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ACCT 504 Final Exam Solution

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(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

 (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

 (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

 Under the accrual basis of accounting, revenues are recorded and reported _____. when companies receive payments for jobs performed or products provided when companies have provided products or performed services when companies receive payments prior to providing products or performing services when companies receive payments after providing products or performing services

 In a period of increasing prices, which inventory cost flow assumption will result in the highest amount of net income? LIFO The average cost method FIFO

 Payne Corporation issues 100 twenty-year, 6%, $1,000 bonds dated July 1, 2010, at 94. The journal entry to record the issuance will show a _____. debit to Cash of $100,000 credit to Bonds Payable of $94,000 credit to Premium on Bonds Payable of $4,000 debit to Discount on Bonds Payable of $6,000

 What did Cerner Company show as total credits? (Points : 5) $21,500 $21,000 $20,500 $22,000

 (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

 (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

 (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

 (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 $1,000,000

 (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

 (TCO F) One variation of the horizontal analysis is known as _____. (Points : 5) nonlinear analysis vertical analysis trend analysis common-size analysis

 (TCO F) Comparisons of data within a company are an example of the following comparative basis. (Points : 5) Industry averages Intercompany Intracompany Interregional

 (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

 (TCO F) Short-term creditors are usually most interested in assessing _____. (Points : 5) solvency liquidity marketability profitability

 (TCO F) Long-term creditors are usually most interested in evaluating _____. (Points : 5) liquidity marketability profitability solvency

 (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

 (TCO A) Below you will find selected information (in millions) from Coca-Cola Co.’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 stockholders’ equity ratio. (Make sure to show all your work)

  (TCO B) The following selected data was retrieved from the Wal-Mart, Inc. financial statements for the year ending January 31, 2013: ………………………………………………………………………………………………………………………………………………………………………………………………

Required:

Using the information provided above: 1. Prepare a multiple-step income statement 2. Calculate the Profit Margin, and Gross profit rate for the company. Be sure to provide the formula you are using, show your calculations, and discuss your findings/results.

 (TCO C) Please review the following real-world Hewlett Packard Statement of Cash flows and address the 2 questions below:

……………………………………………………………………………………………………………………………………………………………………………………….

Required:

1) Please calculate the percentage increase or decrease in cash for the operating, investing, and financing sections and explain the major reasons for the increase or decrease for each of these sections.

 2) Please calculate the free cash flow for 2012 and explain the meaning of this ratio.

 4. (TCO D) You are CFO of Goforit, Inc., a wholesale distribution company specializing in emerging technologies. Your CEO is a brilliant marketer, but relies on you to explain issues and choices in accounting and finance. She has heard from other members of a CEO organization to which she belongs that a company’s net income can vary widely depending on which accounting choices are made from the “GAAP menu.”

 Assuming the goal is to maximize net income, choose an accounting treatment from each of the following scenarios, and explain to your CEO why the choice will produce the desired effect on reported Net Income for the current year. Include in your answer the effect of the choice on both the income statement and balance sheet.

Required:

a. Goforit carries significant electronics inventory in a competitive environment where prices are actually falling. Which inventory valuation method would you choose—LIFO, FIFO, or average cost? Assume that unit purchases exceed unit sales. b. Goforit has a large investment in warehouse equipment including conveyor belts, forklifts, and automated packaging systems. Which depreciation method would you choose: Straight line (SL) or double declining balance (DDB)?

 (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.

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ACCT 422 Hollate Manufacturing Case Study

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Case Study: Ethics

Instructions

You will prepare a one- to two-page single spaced report  based on your review of the following case study, Hollate Manufacturing Case  Study, http://www.thecaq.org/docs/reports-and-publications/hollatecasestudy.pdf?sfvrsn=2.  Your paper should discuss any ethical issues faced by company employees, or  internal or external auditors, incorporating into your discussion codes of  ethics such as the Institute’s Code of Ethics and professional accounting  rules of conduct. Your paper should also discuss the potential stakeholders  affected, and the possible next steps/alternatives that should be taken to  resolve any ethical issues.

The one- to two-page length requirement excludes the cover page and  bibliography. The paper should have one inch margins and 12 pitch font size.  The paper should include a cover page (setting forth the title of the paper,  your name, the course number, and the date), and a bibliography. The  paper should include a short introductory paragraph, a comprehensive but  concise analysis of the topic, and a short conclusion paragraph. The paper  should be in paragraph format, please do not list items in bullet format or  otherwise create unnecessary empty space.

Any references used should be from authoritative sources, such as from  business and accounting periodicals – not merely statements from an  individual’s Web page. Wikipedia or other online encyclopedias, and  technical manuals may not be used as references.

The paper, including citations and bibliographical reference, is to be  done according to the APA rules of style. Research sources as well as the APA  rules of style can be found using the UMUC Library Services. The APA style  can be found at http://www.umuc.edu/library/citationguides.shtml.

The student should take care to avoid issues of academic dishonesty and  plagiarism. A paper is not created through the use of copy and paste  materials from the Internet but rather by carefully considering sources and  personally writing the narrative, uniting topics from our class with current  events and the work of other authors. NOTE:  You cannot recycle  a paper from a prior class/course or semester.  Your paper for this  class must be original, and must be your own work.  All sources must be  properly cited.

Consulting the UMUC Guide to Writing and Research is highly recommended  and can be found at: http://www.umuc.edu/prog/ugp/ewp_writingcenter/writinggde/welcome.shtml.  You should also thoroughly read UMUC’s module on How to Avoid Plagiarism,  which can be found in the Course Content area under the Writing Resources  link.

     Hide Rubrics

Rubric Name: Internal Auditing Rubric

Analysis    and Evaluation 25

5    Points

4    Points

3    Points

2    Points

1    Point

0    Points

Qualitative    Analysis

5 points

4 points

3 points

2 points

1 point

0 points

Quantitative    Analysis

5 points

4 points

3 points

2 points

1 point

0 points

Effective    Use of Resources Specific to Your Project

5 points

4 points

3 points

2 points

1 point

0 points

Effective    Use of Resources Specific to Our Course

5 points

4 points

3 points

2 points

1 point

0 points

Ability    to create a unified ‘story’ to meet goals of the deliverable

5 points

4 points

3 points

2 points

1 point

0 points

Meets    Presentation Requirements 10

5    Points

4    Points

3    Points

2    Points

1    Points

0    Points

Uses    resources of our course

5 points

4 points

3 points

2 points

1 point

0 points

Satisfies    specific requirements for the presentation

5 points

4 points

3 points

2 points

1 point

0 points

Basic    Content in Place 25

5    Points

4    Points

3    Points

2    Points

1    Point

0    Points

Illustrates    knowledge of foundation materials

5 points

4 points

3 points

2 points

1 point

0 points

Demonstrates    application of key course concepts

5 points

4 points

3 points

2 points

1 point

0 points

Effective    Use of Resources Specific to Your Project

5 points

4 points

3 points

2 points

1 point

0 points

Qualitative    Analysis

5 points

4 points

3 points

2 points

1 point

0 points

Quantitative    Analysis

5 points

4 points

3 points

2 points

1 point

0 points

Advanced    Content in Place 20

5    Points

4    Points

3    Points

2    Points

1    Points

0    Points

Illustrates    knowledge of course materials

5 points

4 points

3 points

2 points

1 point

0 points

Demonstrates    application of advanced course concepts

5 points

4 points

3 points

2 points

1 point

0 points

Effective    Use of Advanced Resources Specific to Your Project

5 points

4 points

3 points

2 points

1 point

0 points

Tells    a story to meet the goals of the deliverable

5 points

4 points

3 points

2 points

1 point

0 points

Format    including APA and Works Cited Specifications 10

5    Points

4    Points

3    Points

2    Points

1    Points

0    Points

Report    prepared in your own words, avoiding excessive quotes

5 points

4 points

3 points

2 points

1 point

0 points

Works    Cited List with appropriate resources included

5 points

4 points

3 points

2 points

1 point

0 points

Clarity,    mechanics, and formatting 10

5    Points

4    Points

3    Points

2    Points

1    Point

0    Points

Single    Spacing, Double Spacing between paragraphs, page numbers

5 points

4 points

3 points

2 points

1 point

0 points

Reader    focused, easy to follow, effective use of space such as charts and headings

5 points

4 points

3 points

2 points

1 point

0 points

Overall    Score

5    Points    5 or more

4    Points    4 or more

3    Points    3 or more

2    Points    2 or more

1    Point    1 or more

0    Points    0 or more

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ACCT 323 Assignment 1 : Tax Research

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The facts for your Tax Research Assignment 1are as follows:

Mikki Jag is a self-employed rock star who hires you as his new CPA to prepare his 2014 federal income tax returns, which are currently on extension. He explains that in 2014 he spent $10,000 on special “flashy” clothes and outfits for his rock concerts. Mikki would like to deduct the cost of these clothes as work-related because the clothes are not acceptable to his sense of fashion on a daily basis. He would like to know under what circumstances he can deduct the cost of these work clothes.

