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, 2014Month 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 ? Requirements 1.
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 Activities Collections from
customers $51,000
Interest
Received
500 Purchase of
inventory
(36,000) Operating
expenses
(10,200) Net cash provided by
operating activities 5,300 Cash Flows
from Investing Activities Purchase of
equipment
(3,500) Purchase of investments
(500) Sale of
investments
1,000 Net cash used for investing
activities (3,000 )
Cash Flows from Financing Activities Payment
of long term debt
(400) Issuance of
Stock
2,000 Payment of cash
dividends (500)
Net cash provided by financing
activities 1,000 Cash Increase
(decrease) in Cash
3,300 Cash,
beginning of year
2,900 Cash, end of
year
5,900 ? Requirements 1. Prepare the Wang cash
budget for 2014. Date the budget simply ?2014? and
denote the beginning and ending cash balances as ?
beginning? and ?ending.? Assume the company
expects 2014 to be the same as 2013, but with the
following changes: a. In 2014, the company expects a
20% increase in collections from customers and a 30%
increase in purchases of inventory. b. There will be no
sales of investments in 2014. c. Wang does not plan to
issue stock in 2014. d. Wang plans to end the year with
a cash balance of $5,550.
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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 Analysis A
Comparative Analysis of Nike, Inc. and Under Armour,
Inc. Below is the link for the financial statements for
Nike, Inc. for the fiscal year ending 2014. First, select
2014using the drop-down arrow labeled Year, and then
select Annual Filings using the drop-down arrow labeled
All. You should select the 10k dated 7/15/2014,and
choose to download in PDF, Word, or Excel format.
http://investors.nike.com/investors/news-events-and-
reports/?toggle=filings Below is the link for the
financial statements for Under Armour, Inc. for the
fiscal year ending 2014. First, select Annual using the
drop-down arrow labeled View, and then select 2015
using the drop-down arrow labeled Year. You should
select the 10k dated 2/20/2015, and choose to
download it in PDF or Excel format.
http://www.uabiz.com/sec.cfm A sample project
template is available for download from the Course
Resources pages 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
companiesperformancesbased 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 instructors 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 Submission 1. Earnings
per Share of Common Stock 2. Current Ratio 3. Gross
(Profit) MarginPercentage 4. Rate of Return (Net Profit
Margin) on Sales 5. Inventory Turnover 6. Days
Inventory Outstanding (DIO) 7. Accounts Receivable
Turnover 8. Days Sales Outstanding (DSO) 9.
AssetTurnover 10. Rate of Return on Total Assets (ROA)
11. Debt Ratio 12. Times-Interest-Earned Ratio 13.
Dividend Yield[For the purposes of this ratio, use Yahoo
Finance to look up current dividend per share and stock
price; just note the date that you looked up this
information.] 14. Rate of Return on Common
Stockholders Equity (ROE) 15. Free cash flow 16. Price-
Earnings Ratio (Multiple) [For the purpose of this ratio,
for Nike, use the market price per share on May 30,
2014,and for Under Armour, use the market price per
share on December 31, 2014.] The Excel files uploaded
in the Dropboxes should not include any unnecessary
numbers or information (such as previous years' ratios,
ratios that were not specifically asked for in the project,
etc.).
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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 Corporation

Here is the link for the financial statements for Oracle Corporation
for the fiscal year ending 2007. First, select 2007 using the drop-
down arrow labeled for Year on the right-hand side of the page, and
then select Annual Reports using the drop-down arrow labeled Filing
Type on the left-hand side of the page.
You should select the 10k dated 6/29/2007 and choose to download in
PDF, Word, or Excel format.

Here is the link for the financial statements for Microsoft Corporation
for the fiscal year ending 2007. You should select the Annual report
dated 8/3/2007 and choose to download in Word or Excel format.

A sample Project template is available for download in Doc Sharing.

