ACC 301 Homework #1

SUBMISSION INFORMATION:

• Submit the assignment in Excel using one page. Include your Name, Date, ACC Course, and Homework #2 in the upper left corner.
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Assignment Information:

Tempe Corporation’s capital structure consists of 40,000 shares of common stock. The December 31, 2014 account balances are listed below (except as noted). All adjusting entries have been made except for the accrual of taxes (25% tax rate).

Sales	$1,426,000
Purchase Discounts	21,000
Purchases	693,000
Loss on Segment Disposal	95,000
Selling Expenses	134,000
Cash	69,000
Accounts Receivable	93,000
Common Stock	240,000
Accumulated Depreciation	176,000
Dividend Revenue	4,500
Inventory, January 1, 2014	142,000
Unearned Service Revenue	7,500
Accrued Interest Payable	1,700
Land	453,000
Patents	60,000
Retained Earnings, January 1, 2014	310,000
Interest Expense	11,500
General and Administrative Expenses	145,000
Dividends Declared	32,000
Allowance for Doubtful Accounts	5,800
Notes Payable (maturity 7/1/17)	187,000
Machinery and Equipment	468,000
Office Supplies	35,000
Accounts Payable	51,000
Inventory, December 31, 2014	158,000

REQUIRED:

a) Prepare a 2014 multi-step income statement; include EPS data. Refer to the Cabrera (Illustration 4-2) and Poquito (Illustration 4-9) Company examples in Chapter 4 of the text for format suggestions. Many items in these format examples are not applicable to this homework problem.

b) Prepare a 2014 retained earnings statement. Refer to the Stricker example (Illustration 4-23) in Chapter 4 of the text for format suggestions. No corrections of prior periods exist.

c) Prepare a 12/31/14 balance sheet. Refer to the Scientific Products (Illustration 5-16) example in Chapter 5 of the text for format suggestions. Many items in this example are not applicable to this homework problem.