ACCT 504 Case Study 1 (Gordon Construction)

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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:June2Gordon 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.• 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 2Prepare adjusted trial balance for Gordon Construction at June 30, 2014.

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ACCT 504 Case Study 2 (Williams Oil)

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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? Requirements1. Identify the missing internal control characteristic in each situation.2. Identify each firms possible problem.3. Propose a solution to the problem.

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ACCT 504 Case Study 3 (Wang Appliance Store)

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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 ActivitiesCollections from customers $51,000Interest Received 500

Purchase of inventory (36,000)Operating expenses (10,200) Net cash provided by operating activities 5,300Cash Flows from Investing Activities Purchase of equipment (3,500) Purchase of investments (500) Sale of investments 1,000 Net cash used for investing activities (3,000 ) Cash Flows from Financing Activities Payment of long term debt (400) Issuance of Stock 2,000 Payment of cash dividends (500) Net cash provided by financing activities 1,000 CashIncrease (decrease) in Cash 3,300Cash, beginning of year 2,900Cash, end of year 5,900? Requirements1. 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.

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

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Course Project: A Financial Statement AnalysisA Comparative Analysis of Nike, Inc. and Under Armour, Inc. Below is the link for the financial statements for Nike, Inc. for the fiscal year ending 2014. First, select 2014using the drop-down arrow labeled Year, and then select Annual Filings using the drop-down arrow labeled All. You should select the 10k dated 7/15/2014,and choose to download in PDF, Word, or Excel format.

Below is the link for the financial statements for Under Armour, Inc. for the fiscal year ending 2014.First, select Annual using the drop-down arrow labeled View, and then select 2015 using the drop-down arrow labeled Year. You should select the 10k dated 2/20/2015, and choose to download it in PDF or Excel format.

A sample project template is available for download from the Course Resources page’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 companies’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 instructor’s name, and the title for the project.2. A CompletedWorksheetProfiles tab which contains a one-paragraph 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 Submission1. Earnings per Share of Common Stock2. Current Ratio3. Gross (Profit) MarginPercentage4. Rate of Return (Net Profit Margin) on Sales5. Inventory Turnover6. Days’ Inventory Outstanding (DIO)7. Accounts Receivable Turnover8. Days’ Sales Outstanding (DSO)9. AssetTurnover10. Rate of Return on Total Assets (ROA)11. Debt Ratio12. Times-Interest-Earned Ratio13. 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 Stockholders’ Equity (ROE)15. Free cash flow16. 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.).

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ACCT 504 Course Project Oracle and Microsoft Corporation (Devry)

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

You cannot use any other software but Excel to complete this Project.1. A completed worksheet title page tab which is really a cover sheet with your name, my name, the class name, and the date.2. A completed worksheet profiles tab which contains a one paragraph description regarding each company with information about their history, what products they sell, where they are located etc.3. All 18 ratios for each company with the supporting calculations and commentary on your worksheet ratio tab. Supporting calculations must be shown either as a formula or as text typed into a different cell. The ratios are listed further down this document. Your comments for each ratio should include more than just a definition of the ratio. You should focus on interpreting each ratio number for each company and support your comments with the numbers found in the ratios.4. The Summary and Conclusions worksheet tab which is an overall comparison of how each company compares in terms of the major category of ratios (Liquidity, Profitability, and Solvency).5. The Bibliography worksheet tab must contain at least your textbook as a reference. Any other information you use to profile the companies should also be cited as a reference.Required Ratios for Final Project Submission:1. Earnings per Share2. Current Ratio3. Gross Profit Rate4. Profit Margin Ratio5. Inventory Turnover Ratio6. Days in Inventory7. Receivables Turnover Ratio8. Average Collection Period9. Asset Turnover Ratio10. Return on Assets Ratio11. Debt to Total Assets Ratio12. Times Interest Earned Ratio13. Payout ratio14. Return on Common Stockholders' Equity Ratio15. Free Cash Flow

16. Current Cash Debt Coverage Ratio17. Cash Debt Coverage Ratio18. 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.