The sample project compares the ratio performance of Tootsie Roll
and Hershey using the 2007 financial statements of Tootsie Roll and
Hershey provided in Appendix A and Appendix B of your textbook.

Description | Overall Requirements | Grade Information

Description

This course contains a course project where you will be required to

submit one draft of the project at the end of Week 5 and the final
completed project at the end of Week 7. Using the financial statements
for Oracle Corporation and Microsoft Corporation, respectively, you
will calculate and compare the financial ratios listed further down
this document for the fiscal year ending 2007 and prepare your
comments about the liquidity, solvency and profitability of the two
companies based on your ratio calculations. The entire project will be
graded by the instructor at the end of the final submission in week 7
and one grade will be assigned for the entire project.

Overall Requirements

For the Final Submission:

Your final Excel workbook submission should contain the following.
You cannot use any other software but Excel to complete this Project.

1. A completed worksheet title page tab which is really a cover

sheet with your name, my name, the class name, and the date.

2. A completed worksheet profiles tab which contains a one

paragraph description regarding each company with information
about their history, what products they sell, where they are located
etc.

3. All 18 ratios for each company with the supporting

calculations and commentary on your worksheet ratio tab.
Supporting calculations must be shown either as a formula or as text
typed into a different cell. The ratios are listed further down this
document. Your comments for each ratio should include more than
just a definition of the ratio. You should focus on interpreting each
ratio number for each company and support your comments with the
numbers found in the ratios.

4. The Summary and Conclusions worksheet tab which is an

overall comparison of how each company compares in terms of the
major category of ratios (Liquidity, Profitability, and Solvency).

5. The Bibliography worksheet tab must contain at least your

textbook as a reference. Any other information you use to profile the
companies should also be cited as a reference.

Required Ratios for Final Project Submission:

1. Earnings per Share

2. Current Ratio

3. Gross Profit Rate

4. Profit Margin Ratio

5. Inventory Turnover Ratio

6. Days in Inventory

7. Receivables Turnover Ratio

8. Average Collection Period

9. Asset Turnover Ratio

10. Return on Assets Ratio

11. Debt to Total Assets Ratio

12. Times Interest Earned Ratio

13. Payout ratio

14. Return on Common Stockholders' Equity Ratio

15. Free Cash Flow

16. Current Cash Debt Coverage Ratio

17. Cash Debt Coverage Ratio

18. Price/Earnings Ratio [For the purpose of this ratio, use the
market price per share on June 1, 2007 for each company]

The Excel files uploaded to the Dropbox should not include any
unnecessary numbers or information (such as previous years' ratios,
ratios that were not specifically asked for in the project, etc.).

Please upload your final submission to the Dropbox by the end of

Week 7. See Syllabus/"Due Dates for Assignments & Exams" for due
date information.
For the Draft:

Create an Excel spreadsheet or use the Project template to show your

computations for the first 12 ratios listed above. The more you can
complete regarding the other requirements the closer you will be to
completion when Week 7 arrives. Supporting calculations must be
shown either as a formula or as text typed into a different cell. If you
plan on creating your own spreadsheet, please follow the format
provided in the Tootsie Roll and Hershey template file.

Please upload your draft submission to the Dropbox by the end of

Week 5. See Syllabus/"Due Dates for Assignments & Exams" for due
date information.
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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 investors
Harder to transfer ownership
Lower taxes
Most common form of organization

2. (TCO A) When a corporation distributes a dividend, _____. (Points

: 5)

the most common form of distribution is a cash dividend

the Dividends account will be increased with a credit
the Retained Earnings account will be directly increased with a debit
the Dividends account will be decreased with a debit

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

Company:

Cash $5,000
Prepaid insurance 500
Accounts receivable 2,500
Accounts payable 2,000
Notes payable 3,000
Common stock 1,000
Dividends 500
Revenues 15,000
Expenses 12,500

