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ACCT 504 Case Study 1 (Gordon Construction)

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www.tutorialrank.com Case Study 1 (Part A) Analyze the impact of business transactions on accounts; record (jour nalize and post) transactions in the books; construct and use a trial bal ance) During the first month of operation of Gordon Construction, Inc. , completed the following transactions: June 2 Gordon received $55,000 cash and issued common stock to the stockh olders. 3 Purchased supplies, $3,000, and equipment, $5,200, on account. 4 Performed services for a client and received cash, $6,300. 7 Paid cash to acquire land, $37,000. 11 Performed services for a customer and billed the customer, $1,200. Johnson expects to collect within one month. 16 Paid partial for the equipment purchased June 3 on account $2,800. 17 Paid the telephone bill, $230. 18 Received partial payment from customer on account, $700. 22 Paid the water and electricity bills, $400. 29 Received $5,000 cash for repairing the pipes of a customer. 30 Paid employee salary, $4,300. 30 Declared and paid dividends of $3,000. ▸Requirements • 1. Record each transaction in the journal. Key each transaction by da te. Explanations are not required. • 2. Post the transactions to the T-

accounts, using transaction dates as posting references. • 3. Prepare the trial balance of Gordon Construction, Inc., at June30, 2014. • 4. The manager asks you how much in total resources the business h as to work with and, how much it owes. Adjust the accounts; construct the financial statements) Record the fol lowing month end adjusting entries for Gordon Construction, Inc. at J une 30, 2014 Month end accruals at June 30, 2014: • a. Accrued advertising revenue at June 30, $3,100. • b. Supplies used during June, $3,090. • c. Accrued salary expense at June 30 for Monday, Tuesday, and We dnesday. The fiveday weekly payroll is $6,100 and will be paid on Friday. Requirement 2 Prepare adjusted trial balance for Gordon Construction at June 30, 20 14. *************************************************

ACCT 504 Case Study 2 (Williams Oil)

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(Learning Objectives 2, 4: Explain the components of internal control; evaluate internal controls) Each of the following situations reveals an internal control weakness: Situation a. In evaluating the internal control over inventory for the W illiams Oil Services Company, an auditor learns that the warehouse re ceiving clerk is responsible for ordering parts for supply inventory use in drilling services, counts the inventory when received at the dock, r ecords the receipts into the inventory ledger, and takes the annual inve ntory, No supervisor reviews the receiving clerks work. Situation b. Nicole Lopez handles employee travel and expense report s for Scott Sales Services. With the growth in the economy, the sales t eam began traveling extensively gaining new business. Because of the heavy volume, she no longer required the sales team to provide origin al airline, hotel, or car rental receipts. She told them to just keep their meals under the $100 per day per diem and no receipts were required. She allowed them to use their own credit cards so they could get the fr equent flyer points. She required them to turn in a summary of the tra vel expenses quarterly. Situation c. Michael Jordon is a new employee hired from Craigs List recommended by a coworker. Mike was hired as a Human Resource Assistant. Mikes first d ay on the job he is told that he should follow his own judgments when deciding how employee issues such as hiring and firing of employees, sexual harassment, and ethical infractions should be handled. Top of Form ? Requirements 1. Identify the missing internal control characteristic in each situation. 2. Identify each firms possible problem.

3. Propose a solution to the problem. *************************************************

ACCT 504 Case Study 3 (Wang Appliance Store)

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www.tutorialrank.com Construct and use a cash budget) Nathan Farmer, chief financial offic er of Wang Appliance Store, is responsible for the company?s budgeti ng process. Farmer?s staff is preparing the Wang cash budget for 201 4. A key input to the budgeting process is last year?s statement of cas h flows, which follows (amounts in thousands): Wang Appliance Store Statement of Cash Flows 2013 (in thousands) Cash Flows from Operating Activities Collections from customers Interest Received

$51,000 500

Purchase of inventory

(36,000)

Operating expenses

(10,200)

Net cash provided by operating activities

5,300

Cash Flows from Investing Activities Purchase of equipment

(

3,500) Purchase of investments (500) Sale of investments 1,000 Net cash used for investing activities (3,000 )

Cash Flows from Financing Activities Payment of long term debt (400) Issuance of Stock 2,000 Payment of cash dividends (500) Net cash provided by financing activities 1,000 Cash Increase (decrease) in Cash 0 Cash, beginning of year Cash, end of year 0

3,30 2,900 5,90

? Requirements 1. Prepare the Wang cash budget for 2014. Date the budget simply ?2 014? and denote the beginning and ending cash balances as ?beginnin g? and ?ending.? Assume the company expects 2014 to be the same as 2013, but with the following changes: a. In 2014, the company expects a 20% increase in collections from c ustomers and a 30% increase in purchases of inventory. b. There will be no sales of investments in 2014. c. Wang does not plan to issue stock in 2014. d. Wang plans to end the year with a cash balance of $5,550. *************************************************

ACCT 504 Course Project Analysis of Nike, Inc. and Under Armour, Inc.

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www.tutorialrank.com Course Project: A Financial Statement Analysis A Comparative Analysis of Nike, Inc. and Under Armour, Inc.

Below is the link for the financial statements for Nike, Inc. for the fiscal year ending 2014. First, select 2014using the drop-down arrow labeled Year, and then select Annual Filings using the drop-down arrow labeled All.

You should select the 10k dated 7/15/2014,and choose to download in PDF, Word, or Excel format.

Below is the link for the financial statements for Under Armour, Inc. for the fiscal year ending 2014. First, select Annual using the drop-down arrow labeled View, and then select 2015 using the drop-down arrow labeled Year.

You should select the 10k dated 2/20/2015, and choose to download it in PDF or Excel format.

A sample project template is available for download from the Course Resources pageâ&#x20AC;&#x2122;s Course-Specific Resources section.The sample project compares the ratio performance of Tootsie Roll and Hershey using the 2014 financial statements of Tootsie Roll and Hershey provided at their websites.

Description

This course contains a Course Project, where you will be required to submit one draft of the project at the end of Week 5, and the final completed project at the end of Week 7. Using the financial statements for Nike, Inc. and Under Armour, Inc.,respectively, you will calculate and compare the financial ratios listed further down this documentfor the fiscal year ending 2014, and prepare your comments about the two companiesâ&#x20AC;&#x2122;performancesbased on your ratio calculations. The entire project will be graded by the instructor at the end of the final submission in Week 7, and one grade will be assigned for the entire project.

Overall Requirements

For the Final Submission:

Your final Excel workbook submission should contain the following. You cannot use any other software but Excel to complete this project. 1. A Completed Worksheet Title Page tab, which is really a cover sheet with your name, the course, the date, your instructorâ&#x20AC;&#x2122;s name, and the title for the project. 2. A CompletedWorksheetProfiles tab which contains a oneparagraph description regarding each company with information about their history, what products they sell, where they are located,and so forth. 3. All 16 ratios for each company with the supporting calculations and commentary on your Worksheet Ratio tab.

Supporting calculations must be shown either as a formula or as text typed into a different cell.The ratios are listed further down this document. Your comments for each ratio should include more than just a definition of the ratio.You should focus on interpreting each ratio number for each company and support your comments with the numbers found in the ratios.You need to specifically state which company performed better for each ratio. 4. The Summary and ConclusionsWorksheet tab is an overall comparison of how each company compares in terms of the major category of ratios described in Chapter 13 of your textbook.A nice way to conclude is to state which company you think is the better investment and why. 5. The Bibliography Worksheet tab must contain at least your textbook as a reference. Any other information that you use to profile the companies should also be cited as a reference. Required Ratios for Final Project Submission 1.

Earnings per Share of Common Stock

Current Ratio

Gross (Profit) MarginPercentage

Rate of Return (Net Profit Margin) on Sales

Inventory Turnover

Daysâ&#x20AC;&#x2122; Inventory Outstanding (DIO)

Accounts Receivable Turnover

Daysâ&#x20AC;&#x2122; Sales Outstanding (DSO)

AssetTurnover

10.

Rate of Return on Total Assets (ROA)

11.

Debt Ratio

12.

Times-Interest-Earned Ratio

13. Dividend Yield[For the purposes of this ratio, use Yahoo Finance to look up current dividend per share and stock price; just note the date that you looked up this information.] 14.

Rate of Return on Common Stockholdersâ&#x20AC;&#x2122; Equity (ROE)

15.

Free cash flow

16. Price-Earnings Ratio (Multiple) [For the purpose of this ratio, for Nike, use the market price per share on May 30, 2014,and for Under Armour, use the market price per share on December 31, 2014.] The Excel files uploaded in the Dropboxes should not include any unnecessary numbers or information (such as previous years' ratios, ratios that were not specifically asked for in the project, etc.). *************************************************

ACCT 504 Course Project Oracle and Microsoft Corporation

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www.tutorialrank.com Course Project Financial Statement Analysis Project -- A Comparative Analysis of Oracle Corporation and Microsoft Corporation

Here is the link for the financial statements for Oracle Corporation for the fiscal year ending 2007. First, select 2007 using the drop-down arrow labeled for Year on the right-hand side of the page, and then select Annual Reports using the drop-down arrow labeled Filing Type on the left-hand side of the page. You should select the 10k dated 6/29/2007 and choose to download in PDF, Word, or Excel format. Here is the link for the financial statements for Microsoft Corporation for the fiscal year ending 2007. You should select the Annual report dated 8/3/2007 and choose to download in Word or Excel format. A sample Project template is available for download in Doc Sharing. The sample project compares the ratio performance of Tootsie Roll and Hershey using the 2007 financial statements of Tootsie Roll and Hershey provided in Appendix A and Appendix B of your textbook. Description | Overall Requirements | Grade Information Description This course contains a course project where you will be required to submit one draft of the project at the end of Week 5 and the final completed project at the end of Week 7. Using the financial statements for Oracle Corporation and Microsoft Corporation, respectively, you will calculate and compare the financial ratios listed further down this document for the fiscal year ending 2007 and prepare your comments about the liquidity, solvency and profitability of the two companies based on your ratio calculations. The entire project will be graded by the instructor at the end of the final submission in week 7 and one grade will be assigned for the entire project.

Overall Requirements

For the Final Submission: Your final Excel workbook submission should contain the following. You cannot use any other software but Excel to complete this Project. 1. A completed worksheet title page tab which is really a cover sheet with your name, my name, the class name, and the date. 2. A completed worksheet profiles tab which contains a one paragraph description regarding each company with information about their history, what products they sell, where they are located etc. 3. All 18 ratios for each company with the supporting calculations and commentary on your worksheet ratio tab. Supporting calculations must be shown either as a formula or as text typed into a different cell. The ratios are listed further down this document. Your comments for each ratio should include more than just a definition of the ratio. You should focus on interpreting each ratio number for each company and support your comments with the numbers found in the ratios. 4. The Summary and Conclusions worksheet tab which is an overall comparison of how each company compares in terms of the major category of ratios (Liquidity, Profitability, and Solvency). 5. The Bibliography worksheet tab must contain at least your textbook as a reference. Any other information you use to profile the companies should also be cited as a reference. Required Ratios for Final Project Submission:

Earnings per Share

Current Ratio

Gross Profit Rate

Profit Margin Ratio

Inventory Turnover Ratio

Days in Inventory

Receivables Turnover Ratio

Average Collection Period

Asset Turnover Ratio

10.

Return on Assets Ratio

11.

Debt to Total Assets Ratio

12.

Times Interest Earned Ratio

13.

Payout ratio

14.

Return on Common Stockholders' Equity Ratio

15.

Free Cash Flow

16.

Current Cash Debt Coverage Ratio

17.

Cash Debt Coverage Ratio

18. Price/Earnings Ratio [For the purpose of this ratio, use the market price per share on June 1, 2007 for each company] The Excel files uploaded to the Dropbox should not include any unnecessary numbers or information (such as previous years' ratios, ratios that were not specifically asked for in the project, etc.).

