ACCT 503 Inspiring Innovation- tutorialrank.com by ma.cdonaldmiddleton123456

ACCT 503 Case Study 1 (Gordon Construction) For more course tutorials visit

www.tutorialrank.com Case Study 1 (Part A) Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books; construct and use a trial balance) 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 stockholders. 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 date. 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 has to work with and, how much it owes.

Adjust the accounts; construct the financial statements) Record the following month end adjusting entries for Gordon Construction, Inc. at June 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.

â&#x20AC;˘ c. Accrued salary expense at June 30 for Monday, Tuesday, and Wednesday. The five-day weekly payroll is $6,100 and will be paid on Friday. Requirement 2 Prepare adjusted trial balance for Gordon Construction at June 30, 2014. ***********************************************

ACCT 503 Case Study 2 (Williams Oil) For more course tutorials visit

www.tutorialrank.com Case study (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 Williams Oil Services Company, an auditor learns that the warehouse receiving clerk is responsible for ordering parts for supply inventory use in drilling services, counts the inventory when received at the dock, records the receipts into the inventory ledger, and takes the annual inventory, No supervisor reviews the receiving clerks work.

Situation b. Nicole Lopez handles employee travel and expense reports for Scott Sales Services. With the growth in the economy, the sales team began traveling extensively gaining new business. Because of the heavy volume, she no longer required the sales team to provide original 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 frequent flyer points. She required them to turn in a summary of the travel expenses quarterly.

Situation c. Michael Jordon is a new employee hired from Craigs List recommended by a co-worker. Mike was hired as a Human Resource Assistant. Mikes first day 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 503 Case Study 3 (Wang Appliance Store) For more course tutorials visit

www.tutorialrank.com Construct and use a cash budget) Nathan Farmer, chief financial officer of Wang Appliance Store, is responsible for the company?s budgeting process. Farmer?s staff is preparing the Wang cash budget for 2014. A key input to the budgeting process is last year?s statement of cash flows, which follows (amounts in thousands):

Wang Appliance Store

Statement of Cash Flows

2013

(in thousands)

Cash Flows from Operating Activities

Collections from customers

$51,000

Interest Received

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

activities

Net cash used for investing (3,000 )

Cash Flows from Financing Activities

Payment of long term debt

(400)

Issuance of Stock

2,000

Payment of cash dividends

activities

Cash

Net cash provided by financing 1,000

(500)

Increase (decrease) in Cash

Cash, beginning of year

3,300

2,900

Cash, end of year

5,900

? Requirements

1. Prepare the Wang cash budget for 2014. Date the budget simply ?2014? and denote the beginning and ending cash balances as ?beginning? 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 customers 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 503 Course Project Analysis of Nike, Inc. and Under Armour, Inc. For more course tutorials visit

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.

http://investors.nike.com/investors/news-events-andreports/?toggle=filings

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.

http://www.uabiz.com/sec.cfm

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

Earnings per Share of Common Stock

Current Ratio

Gross (Profit) MarginPercentage

Rate of Return (Net Profit Margin) on Sales

Inventory Turnover

Days’ Inventory Outstanding (DIO)

Accounts Receivable Turnover

Days’ 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 503 Course Project Oracle and Microsoft Corporation For more course tutorials visit

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.

http://www.oracle.com/us/corporate/investor-relations/sec/index.html

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.

http://www.microsoft.com/investor/SEC/default.aspx?year=2007

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 503 Entire Course For more course tutorials visit

www.tutorialrank.com ACCT 503 Week 1-7 All Discussion Questions

ACCT 503 Week 3 Case Study 1 Flower Landscaping Corporation

ACCT 503 Week 4 Midterm Exam Set 1

ACCT 503 Week 4 Midterm Set 2

ACCT 503 Week 4 Midterm Set 3

ACCT 503 Week 5 Case Study 2 Internal Control - LJB Company

ACCT 503 Week 5 Course Project Draft Spreadsheet

ACCT 503 Week 6 Case Study 3 - Cash Budgeting - LBJ Company

ACCT 503 Week 7 Course Project JCP Kohls ***********************************************

ACCT 503 Final Exam (3 different finals) For more course tutorials visit

www.tutorialrank.com 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

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)

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.