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

$21,500
$21,000
$20,500
$22,000

4. (TCOs B, E) A small and private company may be able to justify

using a cash basis of accounting if it has _____. (Points : 5)

sales under $1,000,000

no accountants on staff
insignificant receivables and payables
all sales and purchases on account

5. (TCO D) Three companies report the same cost of goods available

for sale, but each employs a different inventory costing method. If the
price of goods has increased during the period, then the company
using _____. (Points : 5)

LIFO will have the highest ending inventory

FIFO will have the highest cost of goods sold
All three companies will have the same value for ending inventory.
average cost will have an ending inventory value that falls between
FIFO and LIFO

6. (TCOs A, E) Equipment was purchased for $60,000. Freight

charges amounted to $2,800 and there was a cost of $8,000 for
building a foundation and installing the equipment. It is estimated
that the equipment will have a $12,000 salvage value at the end of its
5-year useful life. Depreciation expense each year using the straight-
line method will be _____. (Points : 5)

$14,160
$11,760
$9,840
$9,600

7. (TCOs D, G) Mendez Corporation issues 2,000 ten-year, 8%,

$1,000 bonds dated January 1, 2007, at 103. The journal entry to
record the issuance will show a _____. (Points : 5)

debit to Cash of $2,000,000

debit to Premium on Bonds Payable for $60,000
credit to Bonds Payable for $2,000,000
credit to Cash for $2,060,000

8. (TCO C) Accounts receivable arising from sales to customers

amounted to $35,000 and $40,000 at the beginning and end of the
year, respectively. Income reported on the income statement for the
year was $120,000. Exclusive of the effect of other adjustments, the
cash flows from operating activities to be reported on the statement of
cash flows is _____. (Points : 5)

$120,000
$125,000
$155,000
$115,000

9. (TCO F) One variation of the horizontal analysis is known as

_____. (Points : 5)

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

total current assets

total property, plant, and equipment
total liabilities
total assets

11. (TCO F) In vertical analysis, the base amount for studying salary
and wages expense is generally _____. (Points : 5)

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

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

(Points : 5)

current ratio
current cash debt coverage ratio
return on common stockholder's equity ratio
debt to total assets

13. (TCO F) Return-on-assets ratio is most closely related to _____.

(Points : 5)

profit margin and debt-to-total-assets ratio

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

find out the present value of all of the future cash payments promised
by the bond
calculate the present value of the principal only
calculate the present value of the interest only
multiply the bond price by the interest rate

1. (TCO A) An advantage of the corporate form of business is that

_____. (Points : 5)

it has limited life

its owner's personal resources are at stake
its ownership is easily transferable via the sale of shares of stock
it is simple to establish

2. (TCO A) When a corporation distributes a dividend, _____. (Points

: 5)

the most common form of distribution is a cash dividend

the Dividends account will be increased with a credit
the Retained Earnings account will be directly increased with a debit
the Dividends account will be decreased with a debit

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

Company:

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

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

$30,100
$29,400
$28,700
$30,800

4. (TCOs B, E) A small and private company may be able to justify

using a cash basis of accounting if it has _____. (Points : 5)

sales under $1,000,000

no accountants on staff
insignificant receivables and payables
all sales and purchases on account

5. (TCO D) In a period of increasing prices, which inventory cost

flow assumption will result in the lowest amount of income tax
expense? (Points : 5)

FIFO
LIFO
The average cost method
Income tax expense for the period will be the same under all
assumptions.

