENSE page 372 Calculating Federal Income Tax Amount Net Income before Taxes Tax Rate= Federal Income Tax Amount  \$ 50,000.0015%=\$ 7,500.00  Plus 25,000.0025%= 6,250.00  Plus 25,000.0034%= 8,500.00  Plus 31,135.2739%= 12,142.76  \$131,135.27\$ 34,392.76

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 13-1 CALCULATING FEDERAL INCOME TAX EXPENSE page 372 Calculating Accrued Federal Income Tax Expense Total Federal Income Tax Expense Estimated Federal Income Tax Already Paid = Accrued Federal Income Tax Expense – \$34,392.76\$32,000.00=\$2,392.76 –

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 LESSON 13-1 CORPORATE WORK SHEET page 374

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 8 LESSON 13-1 CORPORATE WORK SHEET page 375

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 9 LESSON 13-1 TERM REVIEW amortization page 376

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 13-2 Financial Statements and Analysis

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 11 LESSON 13-2 INCOME STATEMENT FOR A CORPORATION page 377

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 12 LESSON 13-2 INCOME STATEMENT FOR A CORPORATION page 377

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 13 LESSON 13-2 ACCEPTABLE AND ACTUAL COMPONENT PERCENTAGES page 378

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 14 LESSON 13-2 SHARE OF NET INCOME ASSIGNED TO PREFERRED STOCK page 378 Calculating Share of Net Income for Preferred Stock Total Par ValueDividend Rate= Preferred Stock’s Share of Net Income  \$170,000.008%=\$13,600.00 

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 15 LESSON 13-2 Total Net Income Preferred Stock’s Share of Net Income = Common Stock’s Share of Net Income  SHARE OF NET INCOME ASSIGNED TO COMMON STOCK page 378 Calculating Share of Net Income for Preferred Stock \$96,742.51\$13,600.00=\$83,142.51 

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 16 LESSON 13-2 EARNINGS PER SHARE page 379 Calculating Earnings per Share Share of Net Income Shares of Stock Outstanding =Earnings per Share ÷ \$83,142.5131,950=\$2.60 ÷

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 17 LESSON 13-2 STATEMENT OF STOCKHOLDERS’ EQUITY FOR A CORPORATION page 379 2. 2.Retained earnings section 1. 1.Paid-in capital section

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 18 LESSON 13-2 Total Stockholders’ Equity Shares of Capital Stock Outstanding = Equity per Share ÷ ANALYZING A STATEMENT OF STOCKHOLDERS’ EQUITY page 380 Calculating Equity per Share \$170,000.001,700=\$100.00 ÷ Preferred 448,655.8631,950=14.04 ÷ Common \$618,655.86Total

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 19 LESSON 13-2 Calculating Price-Earnings Ratio Market Price per Share Earnings per Share = Price-Earnings Ratio ÷ \$19.50\$2.60=7.5 times ÷ ANALYZING A STATEMENT OF STOCKHOLDERS’ EQUITY page 380

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 20 LESSON 13-2 BALANCE SHEET FOR A CORPORATION page 381

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 21 LESSON 13-2 BALANCE SHEET FOR A CORPORATION page 381

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 22 LESSON 13-2 Beginning Book Value = Allowance for Uncollectible Accounts Beginning Balance – Accounts Receivable Beginning Balance ACCOUNTS RECEIVABLE TURNOVER RATIO Calculating the average book value of accounts receivable page 382 \$124,579.31=2÷\$128,536.91)+(\$120,621.71 \$128,536.91=\$6,697.63–\$135,234.54 Ending Book Value= Allowance for Uncollectible Accounts Ending Balance – Accounts Receivable Ending Balance \$120,621.71=\$4,362.18–\$124,983.89 Average Book Value of Accounts Receivable =2÷ Ending Book Value of Accounts Receivable + Beginning Book Value of Accounts Receivable

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 23 LESSON 13-2 ACCOUNTS RECEIVABLE TURNOVER RATIO Calculating the accounts receivable turnover ratio page 382 Net Sales on Account Average Book Value of Accounts Receivable = Accounts Receivable Turnover Ratio ÷ \$861,356.72\$124,579.31=6.9 times ÷

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 24 LESSON 13-2 ACCOUNTS RECEIVABLE TURNOVER RATIO Calculating the average number of days for payment page 382 Days in Year Accounts Receivable Turnover Ratio = Average Number of Days for Payment ÷ 3656.9=53 ÷

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 25 LESSON 13-2 Average Stockholders’ Equity =2÷ December 31 Stockholders’ Equity + January 1 Stockholders’ Equity \$498,622.11=2÷\$618,655.86)+(\$378,588.35 19.4%=\$498,622.11÷\$96,742.51 Rate Earned on Average Stockholders’ Equity = Average Stockholders’ Equity ÷ Net Income after Federal Income Tax RATE EARNED ON AVERAGE STOCKHOLDERS’ EQUITY Calculate average stockholders’ equity page 383 Calculate the rate earned

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 26 LESSON 13-2 Average Total Assets =2÷ December 31 Total Assets + January 1 Total Assets \$838,573.69=2÷\$952,171.03)+(\$724,976.34 11.5%=\$838,573.69÷\$96,742.51 Rate Earned on Average Total Assets = Average Total Assets ÷ Net Income after Federal Income Tax RATE EARNED ON AVERAGE TOTAL ASSETS Calculate average total assets page 383 Calculate the rate earned

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 27 LESSON 13-2 TERMS REVIEW earnings per share equity per share market value price-earnings ratio rate earned on average stockholders’ equity rate earned on average total assets page 365

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 13-3 Other End-of-Fiscal-Period Work

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 29 LESSON 13-3 ADJUSTING ENTRIES page 386

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 30 LESSON 13-3 ADJUSTING ENTRIES page 386

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 31 LESSON 13-3 CLOSING ENTRIES Need art form page 397. page 387

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 32 LESSON 13-3 POST-CLOSING TRIAL BALANCE page 388

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 33 LESSON 13-3 POST-CLOSING TRIAL BALANCE page 388

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 34 LESSON 13-3 REVERSING ENTRIES page 389

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 35 LESSON 13-3 FEDERAL INCOME TAX RETURN page 390

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 36 LESSON 13-3 FEDERAL INCOME TAX RETURN page 390

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