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

2. 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

3. 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

4. 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 –

5. 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

6. 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 –

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

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

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

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

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

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

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

14. 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 

15. 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 

16. 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 ÷

17. 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

18. 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

19. 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

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

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

22. 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

23. 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 ÷

24. 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 ÷

25. 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

26. 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

27. 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

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

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

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

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

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

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

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

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

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