Instructions:

Please research the tax law and write Mikki a brief memo of no more than two pages, in which you communicate the results of your research. Use the format for communicating research findings discussed in the Learning Resources for Week 1: “Tax Research – Federal,” and “Locating Tax Authority,” as well as under “Syllabus and Course Schedule: Tax Research Assignment How to Complete” in the Course Content area of LEO.

Identify relevant statutory, administrative, and judicial authorities and discuss how these authorities affect your conclusion concerning the deductibility of Mikki Jag’s clothes.

*Remember: while IRS publications are useful as secondary sources, they are not primary sources that can be cited and relied upon in a tax research memorandum.

Your research assignment will be graded using the following criteria:

Recognition of the important facts and issues

Correct conclusion

Clarity of writing

Proper use of relevant sources to support your     conclusion and analysis.

Proper citation of relevant sources

Proper format, spelling & grammar

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ACCT 304 Midterm Exam

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Question 1. Question : (TCO 1) Which of the following has the authority to set accounting standards in the United States?

FASB

IRS

SEC

AICPA

: 1

Question 2. Question : (TCO 2) SFAC No.5 focuses on:

objectives of financial reporting.

qualitative characteristics of accounting information.

Recognition and measurement concepts in accounting, including assumptions and principles.

elements of financial statements.

: 1

5 of 5

Question 3. Question : (TCO 3) Mary Parker Co. invested $15,000 in ABC Corporation and received capital stock in exchange. Mary Parker Co.’s journal entry to record this transaction would include a:

debit to investments.

credit to retained earnings.

credit to capital stock.

debit to expense.

: 2

5 of 5

Question 4. Question : (TCO 3) The adjusting entry required to record accrued expenses includes:

a credit to cash.

a debit to an asset.

a credit to an asset.

a credit to liability.

: 2

5 of 5

Question 5. Question : (TCO 3) Temporary accounts would not include:

salaries payable.

depreciation expense.

supplies expense.

cost of goods sold.

: 2

5 of 5

Question 6. Question : (TCO 4) Notes payable:

is a current liability account.

usually has a debit balance.

is a non-current liability account.

cannot determine its classification without additional information.

: 2

5 of 5

Question 7. Question : (TCO 4) The current ratio is given by:

current assets divided by non-current assets.

current assets divided by total assets.

current assets divided by current liabilities.

current assets divided by total liabilities.

: 3

5 of 5

Question 8. Question : (TCO 5) The distinction between operating and non-operating income relates to:

continuity of income.

principal activities of the reporting entity.

consistency of income stream.

reliability of measurements.

: 4

5 of 5

Question 9. Question : (TCO 5) A voluntary change in accounting principle is accounted for by:

a cumulative effect on income in the year of the change.

a retrospective reporting of all comparative financial statements shown.

a prior period adjustment.

a separate line component of income.

: 4

5 of 5

Question 10. Question : (TCO 5) Cash flows from investing activities do not include:

proceeds from issuing bonds.

payment for the purchase of equipment.

proceeds from the sale of marketable securities.

cash outflows from acquiring land.

: 4

5 of 5

Question 11. Question : (TCO 5) The Maytag Corporation’s income statement includes income from continuing operations, a loss from discontinued operations, and extraordinary items. Earnings per share information would be provided for:

net income only.

income from continuing operations and net income only.

income from continuing operations, loss from discontinued operations, and net income only.

income from continuing operations, loss from discontinued operations, extraordinary items, and net income.

: 4

5 of 5

Question 12. Question : (TCO 5) In a statement of cash flows prepared under International Financial Reporting Standards, each of the following items is typically classified as a financing cash flow except:

interest paid.

dividends paid.

proceeds from the issuance of long-term debt.

dividends received.

: 4

5 of 5

Question 13. Question : (TCO 4) Which is a shareholders’ equity account in the balance sheet?

Accumulated depreciation

Paid-in capital

Dividends payable

Marketable securities

: 3

5 of 5

Question 14. Question : (TCO 4) Which of the following groups is not among the external users for whom financial statements are prepared?

Customers

Suppliers

Employees

All of the above are external users of financial statements.

(TCO 5) Misty Company reported the following before-tax items during the current year:

Misty’s effective tax rate is 40% and there were 1,000 shares of common stock outstanding.

What would be Misty’s income before extraordinary item(s)?

Question 2. Question : (TCO 4) Listed below are account balances (in $millions) taken from the records of Symphony Stores. All of these are permanent accounts, except the last two that have yet to be closed. The installment receivables are current. Symphony uses a perpetual inventory system.

What would Symphony report as total assets? Hint: Don’t forget to deduct the contra assets.

(TCO 4) Explain how management’s discussion and analysis of its operations and liquidity may be helpful to investors.

Question 2. Question : (TCO 2) What are the key provisions of the Public Company Accounting Reform and Investor Protection (Sarbanes-Oxley) Act of 2002?

Question 3. Question : (TCO 5) Give an example of a non-cash financing and investing activity and explain when and how it would be reported in the financial statements.

Question 4. Question : (TCO 3) What is the purpose of the closing process?

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ACCT 304 Intermediate Accounting I – Complete Class

ACCT 304 Intermediate Accounting I – Complete Class

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 week 1

  Development of Accounting  Standards (graded)

  Hello Class, Welcome to week 1 Discussion Topic 1.

Generally Accepted Accounting Principles (GAAP) are guidelines for companies to follow as they prepare and issue financial statements.

Let’s start by getting an understanding of why the guidelines were developed in the first place?

a) Who relies on the financial statements (external     users) and why, what are they using the statements for?         b) What happens if an External User relies on financial statements that     are inaccurate? (what could happen to the corporaton)         c) What negative consequences can arise from relying on inaccurate     financial statements? (what could happen to the external user)         Remember, these discussion threads are supposed to be stimulating     conversation, a back and forth discussion among students and teacher.

After the first person responds, he or she can respond to the first item, the next person can add a point that maybe the previous discussions failed to point out or answer the second item..

I don’t want to see everybody repeating the same answer. You wouldn’t do that if you were in class and I asked a question.

You need to respond to each of the two separate discussion topics by Wednesday the latest. And, including Wednesday, you need to respond to each of the 2 discussion threads on 3 different days. For example, you could come in as late as Wednesday and respond to topic one and two. Then do the same for both topics on Thursday and Sunday.

They need to be of quality responses. Not “I agree with what you said John.” or Not “Yes, John, you are correct in saying that…..”

Prof. Marnell

Accounting Conceptual Framework  (graded)

  Hello Class, Welcome to week 1 Discussion Topic 2.

A sound foundation is necessary for success in any task from building a house to putting on make-up.

In terms of U.S. Accounting Standards, it is also necessary to have a sound foundation, referred to as the conceptual framework. a)What is the conceptual framework, and why is it important?

Once students have answered the above thoroughly, lets move on and…

b) discuss it step by step starting with the objective.     What is the objective of accounting standards?

Remember, these discussion threads are supposed to be stimulating conversation, a back and forth discussion among students and teacher.

After the first person responds, he or she can respond to the first item, the next person can add a point that maybe the previous discussions failed to point out or answer the second item..

I don’t want to see everybody repeating the same answer. You wouldn’t do that if you were in class and I asked a question.

You need to respond to each of the two separate discussion topics by Wednesday the latest. And, including Wednesday, you need to respond to each of the 2 discussion threads on 3 different days. For example, you could come in as late as Wednesday and respond to topic one and two. Then do the same for both topics on Thursday and Sunday.

They need to be of quality responses. Not “I agree with what you said John.” or Not “Yes, John, you are correct in saying that…..”

Prof. Marnellweek 2

Balance Sheet: Purpose and Uses  (graded)

  Hello class;

The balance sheet is one of the first financial statements I turn to when reviewing a company. You can learn a lot about a company by looking at its balance sheet.

The balance sheet is also called the statement of financial position. Why is this? What is the purpose of the balance sheet?

Hello Class;

Disclosures are required to elaborate on certain items that are presented in summarized form in the financial statements. There are specific disclosure notes that are required to be present in all financial statements, while others may be unique to the disclosure needs of a particular company.