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ACCT 504 Entire Course (Devry)

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

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

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

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

Reduced legal liability for investorsHarder to transfer ownershipLower taxesMost common form of organization2. (TCO A) When a corporation distributes a dividend, _____. (Points : 5)

the most common form of distribution is a cash dividendthe Dividends account will be increased with a creditthe Retained Earnings account will be directly increased with a debitthe Dividends account will be decreased with a debit3. (TCOs A, B) Below is a partial list of account balances for Cerner Company:

Cash $5,000

Prepaid insurance 500Accounts receivable 2,500Accounts payable 2,000Notes payable 3,000Common stock 1,000Dividends 500Revenues 15,000Expenses 12,500

What did Cerner Company show as total credits? (Points : 5)

$21,500$21,000$20,500$22,0004. (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 $1,000,000no accountants on staffinsignificant receivables and payablesall sales and purchases on account5. (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 inventoryFIFO will have the highest cost of goods soldAll three companies will have the same value for ending inventory.average cost will have an ending inventory value that falls between FIFO and LIFO6. (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$9,6007. (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 $2,000,000debit to Premium on Bonds Payable for $60,000credit to Bonds Payable for $2,000,000credit to Cash for $2,060,0008. (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$115,0009. (TCO F) One variation of the horizontal analysis is known as _____. (Points : 5)

nonlinear analysisvertical analysistrend analysiscommon-size analysis10. (TCO F) In a common-size balance sheet, the 100% figure is _____. (Points : 5)

total current assetstotal property, plant, and equipmenttotal liabilitiestotal assets11. (TCO F) In vertical analysis, the base amount for studying salary and wages expense is generally _____. (Points : 5)

net salessalary and wages expense in a previous yeargross profitnet income12. (TCO F) A common measure of profitability is the _____. (Points : 5)

current ratiocurrent cash debt coverage ratioreturn on common stockholder's equity ratiodebt to total assets13. (TCO F) Return-on-assets ratio is most closely related to _____. (Points : 5)

profit margin and debt-to-total-assets ratioprofit margin and asset-turnover ratiotimes interest earned and debt-to-stockholders equity ratioprofit margin and free cash flow14. (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 bondcalculate the present value of the principal onlycalculate the present value of the interest onlymultiply the bond price by the interest rate1. (TCO A) An advantage of the corporate form of business is that _____. (Points : 5)it has limited lifeits owner's personal resources are at stakeits ownership is easily transferable via the sale of shares of stockit is simple to establish2. (TCO A) When a corporation distributes a dividend, _____. (Points : 5)the most common form of distribution is a cash dividendthe Dividends account will be increased with a creditthe Retained Earnings account will be directly increased with a debitthe Dividends account will be decreased with a debit

3. (TCOs A, B) Below is a partial list of account balances for Denton Company:

Cash $7,000Prepaid insurance 700Accounts receivable 3,500Accounts payable 2,800Notes payable 4,200Common stock 1,400Dividends 700Revenues 21,000Expenses 17,500

What did Denton Company show as total credits? (Points : 5)$30,100$29,400$28,700$30,8004. (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 $1,000,000no accountants on staffinsignificant receivables and payablesall sales and purchases on account5. (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)FIFOLIFOThe average cost methodIncome tax expense for the period will be the same under all assumptions.6. (TCOs A, E) Equipment was purchased for $60,000. Freight charges amounted to $2,800 and there was a cost of $8,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $12,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be _____. (Points : 5)

$14,160$11,760$9,840$9,6007. (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 $500,000credit to Discount on Bonds Payable for $20,000credit to Bonds Payable for $480,000debit to Cash for $480,0008. (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$115,0009. (TCO F) Which one of the following is not a tool in financial statement analysis? (Points : 5)Horizontal analysisCircular analysisVertical analysisRatio analysis10. (TCO F) In vertical analysis, the base amount for studying salary and wages expense is generally _____. (Points : 5)net salessalary and wages expense in a previous yeargross profitnet income11. (TCO F) Ratios are most useful in identifying _____. (Points : 5)trendsdifferencescauses

relationships among different numbers12. (TCO F) A common measure of liquidity is _____. (Points : 5)return on assetscurrent ratioprofit margindebt to equity13. (TCO F) Return-on-assets ratio is most closely related to _____. (Points : 5)profit margin and debt-to-total-assets ratioprofit margin and asset-turnover ratiotimes interest earned and debt-to-stockholders equity ratioprofit margin and free cash flow14. (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 bondcalculate the present value of the principal onlycalculate the present value of the interest onlymultiply the bond price by the interest rate

1. (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)

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

................................................................................................................