$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

$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)

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 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 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. ***********************************************

ACCT 503 Final Exam Guide (2 Set, New 2019) For more course tutorials visit

www.tutorialrank.com 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 503 Group Course Project (A Comparative Analysis of Celgene Corporation and Gilead Sciences, Inc) For more course tutorials visit

www.tutorialrank.com Group Course Project: A Financial Statement Analysis

A Comparative Analysis of Celgene Corporation and Gilead Sciences, Inc.

Groups

The students will be assigned to work in teams of two no later than Week 2. The teams will be required to collaborate at least three weeks on the project using a collaboration tool, such as Cisco Spark, or similar

technology, and provide evidence of use of the tool. It will be recommended that the students begin their project no later than week 5, when the draft is due, and continue through the end of week 7, when the final project is to be delivered.

Financial Statements

Below is the link for the financial statements for Celgene Corporation for the fiscal year ending 2015.

http://ir.celgene.com/sec.cfm?view=all

When you arrive at this website, please do the following.

First, under View, select Annual Filings using the drop-down arrow labeled All Filings and then select 2016 using the drop-down arrow labeled Year,

You should select the 10k dated 2/11/2016 and choose to download in PDF, HTML, or Excel format. The PDF format is the best format for searching.

Below is the link for the financial statements for Gilead Sciences, Inc. for the fiscal year ending 2015.

http://investors.gilead.com/phoenix.zhtml?c=69964&p=irol-sec

First, select 2016 under the Year filter using the drop-down arrow labeled All Years and then select Annual filings under the Groupings filter using the drop-down arrow labeled All Forms. Press the large Search button to access the requested annual filing for 2016.

You should select the 10k dated 2/24/2016, and choose to download it in PDF, Word, or Excel format. The PDF format is the best format for searching.

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 Celgene Corporation and Gilead Sciences, Inc., respectively, you will calculate and compare the financial ratios listed further down this document for the fiscal year ending 2015, and prepare your comments about the two companiesâ&#x20AC;&#x2122; performances 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, the course, the date, your instructorâ&#x20AC;&#x2122;s name, and the title for the project.

2. A Completed Worksheet Profiles 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 Conclusions Worksheet 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

Earnings per Share of Common Stock

Current Ratio Gross (Profit) Margin Percentage Rate of Return (Net Profit Margin) on Sales Inventory Turnover Days’ Inventory Outstanding (DIO)

Accounts Receivable Turnover

Days’ Sales Outstanding (DSO)

Asset Turnover Rate of Return on Total Assets (ROA) Debt Ratio Times-Interest-Earned Ratio 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.] Rate of Return on Common Stockholders’ Equity (ROE)

Free cash flow Price-Earnings Ratio (Multiple) [For the purpose of this ratio, look up the market price per share as of December 31, 2015 for Celgene Corporation and for Gilead Sciences, Inc..]

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.).

Please upload your final submission to the Week 7 Dropbox by the Sunday ending Week 7.

For the Draft:

Create an Excel spreadsheet or use the project template to show your computations for the first 10 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 Week 5 Dropbox by the Sunday at the end of Week 5.

Other Helpful Information:

If you feel uncomfortable with Excel, you can find many helpful tutorials on Excel by performing a Google search.

Chapter 13 contains ratio calculations and comparison comments related to Apple and Dell, so you will likely find this information helpful.

BigCharts.com provides historical stock quotes.

Either APA or MLA style can be used to complete the references on your Bibliography tab. There is a tutorial for APA and MLA style within the Plagiarism link, which can be accessed through the Syllabus.

Grade Information 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. The project will count for 15% of your overall course grade. ***********************************************

ACCT 503 Midterm Exam (4 Sets, 2019) For more course tutorials visit

www.tutorialrank.com This Tutorial contains 4 Set of Midterm Exam 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

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 503 Week 1 Homework (E117A E129B E22A E123A E124A) For more course tutorials visit

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)

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.

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.