Please upload your final submission to the Dropbox by the end of Week 7. See Syllabus/"Due Dates for Assignments & Exams" for due date information. For the Draft: Create an Excel spreadsheet or use the Project template to show your computations for the first 12 ratios listed above. The more you can complete regarding the other requirements the closer you will be to completion when Week 7 arrives. Supporting calculations must be shown either as a formula or as text typed into a different cell. If you plan on creating your own spreadsheet, please follow the format provided in the Tootsie Roll and Hershey template file. Please upload your draft submission to the Dropbox by the end of Week 5. See Syllabus/"Due Dates for Assignments & Exams" for due date information. *************************************************

ACCT 504 Entire Course (Includes All DQs, Project, Case Study, Midterm, Final)

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www.tutorialrank.com ACCT 504 Week 1-7 All Discussion Questions ACCT 504 Week 3 Case Study 1 Flower Landscaping Corporation ACCT 504 Week 4 Midterm Exam Set 1 ACCT 504 Week 4 Midterm Set 2

ACCT 504 Week 4 Midterm Set 3 ACCT 504 Week 5 Case Study 2 Internal Control - LJB Company ACCT 504 Week 5 Course Project Draft Spreadsheet ACCT 504 Week 6 Case Study 3 - Cash Budgeting - LBJ Company ACCT 504 Week 7 Course Project JCP Kohls ACCT 504 Final Exam (3 different finals) *************************************************

ACCT 504 Entire Course (Includes All DQs, Project, Case Study, Midterm, Final) (DEVRY) For more course tutorials visit

www.tutorialrank.com Tutorial Purchased: 3 Times, Rating: ACCT 504 Week 1-7 All Discussion Questions ACCT 504 Week 3 Case Study 1 Flower Landscaping Corporation ACCT 504 Week 4 Midterm Exam Set 1 ACCT 504 Week 4 Midterm Set 2 ACCT 504 Week 4 Midterm Set 3 ACCT 504 Week 5 Case Study 2 Internal Control - LJB Company ACCT 504 Week 5 Course Project Draft Spreadsheet ACCT 504 Week 6 Case Study 3 - Cash Budgeting - LBJ Company ACCT 504 Week 7 Course Project JCP Kohls

A+

ACCT 504 Final Exam

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ACCT 504 Final Exam (3 different finals)

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1. (TCO A) Which one of the following is an advantage of corporations relative to partnerships and sole proprietorships? (Points : 5) Reduced legal liability for investors Harder to transfer ownership Lower taxes Most common form of organization 2. (TCO A) When a corporation distributes a dividend, _____. (Points : 5) the most common form of distribution is a cash dividend the Dividends account will be increased with a credit the Retained Earnings account will be directly increased with a debit

the Dividends account will be decreased with a debit 3. (TCOs A, B) Below is a partial list of account balances for Cerner Company: Cash $5,000 Prepaid insurance 500 Accounts receivable 2,500 Accounts payable 2,000 Notes payable 3,000 Common stock 1,000 Dividends 500 Revenues 15,000 Expenses 12,500 What did Cerner Company show as total credits? (Points : 5) $21,500 $21,000 $20,500 $22,000 4. (TCOs B, E) Using accrual accounting, expenses are recorded and reported only _____. (Points : 5) when they are incurred, whether or not cash is paid when they are incurred and paid at the same time if they are paid before they are incurred if they are paid after they are incurred 5. (TCO D) Three companies report the same cost of goods available for sale, but each employs a different inventory costing method. If the price of goods has increased during the period, then the company using _____. (Points : 5)

LIFO will have the highest ending inventory FIFO will have the highest cost of goods sold All three companies will have the same value for ending inventory. average cost will have an ending inventory value that falls between FIFO and LIFO 6. (TCOs A, E) Equipment with a cost of $192,000 has an estimated salvage value of $18,000 and an estimated life of 4 years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours? (Points : 5) $48,000 $52,500 $49,500 $43,500 7. (TCOs D, G) Joyce Corporation issues 1,000 ten-year, 8%, $1,000 bonds dated January 1, 2007, at 102. The journal entry to record the issuance will show a _____. (Points : 5) debit to Cash of $1,020,000 debit to Discount on Bonds Payable for $20,000 credit to Bonds Payable for $1,020,000 credit to Cash for $1,000,0008. (TCO C) Accounts receivable arising from sales to customers amounted to $80,000 and $70,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $240,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is _____. (Points : 5) $240,000

$250,000 $310,000 $230,000 9. (TCO F) One variation of the horizontal analysis is known as _____. (Points : 5) nonlinear analysis vertical analysis trend analysis common-size analysis 10. (TCO F) Comparisons of data within a company are an example of the following comparative basis. (Points : 5) Industry averages Intercompany Intracompany Interregional 11. (TCO F) Which one of the following is not a characteristic generally evaluated in ratio analysis? (Points : 5) Liquidity Profitability Marketability of the product Solvency 12. (TCO F) Short-term creditors are usually most interested in assessing _____. (Points : 5) solvency liquidity marketability profitability

13. (TCO F) Long-term creditors are usually most interested in evaluating _____. (Points : 5) liquidity marketability profitability solvency 14. (TCO G) To calculate the market value of a bond, we need to _____. (Points : 5) find out the present value of all of the future cash payments promised by the bond calculate the present value of the principal only calculate the present value of the interest only multiply the bond price by the interest rate 1. (TCO A) Which one of the following is an advantage of corporations relative to partnerships and sole proprietorships? (Points : 5) Reduced legal liability for investors Harder to transfer ownership Lower taxes Most common form of organization 2. (TCO A) When a corporation distributes a dividend, _____. (Points : 5) the most common form of distribution is a cash dividend the Dividends account will be increased with a credit the Retained Earnings account will be directly increased with a

debit the Dividends account will be decreased with a debit 3. (TCOs A, B) Below is a partial list of account balances for Cerner Company: Cash $5,000 Prepaid insurance 500 Accounts receivable 2,500 Accounts payable 2,000 Notes payable 3,000 Common stock 1,000 Dividends 500 Revenues 15,000 Expenses 12,500 What did Cerner Company show as total credits? (Points : 5) $21,500 $21,000 $20,500 $22,000 4. (TCOs B, E) A small and private company may be able to justify using a cash basis of accounting if it has _____. (Points : 5) sales under $1,000,000 no accountants on staff insignificant receivables and payables all sales and purchases on account

5. (TCO D) Three companies report the same cost of goods available for sale, but each employs a different inventory costing method. If the price of goods has increased during the period, then the company using _____. (Points : 5) LIFO will have the highest ending inventory FIFO will have the highest cost of goods sold All three companies will have the same value for ending inventory. average cost will have an ending inventory value that falls between FIFO and LIFO 6. (TCOs A, E) Equipment was purchased for $60,000. Freight charges amounted to $2,800 and there was a cost of $8,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $12,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be _____. (Points : 5) $14,160 $11,760 $9,840 $9,600 7. (TCOs D, G) Mendez Corporation issues 2,000 ten-year, 8%, $1,000 bonds dated January 1, 2007, at 103. The journal entry to record the issuance will show a _____. (Points : 5) debit to Cash of $2,000,000 debit to Premium on Bonds Payable for $60,000

credit to Bonds Payable for $2,000,000 credit to Cash for $2,060,000 8. (TCO C) Accounts receivable arising from sales to customers amounted to $35,000 and $40,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $120,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is_____. (Points : 5) $120,000 $125,000 $155,000 $115,000 9. (TCO F) One variation of the horizontal analysis is known as _____. (Points : 5) nonlinear analysis vertical analysis trend analysis common-size analysis 10. (TCO F) In a common-size balance sheet, the 100% figure is _____. (Points : 5) total current assets total property, plant, and equipment total liabilities total assets

11. (TCO F) In vertical analysis, the base amount for studying salary and wages expense is generally _____. (Points : 5) net sales salary and wages expense in a previous year gross profit net income 12. (TCO F) A common measure of profitability is the _____. (Points : 5) current ratio current cash debt coverage ratio return on common stockholder's equity ratio debt to total assets 13. (TCO F) Return-on-assets ratio is most closely related to _____. (Points : 5) profit margin and debt-to-total-assets ratio profit margin and asset-turnover ratio times interest earned and debt-to-stockholders equity ratio profit margin and free cash flow 14. (TCO G) To calculate the market value of a bond, we need to _____. (Points : 5) find out the present value of all of the future cash payments promised by the bond calculate the present value of the principal only

calculate the present value of the interest only multiply the bond price by the interest rate 1. (TCO A) An advantage of the corporate form of business is that _____. (Points : 5) it has limited life its owner's personal resources are at stake its ownership is easily transferable via the sale of shares of stock it is simple to establish 2. (TCO A) When a corporation distributes a dividend, _____. (Points : 5) the most common form of distribution is a cash dividend the Dividends account will be increased with a credit the Retained Earnings account will be directly increased with a debit the Dividends account will be decreased with a debit 3. (TCOs A, B) Below is a partial list of account balances for Denton Company: Cash $7,000 Prepaid insurance 700 Accounts receivable 3,500 Accounts payable 2,800 Notes payable 4,200 Common stock 1,400 Dividends 700 Revenues 21,000 Expenses 17,500 What did Denton Company show as total credits? (Points : 5)

$30,100 $29,400 $28,700 $30,800 4. (TCOs B, E) A small and private company may be able to justify using a cash basis of accounting if it has _____. (Points : 5) sales under $1,000,000 no accountants on staff insignificant receivables and payables all sales and purchases on account 5. (TCO D) In a period of increasing prices, which inventory cost flow assumption will result in the lowest amount of income tax expense? (Points : 5) FIFO LIFO The average cost method Income tax expense for the period will be the same under all assumptions. 6. (TCOs A, E) Equipment was purchased for $60,000. Freight charges amounted to $2,800 and there was a cost of $8,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $12,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be _____. (Points : 5) $14,160 $11,760 $9,840 $9,600

7. (TCOs D, G) Lopez Corporation issues 500 ten-year, 8%, $1,000 bonds dated January 1, 2007, at 96. The journal entry to record the issuance will show a _____. (Points : 5) debit to Cash of $500,000 credit to Discount on Bonds Payable for $20,000 credit to Bonds Payable for $480,000 debit to Cash for $480,000 8. (TCO C) Accounts receivable arising from sales to customers amounted to $35,000 and $40,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $120,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is _____. (Points : 5) $120,000 $125,000 $155,000 $115,000 9. (TCO F) Which one of the following is not a tool in financial statement analysis? (Points : 5) Horizontal analysis Circular analysis Vertical analysis Ratio analysis 10. (TCO F) In vertical analysis, the base amount for studying salary and wages expense is generally _____. (Points : 5) net sales salary and wages expense in a previous year

gross profit net income 11. (TCO F) Ratios are most useful in identifying _____. (Points : 5) trends differences causes relationships among different numbers 12. (TCO F) A common measure of liquidity is _____. (Points : 5) return on assets current ratio profit margin debt to equity 13. (TCO F) Return-on-assets ratio is most closely related to _____. (Points : 5) profit margin and debt-to-total-assets ratio profit margin and asset-turnover ratio times interest earned and debt-to-stockholders equity ratio profit margin and free cash flow 14. (TCO G) To calculate the market value of a bond, we need to _____. (Points : 5) find out the present value of all of the future cash payments promised by the bond calculate the present value of the principal only calculate the present value of the interest only multiply the bond price by the interest rate

1. (TCO A) Below you will find selected information (in millions) from Coca-Cola Co.â&#x20AC;&#x2122;s 2012 Annual Report: ........................................................................................................ ................................................................. Required: 1. Using the information provided prepare a Balance Sheet. Separate the current assets from non-current assets and provide a total for each. Also separate the current liabilities from the non-current liabilities and provide a total for each. 2. Using the Balance Sheet from your answer above calculate; Current Ratio, Days in Inventory, Average Collection Period, Return on Assets Ratio, Debt to Total Assets and Return on common stockholdersâ&#x20AC;&#x2122; equity ratio. (Make sure to show all your work)

2. (TCO B) The following selected data was retrieved from the Wal-Mart, Inc. financial statements for the year ending January 31, 2013: ........................................................................................................ ........................................................................................................ ........ Required: Using the information provided above: 1. Prepare a multiple-step income statement 2. Calculate the Profit Margin, and Gross profit rate for the company. Be sure to provide the formula you are using, show your calculations, and discuss your findings/results.

3. (TCO C) Please review the following real-world Hewlett Packard Statement of Cash flows and address the 2 questions below: ........................................................................................................ ........................................................................................................ Required: 1) Please calculate the percentage increase or decrease in cash for the operating, investing, and financing sections and explain the major reasons for the increase or decrease for each of these sections. 2) Please calculate the free cash flow for 2012 and explain the meaning of this ratio. 4. (TCO D) You are CFO of Goforit, Inc., a wholesale distribution company specializing in emerging technologies. Your CEO is a brilliant marketer, but relies on you to explain issues and choices in accounting and finance. She has heard from other members of a CEO organization to which she belongs that a company’s net income can vary widely depending on which accounting choices are made from the “GAAP menu.” Assuming the goal is to maximize net income, choose an accounting treatment from each of the following scenarios, and explain to your CEO why the choice will produce the desired effect on reported Net Income for the current year. Include in your answer the effect of the choice on both the income statement and balance sheet. Required:

a. Goforit carries significant electronics inventory in a competitive environment where prices are actually falling. Which inventory valuation method would you chooseâ&#x20AC;&#x201D;LIFO, FIFO, or average cost? Assume that unit purchases exceed unit sales. b. Goforit has a large investment in warehouse equipment including conveyor belts, forklifts, and automated packaging systems. Which depreciation method would you choose: Straight line (SL) or double declining balance (DDB)? 5. (TCO F) Please review the following real-world ratios for Johnson & Johnson and Pfizer for the year ended 2012 and address the 2 questions below. ........................................................................................................ ........................................................................................................ .. Required: 1) Please explain the meaning of each of the Pfizer ratios above. 2) Please state which company performed better for each ratio. Related Products *************************************************

ACCT 504 Final Exam Guide (2 Set, New 2017)

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This Tutorial contains 2 Set of Final Exam

Question 1.1. (TCO D) Please describe the purpose of the Income Statement and the interrelationship between the income statement and the other major financial statements that we covered in this class. In your answer, please also address which financial statements should be created before the Income Statement, if any, and which financial statements need to be completed after the Income Statement, if any. (Points : 25)

Question 1â&#x20AC;&#x201D;Set 2 1. Please describe the purpose of the Balance Sheet and the interrelationship between the balance sheet and the other major financial statements that we covered in this class. In your answer, please also address which financial statements should be created before the Balance Sheet, if any, and which financial statements need to be completed after the Balance Sheet, if any

Question 2.2. (TCO E) Your friend, Lisa, plans to open a nail salon. Lisa states that she does not have time to develop and implement a system of internal controls.