........................................................................................................Required:

Using the information provided above:1. Prepare a multiple-step income statement2. Calculate the Profit Margin, and Gross profit rate for the company. Be sure to provide the formula you are using, show your calculations, and discuss your findings/results.3. (TCO C) Please review the following real-world Hewlett Packard Statement of Cash flows and address the 2 questions below:................................................................................................................................................................................................................Required:1) Please calculate the percentage increase or decrease in cash for the operating, investing, and financing sections and explain the major reasons for the increase or decrease for each of these sections.2) Please calculate the free cash flow for 2012 and explain the meaning of this ratio.4. (TCO D) You are CFO of Goforit, Inc., a wholesale distribution company specializing in emerging technologies. Your CEO is a brilliant marketer, but relies on you to explain issues and choices in accounting and finance. She has heard from other members of a CEO organization to which she belongs that a company’s net income can vary widely depending on which accounting choices are made from the “GAAP menu.”

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

Required:a. Goforit carries significant electronics inventory in a competitive environment where prices are actually falling. Which inventory valuation method would you choose—LIFO, FIFO, or average cost? Assume that unit purchases exceed unit sales.

b. Goforit has a large investment in warehouse equipment including conveyor belts, forklifts, and automated packaging systems. Which depreciation method would you choose: Straight line (SL) or double declining balance (DDB)?5. (TCO F) Please review the following real-world ratios for Johnson & Johnson and Pfizer for the year ended 2012 and address the 2 questions below...................................................................................................................................................................................................................Required:1) Please explain the meaning of each of the Pfizer ratios above.2) Please state which company performed better for each ratio.

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ACCT 504 Midterm Exam (4 Sets, 2017)

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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. (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. (Points : 30) Set 21: 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 3Invoices are pre-numbered.The controller approves of the purchases and makes the payment since heor 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 dutyand reconciled to the cash register total Set 4Question 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 2Question

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 313. Question : (TCOs D and E) Please prepare the following journal entries. Indicatewhich 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 4Question 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 5Question 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. (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. Question 3.The following items are taken from the financial statements of BGS Company for 2012:Cash $500,000Accounts Receivable 200,000Supplies 70,000Accounts Payable 147,300Unearned Service Revenue 18,000Equipment, net of accumulated depreciation 212,000Common Stock 500,000Retained Earnings 12/31/2011 78,300Long-term debt 142,400Service revenue 240,000Cost of Goods Sold 72,000Rent expense 36,000Supplies expense 12,000 Set 214. (TCO D) The following items are taken from the financial statements of SRW Company for 2012:

Cash $375,000Accounts Receivable 125,000Prepaid Insurance 100,000Accounts Payable 88,000Unearned Service Revenue 15,000Equipment, net of accumulated depreciation 177,000 Question 413. (TCOs B and D) The following items are taken from the financial statements of Lacey Company for 2012: Advertising Expense $14,000Accounts Receivable 12,000Cost of Goods Sold 65,000Accumulated Depreciation—Equipment 20,000Accounts Payable 21,000Cash 44,000Depreciation Expense 17,000Common 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 : 30Lacey 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 $100,000Accounts Receivable 12,000Accounts Payable 9,000

Cost of Goods Sold 72,000Utilities Expense 11,000Depreciation Expense 17,000Insurance 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 CreditSales $575,000Sales 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 thepurpose 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 trialbalance does balance, does that ensure that the ledger accounts arecorrect? 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. stockholders’ 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, stockholders’ equity Credit, stockholders’ 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 stockholders’ 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 toinvestors? 2. Question : (TCO C) Collecting cash from customers would be an

example of whichtype 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; netsales $250,000; and weighted average shares outstanding of 5,000. Therewere 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 anexpense before paying cash for the item is _____:8. Question : (TCOs A and B) A periodic inventory system would most likely be used bya(n) _____ 9. Question : (TCOs A and B) LBJ Company recorded the following events involving arecent purchase of merchandise. Comments:10. Question : (TCO A) In a period of declining prices, which of the following inventorymethods 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 11. Question : (TCO D) A classmate is considering dropping his or her accounting class because he or she cannot understand the rules of debits and credits.Explain the rules of debits and credits in a way that will help him or her understand them. Cite examples for each of the major sections of the balance sheet (assets, liabilities and stockholders' equity) and the income statement (revenues and expenses). Question 12. Question : (TCOs B and E) The Caltor Company gathered the following condensed data for the Year Ended December