Let’s start by discussing the three required disclosures. Please pick one and explain what information is to be included in the note:

a) Summary of Significant Accounting Policies

b) Subsequent Events

c) Third Party Transactions

  ACCT 304 week 4

  Revenue Recognition (graded)

  Hello Class;

When a company sells a product for cash, it generally recognizes the revenue. However, there are situations when it is not always clear when a company should recognize the revenue.

1) How do you handle a car dealership that sells a warranty contract to its customers for $650 that will cover the next 5 years?

Time Value of Money Concepts  (graded)

 Hello Class;

You might think of the “time value of money” to be a topic for Finance class, but accountants need an understanding of this topic as well.

Let’s discuss where/why an accountant may need to use these skills/calculations.

  ACCT 304 week 3

 Income Statement (graded)

  Hello Class;

Students often refer to an income statement as the statement that shows how much money a company has made. Money, by definition, is something that is generally accepted as a medium of exchange or means or payment. Keeping that definition in mind, an income statement is not a measure of money, but rather it is a measure of net income (or loss) also known as profit (or loss).

Select a publicly held company like Apple, Microsoft, IBM, Hewlett Packard, Home Depot (Note: do not select a company already chosen by your classmate). Go to their website and select Investor Relations and there you will find the company’s annual report.

Provide the link to that annual report and based on what you have read about income statements in this chapter and in the Becker materials,tell us what you have learned about the company from reviewing its income statement.

Prof. Marnell

 Cash-Flow Statement (graded)

 Hello Class;

The Statement of Cash Flows has historically given students a lot of heartburn, but it really isn’t that scary. A cash-flow statement, simply stated, reports the uses (where the cash was spent) and the sources (where the cash came from) of cash during a period. Let’s start with a very simplistic set of facts. I run a CPA firm, and I billed my clients $50K during the month of February. To earn that $50K, I incurred $20K of wage expense and another $10K of overhead (rent, utilities, insurance, etc.). So I made $20K profit, right? So I am sitting pretty? Not necessarily. What if I now tell you that $40K of my billings have yet to be collected? And my E&O insurance carrier increased my premium and I had to pre-pay $10K of premiums this month.

a) How does my cash flow differ from my profit?

b) Will these transactions appear on my income     statement?

c) My cash-flow statement?

Prof. Marnell

  ACCT 304 week 5

 Cash (graded)

  Hello Class;

Cash is listed first on the balance sheet because it is the asset most readily available to pay off debt or use in operations. Cash is also one of the assets that most often “grows legs” and walks away. Therefore, it is important that any business protect its cash; it does so through Internal Control Procedures.

a) Please start by defining Internal Control,

b) then discuss specific procedures related to cash.

Receivables (graded)

  Hello Class;

When a business extends credit to its customers, we call this Accounts Receivable. Often a business will grant its customers a discount.

a)What are the two types of discounts, and

b) how does the journal entry to record the sale change     when there is a discount granted?

  ACCT 304 week 7

  Inventories—LCM (graded)

  Hello Class;

The lower-of-cost-or-market (LCM) approach was developed to avoid reporting inventory at an amount greater than the benefits it can provide. The LCM approach records losses in the period the value of the inventory drops below its cost instead of later in the period that the goods are ultimately sold.

Is this a conservative or an aggressive approach? What does GAAP say about LCM?

 Inventory Errors (graded)

  Hello Class;

It is discovered in 2013 that ending inventory from 2011 is understated. What accounts will be affected by this understatement, and how will they be affected?

This is a situation that really happens. Start with the 2011 inventory being understated, and track the changes through the inventory account to 2013.

  ACCT 304 week 6

 Inventory Classification and  Systems (graded)

  Hello Class; Merchandise Inventory is assets held for sale in the ordinary course of business of wholesale and retail companies. Manufacturing inventories are raw materials or WIP (Work In Process) that will be used or consumed in the production of finished goods to be sold.

iscussion topic #1

explain how inventory is presented on the balance     sheet, and

what further information you found in the footnote     disclosures about the inventory method and “Impairment of Inventory”, if     any.

 Inventoriable Costs/Cost-Flow  Assumptions (graded)

  Hello Class;

We read about the Perpetual and the Periodic Inventory System. Regardless of which system is used, under both, we need to assign dollar amounts to the Ending Inventory and Cost of Goods Sold so that we can trace how costs flow through the system. 1) Start by identifying what is included in inventory and then 2) discuss how each item might be treated differently in the Perpetual vs. the Periodic Inventory System.

    quizesQuestion 1. Question : (TCO 1) Which of the following has the authority to set accounting standards in the United States?

FASB

IRS

SEC

AICPA

: 1

Question 2. Question : (TCO 2) SFAC No.5 focuses on:

objectives of financial reporting.

qualitative characteristics of accounting information.

Recognition and measurement concepts in accounting, including assumptions and principles.

elements of financial statements.

: 1

5 of 5

  Question 3. Question : (TCO 3) Mary Parker Co. invested $15,000 in ABC Corporation and received capital stock in exchange. Mary Parker Co.’s journal entry to record this transaction would include a:

debit to investments.

credit to retained earnings.

credit to capital stock.

debit to expense.

: 2

5 of 5

  Question 4. Question : (TCO 3) The adjusting entry required to record accrued expenses includes:

a credit to cash.

a debit to an asset.

a credit to an asset.

a credit to liability.

: 2

5 of 5

Question 5. Question : (TCO 3) Temporary accounts would not include:

salaries payable.

depreciation expense.

supplies expense.

cost of goods sold.

: 2

5 of 5

  Question 6. Question : (TCO 4) Notes payable:

is a current liability account.

usually has a debit balance.

is a non-current liability account.

cannot determine its classification without additional information.

: 2

5 of 5

  Question 7. Question : (TCO 4) The current ratio is given by:

current assets divided by non-current assets.

current assets divided by total assets.

current assets divided by current liabilities.

current assets divided by total liabilities.

: 3

5 of 5

  Question 8. Question : (TCO 5) The distinction between operating and non-operating income relates to:

continuity of income.

principal activities of the reporting entity.

consistency of income stream.

reliability of measurements.

: 4

5 of 5

  Question 9. Question : (TCO 5) A voluntary change in accounting principle is accounted for by:

a cumulative effect on income in the year of the change.

a retrospective reporting of all comparative financial statements shown.

a prior period adjustment.

a separate line component of income.

: 4

5 of 5

  Question 10. Question : (TCO 5) Cash flows from investing activities do not include:

proceeds from issuing bonds.

payment for the purchase of equipment.

proceeds from the sale of marketable securities.

cash outflows from acquiring land.

: 4

5 of 5

  Question 11. Question : (TCO 5) The Maytag Corporation’s income statement includes income from continuing operations, a loss from discontinued operations, and extraordinary items. Earnings per share information would be provided for:

net income only.

income from continuing operations and net income only.

income from continuing operations, loss from discontinued operations, and net income only.

income from continuing operations, loss from discontinued operations, extraordinary items, and net income.

: 4

5 of 5

  Question 12. Question : (TCO 5) In a statement of cash flows prepared under International Financial Reporting Standards, each of the following items is typically classified as a financing cash flow except:

interest paid.

dividends paid.

proceeds from the issuance of long-term debt.

dividends received.

: 4

5 of 5

  Question 13. Question : (TCO 4) Which is a shareholders’ equity account in the balance sheet?

Accumulated depreciation

Paid-in capital

Dividends payable

Marketable securities

: 3

5 of 5

  Question 14. Question : (TCO 4) Which of the following groups is not among the external users for whom financial statements are prepared?

Customers

Suppliers

Employees

All of the above are external users of financial statements.

  (TCO 5) Misty Company reported the following before-tax items during the current year:

Misty’s effective tax rate is 40% and there were 1,000 shares of common stock outstanding.

What would be Misty’s income before extraordinary item(s)?

Question 2. Question : (TCO 4) Listed below are account balances (in $millions) taken from the records of Symphony Stores. All of these are permanent accounts, except the last two that have yet to be closed. The installment receivables are current. Symphony uses a perpetual inventory system.

What would Symphony report as total assets? Hint: Don’t forget to deduct the contra assets.

(TCO 4) Explain how management’s discussion and analysis of its operations and liquidity may be helpful to investors.

Question 2. Question : (TCO 2) What are the key provisions of the Public Company Accounting Reform and Investor Protection (Sarbanes-Oxley) Act of 2002?

Question 3. Question : (TCO 5) Give an example of a non-cash financing and investing activity and explain when and how it would be reported in the financial statements.