(a) Explain to Lisa the components of internal control. (10 points) (b) Explain to Lisa at least 5 internal control procedures she must establish to protect herself against fraud. You should state specific internal control procedures from the textbook, and relate your answer to her nail salon business. (15 points) (Points : 25) Q-2-Set 2 2. Your friend, John, plans to open a parking garage business. John states that he does not have time to develop and implement a system of internal controls. (a) Explain to John the objectives of a system of internal control. (b) Explain to John at least 5 internal control procedures that he must establish to protect himself against fraud. You should state specific internal control procedures from the textbook and relate your answer to his parking garage business. solution

Question 3. (TCO A) The following items are taken from the financial statements of PQR Company for 2013: Cash $100,000

Instructions: (1) Create a classified balance sheet in good form for the year ended 2013. (30 points) (2) Calculate the current ratio and debt ratio and explain your findings. (6 points) (Points : 36)

Question 3â&#x20AC;&#x201D;Set 2 (TCO H) Corporations in need of cash can either issue stock or bonds to raise capital. What are the differences between these two activities and why might a company choose one over the other? (Points : 20)

Q-3 Set 3 Question 4.4. (TCO A) The following items are taken from the financial statements of BCT Company for 2013: Instructions: (1) Create a classified balance sheet in good form for the year ended 2013. (30 points) (2) Calculate the current ratio and debt ratio and explain your findings. (6 points) (Points : 36)

Question 4. (TCO B) The Caldor Company gathered the following condensed data for the year ended December 31, 2014: Instructions:

(1) Prepare a multiple-step income statement for the year ended December 31, 2014. (30 points)

(2) Compute the gross margin percentage and net profit margin ratio. Caldor Companyâ&#x20AC;&#x2122;s assets at the beginning of the year were $900,000, and the assets were $950,000 at the end of the year. To qualify for full credit, you must state the formula you are using, show your computations, and explain your findings. (6 points) (Points : 36)

Q-4 Set 2 Question 3.3. (TCO H) Simpson Inc. purchased 5, $4,000, 11% bonds of Hillsdale Corporation when the market rate of interest was 10%. Interest is paid semiannually on the bonds, and the bonds mature in 4 years.

Instructions:

Compute the total price paid by Simpson Inc. for the bonds showing your calculation for the present value of the principal and the present value of the interest payments.

Present value tables (Exhibit 8-14 and Exhibit 8-15) are available on pages 452 and 453 of your Harrison, Horngren, and Thomas textbook. NOTE: Be sure you review the PV Tables completely to ensure you find the correct period and interest rate for the calculation. (Points : 20)

Question 5. (TCO C) This is a 2-part question. Part 1) Indicate which section of the statement of cash flows should contain each of the following items, and whether each item would result in an inflow or outflow of cash. The sections are Operating, Investing, and Financing. (30 points) Part 2) Please explain how to calculate free cash flow and the importance of free cash flow to investors. (6 points) (Points : 36)

Q-5 Set 2 5. The Alpha Company gathered the following condensed data for the year ended December 31, 2014: Instructions:

(1) Prepare a multiple-step income statement for the year ended December 31, 2014.

(2) Compute the gross margin percentage and net profit margin ratio. Alpha Companyâ&#x20AC;&#x2122;s assets at the beginning of the year were $1,500,000, and the assets were $1,400,000 at the end of the year. To qualify for full credit, you must state the formula you are using, show your computations, and explain your findings.

Question 6. (TCO F) This is a 2-part question. Part 1) Journalize the adjusting entries below at year-end December 31, XXXX. Please share your supporting calculations for the adjusting entries requiring computations. (a) The unadjusted balance of the Supplies account is $2,200. The total cost of supplies remaining is $1,000. (b) Accrued Service Revenue of $9,000. (c) Equipment was purchased at the beginning of the year for $45,000. The equipmentâ&#x20AC;&#x2122;s useful life is 5 years, and the residual value is $5,000. Record the depreciation for this year. (d) The weekly payroll is $25,000. Employees are owed for 3 days of a 5-day work week. (e) Beginning unearned service revenue is $7,500, and ending unearned service revenue is $3,500.

(f) The business has interest expense of $750 that is due in January. (30 points)

Q-7 (TCO G) Please review the following 6 ratios for Langley Company and XYZ Inc. for the year ended 2014, and address the 2 questions below. Instructions: This is a 2-part question. (1) Explain the meaning of each of the Langley Company ratios above. (18 points) (2) State which company performed better for each ratio. (18 points) (Points : 36)

Question 7 â&#x20AC;&#x201C; Set 2

(TCO F) This is a 2-part question. Part 1) Journalize the adjusting entries below at year-end December 31, XXXX. Please share your supporting calculations for the adjusting entries requiring computations.

Beginning prepaid insurance, $500. Payments for insurance during the period are $900. Ending prepaid insurance is $600. (b) Interest revenue of $1,500 has been earned but not yet received. (c) Accrued Service Revenue of $12,000 (d) The weekly payroll is $20,000. Employees are owed for 4 days of a 5-day work week. The unadjusted balance of the Supplies account is $1,200. The total cost of supplies remaining is $300. (f) Equipment was purchased at the beginning of the year for $25,000. The equipmentâ&#x20AC;&#x2122;s useful life is 5 years, and the residual value is $5,000. Record the depreciation for this year.

Question 8.8. (TCO G) Please review the following 6 ratios for Johnson Company and Lee Enterprises for the year ended 2014, and address the 2 questions below. Instructions: This is a 2-part question. (1) Explain the meaning of each of the Johnson Company ratios above. (18 points) (2) State which company performed better for each ratio. (18 points) (Points : 36) *************************************************

ACCT 504 Final Exam (3 different finals) (DEVRY)

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1. (TCO A) Which one of the following is an advantage of corporations relative to partnerships and sole proprietorships? (Points : 5)

Reduced legal liability for investors Harder to transfer ownership Lower taxes Most common form of organization 2. (TCO A) When a corporation distributes a dividend, _____. (Points : 5)

the most common form of distribution is a cash dividend the Dividends account will be increased with a credit the Retained Earnings account will be directly increased with a debit the Dividends account will be decreased with a debit 3. (TCOs A, B) Below is a partial list of account balances for Cerner Company: Cash $5,000 Prepaid insurance 500

Accounts receivable 2,500 Accounts payable 2,000 Notes payable 3,000 Common stock 1,000 Dividends 500 Revenues 15,000 Expenses 12,500 What did Cerner Company show as total credits? (Points : 5)

$21,500 $21,000 $20,500 $22,000 4. (TCOs B, E) A small and private company may be able to justify using a cash basis of accounting if it has _____. (Points : 5)

sales under $1,000,000 no accountants on staff insignificant receivables and payables all sales and purchases on account 5. (TCO D) Three companies report the same cost of goods available for sale, but each employs a different inventory costing method. If the price of goods has increased during the period, then the company using _____. (Points : 5)

LIFO will have the highest ending inventory FIFO will have the highest cost of goods sold

All three companies will have the same value for ending inventory. average cost will have an ending inventory value that falls between FIFO and LIFO 6. (TCOs A, E) Equipment was purchased for $60,000. Freight charges amounted to $2,800 and there was a cost of $8,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $12,000 salvage value at the end of its 5year useful life. Depreciation expense each year using the straight-line method will be _____. (Points : 5)

$14,160 $11,760 $9,840 $9,600 7. (TCOs D, G) Mendez Corporation issues 2,000 ten-year, 8%, $1,000 bonds dated January 1, 2007, at 103. The journal entry to record the issuance will show a _____. (Points : 5)

debit to Cash of $2,000,000 debit to Premium on Bonds Payable for $60,000 credit to Bonds Payable for $2,000,000 credit to Cash for $2,060,000 8. (TCO C) Accounts receivable arising from sales to customers amounted to $35,000 and $40,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $120,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is _____. (Points : 5)

$120,000 $125,000 $155,000 $115,000 9. (TCO F) One variation of the horizontal analysis is known as _____. (Points : 5)

nonlinear analysis vertical analysis trend analysis common-size analysis 10. (TCO F) In a common-size balance sheet, the 100% figure is _____. (Points : 5)

total current assets total property, plant, and equipment total liabilities total assets 11. (TCO F) In vertical analysis, the base amount for studying salary and wages expense is generally _____. (Points : 5)

net sales salary and wages expense in a previous year gross profit net income

12. (TCO F) A common measure of profitability is the _____. (Points : 5)

current ratio current cash debt coverage ratio return on common stockholder's equity ratio debt to total assets 13. (TCO F) Return-on-assets ratio is most closely related to _____. (Points : 5)

profit margin and debt-to-total-assets ratio profit margin and asset-turnover ratio times interest earned and debt-to-stockholders equity ratio profit margin and free cash flow 14. (TCO G) To calculate the market value of a bond, we need to _____. (Points : 5)

find out the present value of all of the future cash payments promised by the bond calculate the present value of the principal only calculate the present value of the interest only multiply the bond price by the interest rate 1. (TCO A) An advantage of the corporate form of business is that _____. (Points : 5) it has limited life its owner's personal resources are at stake

its ownership is easily transferable via the sale of shares of stock it is simple to establish 2. (TCO A) When a corporation distributes a dividend, _____. (Points : 5) the most common form of distribution is a cash dividend the Dividends account will be increased with a credit the Retained Earnings account will be directly increased with a debit the Dividends account will be decreased with a debit 3. (TCOs A, B) Below is a partial list of account balances for Denton Company: Cash $7,000 Prepaid insurance 700 Accounts receivable 3,500 Accounts payable 2,800 Notes payable 4,200 Common stock 1,400 Dividends 700 Revenues 21,000 Expenses 17,500 What did Denton Company show as total credits? (Points : 5) $30,100 $29,400 $28,700 $30,800 4. (TCOs B, E) A small and private company may be able to justify using a cash basis of accounting if it has _____. (Points : 5)

sales under $1,000,000 no accountants on staff insignificant receivables and payables all sales and purchases on account 5. (TCO D) In a period of increasing prices, which inventory cost flow assumption will result in the lowest amount of income tax expense? (Points : 5) FIFO LIFO The average cost method Income tax expense for the period will be the same under all assumptions. 6. (TCOs A, E) Equipment was purchased for $60,000. Freight charges amounted to $2,800 and there was a cost of $8,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $12,000 salvage value at the end of its 5year useful life. Depreciation expense each year using the straight-line method will be _____. (Points : 5) $14,160 $11,760 $9,840 $9,600 7. (TCOs D, G) Lopez Corporation issues 500 ten-year, 8%, $1,000 bonds dated January 1, 2007, at 96. The journal entry to record the issuance will show a _____. (Points : 5) debit to Cash of $500,000 credit to Discount on Bonds Payable for $20,000

credit to Bonds Payable for $480,000 debit to Cash for $480,000 8. (TCO C) Accounts receivable arising from sales to customers amounted to $35,000 and $40,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $120,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is _____. (Points : 5) $120,000 $125,000 $155,000 $115,000 9. (TCO F) Which one of the following is not a tool in financial statement analysis? (Points : 5) Horizontal analysis Circular analysis Vertical analysis Ratio analysis 10. (TCO F) In vertical analysis, the base amount for studying salary and wages expense is generally _____. (Points : 5) net sales salary and wages expense in a previous year gross profit net income 11. (TCO F) Ratios are most useful in identifying _____. (Points : 5)

trends differences causes relationships among different numbers 12. (TCO F) A common measure of liquidity is _____. (Points : 5) return on assets current ratio profit margin debt to equity 13. (TCO F) Return-on-assets ratio is most closely related to _____. (Points : 5) profit margin and debt-to-total-assets ratio profit margin and asset-turnover ratio times interest earned and debt-to-stockholders equity ratio profit margin and free cash flow 14. (TCO G) To calculate the market value of a bond, we need to _____. (Points : 5) find out the present value of all of the future cash payments promised by the bond calculate the present value of the principal only calculate the present value of the interest only multiply the bond price by the interest rate

Required: 1. Using the information provided prepare a Balance Sheet. Separate the current assets from non-current assets and provide a total for each. Also separate the current liabilities from the non-current liabilities and provide a total for each. 2. Using the Balance Sheet from your answer above calculate; Current Ratio, Days in Inventory, Average Collection Period, Return on Assets Ratio, Debt to Total Assets and Return on common stockholdersâ&#x20AC;&#x2122; equity ratio. (Make sure to show all your work)

2. (TCO B) The following selected data was retrieved from the WalMart, Inc. financial statements for the year ending January 31, 2013: ................................................................................................................. ....................................................................................................... Required: Using the information provided above: 1. Prepare a multiple-step income statement 2. Calculate the Profit Margin, and Gross profit rate for the company. Be sure to provide the formula you are using, show your calculations, and discuss your findings/results. 3. (TCO C) Please review the following real-world Hewlett Packard Statement of Cash flows and address the 2 questions below: ................................................................................................................. ............................................................................................... Required:

1) Please calculate the percentage increase or decrease in cash for the operating, investing, and financing sections and explain the major reasons for the increase or decrease for each of these sections. 2) Please calculate the free cash flow for 2012 and explain the meaning of this ratio. 4. (TCO D) You are CFO of Goforit, Inc., a wholesale distribution company specializing in emerging technologies. Your CEO is a brilliant marketer, but relies on you to explain issues and choices in accounting and finance. She has heard from other members of a CEO organization to which she belongs that a company’s net income can vary widely depending on which accounting choices are made from the “GAAP menu.” Assuming the goal is to maximize net income, choose an accounting treatment from each of the following scenarios, and explain to your CEO why the choice will produce the desired effect on reported Net Income for the current year. Include in your answer the effect of the choice on both the income statement and balance sheet. Required: a. Goforit carries significant electronics inventory in a competitive environment where prices are actually falling. Which inventory valuation method would you choose—LIFO, FIFO, or average cost? Assume that unit purchases exceed unit sales.

b. Goforit has a large investment in warehouse equipment including conveyor belts, forklifts, and automated packaging systems. Which depreciation method would you choose: Straight line (SL) or double declining balance (DDB)?