31, 2010. Cost of goods sold $ 710,000Net sales 1,279,000Administrative expenses 239,000Interest expense 68,000Dividends paid 38,000Selling 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 Company’s assets at the beginning of the year were $770,000 and were $830,000 at the end of the year. To qualify for full credit, you must state the formula you are using, show your computations, and explain your findings. 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.

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

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Week 1DQ 1 - Financial Reporting Environment and GAAPWeek 1DQ 2 - Details of Financial Statements and RatiosWeek 2DQ 1 - Accounting EquationAccounting CycleWeek 2DQ 2 - Accrual Accounting and Adjusting EntriesWeek 3DQ 1 - Merchandising Operations and Income StatementsWeek 3DQ 2 - Inventory Cost-Flow AssumptionsWeek 4DQ 1 - Understanding Internal Control and Reporting CashWeek 4DQ 2 - Accounting for and Reporting ReceivablesWeek 5DQ 1 - Plant Assets and IntangiblesWeek 5DQ 2 - Accounting for LiabilitiesWeek 6DQ 1 - Accounting for and Reporting EquityWeek 6DQ 2 - Statement of Cash FlowsWeek 7DQ 1 - Issues in Income ReportingWeek 7DQ 2 - Different Tools for Financial Analysis

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ACCT 504 Week 2 Homework (E2-17A, E2-18A, E3-22A, E3-23A)

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

but that can be solved using Excel file) E2-17A Dr Anna Grayson opened a medical practice specializing in physical therapy. During the first month of operation (May), the business, titled. Anna Grayson, Professional Corporation (P.C.), experienced the following events:1. Record the transactions in the journal of

Dr. Anna Grayson, P.C. List the transactions by date and give an explanation for each transaction 6 Grayson invested $138,000 in the business, which in turn issued its common stock to her. 9 The business paid cash for land costing $63,000.Grayson plans to build an office building on the land.12 The business purchased medical supplies for $1,500 on account.15 Dr. Anna P.C., officially opened for business. 15-31During the rest of the month,Graysontreated patients and earned service revenue of$9,400,receiving cash for half the revenue earned.15-31The 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 borrowed30,000,signing a note payable to the bank.31 The business paid$600on account. E3-22A

Clark Truck Rentals Company faced the following situations. a. The business has interest expense of $ 3,000that it must pay early in January 2015b. 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 dash—Monday through Friday dash—andthe business pays employees each Friday. For the purpose of this calculation, assumeDecember 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 December31, 2014, for each situation. Consider each fact separately E3-23AThe adjusted trial balance ofHomemade HamsHomemade Hams,Inc., follows. Homemade Hams, Inc.

Adjusted Trial Balance 31-Dec-14Account (Amounts in thousands) Cash Debitcash 4400Accounts receivable 1,800Inventories 2,400Prepaid expenses 1,900Property, plant, and equipment 16,700Accumulated depreciation, property, plant, and equipmentOther assets 9,700Accounts payable Income tax payable Other liabilities Common stock Retained earnings (beginning, December 31, 2013)Dividends 1,700Sales revenue Cost of goods sold 25,600Selling, administrative, and general expense 10,400Income tax expense 2,000

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

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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, $3,300Requirement #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 CorporationTrial BalanceJuly 31Requirement #4:Prepare adjusting entries using the following information in the General Journalbelow. 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 CorporationAdjusted Trial BalanceJuly 31Requirement #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

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ACCT 504 Week 3 Case Study 1 Flower Landscaping Corporation (Devry)

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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.RequirementsRequirement 1 - Prepare the Journal Entries in the General JournalRequirement 2 - Post Journal Entries to the General LedgerRequirement 3 - Prepare a Trial BalanceRequirement 4 - Prepare the Adjusting EntriesRequirement 5 - Post Adjusting Entries to the General LedgerRequirement 6 - Prepare an Adjusted Trial BalanceRequirement 7 - Prepare the Financial Statements