Question 4. Question : (TCO 3) What is the purpose of the closing process?

  (TCO 1) The SEC issues accounting standards in the form of

accounting research bulletins.

financial reporting releases.

financial accounting standards.

financial technical bulletins.

:

Question 2. Question :

(TCO 2) Enhancing qualitative characteristics of accounting information include each of the following, except

timeliness.

materiality.

comparability.

verifiability.

Comments:

 Question 3. Question :

(TCO 3) Hughes Aircraft sold a four-passenger airplane for $380,000, receiving a $50,000 down payment and a 12% note for the balance. The journal entry to record this sale would include a

credit to cash.

debit to cash discount.

debit to note receivable.

credit to note receivable.

Comments:

 Question 4. Question :

(TCO 3) When a tenant makes an end-of-period adjusting entry credit to the prepaid rent account

he or she usually debits cash.

he or she usually debits an expense account.

he or she debits a liability account.

he or she does none of the above.

Comments:

 Question 5. Question :

(TCO 3) Permanent accounts would not include

interest expense.

wages payable.

prepaid rent.

unearned revenues.

 Question 1. Question :

 (TCO 4) Cash equivalents would not include

cash not available for current operations.

money market funds.

United States Treasury bills.

bank drafts.

 Question 2. Question :

(TCO 4) Which is a shareholders’ equity account in the balance sheet?

Accumulated depreciation

Paid-in capital

Dividends payable

Marketable securities

Instructor Explanation: See Chapter 3.

Points Received: 4 of 4

Comments:

 Question 3. Question :

(TCO 4) Janson Corporation Co.’s trial balance included the following account balances at December 31, 2011:

Investments consist of treasury bills that were purchased in November and mature in January. Prepaid insurance is for the next 2 years. What amount should be included in the current asset section of Janson’s December 31, 2011 balance sheet?

$88.000

$85,000

$55,000

$135,000

 Question 4. Question :

(TCO 4) Which of the following would be disclosed in the summary of significant accounting policies disclosure note?

Option A

Option B

Option C

Option D

 Question 5. Question :

(TCO 4) Below is the partial balance sheet ($ in thousands) for Paisano Seafood Inc.

The current ratio (rounded) is

1.98.

1.58.

1.17.

0.66.

quiz 3

<pstyle=”font-size: 11.8181819915771px;”=””>TCO 5) The distinction between operating and non-operating income relates to

continuity of income.

principal activities of the reporting entity.

consistency of income stream.

reliability of measurements.

Instructor Explanation: See Chapter 4.

Points Received: 4 of 4

Comments:

 Question 2. Question :

(TCO 5) Major Co. reported a 2011 income of $300,000 from continuing operations before income taxes and a before-tax extraordinary loss of $80,000. All income is subject to a 30% tax rate. In the 2011 income statement, Major Co. would show the following line-item amounts for income tax expense and net income.

$66,000 and $210,000

$90,000 and $154,000

$90,000 and $276,000

$66,000 and $220,000

Instructor Explanation:

Points Received: 4 of 4

Comments:

 Question 3. Question :

(TCO 5) The financial statement presentation of a change in depreciation method is most similar to that of reporting

changes in accounting estimates.

prior period adjustments.

ion of errors.

extraordinary items.

Instructor Explanation: See Chapter 4.

Points Received: 4 of 4

Comments:

 Question 4. Question :

(TCO 5) Cash flows from investing activities do not include

proceeds from issuing bonds.

payment for the purchase of equipment.

proceeds from the sale of marketable securities.

cash outflows from acquiring land.

Instructor Explanation: See Chapter 4.

Points Received: 4 of 4

Comments:

 Question 5. Question :

(TCO 5) Review Rowdy’s Restaurants cash flow (in millions):

Rowdy’s would report net cash inflows (outflows) from financing activities in the amount of

$1,100.

$(1,100).

$820.

$900.

Instructor Explanation:

Points Received: 4 of 4

Comments:

4

<pstyle=”font-size: 11.8181819915771px;”=””>(TCO 5) For a typical manufacturing company, the most common critical point for recognizing revenue is the date

an order is received.

production is completed.

the product is delivered.

payment is received.

 Question 2. Question :

(TCO 5) On December 15, 2011, Rigsby Sales Co. sold a tract of land that cost $3,600,000 for $4,500,000. Rigsby appropriately uses the installment sale method of accounting for this transaction. Terms called for a down payment of $500,000 with the balance in two equal, annual installments, payable on December 15, 2012 and December 15, 2013. Ignore interest charges. Rigsby has a December 31 year-end. In 2011, Rigsby would recognize the realized gross profit of

$500,000.

$0.

$900,000.

$100,000.

 Question 3. Question :

(TCO 6) Present and future value tables of $1 at 3% are presented below:

Carol wants to invest money in a 6% CD account that compounds semiannually. Carol would like the account to have a balance of $50,000 5 years from now. How much must Carol deposit to accomplish her goal?

$35,069

$43,131

$37,205

$35,000

Comments:

 Question 4. Question :

(TCO 6) Sondra deposits $2,000 in an IRA account on April 15, 2011. Assume the account will earn 3% annually. If she repeats this for the next 9 years, how much will she have on deposit on April 14, 2020?

$20,600

$20,928

$23,616

$24,715

 Question 5. Question :

(TCO 6) Jose wants to cash in his winning lottery ticket. He can either receive five, $5,000 annual payments starting today, or he can receive a lump-sum payment now based on a 3% annual interest rate. What is the present value of the installments if he opts for the lump sum payment?

$22,899

$21,565

$23,000

5

<pstyle=”font-size: 11.8181819915771px;”=””>(TCO 7) Cash may not include

foreign currency.

money orders.

restricted cash.

undeposited customer checks.

 Question 2. Question :

(TCO 7) On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit term 2/10, n/30. Flores uses the gross method of accounting for cash discounts. What is the correct entry for Flores on November 17, assuming the correct payment was received on that date?

Option a

Option b

Option c

Option d

 Question 3. Question :

(TCO 7) Which of the following does not change the balance in accounts receivable?

Returns on credit sales

Collections from customers

Bad debts expense adjusting entry

Write-offs

 Question 4. Question :

(TCO 7) Brockton Carpet Cleaning prepares a bank reconciliation at the end of every month. At the end of July, the balance in the general ledger checking account was $2,750, and the bank balance on the bank statement was $2,980. Outstanding checks totaled $680, and deposits in transit were $400. The bank statement revealed that a check written for $120 was incorrectly recorded by Brockton as a $220 disbursement. The bank statement listed service charges and NSF check charges totaling $150. The corrected cash balance is

$2,270.

$2,550.

$2,470.

$2,700.

 Question 5. Question :

(TCO 7) Calistoga Produce estimates bad debt expense at ½% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $471,000 and $1,650, respectively, at December 31, 2010. During 2011, Calistoga’s credit sales and collections were $315,000 and $319,000, respectively, and $1,720 in accounts receivable were written off. Calistoga’s adjusted allowance for uncollectible accounts at December 31, 2011 is

$1,575.

$1,505.

$1,650.

$1,720.

quiz 7

<pstyle=”font-size: 11.8181819915771px;”=””>(TCO 8) In applying LCM, market cannot be

less than net realizable value minus a normal profit margin.

net realizable value less reasonable completion and disposal costs.

greater than net realizable value reduced by an allowance for normal profit margin.

less than cost.

 Question 2. Question :

(TCO 8) Montana Co. has determined its year-end inventory on a FIFO basis to be $600,000. Information pertaining to that inventory is as follows:

What should be the carrying value of Montana’s inventory?

$600,000

$520,000

$590,000

$510,000

 Question 3. Question :

(TCO 8) Howard’s Supply Co. suffered a fire loss on April 20, 2011. The company’s last physical inventory was taken on January 30, 2011, at which time the inventory totaled $220,000. Sales from January 30 to April 20 were $600,000, and purchases during that time were $450,000. Howard’s consistently reports a 30% gross profit. The estimated inventory loss is

$490,000.

$238,000.

$250,000.

None of the above

 Question 4. Question :

(TCO 8) When computing the cost-to-retail percentage for the conventional retail method, included in the denominator are

net markups and net markdowns.

neither net markups nor net markdowns.

net markups, but not net markdowns.

net markdowns, but not net markups.

 Question 5. Question :

(TCO 8) Retrospective treatment of prior years’ financial statements is required when there is a change from

average cost to FIFO.

FIFO to average cost.

LIFO to average cost.