5. (TCO F) Please review the following real-world ratios for Johnson & Johnson and Pfizer for the year ended 2012 and address the 2 questions below. ................................................................................................................. ................................................................................................. Required: 1) Please explain the meaning of each of the Pfizer ratios above. 2) Please state which company performed better for each ratio.

*************************************************

ACCT 504 Midterm Exam (4 Sets, 2017)

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1. Question : (TCOs A and E) Your friend, Ellen, has hired you to evaluate the following internal control procedures. Explain to your friend whether each of the numbered items below is an internal control strength or weakness. You must also state which internal control procedure relates to each of the internal controls.

For the weaknesses, you also need to state a recommendation for improvement.

(1) The cashier counts the total receipts and reconciles the receipts with the cash register total. (2) Electronic documents are password-protected. (3) The accountant is completely independent of the sales department. (4) Invoices are not numbered. (5) Large purchase orders must be approved by a manager.

TCOs A and E) Your friend, Ellen, has hired you to evaluate the following internal control procedures. Explain to your friend whether each of the numbered items below is an internal control strength or weakness. You must also state which internal control procedure relates to each of the internal controls.

For the weaknesses, you also need to state a recommendation for improvement.

Set 2 1: Invoices are pre-numbered. 2: The controller approves of the purchases and makes the payment since he or she is familiar with the purchases.

3: The office manager is in charge of the petty cash fund. 4: Blank checks are stored in the safe. 5: At the end of the day, the total receipts are counted by the cashier on duty and reconciled to the cash register total. (Points : 30)

Set 3 Invoices are pre-numbered. The controller approves of the purchases and makes the payment since he or she is familiar with the purchases. The office manager is in charge of the petty cash fund. Blank checks are stored in the safe. At the end of the day, the total receipts are counted by the cashier on duty and reconciled to the cash register total

Set 4 Question 14. Question : (TCO D) Your friend Dean has hired you to evaluate the following internal control procedures. a: Explain to your friend whether each of the numbered items below is an internal control strength or weakness. You must also state which principle relates to each of the internal controls.

b: For the weaknesses, you also need to state a recommendation for improvement.

1: Bonding of the cashiers is not required because all of the cashiers have significant experience. 2: The treasurer is the only one allowed to sign checks. 3: All employees may operate cash registers. 4: Blank checks are stored in the safe. 5: Supervisors count cash receipts daily.

12. (TCOs E and F) Please prepare the following journal entries. Indicate which account should be debited and which account should be credited, along with the dollar amount of the debit and credit.

(1) Investors invest $500,000 in exchange for 50,000 shares of common stock. (2) Company purchased equipment for $25,000 on account. (3) Company paid Rent for $4,000. (4) Company received $15,000 for services not yet performed.

(5) Employees work Monday through Friday and are paid on Friday. Salary expense is $10,000 per day and this year, December 31 falls on a Wednesday. (Points : 30)

Set 2 Question Please prepare the following journal entries. Indicate which account should be debited and which account should be credited, along with the dollar amount of the debit and credit.

(1) Investors invest $300,000 in exchange for 30,000 shares of common stock. (2) Company made payment on account for $500. (3) Employees work Monday through Friday and are paid on Friday. Salary expense is $20,000 per day, and December 31 falls on a Tuesday. (4) Company purchased Supplies for $2,000. (5) The company needs to record Supplies used for $500.

Set 3

13. Question : (TCOs D and E) Please prepare the following journal entries. Indicate which account should be debited and which account should be credited, along with the dollar amount of the debit and credit. Investors invest $50,000 in exchange for 1,000 shares of common stock. Company purchased equipment for $10,000 on credit. Company received $5,000 for services performed. Company made payment on account for $2,000.

Set 4 Question 13. Question : (TCO D and TCO E) Please prepare the following journal entries. Indicate which account should be debited and which account should be credited, along with the dollar amount of the debit and credit. a: Investors invest $100,000 in exchange for 10,000 shares of common stock. b: Company paid a utility bill for $600. c: Company received cash of $15,000 for services performed. d: Company made payment on account for $1,000. e: Company received $12,000 for services not yet performed.

Set 5 Question 12. Question : (TCOs B and D) Please prepare the following journal entries. Indicate which account should be debited and which account should be credited, along with the dollar amount of the debit and credit.

Question 3 .The following items are taken from the financial statements of BGS Company for 2012: Cash $500,000 Accounts Receivable 200,000 Supplies 70,000 Accounts Payable 147,300

Unearned Service Revenue 18,000 Equipment, net of accumulated depreciation 212,000 Common Stock 500,000 Retained Earnings 12/31/2011 78,300 Long-term debt 142,400 Service revenue 240,000 Cost of Goods Sold 72,000 Rent expense 36,000 Supplies expense 12,000

Set 2 14. (TCO D) The following items are taken from the financial statements of SRW Company for 2012:

Cash $375,000 Accounts Receivable 125,000 Prepaid Insurance 100,000 Accounts Payable 88,000 Unearned Service Revenue 15,000 Equipment, net of accumulated depreciation 177,000

Question 4 13. (TCOs B and D) The following items are taken from the financial statements of Lacey Company for 2012:

Advertising Expense $14,000 Accounts Receivable 12,000 Cost of Goods Sold 65,000 Accumulated Depreciationâ&#x20AC;&#x201D;Equipment 20,000 Accounts Payable 21,000 Cash 44,000 Depreciation Expense 17,000 Common Stock 100,000

Instructions

(a) Calculate the net income. (18 points)

(b) Calculate the balance of Retained Earnings that would appear on a balance sheet at December 31, 2012. (7 points) (c) Calculate the gross profit percentage. (5 points) (Points : 30 Lacey Company Income Statement

Question 13. Question : (TCOs B and D) The following items are taken from the financial statements of Ashe Company for 2012:

Equipment $100,000 Accounts Receivable 12,000 Accounts Payable 9,000 Cost of Goods Sold 72,000 Utilities Expense 11,000 Depreciation Expense 17,000 Insurance Expense 9,000

Question 14. Question : (TCO D) The following items are taken from the financial statements of BGS Company for 2012:

Cash $500,000 Accounts Receivable 200,000 Supplies 70,000 Accounts Payable 147,300 Unearned Service Revenue 18,000 Equipment, net of accumulated depreciation 212,000

Instructions

(a) Please create a classified balance sheet in good form for the year ended 2012. (25 points)

(b) Please calculate the current ratio. (5 points)

Question 12. Question : (TCOs B and E) The adjusted trial balance of Gertz Company included the following selected accounts.

Debit Credit Sales $575,000

Sales returns and allowances $ 50,000 Sales discounts 9,500 Cost of goods sold 347,000

Instructions: 1: Use the above information to prepare a multiple-step income statement for the year ended December 31, 2010. 2: Calculate the profit margin ratio and gross profit rate. To qualify for full credit, you must state the formula you are using, show your computations, and explain your findings.

Question 11. Question : (TCO D) A classmate is considering dropping his or her accounting class because he or she cannot understand the rules of debits and credits. Explain the rules of debits and credits in a way that will help him or her understand them. Cite examples for each of the major sections of the balance sheet (assets, liabilities and stockholders' equity) and the income statement (revenues and expenses).

11. Question : (TCO D) Describe the process of preparing a trial balance. What is the purpose of preparing a trial balance? If a trial balance does not balance, identify what might be the reasons why it does not balance. If the trial balance does balance, does that ensure that the ledger accounts are correct? Explain.

1. Question : (TCO D) An account is an important accounting record where financial information is stored until needed. Briefly explain (1) the nature of an account, (2) the different types of accounts, and (3) the manner in which an account is increased and decreased, and the normal balance of each type of accounts.

Question 1.1. (TCO A) Assets include (Points : 3) prepaid insurance and prepaid rent. dividends paid to shareholders. loans obtained by the company.

stockholdersâ&#x20AC;&#x2122; investment in the business.

Question 2.2. (TCO B) For 2014, CAP Corporation reported net income of $96,000; net sales $1,440,000; and weighted average shares outstanding of 9,600. There were no preferred dividends. What was the 2014 earnings per share? (Points : 3) $100.00 $150.00 $10.00 $15.00

Question 3.3. (TCO C) Issuing debt is an example of a(n) (Points : 3) operating activity. investing activity. financing activity. noncash investing and financing activity.

Question 4.4. (TCO D) Dividends declared are reported on which of the following statements? (Points : 3)

Income Statement Statement of Retained Earnings Balance Sheet Statement of Financial Position

Question 5.5. (TCO E) Which of the following describes the normal balance and classification of the Unearned Revenue account? (Points : 3) Credit, liability Debit, liability Debit, stockholdersâ&#x20AC;&#x2122; equity Credit, stockholdersâ&#x20AC;&#x2122; equity

Question 6.6. (TCO F) The accrual accounting term used to indicate recording an expense before paying cash for the item is (Points : 3) deferral. accrual. depreciation. prepayment.

Question 7.7. (TCO A) LBJ Company recorded the following events involving a recent purchase of merchandise.

- Received goods for $95,000, terms 2/10, n/30. - Returned $4,500 of the shipment for credit due to damaged goods. - Paid $1,000 for freight in. - Paid the invoice within the discount period.

As a result of these events, the company's merchandise inventory (Points : 3) increased by 89,580. increased by $89,690. increased by $89,600. increased by $91,500. = (95000-4500)*0.98+ 1000

Question 8.8. (TCO B) In periods of rising prices, which of the following inventory methods results in the highest gross profit figure? (Points : 3) FIFO LIFO Average cost method Cannot be determined based on the information given

Question 9.9. (TCO A) On a classified balance sheet, prepaid expenses are classified as (Points : 3) current liabilities. long-term liabilities. current assets. Prepaid expenses do not belong on the Balance Sheet.

Question 10.10. (TCO E) Which of the following is an internal control procedure? (Points : 3) Control environment Comparisons and compliance monitoring Promote operational efficiency Encourage employees to follow company policies

Question 1. Question : (TCO A) Which of the following accounts is recorded as part of stockholdersâ&#x20AC;&#x2122; equity on the Balance Sheet?

Question 2. Question : (TCO B) For 2014, CAP Corporation reported net income of $96,000; net sales $1,440,000; and weighted average shares outstanding of 9,600. There were no preferred dividends. What was the 2014 earnings per share?

Question 3. Question : (TCO C) Purchasing inventory is an example of a(n)

Question 4. Question : (TCO D) Dividends declared are reported on which of the following statements?

Question 5. Question : (TCO E) Which of the following describes the normal balance and classification of the Unearned Revenue account?

Question 6. Question : (TCO F) The accrual accounting term used to indicate recording an expense before paying cash for the item is

Question 7. Question : (TCO A) XYZ Company recorded the following events involving a recent merchandise purchase.

Question 8. Question : (TCO B) In periods of rising prices, which of the following inventory methods results in the highest gross profit figure?

Question 9. Question : (TCO A) Which of the following is not a current liability?

Question 10. Question : (TCO E) Which of the following is an internal control procedure?

1. Question : (TCOs A, B, and C) Which type of corporate information is available to investors?

2. Question : (TCO C) Collecting cash from customers would be an example of which type of activity?

3. Question : (TCO A) Resources owned by a business are referred to as

4. Question : (TCO A) In a classified balance sheet, assets are usually classified as

5. Question : (TCO B) For 2012, LBJ Corporation reported net income of $25,000; net sales $250,000; and weighted average shares outstanding of 5,000. There were no preferred stock dividends. What was the 2012 earnings per share?

6. Question : (TCO D) Which of the following accounts has a normal balance of a credit?

7. Question : (TCO E) The accrual accounting term used to indicate recording an expense before paying cash for the item is _____ : 8. Question : (TCOs A and B) A periodic inventory system would most likely be used by a(n) _____

9. Question : (TCOs A and B) LBJ Company recorded the following events involving a recent purchase of merchandise.

Comments: 10. Question : (TCO A) In a period of declining prices, which of the following inventory methods generally results in the lowest gross profit figure?

Question : (TCOs A, B, and C) Shareholders want answers to all of the following questions except:

Question 2. Question : (TCO C) Paying cash dividends is an example of a(n)

Question 3. Question : (TCO C) Buying a new plant would be an example of which type of activity?

Question 4. Question : (TCO A) Which of the following should not be classified as a current liability?

Question 5. Question : (TCO B) For 2012, LBJ Corporation reported net income of $75,000; net sales $750,000; and

weighted average shares outstanding of 7,500. There were no preferred stock dividends. What was the 2012 earnings per share?

Question 6. Question : (TCO D) Which of the following describes the normal balance and classification of the Unearned Revenue account?