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 503 Week 1-7 All Discussion Questions For more course tutorials visit

www.tutorialrank.com ACCT 503 Week 1DQ 1 - Financial Reporting Environment and GAAP ACCT 503 Week 1DQ 2 - Details of Financial Statements and Ratios ACCT 503 Week 2DQ 1 - Accounting EquationAccounting Cycle ACCT 503 Week 2DQ 2 - Accrual Accounting and Adjusting Entries ACCT 503 Week 3DQ 1 - Merchandising Operations and Income Statements ACCT 503 Week 3DQ 2 - Inventory Cost-Flow Assumptions

ACCT 503 Week 4DQ 1 - Understanding Internal Control and Reporting Cash ACCT 503 Week 4DQ 2 - Accounting for and Reporting Receivables ACCT 503 Week 5DQ 1 - Plant Assets and Intangibles ACCT 503 Week 5DQ 2 - Accounting for Liabilities ACCT 503 Week 6DQ 1 - Accounting for and Reporting Equity ACCT 503 Week 6DQ 2 - Statement of Cash Flows ACCT 503 Week 7DQ 1 - Issues in Income Reporting ACCT 503 Week 7DQ 2 - Different Tools for Financial Analysis ***********************************************

ACCT 503 Week 2 Homework (E2-20A, E2-21A, E3-22A, E3-23A, S3-13) (with Excel File) (Syllabus, 2019) For more course tutorials visit

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)

E2-20A 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.

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.

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.

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

Cash

Debit

cash

4400

(Amounts in thousands)

Accounts receivable Inventories

1,800

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 503 Week 2 Practice Exercise (E2-20A, E221A, E3-20A, E3-22A, S3-13, E3-26A)(Syllabus, 2019) For more course tutorials visit

www.tutorialrank.com E2-20A Dr. Kristine Cohen opened a medical practice specializing in physical therapy. During the first month of operation (July), the business, titled Dr. Kristine Cohen, Professional Corporation (P.C.), experienced the following events:

Jul 6 Cohen invested $148,000 in the business, which in turn issued its common stock to her. 9 The business paid cash for land costing $66,000. Cohen plans to build an office building on the land.

E2-21A Continued Requirement 1. Post the entries to the ledger, using T-accounts. Key transactions by date. (Record transactions from the 15-31 of the month as occurring on the last day of the month.) Calculate the balance for each account and enter it on the appropriate side of each T-account. E3-20A Requirement 1. Journalize the adjusting entries. (Record debits first, then credits. Exclude explanations from any journal entries.) a. Prepaid insurance, beginning, $300. Payments for insurance during the period, $2,900. Prepaid insurance, ending, $600. Requirement 2. Suppose the adjustments were not made. Compute the overall overstatement or understatement of net income as a result of the omission of these adjustments. Enter the amounts of either the overstatement or understatement of net income as a result of omitting these adjustments. (Use parentheses or a minus sign when entering understatements.) Net income over (under) stated by omission of: Insurance Expense

$2,600

Interest Revenue

(2,400)

Service Revenue

(1,300)

Depreciation Expense 5,500 Salary Expense

5,200

Income Tax Expense 7,000 Total over (under) statement of net income

$16,600

E3-22A

Dellroy Rentals Company faced the following situations. a. The business has interest expense of $3,200 that it must pay early in January 2017. b. Interest revenue of $4,100 has been earned but not yet received. c. On July 1, 2016, when the business collected $12,000 rent in advance, it debited Cash and credited Unearned Rent

Revenue. The tenant was paying for two years' rent. d. Salary expense is $6,100 per day Monday through Friday 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 $3,200. The total cost of supplies on hand is $1,300. f. Equipment was purchased on January 1 of this year at a cost of $180,000. 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.

S3-13

Due to the terms of its lease, Peachtree Services, Inc., pays the rent for its new office space in one annual payment of $24,000 on August 1,2016. The lease covers the period of August 1,2016, through July 31, 2017. Peachtree Services has a year-end of December 31. Assume that Peachtree Services had no other prepaid rent transactions, nor did it have a Prepaid Rent beginning balance in 2016. Give the journal entries that Peachtree Services would make for (a) the annual rent payment of

$24,000 on August 1 and (b) the adjusting entry for rent expense on December 31, 2016. What is the balance of Prepaid Rent at December 31, 2016?