All of the above

  ACCT 304 Week 6

 Annual Report Analysis

Your annual report analysis is due at the end of Week 6. Obtain an annual report from a corporation that is interesting to you. Using techniques that you have learned of in the previous weeks, respond to the following questions.

Who are the firm’s auditors? Do they provide a clean     opinion on the financial statements?

Have there been any subsequent events, errors and     irregularities, illegal acts, or related-party transactions that have a     material effect on the financial statements?

Describe the trend in total assets and total     liabilities for the years presented.

What are the company’s three largest assets for the     most recent year presented?

What are the company’s three largest liabilities for     the most recent year presented?

What types of stock does the company have? How many     outstanding shares are there for each type of stock for the most recent     year presented?

Does the company use the single-step income statement,     multiple-step income statement, or a variation of both?

Does the income statement contain any separately     reported items, including discontinued operations or extraordinary items,     in any year presented? If it does, describe the event that caused the     item. (Hint: There should be a related footnote.)

Describe the trend in net income over the years     presented.

Does the company have other comprehensive income? If     yes, what is the nature of the transaction(s)?

Does the company use the indirect or direct method of     the cash-flow statement?

What is the trend in cash from operations for the years     presented?

What are the two largest items included in cash from     investing activities?

Please see grading rubric for guidelines. Please submit the completed project by Sunday at the end of Week 6.

Submit your Course Project to the Dropbox located on the silver tab at the top of this page. For instructions on how to use the Dropbox, read these

 midterm

<pstyle=”font-size: 11.8181819915771px;”=””>Question 1. Question : (TCO 1) Which of the following has the authority to set accounting standards in the United States?

FASB

IRS

SEC

AICPA

: 1

Question 2. Question : (TCO 2) SFAC No.5 focuses on:

objectives of financial reporting.

qualitative characteristics of accounting information.

Recognition and measurement concepts in accounting, including assumptions and principles.

elements of financial statements.

: 1

5 of 5

Question 3. Question : (TCO 3) Mary Parker Co. invested $15,000 in ABC Corporation and received capital stock in exchange. Mary Parker Co.’s journal entry to record this transaction would include a:

debit to investments.

credit to retained earnings.

credit to capital stock.

debit to expense.

: 2

5 of 5

Question 4. Question : (TCO 3) The adjusting entry required to record accrued expenses includes:

a credit to cash.

a debit to an asset.

a credit to an asset.

a credit to liability.

: 2

5 of 5

Question 5. Question : (TCO 3) Temporary accounts would not include:

salaries payable.

depreciation expense.

supplies expense.

cost of goods sold.

: 2

5 of 5

Question 6. Question : (TCO 4) Notes payable:

is a current liability account.

usually has a debit balance.

is a non-current liability account.

cannot determine its classification without additional information.

: 2

5 of 5

Question 7. Question : (TCO 4) The current ratio is given by:

current assets divided by non-current assets.

current assets divided by total assets.

current assets divided by current liabilities.

current assets divided by total liabilities.

: 3

5 of 5

Question 8. Question : (TCO 5) The distinction between operating and non-operating income relates to:

continuity of income.

principal activities of the reporting entity.

consistency of income stream.

reliability of measurements.

: 4

5 of 5

Question 9. Question : (TCO 5) A voluntary change in accounting principle is accounted for by:

a cumulative effect on income in the year of the change.

a retrospective reporting of all comparative financial statements shown.

a prior period adjustment.

a separate line component of income.

: 4

5 of 5

Question 10. Question : (TCO 5) Cash flows from investing activities do not include:

proceeds from issuing bonds.

payment for the purchase of equipment.

proceeds from the sale of marketable securities.

cash outflows from acquiring land.

: 4

5 of 5

Question 11. Question : (TCO 5) The Maytag Corporation’s income statement includes income from continuing operations, a loss from discontinued operations, and extraordinary items. Earnings per share information would be provided for:

net income only.

income from continuing operations and net income only.

income from continuing operations, loss from discontinued operations, and net income only.

income from continuing operations, loss from discontinued operations, extraordinary items, and net income.

: 4

5 of 5

Question 12. Question : (TCO 5) In a statement of cash flows prepared under International Financial Reporting Standards, each of the following items is typically classified as a financing cash flow except:

interest paid.

dividends paid.

proceeds from the issuance of long-term debt.

dividends received.

: 4

5 of 5

Question 13. Question : (TCO 4) Which is a shareholders’ equity account in the balance sheet?

Accumulated depreciation

Paid-in capital

Dividends payable

Marketable securities

: 3

5 of 5

Question 14. Question : (TCO 4) Which of the following groups is not among the external users for whom financial statements are prepared?

Customers

Suppliers

Employees

All of the above are external users of financial statements.

(TCO 5) Misty Company reported the following before-tax items during the current year:

Misty’s effective tax rate is 40% and there were 1,000 shares of common stock outstanding.

What would be Misty’s income before extraordinary item(s)?

Question 2. Question : (TCO 4) Listed below are account balances (in $millions) taken from the records of Symphony Stores. All of these are permanent accounts, except the last two that have yet to be closed. The installment receivables are current. Symphony uses a perpetual inventory system.

What would Symphony report as total assets? Hint: Don’t forget to deduct the contra assets.

(TCO 4) Explain how management’s discussion and analysis of its operations and liquidity may be helpful to investors.

Question 2. Question : (TCO 2) What are the key provisions of the Public Company Accounting Reform and Investor Protection (Sarbanes-Oxley) Act of 2002?

Question 3. Question : (TCO 5) Give an example of a non-cash financing and investing activity and explain when and how it would be reported in the financial statements.

Question 4. Question : (TCO 3) What is the purpose of the closing process?

final

acct304 final exam

Question 1.1. (TCO 1) The SEC issues accounting standards in the form of (Points : 6)

accounting research bulletins.

financial reporting releases.

financial accounting standards.

financial technical bulletins.

Question 2.2. (TCO 1) When a registrant company submits its annual filing to the SEC, it uses (Points : 6)

Form 10-A.

Form 10-K.

Form 10-Q.

Form S-1.

Question 3.3. (TCO 2) The conceptual framework’s qualitative characteristic of relevance includes (Points : 6)

predictive value.

verifiability.

completeness.

neutrality.

Question 4.4. (TCO 2) Enhancing qualitative characteristics of accounting information include each of the following, except (Points : 6)

timeliness.

materiality.

comparability.

verifiability.

Question 5.5. (TCO 3) A sale on account would be recorded by (Points : 6)

debiting revenue.

crediting assets.

crediting liabilities.

debiting assets.

Question 6.6. (TCO 3) Prepayments occur when (Points : 6)

cash flow precedes expense recognition.

sales are delayed pending credit approval.

customers are unable to pay the full amount due when goods are delivered.

manufactured goods await quality control inspections.

Question 7.7. (TCO 4) An asset that is not expected to be converted to cash or consumed within 1 year or the operating cycle is (Points : 6)

goodwill.

accounts receivable.

inventory.

supplies.

Question 8.8. (TCO 4) Which of the following is never a current liability account? (Points : 6)

Accrued payroll

Dividends payable

Prepaid rent

Subscriptions collected in advance

Question 9.9. (TCO 5) The distinction between operating and nonoperating income relates to (Points : 6)

continuity of income.

principal activities of the reporting entity.

consistency of income stream.

reliability of measurements.

Question 10.10. (TCO 5) On May 1, Foxtrot Co. agreed to sell the assets of its Footwear Division to Albanese Inc. for $80 million. The sale was completed on December 31, 2012. The following additional facts pertain to the transaction:

The Footwear Division qualifies as a component of the entity, according to GAAP, regarding discontinued operations.

The book value of Footwear’s assets totaled $48 million on the date of the sale.

Footwear’s operating income was a pre-tax loss of $10 million in 2012.

Foxtrot’s income tax rate is 40%.

In the 2012 income statement for Foxtrot Co., it would report

(Points : 6)

income (loss) on its total operations for the year without separation.

income (loss) on its continuing operation only.

income (loss) from its continuing and discontinued operations separately.

income and gains separately from losses.

Question 11.11. (TCO 5) Operating cash outflows would include (Points : 6)

purchase of investments.

purchase of equipment.

payment of cash dividends.

purchases of inventory.

Question 12.12. (TCO 5) The FASB’s stated preference for reporting operating cash flows is the (Points : 6)

indirect method.

direct method.

working capital method.

all financial resources method.

Question 13.13. (TCO 5) Merchandise sold FOB shipping point indicates that (Points : 6)

the seller pays the freight.

the buyer holds title after the merchandise leaves the seller’s location.

the common carrier holds title until the merchandise is delivered.

the sale is not consummated until the merchandise reaches the point to which it is being shipped.