Question 7. Question : (TCO E) Which of the following statements is correct?

Question 8. Question : (TCOs A and B) A periodic inventory system would most likely be used by a(n)

Question 9. Question : (TCOs A and B) LBJ Company recorded the following events involving a recent merchandise purchase.

- Received goods for $40,000, terms 2/10, n/30 - Returned $1,200 of the shipment for credit due to damaged goods - Paid $1,000 for freight in - Paid the invoice within the discount period

Question 10. Question : (TCO A) In a period of declining prices, which of the following inventory methods generally results in the lowest gross profit figure?

Question 1. Question : (TCOs A, B, and C) Which of the following statements concerning users of accounting information is incorrect?

Question 2. Question : (TCO C) Paying cash dividends is an example of a(n)

Question 3. Question : (TCO C) Buying a new plant would be an example of which type of activity?

Question 4. Question : (TCO A) On a classified balance sheet, prepaid expenses are classified as

Question 5. Question : (TCO B) For 2012, LBJ Corporation reported net income of $75,000; net sales $750,000; and weighted average shares outstanding of 7,500. There were no preferred stock dividends. What was the 2012 earnings per share?

Question 6. Question : (TCO D) Which of the following accounts has a normal balance of a credit?

Question 7. Question : (TCO E) The accrual accounting term used to indicate recording an expense before paying cash for the item is

Question 8. Question : (TCOs A and B) A periodic inventory system would most likely be used by a(n)

Question 9. Question : (TCOs A and B) LBJ Company recorded the following events involving a recent merchandise purchase.

Question 10. Question : (TCO A) In a period of increasing prices, which of the following inventory methods generally results in the highest gross profit?

Question 12. Question : (TCOs B and E) The Caltor Company gathered the following condensed data for the Year Ended December 31, 2010.

Cost of goods sold $ 710,000 Net sales 1,279,000 Administrative expenses 239,000 Interest expense 68,000 Dividends paid 38,000 Selling expenses 45,000

Question 13. Question : (TCO D and E) Please prepare the following journal entries. Indicate which account should be debited and which account should be credited, along with the dollar amount of the debit and credit.

a: Investors invest $50,000 in exchange for 1,000 shares of common stock. b: Company purchased equipment for $10,000 on credit. c: Company received $5,000 for services performed. d: Company made payment on account for $2,000. e: Company received $7,000 for services not yet performed.

Question 14. Question : (TCO D) Your friend Wendy plans to open a hair salon. Wendy states that she does not have time to develop and implement a system of internal controls. a: Explain to Wendy the objectives of a system of internal control. b: Explain to Wendy at least four key controls she must establish to protect herself against fraud. You should state specific internal control principles and relate your answer to her hair salon business. *************************************************

ACCT 504 Week 1 Homework (E117A E129B E22A E123A E124A)

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This Tutorial contains Excel Files which can be used to solve for any values (your Question may have different company name or values, but that can be solved using Excel file)

E 1-17A CoffeeShop Doughnuts has current assets of $280 million; property, plant, and equipment of $430 million; and other assets totaling $170 million. Current liabilities are $170 million and long-term liabilities total $300 million. 1. Use these data to write CoffeeShop Doughnutsâ&#x20AC;&#x2122; accounting equation.

2. How much in resources does CoffeeShop have to work with?

How much does CoffeeShop owe creditors?

4. How much of the company’s assets do the CoffeeShop stockholders actually own?

E1-29B Assume Chen, Inc., is expanding into France.

The company must decide where to locate and how to finance the expansion. Requirement Identify the financial statement where these decision makers can find the following information about Chen, Inc. In some cases, more than one statement will report the needed data. a. Net income b. Current liabilities c. Cash spent to acquire the building d. Adjustments to reconcile net income to net cash provided by operations e. Selling, general, and administrative expenses

f. Ending cash balance

g. Ending balance of retained earnings h. Income tax expense i. Long-term debt

j. Revenue k. Total assets l. Dividends m. Income tax payable n. Common stock

E1-22A (similar to) Assume the Carter Coffee Roasters Corp. ended the month of August 2015 with these data:

Requirement 1. Prepare the income statement and the statement of retained earnings of Carter Coffee Roasters Corp., for the month ended August 31,2015

Prepare the income statement. Start with the heading and then complete the rest of the statement.

Part 1 Carter Coffee Roasters Corp.

Income Statement

For the Month Ended August 31, 2015

E1-23A (similar to) Assume the Ebert Coffee Roasters Corp. ended the month of August 2015 with these data:

Requirement 1. Prepare the balance sheet of Ebert Coffee Roasters Corp., for August 31, 2015.

First prepare the balance sheet header, then complete the assets section of the statement and finally complete the liabilities and stockholders' equity section of the statement.

E1-24A (similar to) Assume the Earl Coffee Roasters Corp. ended the month of August 2015 with this data:

Requirement 1. Prepare the statement of cash flows of Earl Coffee Roasters Corp., for the month ended August 31, 2015. Explain the relationship among the income statement, statement of retained earnings,

balance sheet, and statement of cash flows.

Explain the relationship among the income statement, statement of retained earnings, balance sheet, and statement of cash flows. Net income on the statement of retained earnings comes directly from the income statement . Ending retained earnings on the balance sheet

comes directly from the statement of retained earnings . Ending cash on the statement of cash flows

is reported on the balance sheet *************************************************

ACCT 504 Week 1-7 All Discussion Questions (DEVRY)

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Week 1DQ 1 - Financial Reporting Environment and GAAP Week 1DQ 2 - Details of Financial Statements and Ratios Week 2DQ 1 - Accounting EquationAccounting Cycle Week 2DQ 2 - Accrual Accounting and Adjusting Entries Week 3DQ 1 - Merchandising Operations and Income Statements Week 3DQ 2 - Inventory Cost-Flow Assumptions Week 4DQ 1 - Understanding Internal Control and Reporting Cash Week 4DQ 2 - Accounting for and Reporting Receivables Week 5DQ 1 - Plant Assets and Intangibles Week 5DQ 2 - Accounting for Liabilities Week 6DQ 1 - Accounting for and Reporting Equity Week 6DQ 2 - Statement of Cash Flows Week 7DQ 1 - Issues in Income Reporting Week 7DQ 2 - Different Tools for Financial Analysis *************************************************

ACCT 504 Week 1-7 All Discussion Questions

For more course tutorials visit

www.tutorialrank.com Week 1DQ 1 - Financial Reporting Environment and GAAP

Week 1DQ 2 - Details of Financial Statements and Ratios

Week 2DQ 1 - Accounting EquationAccounting Cycle

Week 2DQ 2 - Accrual Accounting and Adjusting Entries

Week 3DQ 1 - Merchandising Operations and Income Statements

Week 3DQ 2 - Inventory Cost-Flow Assumptions

Week 4DQ 1 - Understanding Internal Control and Reporting Cash

Week 4DQ 2 - Accounting for and Reporting Receivables

Week 5DQ 1 - Plant Assets and Intangibles

Week 5DQ 2 - Accounting for Liabilities

Week 6DQ 1 - Accounting for and Reporting Equity

Week 6DQ 2 - Statement of Cash Flows

Week 7DQ 1 - Issues in Income Reporting

Week 7DQ 2 - Different Tools for Financial Analysis *************************************************

ACCT 504 Week 2 Homework (E2-17A, E2-18A, E322A, E3-23A)

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www.tutorialrank.com This Tutorial contains Excel Files which can be used to solve for any values (your Question may have different company name or values, but that can be solved using Excel file)

E2-17A Dr Anna Grayson opened a medical practice specializing in physical therapy. During the first month of operation (May), the business, titled. Anna Grayson, Professional Corporation (P.C.), experienced the following events: 1. Record the transactions in the journal of Dr. Anna Grayson, P.C. List the transactions by date and give an explanation for each transaction 6 Grayson invested $138,000 in the business, which in turn issued its common stock to her. 9 The business paid cash for land costing $63,000. Grayson plans to build an office building on the land. 12 The business purchased medical supplies for $1,500 on account. 15 Dr. Anna P.C., officially opened for business. 15-31

During the rest of the month, Grayson treated patients and earned service revenue of $9,400, receiving cash for half the revenue earned. 15-31 The business paid cash expenses: employee salaries, $2,800; office rent, $ 900$900; utilities, $ 900$900. 31 The business sold supplies to another physician for cost of $400. 31 The business borrowed 30,000, signing a note payable to the bank. 31 The business paid $600 on account.

E3-22A Clark Truck Rentals Company faced the following situations.

a. The business has interest expense of $ 3,000 that it must pay early in January 2015 b. Interest revenue of $4,500 has been earned but not yet received. c. On July 1, 2014, when the business collected $13,900 rent in advance, it debited Cash and credited Unearned Rent Revenue. The tenant was paying for two years' rent. d. Salary expense is $5,500 per daylong dashâ&#x20AC;&#x201D;Monday through Friday dashâ&#x20AC;&#x201D;and the business pays employees each Friday. For the purpose of this calculation, assume December 31 falls on a Thursday. e. The unadjusted balance of the Supplies account is $3,000. The total cost of supplies on hand is $ 1,500.

f. Equipment was purchased at the beginning of this year at a cost of $120,000. The equipment's useful life is five years. There is no residual value. Record depreciation for this year and then determine the equipment's book value.

Journalize the adjusting entry needed at December 31, 2014, for each situation. Consider each fact separately

E3-23A The adjusted trial balance of Homemade HamsHomemade Hams, Inc., follows.

Homemade Hams, Inc.

Adjusted Trial Balance 31-Dec-14 Account (Amounts in thousands)

Cash Debit cash 4400 Accounts receivable 1,800 Inventories 2,400 Prepaid expenses 1,900 Property, plant, and equipment 16,700 Accumulated depreciation, property, plant, and equipment Other assets 9,700 Accounts payable Income tax payable Other liabilities Common stock Retained earnings (beginning, December 31, 2013) Dividends 1,700 Sales revenue

Cost of goods sold 25,600 Selling, administrative, and general expense 10,400 Income tax expense 2,000 *************************************************

ACCT 504 Week 3 Case Study 1 (Melvin Plumbing Corporation) **New**

For more course tutorials visit

www.tutorialrank.com MAKE SURE TO COMPLETE ALL REQUIREMENTS WHICH ARE LISTED BELOW.

There are 10 sheets in the Workbook, including this one.

All of the information that you need for the project is located in this Workbook.

Requirement #1:

During its first month of operation, the Melvin Plumbing Corporation, which specializes in residential plumbing,

completed the following transactions.

July 1 Began business by making a deposit in a company bank account of $90,000, in exchange for 9,000 shares of $10 par value common stock.

July 3 Paid the current month's rent, $5,500.

July 5 Paid the premium on a 1-year insurance policy, $4,800

July 7 Purchased supplies on account from Little Company, $900.

July 10 Paid employee salaries, $3,300

Requirement #2:

Post the July journal entries to the following T-accounts and compute ending balances.

Cash (111)

Revenue (411)

Requirement #3:

Prepare a trial balance for July in the space below.

Melvin Plumbing Corporation

Trial Balance

July 31

Requirement #4:

Prepare adjusting entries using the following information in the General Journal

below. Show your calculations!

a) One month's insurance has expired.

b) Supplies used during the period $375.

c) The estimated depreciation on equipment is $175.

Requirement #6:

Prepare an adjusted trial balance in the space below.

Melvin Plumbing Corporation

Adjusted Trial Balance

July 31

Requirement #7:

Prepare the financial statements for the Melvin Plumbing Corporation as of July 31 in the space below.

You will only be preparing the income statement, statement of retained earnings, and the balance sheet.

The statement of cash flows is a required financial statement, but is not required for this case study.

Requirement #10:

Prepare a post-closing trial balance as of July 31 in the space below.

Melvin Plumbing Corporation

Post-Closing Trial Balance *************************************************

ACCT 504 Week 3 Case Study 1 (Melvin Plumbing Corporation) **New** For more course tutorials visit

www.tutorialrank.com

MAKE SURE TO COMPLETE ALL REQUIREMENTS WHICH ARE LISTED BELOW.

There are 10 sheets in the Workbook, including this one.

All of the information that you need for the project is located in this Workbook.

Requirement #1:

During its first month of operation, the Melvin Plumbing Corporation, which specializes in residential plumbing,

completed the following transactions.

July 1 Began business by making a deposit in a company bank account of $90,000, in exchange for 9,000 shares of $10 par value common stock.

July 3 Paid the current month's rent, $5,500.

July 5 Paid the premium on a 1-year insurance policy, $4,800

July 7 Purchased supplies on account from Little Company, $900.

July 10 Paid employee salaries, $3,300

Requirement #2:

Post the July journal entries to the following T-accounts and compute ending balances.

Cash (111)

Revenue (411)

Requirement #3:

Prepare a trial balance for July in the space below.

Melvin Plumbing Corporation

Trial Balance

July 31

Requirement #4:

Prepare adjusting entries using the following information in the General Journal

below. Show your calculations!

a) One month's insurance has expired.

b) Supplies used during the period $375.

c) The estimated depreciation on equipment is $175.

Requirement #6:

Prepare an adjusted trial balance in the space below.

Melvin Plumbing Corporation

Adjusted Trial Balance

July 31

Requirement #7:

Prepare the financial statements for the Melvin Plumbing Corporation as of July 31 in the space below.