Give the journal entries that Peachtree Services would make for (a) the annual rent payment of $24,000 on August 1 and (b) the adjusting entry for rent expense on December 31, 2016. What is the balance of Prepaid Rent at December 31, 2016? (Record debits first, then credits. Exclude explanations from any journal entries.) Give the journal entry that Peachtree Services would make for (a) the annual rent payment of $24,000 on August 1.

E3-26A

Consider the following selected accounts from the records of North Pole Enterprises at December 31, 2016. Requirement 1. Prepare the closing entries for North Pole Enterprises at December 31, 2016. How much net income did North Pole

Enterprises earn during 2016? Prepare a T-account for Retained Earnings to show the December 31, 2016, balance of Retained Earnings.

Begin by preparing the closing entries for North Pole Services Enterprises. Record the entry to close out the revenue accounts. (Record debits first, then credits. Exclude explanations from any journal entries. Check your spelling carefully and do not abbreviate. Use only the account names provided in the problem statement.) How much net income did North Pole Enterprises earn during 2016?

Prepare a T-account for Retained Earnings to show the December 31, 2016, balance of Retained Earnings. Post the beginning balance and closing entries to Retained Earnings and determine the ending balance. ***********************************************

ACCT 503 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 503 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 503 Week 3 Practice Exercise (S6-10, QC612, E6-19A, E6-22A, E6-27A, S11-2, S113)(Syllabus, 2019) For more course tutorials visit

www.tutorialrank.com S6-10, QC6-12, E6-19A, E6-22A, E6-27A, S11-2, S11-3

This exercise tests your understanding of the four inventory methods. List the name of the inventory method that best fits the description. Assume that the cost of inventory is rising. 1. LIFO ending inventory

Results in an old measure of the cost of

2. Average-cost Provides a middle-ground measure of ending inventory and cost of goods sold

3. LIFO IFRS.

The method of inventory valuation that is disallowed by

4. Applies to all four inventory methods Writes inventory down when current replacement cost drops below historical cost 5. LIFO revenue

Matches the most current cost of goods sold against sales

6. FIFO

Maximizes reported income

7. Specific-unit-cost objects

Used to account for automobiles, jewelry, and art

8. FIFO Results in a cost of ending inventory that is close to the current cost of replacing the inventory 9. LIFO

Generally associated with saving income taxes

10. LIFO Enables a company to buy high-cost inventory at yearend and thereby decrease reported income and income tax

QC6-12 Putter Company had a 16,000 beginning inventory and $17,000 ending inventory. Net sales were 153,000; purchases, $85,000; purchase returns and allowances, $5,000; and freight in, $4,000. Cost of goods sold for the period is:

E6-19A High Life Inc.'s inventory records for a particular development program show the following at March 31:

At March 31, 99 of these programs are on hand. Requirements 1. Compute cost of goods sold and ending inventory, using each of the following methods:

a. Specific unit cost, with three $165 units and six $175 units still on hand at the end

Average cost

First-in, first-out

Last-in, first-out

2. Which method produces the highest cost of goods sold? Which method produces the lowest cost of goods sold? What causes the difference in cost of goods sold?

E6-19A Continued Requirement 1. Compute cost of goods sold and ending inventory, using each of the following four inventory methods: Begin by entering the number of units sold and number of units in ending inventory. Then calculate cost of goods sold and ending inventory using (a) specific unit cost, then (b) average cost, then (c) FIFO, and finally (d) LIFO. (Round the average cost per unit to the nearest cent. Round all final answers to the nearest whole dollar.)

Requirement 2. Which method produces the highest cost of goods sold? Which method produces the lowest cost of goods sold?

What causes the difference in cost of goods sold?

Which method produces the highest cost of goods sold? LIFO Which method produces the lowest cost of goods sold? FIFO The difference in cost of goods sold under the two methods identified above was caused by the increase in inventory unit cost

E6-22A

MusicMagic specializes in sound equipment. Because each inventory item is expensive, MusicMagic uses a perpetual inventory system. Company records indicate the following data for a line of speakers:

Requirements

1. Determine the amounts that MusicMagic should report for cost of goods sold and ending inventory two ways: a. FIFO b. LIFO E6-27A

Tilton & Taft, a partnership, had the following inventory data: 2015

2016

. $ 21,530

$ 30,320

13,200

14,000

Ending inventory at: FIFO Cost . . . . . . . LIFO Cost . . . . . . . . Cost of goods sold at: FIFO Cost . . . . . . . .