Question 14.14. (TCO 5) Todd Sweeney is an artist who sells his work under consignment. (He displays his work in local barbershops, and customers buy the work there.) Sweeney recently transferred a painting to a local barbershop. After Sweeney has transferred a painting to a barbershop, the painting (Points : 6)

should be counted in Sweeney’s inventory until the barbershop sells it.

should be counted in the barbershop’s inventory, as they now possess it.

should be counted in either Sweeney’s or the barbershop’s inventory, depending on which incurred the cost of preparing the painting for display.

None of the above

Question 15.15. (TCO 6) Reba wishes to know how much money would be in her savings account if she deposits a given sum in an account and leaves it there at 6% interest for 5 years. She should use a table for the (Points : 6)

future value of an ordinary annuity of 1.

future value of 1.

future value of an annuity of 1.

present value of an annuity due of 1.

Question 16.16. (TCO 6) Loan A has the same original principal, interest rate, and payment amount as Loan B. However, Loan A is structured as an annuity due, while Loan B is structured as an ordinary annuity. The maturity date of Loan A will be (Points : 6)

earlier than Loan B.

later than Loan B.

the same as Loan B.

indeterminate with respect to Loan B.

Question 17.17. (TCO 7) Compensating balances represent (Points : 6)

funds in a bank account that cannot be spent.

balances in a payroll checking account.

accounts that are subject to bank service charges.

accounts on which banks pay interest, such as NOW accounts.

Question 18.18. (TCO 7) Oswego Clay Pipe Company sold $46,000 of pipe to Southeast Water District #45 on April 12 of the current year with terms 1/15, n/60. Oswego uses the gross method of accounting for cash discounts. What entry would Oswego make on April 23, assuming the customer made the correct payment on that date?

(Points : 6)

Option a

Option b

Option c

Option d

Question 19.19. (TCO 8) In a periodic inventory system, the cost of purchases is debited to (Points : 6)

purchases.

cost of goods sold.

inventory.

accounts payable.

Question 20.20. (TCO 8) During periods when costs are rising and inventory quantities are stable, cost of goods sold will be (Points : 6)

higher under FIFO than LIFO.

higher under FIFO than average cost.

lower under average cost than LIFO.

lower under LIFO than FIFO.

Question 21.21. (TCO 8) In applying LCM, market cannot be (Points : 6)

less than net realizable value.

greater than the normal profit.

less than the normal profit margin.

greater than net realizable value.

Question 22.22. (TCO 8) In calculating the cost-to-retail percentage for the retail method, the retail column will not include (Points : 6)

purchases.

purchase returns.

abnormal shortages.

freight-in.

Question 1. 1. (TCO 8) Fulbright Corp. uses the periodic inventory system. During its first year of operation, Fulbright made the following purchases (listed in chronological order of acquisition):

40 units at $100

70 units at $80

170 units at $60

Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year. What is the ending inventory using the average cost method (rounded)? (Points : 15)

Question 2. 2. (TCO 5) Describe what is meant by unearned revenues, and give two examples. (Points : 28)

Question 3. 3. (TCO 7) Briefly compare and contrast the two allowance estimation approaches to estimating bad debt expense. In your answer, indicate which approach, if either, is superior and explain your reasoning. (Points : 25)

(TCO 8) Briefly explain when there would be a tax     benefit from electing LIFO rather than FIFO. (Points : 25)

Question 2. 2. (TCO 4) You are the independent accountant assigned to the audit of Neophyte Company. The company’s accountant, a graduate of Rival State University, has prepared financial statements that contained the following questionable items:

The balance sheet reports land at $100,000. Included in     this amount is a piece of property held for speculation at a cost of     $30,000.

Current liabilities include $50,000 for long-term debt     that comes due in 3 months. The company has received a suitable firm     commitment to refinance the debt for 5 years and intends to do so.

Long-term Investments (non-current) in marketable     securities include $20,000 in short-term, high-grade commercial paper.

Please discuss how the above items should be correctly classified and accounted for. (Points : 25)

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ACCT 301 Week 7 – Homework Assignment

Follow Below Link to Buy Answer or Oder Us for 100% Original and Plagiarism Free Work

 Email us for original work at ( Homeworkeducator@gmail.com )

http://homeworkeducation.com/downloads/5257/

Magnum Corporation is considering the purchase of a new business that will increase

their annual cash flows by $50,000 per year for 8 years. The business will cost $140,000 and the current market rate of interest is 6%.

Use the Present Value tables or Excel to answer the following questions. Required:

What is the Net Present Value of the above     business?  (10 points)

  Should the Magnum Corporation purchase the new business     based upon the results of

   the NPV  method?  Why?  Why not? (10 points)

 3. What is the Present Value  Index for the business that Magnum is thinking

about purchasing?  (5  points)

4. What is the Payback  period for the purchase of the new business?  (10 points)    5. Briefly describe the Net Present Value Method of Capital Budgeting.   (5 points)

 6. Roberto just graduated from  college and he is currently earning $45,000

per year.  Roberto has  decided that he would like to begin investing 15% of

his annual salary into his 401K  plan at work for the next 40 years.

Roberto plans to invest his 401K  retirement funds into a mutual fund of

stocks and bonds that is expected  to earn 8% into the foreseeable future.

Roberto is not planning on taking  any money out of his retirement account

until he retires.   (10  points)

     What amount  will Roberto have in his 401K Retirement account when he retires in 40  years? 

     How much money will  Roberto have earned in his retirement account after 40 years?

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ACCT 251 week 7 Peachtree Assignment

 Follow Below Link to Buy Answer or Oder Us for 100% Original and Plagiarism Free Work

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You will be completing your assignment using Peachtree, accessible in the iLab. Visit the iLab content item under Course Home for instructions on how to access Peachtree. Complete Exercise 14-1 and 14-2. In Exercise 14-2, Steps #1-#4 have you generate a series of reports that you will convert to Excel. These are the reports that you will submit as your homework. Complete Exercise 15-1 and 15-2. In Exercise 15-1, Steps #4 and #12 have you generate a series of reports that you will convert to Excel. These are the reports that you will submit as your homework. In Exercise 15-2, Steps #6, #9-#13 have you generate a series of reports that you will convert to Excel. These are the reports that you will submit as your homework. Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use the Dropbox, read thesestep-by-step instructions or watch this Dropbox Tutorial. See the Syllabus section “Due Dates for Assignments & Exams” for due date information.

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ACCT 251 week 6 Peachtree Assignment

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You will be completing your assignment using Peachtree, accessible in the iLab. Visit the iLab content item under Course Home for instructions on how to access Peachtree. Complete Exercise 12-1 and 12-2. In Exercise 12-1, Steps #3-#4 have you to generate a series of reports that you will convert to Excel. These are the reports that you will submit as your homework. In Exercise 12-2, Steps #3 and #6 have you to generate a series of reports that you will convert to Excel. These are the reports that you will submit as your homework. Complete Exercise 13-1 and 13-2. In Exercise 13-2, Steps #4 -#7 have you to generate a series of reports that you will convert to Excel. These are the reports that you will submit as your homework. Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use the Dropbox, read thesestep-by-step instructions or watch this Dropbox Tutorial.

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ACC 571 Assignment 1 Corporate Fraud Schemes

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ACCT 251 week 5 Peachtree Assignment

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You will be completing your assignment using Peachtree, accessible in the iLab. Visit the iLab content item under Course Home for instructions on how to access Peachtree. Complete Exercise 10-1 and 10-2. In Exercise 10-2, Steps #4-#10 asks you to generate a series of reports that you will convert to Excel. These are the reports that you will submit as your homework. Complete Exercise 11-1 and 11-2. In Exercise 11-1, Steps #6-#12 asks you to generate a series of reports that you will convert to Excel. These are the reports that you will submit as your homework. In Exercise 11-2, Steps #6-#11, #14-16, and #21 asks you to generate a series of reports that you will convert to Excel. These are the reports that you will submit as your homework. Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use the Dropbox, read thesestep-by-step instructions or watch this Dropbox Tutorial. See the Syllabus section “Due Dates for Assignments & Exams” for due date information.

