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 statement 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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