$ 82,960

LIFO Cost . . . . . . . .

99,280

Sales revenue . . . . . . . . . . .

136,000

Requirements 1. Tilton & Taft need to know the company's gross profit percentage and rate of inventory turnover for 2016 under (a) FIFO, and (b) LIFO.

2. Which method produces a higher gross profit percentage? Inventory turnover?

Requirement 1. Tilton & Taft need to know the company's gross profit percentage and rate of inventory turnover for 2016 under (a) FIFO, and (b) LIFO. Begin by calculating the gross profit percentage. (Enter the percentage to the nearest tenth of a percent, X.X%.)\

Requirement 2. Which method produces a higher gross profit percentage? Inventory turnover? FIFO produces a higher gross profit percentage. LIFO produces a higher rate of inventory turnover.

S11-2

Study the 2016 income statement of Kathy's Imports, Inc., and answer these questions about the company:

1. How much gross profit did Kathy's Imports earn on the sale of its products in 2016? How much was income from continuing operations? Net income?

1. How much gross profit did Kathy's Imports earn on the sale of its products in 2016? How much was income from continuing operations? Net income? (Enter amounts in thousands. Use parentheses or a minus sign for losses.)

2. At the end of 2016,what dollar amount of net income would most sophisticated investors use to predict Kathy's Imports' net income for 2017 and beyond? Name this item, give its amount, and state your reason. (Enter amounts in thousands. Use parentheses or a minus sign for losses.) Sophisticated investors would use income from continuing operations in the amount of $ 63,110 thousand.

Kathy's Imports' continuing operations will continue from period to period This makes income from continuing operations a good predictor of future net income.

S11-3

Fabulous Life, Inc., reported the following items, listed in no particular order, at December 31, 2016 (in thousands):

S11-3 Continued

Income tax of 38% applies to all items. .Prepare Fabulous Life's multistep income statement for the year ended December 31, 2016. Omit earnings per share. (Use a minus sign or parentheses for losses.)

Fabulous Life, Inc. Income Statement Year Ended December 31, 2016 (Thousands) ***********************************************

ACCT 503 Week 3 Quiz (2 Set)(Syllabus, 2019) For more course tutorials visit

www.tutorialrank.com QC6-6 Use the following data of Seaside Sales, Inc.: Unit

Total

Units

Units Cost

Cost

Sold

Beginning inventory 15

$60

Purchase on Apr 25

259

Purchase on Nov 16

Sales

Seaside Sales' cost of ending inventory using the average cost method is

QC11-1 The quality of earnings suggests that

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

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

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

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

QC11-10

Deferred Tax Liability is usually Type of Account

Reported on the Statement

A. Short-term Income statement

B. Long-term Balance sheet Your answer is correct.

C. Short-term Statement of stockholders' equity

D. Long-term Income statement

QC11-8

Other comprehensive income

A. includes gains and losses on sale of equipment.

B. affects earnings per share.

C. has no effect on income tax.

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

QC6-4

Use the following data of Manatee Sales, Inc.: Unit

Total

Units

Units Cost

Cost

Sold

Beginning inventory 22

$110

Purchase on Apr 25

210

Purchase on Nov 16

144

Sales

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

Worked Solution Units Unit Cost

Total Cost

Units sold from beginning inventory 22

$110

Units sold from purchase on Apr 25 28

196

Cost of goods sold

$306

A. $400.

B. $306.

C. $354.

D. $332.

QC6-5 Use the following data of Starfish Sales, Inc.:

Unit

Total

Units

Units Cost

Cost

Sold

Beginning inventory 25

$75

Purchase on Apr 25

287

Purchase on Nov 16

117

Sales

Starfish Sales' LIFO cost of ending inventory would be

A. $206.

B. $264.

C. $138.

D. $405.

QC11-12 An auditor report by independent accountants

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

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

QC11-2 Which statement is true?