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ACCT 251 week 4 Peachtree Assignment

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You will be completing your assignment using Peachtree, accessible in the iLab. Visit the iLab content item under Course Home for instructions on how to access Peachtree. Complete Exercise 6-1 and 6-2. In Exercise 6-2, Steps #1 has you to generate a report that you will convert to Excel. This is the report that you will submit as your homework. Complete Exercise 9-1 and 9-2. In Exercise 9-1, Step #13 asks you to generate a report that you will convert to Excel. This is the report that you will submit as your homework. In Exercise 9-2, Step #2 asks you to generate a report that you will convert to Excel. This is the report that you will submit as your homework. Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use the Dropbox, read thesestep-by-step instructions or watch this Dropbox Tutorial. See the Syllabus section “Due Dates for Assignments & Exams” for due date information.

ACC 571 Assignment 1 Corporate Fraud Schemes

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ACCT 251 week 2 Peachtree Assignment

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You will be completing your assignment using Peachtree, accessible in the iLab. Visit the iLab content item under Course Home for instructions on how to access Peachtree. Complete Exercise 2-1 and 2-2. In Exercise 2-2, Step #4 has you generate a report that you will convert to Excel. This is the report that you will submit as your homework. Complete Exercise 3-1 and 3-2. In Exercise 3-2, Step #3 has you generate a report that you will convert to Excel. This is the report that you will submit as your homework. Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use the Dropbox, read thesestep-by-step instructions or watch this Dropbox Tutorial.

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ACCT 251 week 1 Peachtree Assignment

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You’ll be completing your assignment using Peachtree, accessible in the iLab. Visit the iLab content item under Course Home for instructions on how to access Peachtree. Complete Exercise 1.1 and 1.2. In Exercise 1-2; Step #6 involves generating a report that you convert to Excel. Submit this report as your homework. Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use the Dropbox, read thesestep-by-step instructions or watch this Dropbox Tutorial. See the Syllabus section “Due Dates for Assignments & Exams” for due date information.

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ACCT 251 Course Project : Peachtree Project

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Note! Submit your assignment to the Dropbox located on the silver tab at the top of this page. (See the Syllabus section “Due Dates for Assignments & Exams” for due dates.) Your Assignment| Grading Rubrics Your Assignment Back to Top Students will be required to complete a project in this class that tests their knowledge & skills in managing the books for a small business using Peachtree Complete Accounting 2010. The assignments that you will be completing during Week 1 – 4 focus on specific Peachtree skills; however, this assignment allows you to use what you have learned about Peachtree to manage the books for a firm without \’step-by-step\’ guidance, which is typical for assignments you will see in the workplace. You will complete Project 1 (Susan Watson Accounting), which is located at the end of Chapter 11. As part of this project, you will generate the required reports as listed in the textbook as well as the Check Your Progress worksheet (which you will create in Excel) at the end of the project. • If you fail to submit the “Check Your Progress” worksheet, you will lose 20%. Once you have submitted your project and it has been graded, you cannot resubmit it. • You will need to generate the reports when requested per the project for you cannot assume that every report is generated at the end of the project. You do not need to submit the reports as listed as “Optional”. All of the instructions for completing the project are listed in the textbook. When you are done, you will submit one Excel workbook titled “ACCT251PeachProject” that contains an Excel worksheet for each of the reports required, as well as one worksheet that contains the Check Your Progress worksheet. • Failure to submit one workbook that contains everything will result in a penalty of 15%. Once you have completed Peachtree Project, you will post your assignment to the Peachtree Project drop box. If you post it to the wrong drop box, your assignment will not be graded. Hint: Here are the minimum number of reports that you will need to submit for this project: Checklist of Printouts, Project 1: Mesa Computer Club 1 Chart of Accounts 2 Account Reconciliation 3 Account Register 4 General Ledger Trial Balance (unadjusted) 5 December 31, 2010 General Journal 6 Cash Disbursement Journal 7 General Ledger Trial Balance (adjusted) 8 General Ledger 9 Balance Sheet 10 Income Statement 11 Statement of Retained Earnings 12 Statement of Cash Flow 13 Statement of Changes in Financial Position 14 Postclosing Trial Balance Once you have completed this assignment, you will post your assignment to the Course Projectdrop box. If you post it to the wrong drop box, your assignment will not be graded. In addition, once the project has been submitted and graded, you cannot resubmit to include missing documents. See Syllabus/”Due Dates for Assignments & Exams” for due dates. Grading Rubrics Back to Top

ACC 571 Assignment 1 Corporate Fraud Schemes

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ACCT/220 Week 2 Homework Problems

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Review the unadjusted trial  balance below and prepare adjusting journal entries to record the various  described items

below.  Record in the space  provided at the bottom of this spreadsheet.  After completing journal  entries, complete the

adjusted trial balance  below.  Lastly complete the income statement, balance sheet and  statement of retained earnings.

The balance sheet must  balance.  The accounting equation is Assets = Liabilities + Equity.

Baltimore Corporation

Unadjusted Trial Balance

January 31, 2016

Debits

Credits

 Cash

 $            37,500

 $                     –

 Accounts receivable

              12,410

                        –

 Prepaid insurance

                2,400

                        –

 Supplies inventory

                7,113

                        –

 Equipment

              35,000

                        –

 Accumulated depreciation

                       –

               10,000

 Accounts payable

                       –

                 7,569

 Salaries payable

                       –

                        –

 Interest payable

                       –

                        –

 Unearned revenue

                       –

                 8,500

 Loan payable

                       –

               11,500

 Capital stock

                       –

               25,000

 Retained earnings, Jan. 1

                       –

               15,457

 Revenues

                       –

               43,995

 Depreciation expense

                       –

                        –

 Interest expense

                       –

                        –

 Insurance expense

                       –

                        –

 Office expense

                2,500

                        –

 Rent expense

              13,000

                        –

 Salary expense

              12,098

                        –

 Supplies expense

                       –

                        –

 Utilities expense

                       –

                        –

 $          122,021

 $           122,021

1

Belair Corporation’s equipment had  an original life of 140 months, and the straight-line depreciation method is  used.

As of January 1, the equipment was  40 months old.  The equipment will be worthless at the end of its useful  life.

2

As of the end of the month, Belair  Corporation has provided services to customers for which the earnings process  is complete.

Formal billings are normally sent  out on the first day of each month for the prior month’s work.   January’s unbilled work is $25,000.

3

Utilities used during January, for  which bills will soon be forthcoming from providers, are estimated at $1,500.

4

A review of supplies on hand at  the end of the month revealed items costing $3,500.

5

The $2,400 balance in prepaid  insurance was for a 6-month policy running from January 1 to June 30.

6

The unearned revenue was collected  in December of 2014.  60% of that amount was actually earned in January,  with the remainder to be earned in February.

7

The loan accrues interest at 1%  per month.  No interest was paid in January.

8

At month end, salaries of $2,120  have been earned but not paid.

JE #

ACCOUNT

DEBIT

CREDIT

1

2

3

4

5

6

7

8

Baltimore Corporation

Adjusted Trial Balance

January 31, 2016

Debits

Credits

 Cash

 Accounts receivable

 Prepaid insurance

 Supplies inventory

 Equipment

 Accumulated depreciation

 Accounts payable

 Salaries payable

 Interest payable

 Unearned revenue

 Loan payable

 Capital stock

 Retained earnings, Jan. 1

 Revenues

 Depreciation expense

 Insurance expense

 Interest expense

 Office expense

 Rent expense

 Salary expense

 Supplies expense

 Utilities expense

 $                    –

 $                     –

Baltimore Corporation

Income Statement

For the month ended January 31,  2016

Baltimore Corporation

Balance Sheet

January 31, 2016

Baltimore Corporation

Statement of Retained Earnings

As of January 31, 2015

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ACCT 220 Principles of Accounting I Quiz 3

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Multiple Choice (7 points each)

  On January 1, 20X1, Blake Company purchased a patent     for $68,000. The   patent has a remaining legal life of nine     years and an expected service life of eight years.  The amortization     expense (to the nearest dollar) properly recognized for 20X1 is:$0.     B.   $3,400.     C.   $7,556.     D.   $8,500.     E.   None of these.

  Which of the following transactions would cause a     change in total stockholders’ equity?

  A stock dividend.

Paying a previously declared cash dividend.

Reissuing treasury stock at its cost.

A stock split.

None of these.

  Normally, the payment of a previously declared dividend     will result in:

  a decrease in liabilities.

a decrease in working capital.

a decrease in stockholders’ equity.

All of the above.

None of these.

   Problem #1 (15 points)

Hogan Company sold equipment for $6,000 which cost $8,000 and had accumulated depreciation of $5,500.  What is the proper journal entry to record this transaction?

          Problem #2 (15 points)

Hector Company sold equipment, for $1,000 which cost $8,000 and had accumulated depreciation of $5,500.  What is the proper journal entry to reflect this transaction?

