ACC 421 Course Great Wisdom / tutorialrank.com ACC 421 Course Great Wisdom / tutorialrank.com | Page 13

P4-4 (Multiple- and Single-Step Income, Retained Earnings) The
following account balances were included in the trial balance of
Twain Corporation at June 30, 2014.
Using the multiple-step form, prepare an income statement and a
retained earnings statement for the year ended June 30, 2014.

Using the single-step form, prepare an income st atement and a
retained earnings statement for the year ended June 30, 2014.

Problem 18 - 2 Recognition of Profit on Long Term Contract
a.) Using the percentage of completion method, compute the
estimated gross profit that would be recognized during each year of
the construction period
b.) Using the Completed Contract Method, compute the estimated
gross
profit that would be recognized during each year of the construction
period

P18-8
Presented below is summarized information for Johnston Co., which
sells merchandise on the installment basis.
Instructions:
Compute the realized gross profit for each of the years 2014, 2015
and 2016.
Prepare all entries required in 2016, applying the installment-sales
method of accounting. (Ignore interest charges.)
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