6. (TCOs A, E) Equipment was purchased for $60,000. Freight

charges amounted to $2,800 and there was a cost of $8,000 for
building a foundation and installing the equipment. It is estimated
that the equipment will have a $12,000 salvage value at the end of its
5-year useful life. Depreciation expense each year using the straight-
line method will be _____. (Points : 5)
$14,160
$11,760
$9,840
$9,600

7. (TCOs D, G) Lopez Corporation issues 500 ten-year, 8%, $1,000

bonds dated January 1, 2007, at 96. The journal entry to record the
issuance will show a _____. (Points : 5)

debit to Cash of $500,000

credit to Discount on Bonds Payable for $20,000
credit to Bonds Payable for $480,000
debit to Cash for $480,000

8. (TCO C) Accounts receivable arising from sales to customers

amounted to $35,000 and $40,000 at the beginning and end of the
year, respectively. Income reported on the income statement for the
year was $120,000. Exclusive of the effect of other adjustments, the
cash flows from operating activities to be reported on the statement of
cash flows is _____. (Points : 5)

$120,000
$125,000
$155,000
$115,000

9. (TCO F) Which one of the following is not a tool in financial

statement analysis? (Points : 5)

Horizontal analysis
Circular analysis
Vertical analysis
Ratio analysis
10. (TCO F) In vertical analysis, the base amount for studying salary
and wages expense is generally _____. (Points : 5)

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

11. (TCO F) Ratios are most useful in identifying _____. (Points : 5)

trends
differences
causes
relationships among different numbers

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

return on assets
current ratio
profit margin
debt to equity

13. (TCO F) Return-on-assets ratio is most closely related to _____.

(Points : 5)

profit margin and debt-to-total-assets ratio

profit margin and asset-turnover ratio
times interest earned and debt-to-stockholders equity ratio
profit margin and free cash flow

14. (TCO G) To calculate the market value of a bond, we need to

_____. (Points : 5)

find out the present value of all of the future cash payments promised
by the bond
calculate the present value of the principal only
calculate the present value of the interest only
multiply the bond price by the interest rate

1. (TCO A) Below you will find selected information (in millions)

from Coca-Cola Co.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 statement
2. Calculate the Profit Margin, and Gross profit rate for the company.
Be sure to provide the formula you are using, show your calculations,
and discuss your findings/results.
3. (TCO C) Please review the following real-world Hewlett Packard
Statement of Cash flows and address the 2 questions below:

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

Required:

1) Please calculate the percentage increase or decrease in cash for

the operating, investing, and financing sections and explain the major
reasons for the increase or decrease for each of these sections.

