Instructions
Please complete the following:
Comprehensive Problem Instructions
1. Use the template provided for this assignment. Please note, you must use the templates provided. Do not create your own Excel sheets.
2. At the bottom of the Excel template, you will see different sheets (tabs) that need completing. Each sheet shows a different part of the problem you must complete.
3. When completing the problems you must show the Function used in Excel. Excel Functions are predefined formulas within Excel. In other words, you cannot just put the numeric answer in a cell. You must instruct Excel to do the specific computation you would like. This is required; otherwise, credit for your work will not be given. An example, the function =SUM(A1:A3, C1:C2, E2) will add the values of all cells.
4. Complete and submit your solution as one file attachment.
5. All Parts are to be completed using the provided Excel Template file In the Module
6. All supporting calculations are to be shown.
7. Make sure you save your work while completing this problem.
8. There are several parts to these comprehensive problems, so please allow enough time to complete it and review it before handing it in.
Check Figures:
Check figures are included as Notes within the provided Template.
COMPREHENSIVE PROBLEM 3
Mountain Sports, Inc.
Mountain Sports, Inc., is a retailer that has engaged you to assist in the preparation of its financial statements at December 31, 2021. Following are the co
ect adjusted account balances, in alphabetical order, as of that date. Each balance is the “normal” balance for that account. (Hint: The “normal” balance is the same as the debit or credit side that increases the account.)
Accounts payable………………………………………………………………$ 12,750
Accounts receivable………………………………………………………………..2,600
Accumulated depreciation: office equipment …………………………………12,000
Additional paid-in capital (common stock)................................. XXXXXXXXXX13,000
Bonds payable (due December 31, 2024)................................. XXXXXXXXXX22,500
Cash………………………………………………………………………………..19,200
Common stock (1,800 shares, $10 par value).......................... XXXXXXXXXX18,000
Cost of goods sold………………………………………………………………100,575
Defe
ed income taxes…………………………………………………………….5,750
Depreciation expense: office equipment…………………………………………2,750
Dividends declared…………………………………………………………………5,000
Income tax expense………………………………………………………………..8,190
Insurance expense……………………………………………………………………900
Land…………………………………………………………………………………39,500
Merchandise inventory……………………………………………………………17,500
Notes payable (due December 31, 2022).................................... XXXXXXXXXX2,500
Office equipment…………………………………………………………………..41,000
Office supplies ………………………………………………………………………..900
Office supplies expense………………………………………………………………520
Prefe
ed stock (250 shares, $20 par value)................................ XXXXXXXXXX5,000
Premium on bonds payable………………………………………………………..1,750
Prepaid rent………………………………………………………………………….1,800
Rent expense ………………………………………………………………………6,100
Retained earnings (January 2021)............................................. XXXXXXXXXX21,050
Salaries expense…………………………………………………………………..88,095
Sales……………………………………………………………………………….226,000
Sales returns and allowances …………………………………………………….2,500
Sales taxes payable………………………………………………………………..3,200
Treasury stock (200 common shares at cost)............................. XXXXXXXXXX2,250
Utilities expense……………………………………………………………………4,120
Instructions:
a. Prepare an income statement for the year ended December 31, 2021, which includes amounts for gross profit, income before income taxes, and net income. List expenses (other than cost of goods sold and income tax expense) in order, from the largest to the smallest dollar balance. You may ignore earnings per share.
. Prepare a statement of retained earnings for the year ending December 31, 2021.
c. Prepare a statement of financial position (balance sheet) as of December 31, 2021, following these guidelines:
· Include separate asset and liability categories for those items that are “cu
ent.”
· Include and label amounts for total assets, total liabilities, total stockholders’ equity, and total liabilities and stockholders’ equity.
· Present defe
ed income taxes as a noncu
ent liability.
· To the extent information is available that should be disclosed, include the parenthetical disclosure of that information.
CP3-Desc.
COMPREHENSIVE PROBLEM 3
Mountain Sports, Inc.
This comprehensive problem requires the preparation of a comprehensive income statement, statement of retained earnings, and statement of financial position (balance) sheet, in that order. It emphasizes the articulation of these three financial statements as net income is ca
ied into the statement of retained earnings, and ending retained earnings is then ca
ied forward into the balance sheet.
2 to 3 hours
Medium
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IncSt-RetEarn.CP3
COMPREHENSIVE PROBLEM 3
MOUNTAIN SPORTS, INC.
a.
Mountain Sports, Inc.
Income Statement
For the Year Ended December 31, 2018
b.
Mountain Sports, Inc.
Statement of Retained Earnings
For the Year Ending December 31, 2018
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&"Arial,Italic"&8&K000000Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
&"Arial,Italic"&8&K000000Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
&"Arial,Italic"&8&K000000Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
&"Arial,Italic"&8&K000000Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
&"Arial,Italic"&8&K000000Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
&"Arial,Italic"&8&K000000Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
&"Arial,Italic"&8&K000000Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
&"Arial,Italic"&8&K000000Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
stat,FinPosit.CP3(p.2)
COMPREHENSIVE PROBLEM 3
MOUNTAIN SPORTS, INC.
(continued)
c.
Mountain Sports, Inc.
Statement of Financial Position
December 31, 2018
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&"Arial,Italic"&8&K000000Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
&"Arial,Italic"&8&K000000Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
&"Arial,Italic"&8&K000000Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
&"Arial,Italic"&8&K000000Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
&"Arial,Italic"&8&K000000Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
&"Arial,Italic"&8&K000000Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
&"Arial,Italic"&8&K000000Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
&"Arial,Italic"&8&K000000Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Sheet1