Requirement 8 - Prepare the Closing EntriesRequirement 9 - Post Closing Entries to the General LedgerRequirement 10 - Prepare the Post Closing Trial Balance

Sheet in WorkbookJournal EntriesGeneral LedgerTrial BalanceAdjusting EntriesGeneral LedgerAdjusted TBFinancial StatementsClosing EntriesGeneral LedgerPost 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 tab2) The credits for the journal entries on the Journal Entries tab3) The cash balance on the General Ledger tab4) The debits for the trial balance on the Trial Balance tab5) The credits for the trial balance on the Trial Balance tab6) The debits for the adjusted trial balance on the Adjusted Trial Balance tab7) The credits for the adjusted trial balance on the Adjusted Trial Balance tab

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ACCT 504 Week 3 Quiz

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Q -1Other comprehensive income A.includes extraordinary gains and losses. B.affects earnings per share. C.includes unrealized gains and losses on available-for-sale investments. D.has no effect on income tax. Q-2Use the following data ofTortoiseTortoiseSales, Inc.: Unit Total Units Units Cost Cost SoldBeginning inventory 16 $3 $48 Purchase on Apr 25 25 6 150 Purchase on Nov 16 11 8 88 Sales 40 ? ? TortoiseSales' average cost of ending inventory is 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.ensures that the financial statements are error-free. D.gives investors assurance that the company's financial statements conform to GAAP. Use the following data ofSeasideSeasideSales, Inc.: Unit Total Units Units Cost Cost SoldBeginning inventory 18 $4 $72 Purchase on Apr 25 43 7 301 Purchase on Nov 16 19 10 190 Sales 45 ? ? SeasideSeasideSales' LIFO cost of ending inventory would be Use the following data ofSeaspraySeaspraySales, Inc.: Unit Total Units Units Cost Cost SoldBeginning inventory 24 $7 $168 Purchase on Apr 25 30 8 240

Purchase on Nov 16 14 9 126 Sales 50 ? ? SeaspraySeaspraySales uses a FIFO inventory system. Cost of goods sold for the period is The quality of earnings suggests that A.stockholders want the corporation to earn enough income to be able to pay its debts. B.income from continuing operations is a more relevant predictor of future performance than income from one-time transactions. C.net income is the best measure of the results of operations. D.continuing operations and one-time transactions are of equal importance. Deferred Tax Liability is usually Type of Account Reported on the A.Long-term Income statement B.Short-term Statement of stockholders' equity C.Short-term Income statement D.

Long-term Balance sheet Which statement is true? A.Discontinued operations are a separate category on the income statement. B.Extraordinary items are combined with continuing operations on the income statement. C.Extraordinary items are part of discontinued operations. Hazard Company had anan $18,000 beginning inventory and aa $25,000 ending inventory. Net sales ere$153,000; purchases, $76,000; purchase returns and allowances, $3,000; and freight in, $9,000. Cost of goods sold for the period is $75,000.What is Hazard gross profit percentage (rounded to the nearest percentage)?

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ACCT 504 Week 4 Quiz

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Q -1 Anderson Company had the following information in 20142014.

Accounts receivable 12/31/14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,000 Allowance for uncollectible account 12/31/14 (before adjustment). . . . . . . 850 Credit sales during 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,000 Cash sales during 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,000 Collections from customers on account during 2014. . . . . . . . . . . . . . . . . . 45,000 If uncollectible accounts are determined by the aging-of-receivables method to be $1,260 the uncollectible-account expense for 2014 would be:. Q-2 All of the following are controls for cash received over the counter except A.the cash drawer should open only when the sales clerk enters an amount on the keys. B.the sales clerk must have access to the cash register tape. C.a printed receipt must be given to the customer. D.the customer should be able to see the amounts entered into the cash register. Q-3 Patrick Company had the following information in 2014.

Accounts receivable 12/31/14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,000 Allowance for uncollectible account 12/31/14 (before adjustment). . . . . . . 800 Credit sales during 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,000 Cash sales during 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,000 Collections from customers on account during 2014. . . . . . . . . . . . . . . . . . 47,000 If uncollectible accounts are determined by the aging-of-receivables method to be $1,050, the uncollectible account expense for 2014 would be $250. The balance of the Allowance account after the adjusting entry would be Q-4 All of the following are objectives of internal control except A.to safeguard assets. B.to comply with legal requirements. C.to maximize net income. D.to ensure accurate and reliable accounting records. Q-5All of the following are internal control procedures except A.Sarbanes-Oxley reforms. B.assignment of responsibilities.