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

4. (TCO D) You are CFO of Goforit, Inc., a wholesale distribution

company specializing in emerging technologies. Your CEO is a
brilliant marketer, but relies on you to explain issues and choices in
accounting and finance. She has heard from other members of a CEO
organization to which she belongs that a companys 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 chooseLIFO, 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 2 1:
Invoices are pre-numbered. 2: The controller approves
of the purchases and makes the payment since he or
she is familiar with the purchases. 3: The office
manager is in charge of the petty cash fund. 4: Blank
checks are stored in the safe. 5: At the end of the day,
the total receipts are counted by the cashier on duty
and reconciled to the cash register total. (Points : 30)
Set 3 Invoices are pre-numbered. The controller
approves of the purchases and makes the payment
since he or she is familiar with the purchases. The
office manager is in charge of the petty cash fund.
Blank checks are stored in the safe. At the end of the
day, the total receipts are counted by the cashier on
duty and reconciled to the cash register total Set 4
Question 14. Question : (TCO D) Your friend Dean has
hired you to evaluate the following internal control
procedures. a: Explain to your friend whether each of
the numbered items below is an internal control
strength or weakness. You must also state which
principle relates to each of the internal controls. b: For
the weaknesses, you also need to state a
recommendation for improvement. 1: Bonding of the
cashiers is not required because all of the cashiers
have significant experience. 2: The treasurer is the only
one allowed to sign checks. 3: All employees may
operate cash registers. 4: Blank checks are stored in
the safe. 5: Supervisors count cash receipts daily. 12.
(TCOs E and F) Please prepare the following journal
entries. Indicate which account should be debited and
which account should be credited, along with the dollar
amount of the debit and credit. (1) Investors invest
$500,000 in exchange for 50,000 shares of common
stock. (2) Company purchased equipment for $25,000
on account. (3) Company paid Rent for $4,000. (4)
Company received $15,000 for services not yet
performed. (5) Employees work Monday through Friday
and are paid on Friday. Salary expense is $10,000 per
day and this year, December 31 falls on a Wednesday.
(Points : 30) Set 2 Question Please prepare the
following journal entries. Indicate which account should
be debited and which account should be credited,
along with the dollar amount of the debit and credit. (1)
Investors invest $300,000 in exchange for 30,000
shares of common stock. (2) Company made payment
on account for $500. (3) Employees work Monday
through Friday and are paid on Friday. Salary expense
is $20,000 per day, and December 31 falls on a
Tuesday. (4) Company purchased Supplies for $2,000.
(5) The company needs to record Supplies used for
$500. Set 3 13. Question : (TCOs D and E) Please
prepare the following journal entries. Indicate which
account should be debited and which account should
be credited, along with the dollar amount of the debit
and credit. Investors invest $50,000 in exchange for
1,000 shares of common stock. Company purchased
equipment for $10,000 on credit. Company received
$5,000 for services performed. Company made
payment on account for $2,000. Set 4 Question 13.
Question : (TCO D and TCO E) Please prepare the
following journal entries. Indicate which account should
be debited and which account should be credited,
along with the dollar amount of the debit and credit. a:
Investors invest $100,000 in exchange for 10,000
shares of common stock. b: Company paid a utility bill
for $600. c: Company received cash of $15,000 for
services performed. d: Company made payment on
account for $1,000. e: Company received $12,000 for
services not yet performed. Set 5 Question 12.
Question : (TCOs B and D) Please prepare the following
journal entries. Indicate which account should be
debited and which account should be credited, along
with the dollar amount of the debit and credit. (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 $500,000 Accounts Receivable 200,000 Supplies
70,000 Accounts Payable 147,300 Unearned Service
Revenue 18,000 Equipment, net of accumulated
depreciation 212,000 Common Stock 500,000 Retained