      Problem #3 (15 points)

Gaines originally issued 15,000 shares of $10 par value common stock at $15 per share.  During the current year, 1,000 of these shares were reacquired for $20 each.  What is the proper journal entry to record the reacquisition?

     Problem #4 (34 points)

On January 1, 2015 Jett Inc. purchased equipment for $154,000 in cash.  The equipment is expected to have an operating life of 4 years. The estimated salvage value is $25,000.

 Required:

 Determine the annual depreciation expense for 2015 and      2016.

 Determine the accumulated depreciation at the end of      each of the following years: 2015 and 2016.

 Show how the asset and related accumulated      depreciation would appear on the balance sheet at December 31, 2016.

 Prepare the journal entries to record the asset’s      acquisition and annual depreciation expense for 2015 and 2016.

   Determine the annual depreciation expense for 2015 and      2016.

 Determine the accumulated depreciation at the end of      each of the following years: 2015 and 2016.

 Show how the asset and related accumulated      depreciation would appear on the balance sheet at December 31, 2016.

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ACCT 212 Midterm Exam Answers

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(TCO 1) The Accounting Equation is used to develop the organizations financial reports. (1) Describe what liabilities are (10 points) and (2) provide an example of a liability account. (10 points)

(TCO 1) The financial statements present a company to the public in financial terms. (1) Which financial statement identifies how well the company performed during the year (10 points) and (2) explain what information this financial statement provides. (10 points)

(TCO 1) The accounting profession follows a set of guidelines for measurement and disclosure of financial information called the Generally Accepted Accounting Principles (GAAP). (1) Explain what the Entity Assumption is (10 points) and (2) provide an example of its application. (10 points)

(TCO 2) Transaction analysis results in the development of a journal entry. A building is purchased for $35,000. (1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount (10 points) and (2) explain how the Accounting Equation is impacted. (10 points)

(TCO 3) Adjusting Entries are required at the end of the period to ensure that accrual accounting principles are applied. At the beginning of the month $350 of office supplies were purchased. There was not a beginning balance and the one purchase was the only one for the month. At the end of the month $100 of supplies remained. Develop the adjusting entry. (1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount (10 points) and (2) explain how the Accounting Equation is impacted. (10 points)

(TCO 5) Internal Controls are required to safeguard assets and to ensure ethical business practices. (1) Identify and explain the reason for any two of the five components of internal control (10 points) and (2) provide examples of how your two selected components of internal control will meet the goal of safeguarding assets and promoting ethical business practices. (15 points)

(TCO 5) The bank account as a control device that helps to protect cash. One of the requirements is to conduct periodic bank statement reconciliations. Using the following data, complete the bank statement reconciliation for Acorn Plumbing, Inc. (Use the format shown on page 255 of your textbook) (25 points)

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ACCT 212 Financial Accounting Entire Course

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( ACCT 212 Week 1-7 Complete DQS Included )

ACCT 212 Course Project

ACCT 212 Week 4 Midterm

ACCT 212 Week 1 DQ1 Financial Statements

ACCT 212 Week 2 DQ1 Prepaid Expenses vs. Unearned Revenue

ACCT 212 Week 2 DQ2 Accrual vs. Cash Accounting

ACCT 212 Week 3 DQ1 Ethical Business Decisions

ACCT 212 Week 3 DQ2 Trade Credit – Accounts Payable

ACCT 212 Week 4 DQ1 Inventory Management

ACCT 212 Week 4 DQ2 LIFO

ACCT 212 Week 5 DQ1 Non-current Assets and Related Liabilities

ACCT 212 Week 5 DQ2 Raising Capital (Cash)

ACCT 212 Week 6 DQ1 Stockholders Equity

ACCT 212 Week 6 DQ2 Net Income vs. Net Operating Cash

ACCT 212 Week 7 DQ1 Financial Statement Analysis

ACCT 212 Week 8 Final Exam 100% Correct Answers

(TCO 1) To evaluate the financial operation and health of a business ratio analysis is used. (1) Provide the formula for the Acid-test (or Quick) Ratio and explain how it is computed (10 points) and (2) provide an example of how this ratio can be used in decision-making in business.

(TCO 3) At the end of the period it is necessary to close all temporary accounts. (1) Explain why this process is required (10 points) and (2) provide an example of the closing of an expense account, Supplies Expense in the form of a journal entry

(TCO 2) As required to complete Course Project 1, one must follow the cycle that includes 10 steps to complete the accounting cycle. (1) Explain how to construct an Unadjusted Trial Balance (10 points) and (2) provide an example of the application of the debit/credit rules in the development of the trial balance.

(TCO 5) Internal Control Procedures are required to safeguard company assets and to ensure ethical operation of the business. (1) Explain how limited access can satisfy the purpose of internal control (10 points) and (2) provide an example of how this control could be implemented.

(TCO 4) Inventory valuation methods determine the cost of goods sold and the inventory balance. (1) Explain how the Last in First out (LIFO) method is applied (10 points) and (2) provide an example of the impact that this method of inventory valuation will have on Gross Profit.

. (TCO 6) BagODonuts Company bought a used delivery truck on January 1, 2010, for $19,200. The van was expected to remain in service 4 years (30,000 miles). BagODonuts’ accountant estimated that the truck’s residual value would be $2,400 at the end of its useful life. The truck traveled 8,000 miles the first year, 8,500 miles the second year, 5,500 miles the third year, and 8,000 miles in the fourth year.

1. Calculate depreciation expense for the truck for each year (2010-2013) using the: a. Straight-line method. b. Double-declining balance method. c. Units of Production method. (For units-of-production and double-declining balance, round to the nearest two decimals after each step of the calculation.) 2. Which method best tracks the wear and tear on the van? 3. Which method would BagODonuts prefer to use for income tax purposes? Explain in detail why BagODonuts prefers this method.

(TCO 7) ABC Inc. was incorporated on 1/15/12. Their corporate charter authorized the following capital stock: Preferred Stock: 7%, par value $100 per share, 100,000 shares. Common Stock: $1 par value, 500,000 shares.

The following transactions occurred during the year:

1/19/12 – Issued 100,000 shares of common stock for $17 cash per share. 1/31/12 – Issued 3,000 shares of preferred stock for $115 cash per share. 11/1/12 – Repurchased 30,000 shares of common stock for $22 cash per share. 12/1/12 – Declared and paid a total dividend of $95,000.

Required: 1. Prepare the journal entry for each transaction listed above. 2. In your own words, explain the main differences between common and preferred stock. (Points : 25)

(TCO 5) Fraud is an intentional misrepresentation of facts, made for the purpose of persuading another party to act in a way that causes injury or damage to that party. In our readings and discussions we have seen several examples of fraud in business. Using that experience (1) provide an example of a common fraudulent practice in business with an explanation of how the practice works and (2) name and describe each of the elements of the Fraud Triangle.

(TCO 5) Internal Control Procedures are in place to protect the assets of every business as mentioned in the textbook and our discussions. Of the seven internal control procedures, list five of these controls and describe how each procedure is implemented. (5 points each with 2 points for listing and 3 points for a description)

(TCO 2) Below are the accounts of Super Pool Service, Inc. The accounts have normal balances on June 30, 2012. The accounts are listed in no particular order.

Account Balance Common stock $5,100 Accounts payable $4,400 Service revenue $17,100 Land $28,800 Note payable $9,500 Cash $5,200 Dividends $6,100 Utilities expense $2,100 Accounts receivable $10,600 Delivery expense $700 Retained earnings $25,600 Salary expense $8,200

Prepare the company’s trial balance as of June 30, 2012, listing accounts in proper sequence, as illustrated in the chapter. For example, Accounts Receivable comes before Land. List the expense with the largest balance first, the expense with the next largest balance second, and so on.

(TCO4) Linda’s Lampshades started business on Jan. 1, 2001. They had the following inventory transactions:

Journals – Jan. 2001

Purchases

Supplier Date Received Quantity Unit Cost Amount

Donna 01/10/01 110 12.00 1320.00

Thomas 01/15/01 160 14.00 2240.00

Cindy 01/18/01 150 15.00 2250.00

Sales

Customer Date shipped Quantity Sel. Price Amount

Norilene 01/16/01 200 25.00 5000.00

1. Calculate the ending inventory, using the perpetual inventory method:

A. Using FIFO

B. Using LIFO

C. Using Average Cost

2. Prepare the following statement

Using

FIFO LIFO Average Cost

Sales

Cost of Sales

Gross Profit

(Points : 25)