C.adequate records. D.internal and external audits. Q-6 Ryan Company had the following information in 2014. Accounts receivable 12/31/14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,000 Allowance for uncollectible account 12/31/14 (before adjustment). . . . . . . 700 Credit sales during 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000 Cash sales during 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000 Collections from customers on account during 2014. . . . . . . . . . . . . . . . . . 45,000 Uncollectible accounts are determined by the percent-of-sales method to be 4% of credit sales. How much is uncollectible-account expense for 2014? Q-7 Which of the following assets are not included in "cash equivalents" in a typical balance sheet? A.Time deposits B.Certain very low-risk equity securities C.Foreign government securities

D.U.S. government securities E.All of the above might be included in "cash equivalents." Q-8 Net sales total $584,000. Beginning and ending accounts receivable are $46,000 and $50,000, respectively. Calculate days' sales in receivables. Q-9 Tennis Academy held investments in trading securities with a fair value of $50,000 at December 31, 2014. These investments cost Fairway Pro Fairway Pro 45,000 on January 1, 2014 What is the appropriate amount for Fairway Pro Fairway Pro to report for these investments on the December 31, 2014 balance sheet? Q-10 Requiring that an employee with no access to cash do the accounting is an example of which characteristic of internal control? A.Competent and reliable personnel B.Assignment of responsibility C.Monitoring of controls D.Separation of duties

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

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Case Study 2 - Internal Control- Due by Sunday of week 5LJB 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.CategoryPointsDescriptionUnderstanding10Demonstrate a strong grasp of the problem at hand. Demonstrate understanding of how the course concepts apply to the problem.Analysis30Apply original thought to solving the business problem. Apply concepts from the course material correctly toward solving the business problem.Execution10Write your answer clearly and succinctly using strong organization and proper grammar. Use citations correctly.Total50A quality paper will meet or exceed all of the above requirements.

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

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

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ACCT 504 Week 5 Course Project Draft Spreadsheet (Devry)

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ACCT 504 Week 5 Course Project Draft Spreadsheet

ACCT 504 Week 5 Homework (E7-15A, E7-19A, E8-20A,

E9-23A, E9-29A)

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

E 7-15A

Potvin Self Storage purchased land, paying $175,000 cash as a down payment and signing a $185,000 note payable for the balance. Potvin also had to pay delinquent property tax of $5,500, title insurance costing $3,000, and $2,000 to level the land and remove an unwanted building. The company paid

$55,000 to add soil for the foundation and then constructed an office

building at a cost of

$1100,000. It also paid $47,000 for a fence around the property, $16,000 for the company sign near the property entrance, and $10,000 for lighting of the grounds. Requirement

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

2. cost of land improvement

3. Cost of building

E 7-19A

Tasteful's Pizza bought a used Toyota delivery van on January 2, 2014, for $18,000. The van was expected to remain in service for four years left parenthesis (41,750 miles). At the end of its useful life, Tasteful's officials estimated that the van's residual value would be $1,300. The van traveled

13,000 miles the first year, 11,250 miles the second year, 10,250 miles the third year, and 7,250 miles in the fourth year.

Requirements

1. Prepare a schedule of depreciation expense per year for the van under the three depreciation methods.

2. Which method best tracks the wear and tear on the van?

3. Which method would Tasteful's prefer to use for income tax

purposes? Explain in detail why

Tasteful's prefers this method.

Prepare a schedule of depreciation expense per year for the van under the three depreciation methods

Requirement 2. Which method best tracks the wear and tear on the van?  

The units-of-production method tracks the wear and tear on the van most closely.

Requirement 3. Which method would Tasteful's prefer to use for income tax purposes? Explain in detail why Tasteful's prefers this method. For income tax purposes, Tasteful's

would prefer the double-declining-balance method because it provides the

most depreciation, and thus, the largest tax deductions in the early life of the asset.