You will only be preparing the income statement, statement of retained earnings, and the balance sheet.

The statement of cash flows is a required financial statement, but is not required for this case study.

Requirement #10:

Prepare a post-closing trial balance as of July 31 in the space below.

Melvin Plumbing Corporation

Post-Closing Trial Balance *************************************************

ACCT 504 Week 3 Case Study 1 Flower Landscaping Corporation

For more course tutorials visit

www.tutorialrank.com The Entire Case Study is due Sunday at Midnight Mountain time at the end of Week 3. This Case Study is worth 100 points or 10% of your final course grade. This Case Study relates to TCO's D and E and Chapters 3 and 4. MAKE SURE TO COMPLETE ALL REQUIREMENTS WHICH ARE LISTED BELOW. There are 10 Sheets in the Workbook including this one. All of the Information you need for the Project is located in this Workbook. Requirements Requirement 1 - Prepare the Journal Entries in the General Journal Requirement 2 - Post Journal Entries to the General Ledger Requirement 3 - Prepare a Trial Balance Requirement 4 - Prepare the Adjusting Entries Requirement 5 - Post Adjusting Entries to the General Ledger Requirement 6 - Prepare an Adjusted Trial Balance

Requirement 7 - Prepare the Financial Statements Requirement 8 - Prepare the Closing Entries Requirement 9 - Post Closing Entries to the General Ledger Requirement 10 - Prepare the Post Closing Trial Balance

Sheet in Workbook Journal Entries General Ledger Trial Balance Adjusting Entries General Ledger Adjusted TB Financial Statements Closing Entries General Ledger Post Closing TB

Hint for success: review the Week 2 Lecture prior to starting this project. There are also hints contained within certain cells on some of the worksheet tabs.

You can hover over the red pointer at the top right-hand corner of the cell to read the hint. Hints are provided for the following balances: 1) The debits for the journal entries on the Journal Entries tab 2) The credits for the journal entries on the Journal Entries tab 3) The cash balance on the General Ledger tab 4) The debits for the trial balance on the Trial Balance tab 5) The credits for the trial balance on the Trial Balance tab 6) The debits for the adjusted trial balance on the Adjusted Trial Balance tab 7) The credits for the adjusted trial balance on the Adjusted Trial Balance tab *************************************************

ACCT 504 Week 3 Quiz

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www.tutorialrank.com Q -1

Other comprehensive income

A. includes extraordinary gains and losses.

B. affects earnings per share.

C. includes unrealized gains and losses on available-for-sale investments.

D. has no effect on income tax.

Q-2 Use the following data of

TortoiseTortoise Sales, Inc.: Unit Total Units Units Cost Cost Sold Beginning inventory 16 $3 $48 Purchase on Apr 25 25 6 150 Purchase on Nov 16 11 8 88 Sales 40 ? ? Tortoise Sales' average cost of ending inventory is

An auditor report by independent accountants

gives investors assurance that the company's stock is a safe investment.

B. is ultimately the responsibility of the management of the client company.

C. ensures that the financial statements are error-free.

D. gives investors assurance that the company's financial statements conform to GAAP.

Use the following data of SeasideSeaside Sales, Inc.: Unit Total Units

Units Cost Cost Sold Beginning inventory 18 $4 $72 Purchase on Apr 25 43 7 301 Purchase on Nov 16 19 10 190 Sales 45 ? ? SeasideSeaside Sales' LIFO cost of ending inventory would be

Use the following data of SeaspraySeaspray Sales, Inc.: Unit Total Units Units Cost Cost Sold Beginning inventory 24 $7 $168 Purchase on Apr 25 30 8 240 Purchase on Nov 16 14 9 126 Sales 50 ? ?

SeaspraySeaspray Sales uses a FIFO inventory system. Cost of goods sold for the period is

The quality of earnings suggests that

A. stockholders want the corporation to earn enough income to be able to pay its debts.

B. income from continuing operations is a more relevant predictor of future performance than income from one-time transactions.

C. net income is the best measure of the results of operations.

continuing operations and one-time transactions are of equal importance.

Deferred Tax Liability is usually Type of Account Reported on the

A. Long-term Income statement

B. Short-term Statement of stockholders' equity

C. Short-term Income statement

D. Long-term Balance sheet

Which statement is true?

A. Discontinued operations are a separate category on the income statement.

B. Extraordinary items are combined with continuing operations on the income statement.

C. Extraordinary items are part of discontinued operations.

Hazard Company had anan $18,000 beginning inventory and aa $25,000 ending inventory. Net sales ere

$153,000; purchases, $76,000; purchase returns and allowances, $3,000; and freight in, $9,000. Cost of goods sold for the period is $75,000.What is Hazard gross profit percentage (rounded to the nearest percentage)? *************************************************

ACCT 504 Week 4 Midterm Exam (New)

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www.tutorialrank.com Question 1. Question : (TCOs A, B, and C) Which of the following statements concerning users of accounting information is incorrect? Student Answer: considered an internal user.

The marketing vice president is

Present and prospective creditors are considered external users. Regulatory authorities, such as the SEC, are considered internal users. The IRS is considered an external user. Question 2. Question : example of a(n)

(TCO C) Paying cash dividends is an

Student Answer:

operating activity.

investing activity. financing activity. non-cash financing activity. Question 3. Question : (TCO C) Buying a new plant would be an example of which type of activity? Student Answer:

Operating Financing Investing

None of the above Instructor Explanation:

Chapter 1

Question 4. Question : (TCO A) On a classified balance sheet, prepaid expenses are classified as Student Answer:

property, plant, and equipment.

long-term investments. intangible assets. current assets. Question 5. Question : (TCO B) For 2012, LBJ Corporation reported net income of $75,000; net sales $750,000; and weighted average shares outstanding of 7,500. There were no preferred stock dividends. What was the 2012 earnings per share? Question 6. Question : (TCO D) Which of the following accounts has a normal balance of a credit? Student Answer:

Dividends account Expense account

Accounts Receivable account Retained Earnings account Question 7. Question : (TCO E) The accrual accounting term used to indicate recording an expense before paying cash for the item is Student Answer:

depreciation. prepayment. deferral. accrual.

Question 8. Question : (TCOs A and B) A periodic inventory system would most likely be used by a(n) Student Answer:

automobile dealership. jewelry store. furniture store. localneighborhood restaurant.

Question 9. Question : (TCOs A and B) LBJ Company recorded the following events involving a recent merchandise purchase. - Received goods for $40,000, terms 2/10, n/30 - Returned $1,200 of the shipment for credit due to damaged goods - Paid $1,000 for freight in - Paid the invoice within the discount period As a result of these events, the company's merchandise inventory

Student Answer:

increased by $39,800. increased by $39,024. increased by $38,988. increased by $39,000.

Question 10. Question : (TCO A) In a period of increasing prices, which of the following inventory methods generally results in the highest gross profit? Student Answer:

Average cost method FIFO method LIFO method

Cannot determine based on the information given Question 11. Question : (TCO D) A classmate is considering dropping his or her accounting class because he or she cannot understand the rules of debits and credits. Explain the rules of debits and credits in a way that will help him or her understand them. Cite examples for each of the major sections of the balance sheet (assets, liabilities and stockholders' equity) and the income statement (revenues and expenses). Question 12. Question : (TCOs B and E) The Caltor Company gathered the following condensed data for the Year Ended December 31, 2010. Cost of goods sold Net sales

$ 710,000

1,279,000

Administrative expenses

239,000

Interest expense

68,000

Dividends paid

38,000

Selling expenses

45,000

Instructions: 1: Prepare a multiple-step income statement for the year ended December 31, 2010. 2: Compute the profit margin ratio and gross profit rate. Caltor Companyâ&#x20AC;&#x2122;s assets at the beginning of the year were $770,000 and were $830,000 at the end of the year. To qualify for full credit, you must state the formula you are using, show your computations, and explain your findings. Question 13. Question : (TCO D and E) Please prepare the following journal entries. Indicate which account should be debited and which account should be credited, along with the dollar amount of the debit and credit. a: Investors invest $50,000 in exchange for 1,000 shares of common stock. b: Company purchased equipment for $10,000 on credit. c: Company received $5,000 for services performed. d: Company made payment on account for $2,000. e: Company received $7,000 for services not yet performed. Question 14. Question : (TCO D) Your friend Wendy plans to open a hair salon. Wendy states that she does not have time to develop and implement a system of internal controls. a: Explain to Wendy the objectives of a system of internal control.

b: Explain to Wendy at least four key controls she must establish to protect herself against fraud. You should state specific internal control principles and relate your answer to her hair salon business. *************************************************

ACCT 504 Week 4 Midterm Exam Set 1 (DEVRY)

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1. Question : (TCO A, B, C) External users want answers to all of the following questions except: Points Received: 3 of 3 2. Question : (TCO C) Borrowing money is an example of a(n): Points Received: 3 of 3 3. Question : (TCO C) Buying and selling products are examples of:

Points Received: 3 of 3 4. Question : (TCO A) Resources owned by a business are referred to as: Points Received: 3 of 3 5. Question : (TCO C) Jamie Company recorded the following cash transactions for the year: Paid $70,000 for salaries. Paid $20,000 to purchase office equipment. Paid $6,000 for utilities. Paid $7,000 in dividends. Collected $130,000 from customers. What was Jamie's net cash provided by operating activities? Points Received: 3 of 3 6. Question : (TCO A) In a classified balance sheet, assets are usually classified as: Points Received:

3 of 3 7. Question : (TCO A) An intangible asset: Points Received: 3 of 3 8. Question : (TCO A) These are selected account balances on December 31, 2010. -Land (location of the corporation's office building) $50,000 -Land (held for future use) 75,000 -Corporate Office Building 300,000 -Inventory 100,000 -Equipment 225,000 -Office Furniture 50,000 -Accumulated Depreciation 150,000 What is the total NET amount of property, plant, and equipment that will appear on the balance sheet? Points Received: 3 of 3 9. Question : (TCO B) For 2010, Ford Corporation reported net income of $15,000; net sales $200,000; and average share outstanding 6,000. There were no preferred stock dividends. What was the 2010 earnings per share?

Points Received: 3 of 3 10. Question : (TCO B) Morten Corporation had beginning retained earnings of $764,000 and ending retained earnings of $833,000. During the year they issued common stock totaling $47,000. There were no dividends issued. What was their net income for the year? Points Received: 3 of 3 11. Question : (TCO D) Is the purchase of equipment treated as an expense at the time of purchase? Why or why not? Points Received: 3 of 3 12. Question : (TCO D) The left side of an account is: Points Received: 3 of 3 13. Question : (TCO D) A credit is not the normal balance for which account listed below?

Points Received: 3 of 3 14. Question : (TCO D) A debit is not the normal balance for which account listed below? Points Received: 3 of 3 15. Question : (TCO D) Which pair of accounts follows the rules of debit and credit in relation to increases and decreases in the same manner? Points Received: 3 of 3 Page: 1. Question : (TCO E) The time period assumption states that: Points Received: 3 of 3 2. Question : (TCO E) The matching principle matches: Points Received:

3 of 3 3. Question : (TCO E) Expenses sometimes make their contribution to revenue in a different period than when the expense is paid. When wages are incurred in one period and paid in the next period, this often leads to which account appearing on the balance sheet at the end of the first period? Points Received: 3 of 3 4. Question : (TCO E) The following is selected information from J Corporation for the fiscal year ending October 31, 2010. Cash received from customers $75,000 Revenue earned 87,500 Cash paid for expenses 42,500 Expenses incurred 50,000 Based on the accrual basis of accounting, what is J Corporation's net income for the year ending October 31, 2007? Points Received: 3 of 3 5. Question :

(TCO E) The general term employed to indicate an expense that has not been paid or revenue that has not been received and has not yet been recognized in the accounts is: Points Received: 3 of 3 6. Question : (TCO A, B) Which of the following expressions is incorrect? Points Received: 3 of 3 7. Question : (TCO B) Hunter Company purchased merchandise inventory with an invoice price of $6,000 and credit terms of 2/10, n/30. What is the net cost of the goods if Hunter Company pays within the discount period? Points Received: 3 of 3 8. Question : (TCO A, B) Jake's Market recorded the following events involving a recent purchase of merchandise: Received goods for $20,000, terms 2/10, n/30. Returned $400 of the shipment for credit. Paid $100 freight on the shipment. Paid the invoice within the discount period.

As a result of these events, the company's merchandise inventory: Points Received: 3 of 3 9. Question : (TCO A) The Freight-in account: Points Received: 3 of 3 10. Question : (TCO A) Barnes Company is taking a physical inventory on March 31, the last day of its fiscal year. Which of the following must be included in this inventory count? Points Received: 3 of 3 11. Question : (TCO A) Of the following companies, which one would not likely employ the specific identification method for inventory costing? Points Received: 3 of 3 12. Question :

(TCO A) Which of the following statements is correct with respect to inventories? Points Received: 3 of 3 13. Question : (TCO A) In a period of declining prices, which of the following inventory methods generally results in the lowest balance sheet figure for inventory? Points Received: 3 of 3 14. Question : (TCO B) Which of the following is a true statement about inventory systems? Points Received: 3 of 3 15. Question : (TCO B) Two categories of expenses in merchandising companies are: Points Received: 3 of 3 Page: 1. Question :

(TCO D) A classmate is considering dropping his accounting class because he cannot understand the rules of debits and credits. Explain the rules of debits and credits in a way that will help him understand them. Cite examples for each of the major sections of the balance sheet (assets, liabilities and stockholders' equity) and the income statement (revenues and expenses). Points Received: 24 of 25 Ok 2. Question : (TCOs B & E) The Caltor Company gathered the following condensed data for the year ended December 31, 2010: Cost of goods sold $ 710,000 Net sales 1,279,000 Administrative expenses 239,000 Interest expense 68,000 Dividends paid 38,000 Selling expenses 45,000 Instructions: Prepare a multiple-step income statement for the year ended December 31, 2010. Compute the profit margin ratio and gross profit rate. Caltor Company s assets at the beginning of the year were $770,000 and were $830,000 at the end of the year. To qualify for full credit, you must state the formula you are using, show your computations and explain your findings.