Earnings 12/31/2011 78,300 Long-term debt 142,400
Service revenue 240,000 Cost of Goods Sold 72,000
Rent expense 36,000 Supplies expense 12,000 Set 2
14. (TCO D) The following items are taken from the
financial statements of SRW Company for 2012: Cash
$375,000 Accounts Receivable 125,000 Prepaid
Insurance 100,000 Accounts Payable 88,000 Unearned
Service Revenue 15,000 Equipment, net of
accumulated depreciation 177,000 Question 4 13.
(TCOs B and D) The following items are taken from the
financial statements of Lacey Company for 2012:
Advertising Expense $14,000 Accounts Receivable
12,000 Cost of Goods Sold 65,000 Accumulated
DepreciationEquipment 20,000 Accounts Payable
21,000 Cash 44,000 Depreciation Expense 17,000
Common Stock 100,000 Instructions (a) Calculate the
net income. (18 points) (b) Calculate the balance of
Retained Earnings that would appear on a balance
sheet at December 31, 2012. (7 points) (c) Calculate
the gross profit percentage. (5 points) (Points : 30
Lacey Company Income Statement Question 13.
Question : (TCOs B and D) The following items are
taken from the financial statements of Ashe Company
for 2012: Equipment $100,000 Accounts Receivable
12,000 Accounts Payable 9,000 Cost of Goods Sold
72,000 Utilities Expense 11,000 Depreciation Expense
17,000 Insurance Expense 9,000 Question 14. Question
: (TCO D) The following items are taken from the
financial statements of BGS Company for 2012: Cash
$500,000 Accounts Receivable 200,000 Supplies
70,000 Accounts Payable 147,300 Unearned Service
Revenue 18,000 Equipment, net of accumulated
depreciation 212,000 Instructions (a) Please create a
classified balance sheet in good form for the year
ended 2012. (25 points) (b) Please calculate the
current ratio. (5 points) Question 12. Question : (TCOs
B and E) The adjusted trial balance of Gertz Company
included the following selected accounts. Debit Credit
Sales $575,000 Sales returns and allowances $ 50,000
Sales discounts 9,500 Cost of goods sold 347,000
Instructions: 1: Use the above information to prepare a
multiple-step income statement for the year ended
December 31, 2010. 2: Calculate the profit margin ratio
and gross profit rate. To qualify for full credit, you must
state the formula you are using, show your
computations, and explain your findings. Question 11.
Question : (TCO D) A classmate is considering dropping
his or her accounting class because he or she cannot
understand the rules of debits and credits. Explain the
rules of debits and credits in a way that will help him or
her understand them. Cite examples for each of the
major sections of the balance sheet (assets, liabilities
and stockholders' equity) and the income statement
(revenues and expenses). 11. Question : (TCO D)
Describe the process of preparing a trial balance. What
is the purpose of preparing a trial balance? If a trial
balance does not balance, identify what might be the
reasons why it does not balance. If the trial balance
does balance, does that ensure that the ledger
accounts are correct? Explain. 1. Question : (TCO D) An
account is an important accounting record where
financial information is stored until needed. Briefly
explain (1) the nature of an account, (2) the different
types of accounts, and (3) the manner in which an
account is increased and decreased, and the normal
balance of each type of accounts. Question 1.1. (TCO
A) Assets include (Points : 3) prepaid insurance and
prepaid rent. dividends paid to shareholders. loans
obtained by the company. 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 to investors? 2. Question : (TCO C) Collecting
cash from customers would be an example of which
type of activity? 3. Question : (TCO A) Resources owned
by a business are referred to as 4. Question : (TCO A) In
a classified balance sheet, assets are usually classified
as 5. Question : (TCO B) For 2012, LBJ Corporation
reported net income of $25,000; net sales $250,000;
and weighted average shares outstanding of 5,000.
There were no preferred stock dividends. What was the
2012 earnings per share? 6. Question : (TCO D) Which
of the following accounts has a normal balance of a
credit? 7. Question : (TCO E) The accrual accounting
term used to indicate recording an expense before
paying cash for the item is _____ : 8. Question : (TCOs A
and B) A periodic inventory system would most likely
be used by a(n) _____ 9. Question : (TCOs A and B) LBJ
Company recorded the following events involving a