A. All prior-period adjustments are combined with continuing operations on the income statement.

B. Prior-period adjustments are part of discontinued operations.

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

D. All of the above are true.

QC6-13 Hazard Company had a $16,000 beginning inventory and a $20,000 ending inventory. Net sales were $153,000; purchases, $80,000; purchase returns and allowances, $5,000; and freight in, $9,000. Cost of goods sold for the period is $80,000. What is Hazard's gross profit percentage (rounded to the nearest percentage)?

Worked Solution Gross profit

A. 10%

Net sales

B. 52%

C. 13%.

D. 48% ***********************************************

ACCT 503 Week 4 Quiz (2 Set)(Syllabus, 2019) For more course tutorials visit

www.tutorialrank.com QC5-5 Joshua Company had the following information in 2016. accounts receivable 12/31/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,000 Allowance for uncollectible account 12/31/16 (before adjustment). . . . . . . 700 Credit service revenue during 2016. . . . . . . . . . . . . . . . . . . . . . . . . . . .

47,000

Cash service revenue during 2016. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,000

Collections from customers on account during 2016. . . . . . . . . . . . . . . . . . 45,000 If uncollectible accounts are determined by the aging-of-receivables method to be $1,260, the uncollectible-account expense for 2016 would be

Worked Solution Allowance account, adjusted bal Allowance account, unadjusted bal = Uncollectible-account expense $1,260 -

A. $600

B. $1,260.

C. $1,880.

D. $560.

$700

$560

Q4-37

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

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

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

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

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

QC5-3

lNeal Company had the following information in 2016:

Accounts receivable 12/31/16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,000 Allowance for uncollectible account 12/31/16 (before adjustment). . . . . . . 600 Credit service revenue during 2016. . . . . . . . . . . . . . . . . . . . . . . . . . . .

39,000

Cash service revenue during 2016. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000 Collections from customers on account during 2016. . . . . . . . . . . . . . . . . . 50,000 Uncollectible accounts are determined by the percent-of-sales method to be 33% of credit sales. How much is uncollectible-account expense for 2016?

QC5-13 Net credit sales total $1,357,200. Beginning and ending accounts receivable are $50,000 and $43,600, respectively. Calculate days' sales outstanding. (Round interim calculations to two decimal places, XX.XX and the days' sales outstanding (DSO) up to the next whole day.)

QC5-1 Hank Neylon Productions held investments in trading securities with a fair value of $65,000 at December 31, 2016. These investments cost Hank Neylon Productions $60,000 on January 1, 2016. What is the appropriate amount for Hank Neylon Productions to report for these investments on the December 31, 2016, balance sheet?

A. $65,000

B. $60,000

C. $5,000 gain

D. Cannot be determined from the data given

QC5-6 Daniel Company had the following information in 2016:

If uncollectible accounts are determined by the aging-of-receivables method to be $1,240, the uncollectible account expense for 2016 would be $490. Using the aging-of-receivables method, the balance of the Allowance account after the adjusting entry at year-end 2016 would be

A. $1,990.

B. $1,730.

C. $1,240.

D. $490.

Q4-36 Requiring that an employee with no access to cash do the accounting is an example of which characteristic of internal control?

A. Monitoring of controls

B. Separation of duties

C. Competent and reliable personnel

D. Assignment of responsibility

Q4-35 All of the following are internal control procedures except

A. adequate records.

B. internal and external audits.

C. Sarbanes-Oxley reforms.

D. assignment of responsibilities.

Q4-45 Which of the following assets are not included in "cash equivalents" in a typical balance sheet?

A. Time deposits

B. U.S. government securities

C. Certain very low-risk equity securities

D. Foreign government securities

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

Q4-34 All of the following are objectives of internal control except

A. to comply with legal requirements.

B. to ensure accurate and reliable accounting records.

C. to safeguard assets.

D. to maximize net income. ***********************************************

ACCT 503 Week 5 Case Study 2 Internal Control LJB Company For more course tutorials visit

www.tutorialrank.com Case Study 2 - Internal Control- Due by Sunday of week 5

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.