*************************************************

ACCT 504 Week 4 Midterm Set 2 (DEVRY)

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. Question : (TCO A, B, C) External users want answers to all of the following questions except: Points Received: 3 of 3 2. Question : (TCO C) Issuing shares of stock in exchange for cash is an example of a(n): Points Received: 3 of 3

3. Question : (TCO C) Which activities involve putting the resources of the business into action to generate a profit? Points Received: 3 of 3 4. Question : (TCO A) Resources owned by a business are referred to as: Points Received: 3 of 3 5. Question : (TCO C) Jamie Company recorded the following cash transactions for the year: Paid $70,000 for salaries. Paid $20,000 to purchase office equipment. Paid $6,000 for utilities. Paid $7,000 in dividends. Collected $130,000 from customers. What was Jamie's net cash provided by operating activities? Points Received: 3 of 3 6. Question :

(TCO A) On a classified balance sheet, prepaid insurance is classified as: Points Received: 3 of 3 7. Question : (TCO A) Which of the following should not be classified as a current asset? Points Received: 3 of 3 8. Question : (TCO A) These are selected account balances on December 31, 2007. -Land (location of the corporation's office building) $200,000 -Land (held for future use) 300,000 -Corporate Office Building 1,200,000 -Inventory 400,000 -Equipment 900,000 -Office Furniture 200,000 -Accumulated Depreciation 600,000 What is the total NET amount of property, plant, and equipment that will appear on the balance sheet? Points Received: 3 of 3

. 9. Question : (TCO B) For 2010, Mossland Corporation reported net income of $28,000; net sales $400,000; and average share outstanding 6,000. There were no preferred stock dividends. What was the 2010 earnings per share? Points Received: 3 of 3 10. Question : (TCO B) At December 31, 2010, Shorts Company had retained earnings of $2,184,000. During 2010 they issued stock for $98,000, and paid dividends of $34,000. Net income for 2010 was $402,000. The retained earnings balance at the beginning of 2010 was: Points Received: 3 of 3 11. Question : (TCO D) On March 1, 2010, Dillon Company hires a new employee who will start the work on March 6. The employee will be paid on the last day of each month. Should a journal entry be made on March 6? Why or why not? Points Received: 3 of 3 12. Question :

(TCO D) Which one of the following is not a part of an account? Points Received: 3 of 3 13. Question : (TCO D) The classification and normal balance of the dividend account is: Points Received: 3 of 3 14. Question : (TCO D) A debit is not the normal balance for which account listed below? Points Received: 3 of 3 15. Question : (TCO D) Which of the following is not always true of the terms debit and credit? Points Received: 3 of 3 Page: Page:

1. Question : (TCO E) The time period assumption states that: Points Received: 3 of 3 2. Question : (TCO E) In a service-type business, revenue is considered earned: Points Received: 3 of 3 3. Question : (TCO E) Expenses sometimes make their contribution to revenue in a different period than when the expense is paid. When wages are incurred in one period and paid in the next period, this often leads to which account appearing on the balance sheet at the end of the first period? Points Received: 3 of 3 4. Question : (TCO E) The following is selected information from M Corporation for the fiscal year ending October 31, 2010: Cash received from customers $300,000 Revenue earned 350,000 Cash paid for expenses 170,000

Expenses incurred 200,000 Based on the accrual basis of accounting, what is M Corporation's net income for the year ending October 31, 2010? Points Received: 3 of 3 5. Question : (TCO E) The general term employed to indicate an expense that has not been paid or revenue that has not been received and has not yet been recognized in the accounts is: Points Received: 3 of 3 6. Question : (TCO A, B) Detailed records of movements in merchandise (each purchase and sale) are not maintained in the inventory account in a: Points Received: 3 of 3 7. Question : (TCO B) Hunter Company purchased merchandise inventory with an invoice price of $12,000 and credit terms of 2/10, n/30. What is the net cost of the goods if Hunter Company pays within the discount period? Points Received:

3 of 3 8.Question : (TCO A, B) Zach's Market recorded the following events involving a recent purchase of merchandise: Received goods for $50,000, terms 2/10, n/30. Returned $1,000 of the shipment for credit. Paid $250 freight on the shipment. Paid the invoice within the discount period. As a result of these events, the company's merchandise inventory: Points Received: 3 of 3 9. Question : (TCO A) The Freight-in account: Points Received: 3 of 3 10. Question : (TCO A) Which statement is false? Points Received: 3 of 3 11. Question :

(TCO A) Of the following companies, which one would not likely employ the specific identification method for inventory costing? Points Received: 3 of 3 12. Question : (TCO A) Which of the following statements is correct with respect to inventories? Points Received: 3 of 3 13. Question : (TCO A) In a period of rising prices, which of the following inventory methods generally results in the lowest net income figure? Points Received: 3 of 3 14. Question : (TCO B) Which of the following is a true statement about inventory systems? Points Received: 3 of 3 15. Question : (TCO B) Two categories of expenses in merchandising companies are:

Points Received: 3 of 3 Page: 1. Question : (TCO D) An account is an important accounting record where financial information is stored until needed. Briefly explain (1) the nature of an account, (2) the different types of accounts, and (3) the manner in which an account is increased and decreased, and the normal balance of each type of accounts. Points Received: 24 of 25 2. Question : (TCOs B & E) The adjusted trial balance of Gertz Company included the following selected accounts: Debit Credit Sales $575,000 Sales Returns and Allowances $ 50,000 Sales Discounts 9,500 Cost of Goods Sold 347,000 Freight-out 2,000 Advertising Expense 15,000 Interest Expense 19,000 Store Salaries Expense 74,000 Utilities Expense 18,000 Depreciation Expense 3,500

Interest Revenue 25,000 Instructions: Use the above information to prepare a multiple-step income statement for the year ended December 31, 2010. Calculate the profit margin ratio and gross profit rate. To qualify for full credit, you must state the formula you are using, show your computations, and explain your findings.

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ACCT 504 Week 4 Midterm Set 3 (DEVRY)

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1. Question : (TCO A, B, C) External users want answers to all of the following questions except:

Points Received: 3 of 3 2. Question : (TCO C) Debt securities sold to investors that must be repaid at a particular date some years in the future are called: Points Received: 3 of 3 3. Question : (TCO C) Which activities involve putting the resources of the business into action to generate a profit? Points Received: 3 of 3 4. Question : (TCO A) The cost of assets consumed or services used is also known as: Points Received: 3 of 3 5.Question : (TCO C) Finley Company recorded the following cash transactions for the year: Paid $90,000 for salaries.

Paid $40,000 to purchase office equipment. Paid $10,000 for utilities. Paid $4,000 in dividends. Collected $150,000 from customers. What was Finley's net cash provided by operating activities? Points Received: 3 of 3 6. Question : (TCO A) In a classified balance sheet, assets are usually classified as:

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ACCT 504 Week 4 Quiz

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www.tutorialrank.com Q -1

Anderson Company had the following information in

20142014.

Accounts receivable 12/31/14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,000

Allowance for uncollectible account 12/31/14 (before adjustment). . . . . . . 850

Credit sales during 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,000

Cash sales during 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,000

Collections from customers on account during 2014. . . . . . . . . . . . . . . . . . 45,000

If uncollectible accounts are determined by the aging-of-receivables method to be

$1,260 the uncollectible-account expense for 2014

would be:.

Q-2 All of the following are controls for cash received over the counter except

A.the cash drawer should open only when the sales clerk enters an amount on the keys.

B.the sales clerk must have access to the cash register tape.

C.a printed receipt must be given to the customer.

D.the customer should be able to see the amounts entered into the cash register.

Q-3 Patrick Company had the following information in 2014.

Accounts receivable 12/31/14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,000

Allowance for uncollectible account 12/31/14 (before adjustment). . . . . . . 800

Credit sales during 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,000

Cash sales during 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,000

Collections from customers on account during 2014. . . . . . . . . . . . . . . . . . 47,000

If uncollectible accounts are determined by the aging-of-receivables method to be

$1,050, the uncollectible account expense for 2014 would be $250.

The balance of the Allowance account after the adjusting entry would be

Q-4 All of the following are objectives of internal control except

A.to safeguard assets.

B.to comply with legal requirements.

C.to maximize net income.

D.to ensure accurate and reliable accounting records.

Q-5All of the following are internal control procedures except

A.Sarbanes-Oxley reforms.

B.assignment of responsibilities.

C.adequate records.

D.internal and external audits.

Q-6 Ryan Company had the following information in

2014.

Accounts receivable 12/31/14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,000

Allowance for uncollectible account 12/31/14 (before adjustment). . . . . . . 700

Credit sales during 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000

Cash sales during 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000

Collections from customers on account during 2014. . . . . . . . . . . . . . . . . . 45,000

Uncollectible accounts are determined by the percent-of-sales method to be

4% of credit sales. How much is uncollectible-account expense for

2014?

Q-7 Which of the following assets are not included in "cash equivalents" in a typical balance sheet?

A.Time deposits

B.Certain very low-risk equity securities

C.Foreign government securities

D.U.S. government securities

E.All of the above might be included in "cash equivalents."

Q-8 Net sales total $584,000. Beginning and ending accounts receivable are

$46,000 and $50,000, respectively. Calculate days' sales in receivables.

Q-9 Tennis Academy held investments in trading securities with a fair value of $50,000 at December 31, 2014. These investments cost Fairway Pro Fairway Pro 45,000 on January 1, 2014 What is the appropriate amount for Fairway Pro Fairway Pro to report for these investments on the December 31,

2014 balance sheet?

Q-10 Requiring that an employee with no access to cash do the accounting is an example of which characteristic of internal control?

A.Competent and reliable personnel

B.Assignment of responsibility

C.Monitoring of controls

D.Separation of duties *************************************************

ACCT 504 Week 5 Case Study 2 Internal Control - LJB Company

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www.tutorialrank.com LJB Company, a local distributor, has asked your accounting firm to evaluate their system of internal controls because they are planning to go public in the future. The President wants to be aware of any new regulations required of his company if they go public so he met with a colleague of yours at a local restaurant. The President of the company explained the current system of internal controls to your colleague. Your colleague has since been promoted to a tax position so she has passed on the information below so you can generate recommendations for the partner at your accounting firm to share with the President of LJB Company. Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees. They have one accountant who serves as Treasurer and Controller which streamlines many of their processes. In this dual role, he purchases all of the supplies and pays for these purchases. He also receives the checks and completes the monthly bank reconciliation. The accountant is so busy that the company handles petty cash a bit differently. All employees have access to the petty cash in a desk drawer and are asked to only place a note if they use any of the cash. The accountant has recently started using pre-numbered invoices and wants to buy an indelible ink machine to print their checks. The

President is waiting to hear from you if this is a necessary purchase before authorizing. On payday, the checks are picked up by the accountant and left in his office for pick-up. Before he leaves for the weekend, he will move the checks into a safe in his office. The President is still quite embarrassed because he had to fire one of his employees for viewing pornography on a company computer. He later found out this individual was a convicted felon who served time for molesting children. The company had a hard time getting the employee to admit it was him because the company does not assign individual passwords. The President expressed his frustration because both he and the accountant both interview and approve all of the new hires. Required: Based on the above information, prepare a Word document to address the following: Inform the President of any new internal control requirements if the company decides to go public. (7 points) Advise the President of what the company is doing right (they are doing some things well) and also recommend to the President whether or not they should buy the indelible ink machine. When you advise the President, please be sure to reference the applicable internal control principle that applies. (13 points) Advise the President of what the company is doing wrong (they are definitely doing some things poorly). Please be sure to include the internal control principle that is being violated along with a recommendation for improvement. (20 points) You must prepare a formal report for the partner to distribute to the President so no abbreviations or short-hand answers. You also must cite your references. At a minimum, your textbook should be cited.