recent purchase of merchandise. Comments: 10.
Question : (TCO A) In a period of declining prices, which
of the following inventory methods generally results in
the lowest gross profit figure? Question : (TCOs A, B,
and C) Shareholders want answers to all of the
following questions except: Question 2. Question : (TCO
C) Paying cash dividends is an example of a(n)
Question 3. Question : (TCO C) Buying a new plant
would be an example of which type of activity?
Question 4. Question : (TCO A) Which of the following
should not be classified as a current liability? Question
5. Question : (TCO B) For 2012, LBJ Corporation
reported net income of $75,000; net sales $750,000;
and weighted average shares outstanding of 7,500.
There were no preferred stock dividends. What was the
2012 earnings per share? Question 6. Question : (TCO
D) Which of the following describes the normal balance
and classification of the Unearned Revenue account?
Question 7. Question : (TCO E) Which of the following
statements is correct? Question 8. Question : (TCOs A
and B) A periodic inventory system would most likely
be used by a(n) Question 9. Question : (TCOs A and B)
LBJ Company recorded the following events involving a
recent merchandise purchase. - Received goods for
$40,000, terms 2/10, n/30 - Returned $1,200 of the
shipment for credit due to damaged goods - Paid
$1,000 for freight in - Paid the invoice within the
discount period Question 10. Question : (TCO A) In a
period of declining prices, which of the following
inventory methods generally results in the lowest gross
profit figure? Question 1. Question : (TCOs A, B, and C)
Which of the following statements concerning users of
accounting information is incorrect? Question 2.
Question : (TCO C) Paying cash dividends is an example
of a(n) Question 3. Question : (TCO C) Buying a new
plant would be an example of which type of activity?
Question 4. Question : (TCO A) On a classified balance
sheet, prepaid expenses are classified as Question 5.
Question : (TCO B) For 2012, LBJ Corporation reported
net income of $75,000; net sales $750,000; and
weighted average shares outstanding of 7,500. There
were no preferred stock dividends. What was the 2012
earnings per share? Question 6. Question : (TCO D)
Which of the following accounts has a normal balance
of a credit? Question 7. Question : (TCO E) The accrual
accounting term used to indicate recording an expense
before paying cash for the item is Question 8.
Question : (TCOs A and B) A periodic inventory system
would most likely be used by a(n) Question 9.
Question : (TCOs A and B) LBJ Company recorded the
following events involving a recent merchandise
purchase. Question 10. Question : (TCO A) In a period
of increasing prices, which of the following inventory
methods generally results in the highest gross profit?
Question 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 $ 710,000 Net sales 1,279,000 Administrative
expenses 239,000 Interest expense 68,000 Dividends
paid 38,000 Selling expenses 45,000 Instructions: 1:
Prepare a multiple-step income statement for the year
ended December 31, 2010. 2: Compute the profit
margin ratio and gross profit rate. Caltor Companys
assets at the beginning of the year were $770,000 and
were $830,000 at the end of the year. To qualify for full
credit, you must state the formula you are using, show
your computations, and explain your findings. Question
13. Question : (TCO D and E) Please prepare the
following journal entries. Indicate which account should
be debited and which account should be credited,
along with the dollar amount of the debit and credit. a:
Investors invest $50,000 in exchange for 1,000 shares
of common stock. b: Company purchased equipment
for $10,000 on credit. c: Company received $5,000 for
services performed. d: Company made payment on
account for $2,000. e: Company received $7,000 for
services not yet performed. Question 14. Question :
(TCO D) Your friend Wendy plans to open a hair salon.
Wendy states that she does not have time to develop
and implement a system of internal controls. a: Explain
to Wendy the objectives of a system of internal control.
b: Explain to Wendy at least four key controls she must
establish to protect herself against fraud. You should
state specific internal control principles and relate your
answer to her hair salon business.
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ACCT 504 Week 1-7 All Discussion Questions