E8-20A

Corp. purchased 10, $1,000, 77%

bonds of Power Source Corporation when the market rate of interest was 12%. Interest is paid semiannually on the bonds, and the bonds will mature in ten years. Using the PV function in

Excel Superscript ®Excel®, compute the price Haygood paid (the present value) on the bond investment. (Assume that all payments of interest and principal occur at the end of the period. Round your answer to the nearest cent.)

E9-23A

Assume that Jasper Electronics completed these selected transactions during March 2014:

a. Sales of $2,100,000 are subject to estimated warranty cost of 2%. The estimated warranty payable at the beginning of the year was $34,000, and warranty payments for the year totaled $57,000.

b. On March 1, Jasper Electronics signed a 45,000 note payable that requires annual payments of $9,000 plus 4% interest on the unpaid balance each March 2.

c. Music For You, Inc., a chain of music stores, ordered $135,000 worth of CD players. With its order, Music For You, Inc., sent a check for $135,000 in advance, and Jasper shipped $80,000 of the goods. Jasper will ship the remainder of the goods on April 3, 2014.

d. The March Payroll of $260,000 is subject to employee withheld income tax of 30,000

and FICA tax of 7.65%. On March 31, Jasper pays employees their take-home pay and accrues all tax amounts.

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

E9-29A

Companies that operate in different industries may have very different financial ratio values. These differences may grow even wider when we compare companies located in different countries.

(Click the icon to view the financial statements.)

Requirement

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

Begin by computing the ratios. Start by selecting the formula for the current ratio. Then calculate the current ratios for Company BB, NN, and QQ

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

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ACCT504 Case Study 3 on Cash BudgetingThe cash budget was covered during Week 4 when we covered TCO D and you read Chapter 7. There is also a practice case study to work on. Your Professor will provide the solution to the practice case study at the end of Week 5. This case study should be uploaded by 11:59PM Mountain time of the Sunday ending Week 6 to the Week 6

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

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

16A, E12-20A)

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

E10-19A

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

Apr 23 Issued 3,000 shares of $1.00 par common stock for cash of $13.00 per share.

May 12 Received inventory with a market value of $20,000 and equipment with market

value of $39,000 for 3,600 shares of the $1.00 par common stock.Requirements

1. Journalize the transactions.

2. Prepare the stockholders' equity section of

Army Navy Sporting Goods' balance sheet for the transactions given in this exercise. Retained Earnings has a balance of

$45,000.

E10-25A (similar to) Question Help

Ontario Manufacturing, Inc., reported the following at December 31, 2014 and December 31, 2015:

Stockholders' Equity

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

$45,000

Common stock, $0.60 par, 9,070,000 shares issued

5,442,000

Ontario Manufacturing has paid all preferred dividends through 2011

Requirement

1. Compute the total amounts of dividends to both preferred and common stockholders for

2014 and 2015 if total dividends are $30,000 in 2014 and $45,000 in

2015.

Begin with 2014. Compute the total amounts of dividends to both preferred and common stockholders for

2014 if total dividends are $30,000.

E12-16A

Donnahoo Investments specializes in low-risk government bonds.

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

a. Cash sale of land

b. Issuance of long-term note payable in exchange for cash

c. Depreciation of equipment

d. Purchase of treasury stock

e. Issuance of common stock for cash

f. Increase in accounts payable

g. Net income

h. Payment of cash dividend

i. Decrease in accrued liabilities

j. Loss on sale of land

k. Acquisition of building by issuance of notes payable

l. Payment of long-term debt

m. Acquisition of building by issuance of common stock

n. Decrease in accounts receivable

o. Decrease in inventory

p. Increase in prepaid expenses

E12-20A

The income statement and additional data of Newton Travel Products, Inc., follow:

Requirements

1. Prepare

Newton Travel Products's statement of cash flows for the year ended December 31,

2014, using the indirect method.

2. Evaluate Noel' cash flows for the year. In your evaluation, mention all three categories of

cash flows and give the reason for your evaluation.

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

2014, using the indirect method.

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

Newton Travel Products, Inc.

Income Statement

Year Ended December 31, 2014

Requirement 2. Evaluate

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

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ACCT 504 Week 7 Course Project JCP Kohls (Devry)

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ACCT 504 Week 7 Course Project JCP Kohls