Below is a grading rubric for this assignment. Category Points Description Understanding 10 Demonstrate a strong grasp of the problem at hand. Demonstrate understanding of how the course concepts apply to the problem. Analysis 30 Apply original thought to solving the business problem. Apply concepts from the course material correctly toward solving the business problem. Execution 10 Write your answer clearly and succinctly using strong organization and proper grammar. Use citations correctly. Total 50 A quality paper will meet or exceed all of the above requirements. Best Practices

The following are best practices in preparing this paper. Cover Page: Include whom you prepared the paper for, who prepared it, and the date. Table of Contents: List the main ideas and sections of the paper and the pages where they are located. Illustrations should be included separately. Introduction: Use a header on your paper. This will indicate that you are introducing the paper. The purpose of an introduction or opening is to introduce the subject and why the subject is important; preview the main ideas and the order in which they will be covered; and establish the tone of the document. Include in the introduction a reason for the audience to read the paper. Also include an overview of what you will cover and the importance of the material. (This should include or introduce the questions you are asked to answer in each assignment.) Body of the Report: Use a header with the name of the case study. An example is, "The Development of Hotel X: A World Class Resort." Proceed to break out the main ideas: State the main ideas, the major points of each idea, and provide evidence. Show some type of division, such as separate, labeled sections; separate groups of paragraphs; or headers. Include the information you found during your research and investigation. Summary and Conclusion: Summarizing is similar to paraphrasing but presents the gist of the material in fewer words than the original. An effective summary identifies the main ideas and the major support points from the body of the report; minor details are left out. Summarize the benefits of the ideas and how they effect the subject. Work Cited: Use the citation format specified in the Syllabus. *************************************************

ACCT 504 Week 5 Case Study 2 Internal Control - LJB Company (DEVRY)

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LJB Company, a local distributor, has asked your accounting firm to evaluate their system of internal controls because they are planning to go public in the future. The President wants to be aware of any new regulations required of his company if they go public so he met with a colleague of yours at a local restaurant. The President of the company explained the current system of internal controls to your colleague. Your colleague has since been promoted to a tax position so she has passed on the information below so you can generate recommendations for the partner at your accounting firm to share with the President of LJB Company. Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees. They have one accountant who serves as Treasurer and Controller which streamlines many of their processes. In this dual role, he purchases all of the supplies and pays for these purchases. He also receives the checks and completes the monthly bank reconciliation. The accountant is so busy that the company handles petty cash a bit differently. All employees have access to the petty cash in a desk drawer and are asked to only place a note if they use any of the cash. The accountant has recently started using pre-numbered invoices and wants to buy an indelible ink machine to print their checks. The

You must prepare a formal report for the partner to distribute to the President so no abbreviations or short-hand answers. You also must cite your references. At a minimum, your textbook should be cited. Below is a grading rubric for this assignment. Category Points Description Understanding 10 Demonstrate a strong grasp of the problem at hand. Demonstrate understanding of how the course concepts apply to the problem. Analysis 30 Apply original thought to solving the business problem. Apply concepts from the course material correctly toward solving the business problem. Execution 10 Write your answer clearly and succinctly using strong organization and proper grammar. Use citations correctly. Total 50 A quality paper will meet or exceed all of the above requirements. Best Practices The following are best practices in preparing this paper.

Cover Page: Include whom you prepared the paper for, who prepared it, and the date. Table of Contents: List the main ideas and sections of the paper and the pages where they are located. Illustrations should be included separately. Introduction: Use a header on your paper. This will indicate that you are introducing the paper.

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ACCT 504 Week 5 Course Project Draft Spreadsheet

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ACCT 504 Week 5 Homework (E7-15A, E7-19A, E8-20A, E9-23A, E9-29A)

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E 7-15A

Potvin Self Storage purchased land, paying $175,000 cash as a down payment and signing a $185,000 note payable for the balance. Potvin also had to pay delinquent property tax of $5,500, title insurance costing $3,000, and $2,000 to level the land and remove an unwanted building. The company paid $55,000 to add soil for the foundation and then constructed an office building at a cost of $1100,000. It also paid $47,000 for a fence around the property, $16,000 for the company sign near the property entrance, and $10,000 for lighting of the grounds. Requirement

1. What is the capitalized cost of each of Potvin's land, land improvements, and building? 2. cost of land improvement 3. Cost of building

E 7-19A Tasteful's Pizza bought a used Toyota delivery van on January 2, 2014, for $18,000. The van was expected to remain in service for four years left parenthesis (41,750 miles). At the end of its useful life, Tasteful's officials estimated that the van's residual value would be $1,300. The van traveled 13,000 miles the first year, 11,250 miles the second year, 10,250 miles the third year, and 7,250 miles in the fourth year. Requirements 1. Prepare a schedule of depreciation expense per year for the van under the three depreciation methods. 2. Which method best tracks the wear and tear on the van? 3. Which method would Tasteful's prefer to use for income tax purposes? Explain in detail why Tasteful's prefers this method.

Prepare a schedule of depreciation expense per year for the van under the three depreciation methods Requirement 2. Which method best tracks the wear and tear on the van? The units-of-production method tracks the wear and tear on the van most closely.

Requirement 3. Which method would Tasteful's prefer to use for income tax purposes? Explain in detail why Tasteful's prefers this method. For income tax purposes, Tasteful's would prefer the double-declining-balance method because it provides the most depreciation, and thus, the largest tax deductions in the early life of the asset.

E8-20A

Corp. purchased 10, $1,000, 77% bonds of Power Source Corporation when the market rate of interest was 12%. Interest is paid semiannually on the bonds, and the bonds will mature in ten years. Using the PV function in Excel Superscript ÂŽExcelÂŽ, compute the price Haygood paid (the present value) on the bond investment. (Assume that all payments of interest and principal occur at the end of the period. Round your answer to the nearest cent.) E9-23A Assume that Jasper Electronics completed these selected transactions during March 2014:

a. Sales of $2,100,000 are subject to estimated warranty cost of 2%. The estimated warranty payable at the beginning of the year was $34,000, and warranty payments for the year totaled $57,000. b. On March 1, Jasper Electronics signed a 45,000 note payable that requires annual payments of $9,000 plus 4% interest on the unpaid balance each March 2. c. Music For You, Inc., a chain of music stores, ordered $135,000 worth of CD players. With its order, Music For You, Inc., sent a check for $135,000 in advance, and Jasper shipped $80,000 of the goods. Jasper will ship the remainder of the goods on April 3, 2014. d. The March Payroll of $260,000 is subject to employee withheld income tax of 30,000 and FICA tax of 7.65%. On March 31, Jasper pays employees their take-home pay and accrues all tax amounts.

1. Report these items on Jasper Electronics' balance sheet at March 31, 2014.

E9-29A Companies that operate in different industries may have very different financial ratio values. These differences may grow even wider when we compare companies located in different countries. (Click the icon to view the financial statements.)

Requirement

1 Compare three leading companies on their current ratio, debt ratio, leverage ratio, and times-interest-earned ratio. Compute the ratios for Company BB, Company NN, and Company QQ. Based on your computed ratio values, which company looks the least risky? Begin by computing the ratios. Start by selecting the formula for the current ratio. Then calculate the current ratios for Company BB, NN, and QQ *************************************************

ACCT 504 Week 6 Case Study 3 - Cash Budgeting - LBJ Company

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www.tutorialrank.com The cash budget was covered during Week 4 when we covered TCO D and you read Chapter 7. There is also a practice case study to work on. Your Professor will provide the solution to the practice case study at the end of Week 5. This case study should be uploaded by 11:59PM Mountain time of the Sunday ending Week 6 to the Week 6 Assignment Dropbox. You are encouraged to use the Excel template file provided in Doc Sharing.

The LBJ Company has budgeted sales revenues as follows: April May June Credit sales $94,000 $89,500 $75,000 Cash sales 48,000 75,000 57,000 Total sales $142,000 $164,500 $132,000 Past experience indicates that 30% of the credit sales will be collected in the month of sale and the remaining 70% will be collected in the following month. Purchases of inventory are all on credit and 40% is paid in the month of purchase and 60% in the month following purchase. Budgeted inventory purchases are $195,000 in April, $135,000 in May, and $63,000 in June. Other budgeted cash receipts: (a) sale of plant assets for $33,000 in May, and (b) sale of new common stock for $50,000 in June. Other budgeted cash disbursements: (a) operating expenses of $15,000 each month, (b) selling and administrative expenses of $10,150 each month, (c) purchase of equipment for $19,000 cash in June, and (d) dividends of $20,000 will be paid in June. The company has a cash balance of $20,000 at the beginning of May and wishes to maintain a minimum cash balance of $20,000 at the end of each month. An open line of credit is available at the bank and carries an annual interest rate of 10%. Assume that all borrowing is done on the first day of the month in which financing is needed and that all repayments are made on the last day of the month in which excess cash is available. Also assume that there is no outstanding financing as of May 1. Requirements:

1. Use this information to prepare a Cash Budget for the months of May and June, using the template provided in Doc Sharing. 2. What are the three sections of a Cash Budget, and what is included in each section? 3. Why is a Cash Budget so vital to a company? 4. What are the five basic principles of cash management that a company can follow in order to improve its chances of having adequate cash? *************************************************

ACCT 504 Week 6 Case Study 3 - Cash Budgeting - LBJ Company (DEVRY)

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The cash budget was covered during Week 4 when we covered TCO D and you read Chapter 7. There is also a practice case study to work on. Your Professor will provide the solution to the practice case study at the end of Week 5. This case study should be uploaded by 11:59PM Mountain time of the Sunday ending Week 6 to the Week 6 Assignment Dropbox. You are encouraged to use the Excel template file provided in Doc Sharing. The LBJ Company has budgeted sales revenues as follows: April May June

Credit sales $94,000 $89,500 $75,000 Cash sales 48,000 75,000 57,000 Total sales $142,000 $164,500 $132,000 Past experience indicates that 30% of the credit sales will be collected in the month of sale and the remaining 70% will be collected in the following month. Purchases of inventory are all on credit and 40% is paid in the month of purchase and 60% in the month following purchase. Budgeted inventory purchases are $195,000 in April, $135,000 in May, and $63,000 in June. Other budgeted cash receipts: (a) sale of plant assets for $33,000 in May, and (b) sale of new common stock for $50,000 in June. Other budgeted cash disbursements: (a) operating expenses of $15,000 each month, (b) selling and administrative expenses of $10,150 each month, (c) purchase of equipment for $19,000 cash in June, and (d) dividends of $20,000 will be paid in June. The company has a cash balance of $20,000 at the beginning of May and wishes to maintain a minimum cash balance of $20,000 at the end of each month. An open line of credit is available at the bank and carries an annual interest rate of 10%. Assume that all borrowing is done on the first day of the month in which financing is needed and that all repayments are made on the last day of the month in which excess cash is available. Also assume that there is no outstanding financing as of May 1. Requirements: 1. Use this information to prepare a Cash Budget for the months of May and June, using the template provided in Doc Sharing. 2. What are the three sections of a Cash Budget, and what is included in each section? 3. Why is a Cash Budget so vital to a company?

4. What are the five basic principles of cash management that a company can follow in order to improve its chances of having adequate cash?

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ACCT 504 Week 6 Homework (E10-19A, E10-25A, E1216A, E12-20A)

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E10-19A

Army Navy Sporting Goods is authorized to issue 10,000 shares of common stock. During a two-month period, Army Navy completed these stock-issuance transactions:

Apr 23 Issued 3,000 shares of $1.00 par common stock for cash of $13.00 per share. May 12 Received inventory with a market value of $20,000 and equipment with market value of $39,000 for 3,600 shares of the $1.00 par common stock.Requirements 1. Journalize the transactions. 2. Prepare the stockholders' equity section of Army Navy Sporting Goods' balance sheet for the transactions given in this exercise. Retained Earnings has a balance of $45,000.

E10-25A (similar to) Question Help Ontario Manufacturing, Inc., reported the following at December 31, 2014 and December 31, 2015: Stockholders' Equity

Preferred stock, cumulative, $1.00 par, 12%, 45,000 shares issued $45,000

Common stock, $0.60 par, 9,070,000 shares issued 5,442,000 Ontario Manufacturing has paid all preferred dividends through 2011 Requirement

1. Compute the total amounts of dividends to both preferred and common stockholders for 2014 and 2015 if total dividends are $30,000 in 2014 and $45,000 in 2015.

Begin with 2014. Compute the total amounts of dividends to both preferred and common stockholders for 2014 if total dividends are $30,000.

E12-16A

Donnahoo Investments specializes in low-risk government bonds. Identify each of Donnahoo's transactions as operating (O), investing (I), financing (F), noncash investing and financing (NIF), or a transaction that is not reported on the statement of cash flows (N). Indicate whether each item increases (+) or decreases

a. Cash sale of land b. Issuance of long-term note payable in exchange for cash c. Depreciation of equipment d. Purchase of treasury stock e. Issuance of common stock for cash f. Increase in accounts payable g. Net income h. Payment of cash dividend i. Decrease in accrued liabilities j. Loss on sale of land k. Acquisition of building by issuance of notes payable l. Payment of long-term debt m. Acquisition of building by issuance of common stock

n. Decrease in accounts receivable o. Decrease in inventory p. Increase in prepaid expenses

E12-20A The income statement and additional data of Newton Travel Products, Inc., follow:

Requirements

1. Prepare Newton Travel Products's statement of cash flows for the year ended December 31, 2014, using the indirect method. 2. Evaluate Noel' cash flows for the year. In your evaluation, mention all three categories of cash flows and give the reason for your evaluation.

Requirement 1. Prepare Newton's statement of cash flows for the year ended December 31, 2014, using the indirect method.

Start by completing the cash flows from operating activities. Then complete each section of the statement of cash flows, including the noncash investing and financing activities. (

Newton Travel Products, Inc.

Income Statement

Year Ended December 31, 2014

Requirement 2. Evaluate Newton's cash flows for the year. In your evaluation, mention all three categories of cash flows and give the reason for your evaluation. Newton's . *************************************************

ACCT 504 Week 7 Course Project JCP Kohls

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