(Devry)

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Week 1DQ 1 - Financial Reporting Environment and GAAP

Week 1DQ 2 - Details of Financial Statements and Ratios

Week 2DQ 1 - Accounting EquationAccounting Cycle

Week 2DQ 2 - Accrual Accounting and Adjusting Entries

Week 3DQ 1 - Merchandising Operations and Income Statements

Week 3DQ 2 - Inventory Cost-Flow Assumptions

Week 4DQ 1 - Understanding Internal Control and Reporting Cash

Week 4DQ 2 - Accounting for and Reporting Receivables

Week 5DQ 1 - Plant Assets and Intangibles

Week 5DQ 2 - Accounting for Liabilities

Week 6DQ 1 - Accounting for and Reporting Equity

Week 6DQ 2 - Statement of Cash Flows

Week 7DQ 1 - Issues in Income Reporting

Week 7DQ 2 - Different Tools for Financial Analysis

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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. 15-31 During the rest of the month, Grayson
treated patients and earned service revenue of $9,400,
receiving cash for half the revenue earned. 15-31 The
business paid cash expenses: employee salaries,
$2,800; office rent, $ 900$900; utilities, $ 900$900. 31
The business sold supplies to another physician for cost
of $400. 31 The business borrowed 30,000, signing a
note payable to the bank. 31 The business paid $600
on account. E3-22A Clark Truck Rentals Company faced
the following situations. a. The business has interest
expense of $ 3,000 that it must pay early in January
2015 b. Interest revenue of $4,500 has been earned
but not yet received. c. On July 1, 2014, when the
business collected $13,900 rent in advance, it debited
Cash and credited Unearned Rent Revenue. The tenant
was paying for two years' rent. d. Salary expense is
$5,500 per daylong dashMonday through Friday dash
and the business pays employees each Friday. For
the purpose of this calculation, assume December 31
falls on a Thursday. e. The unadjusted balance of the
Supplies account is $3,000. The total cost of supplies
on hand is $ 1,500. f. Equipment was purchased at the
beginning of this year at a cost of $120,000. The
equipment's useful life is five years. There is no
residual value. Record depreciation for this year and
then determine the equipment's book value. Journalize
the adjusting entry needed at December 31, 2014, for
each situation. Consider each fact separately E3-23A
The adjusted trial balance of Homemade
HamsHomemade Hams, Inc., follows. Homemade
Hams, Inc. Adjusted Trial Balance 31-Dec-14 Account
(Amounts in thousands) Cash Debit cash 4400
Accounts receivable 1,800 Inventories 2,400 Prepaid
expenses 1,900 Property, plant, and equipment 16,700
Accumulated depreciation, property, plant, and
equipment Other assets 9,700 Accounts payable
Income tax payable Other liabilities Common stock
Retained earnings (beginning, December 31, 2013)
Dividends 1,700 Sales revenue Cost of goods sold
25,600 Selling, administrative, and general expense
10,400 Income tax expense 2,000
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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, $3,300 Requirement #2: Post the July journal
entries to the following T-accounts and compute ending
balances. Cash (111) Revenue (411) Requirement #3:
Prepare a trial balance for July in the space below.
Melvin Plumbing Corporation Trial Balance July 31
Requirement #4: Prepare adjusting entries using the
following information in the General Journal below.
Show your calculations! a) One month's insurance has
expired. b) Supplies used during the period $375. c)
The estimated depreciation on equipment is $175.
Requirement #6: Prepare an adjusted trial balance in
the space below. Melvin Plumbing Corporation Adjusted
Trial Balance July 31 Requirement #7: Prepare the
financial statements for the Melvin Plumbing
Corporation as of July 31 in the space below. You will
only be preparing the income statement, statement of
retained earnings, and the balance sheet. The
statement of cash flows is a required financial
statement, but is not required for this case study.
Requirement #10: Prepare a post-closing trial balance
as of July 31 in the space below. Melvin Plumbing
Corporation Post-Closing Trial Balance
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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.
Requirements
Requirement 1 - Prepare the Journal Entries in the General Journal
Requirement 2 - Post Journal Entries to the General Ledger
Requirement 3 - Prepare a Trial Balance
Requirement 4 - Prepare the Adjusting Entries
Requirement 5 - Post Adjusting Entries to the General Ledger
Requirement 6 - Prepare an Adjusted Trial Balance
Requirement 7 - Prepare the Financial Statements
Requirement 8 - Prepare the Closing Entries
Requirement 9 - Post Closing Entries to the General Ledger
Requirement 10 - Prepare the Post Closing Trial Balance

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

Hint for success: review the Week 2 Lecture prior to starting this
project.
There are also hints contained within certain cells on some of the
worksheet tabs.
You can hover over the red pointer at the top right-hand corner of the
cell to read the hint.
Hints are provided for the following balances:
1) The debits for the journal entries on the Journal Entries tab
2) The credits for the journal entries on the Journal Entries tab
3) The cash balance on the General Ledger tab
4) The debits for the trial balance on the Trial Balance tab
5) The credits for the trial balance on the Trial Balance tab
6) The debits for the adjusted trial balance on the Adjusted Trial
Balance tab
7) The credits for the adjusted trial balance on the Adjusted Trial
Balance tab
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ACCT 504 Week 3 Quiz

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Q -1 Other comprehensive income A. includes
extraordinary gains and losses. B. affects earnings per
share. C. includes unrealized gains and losses on
available-for-sale investments. D. has no effect on
income tax. Q-2 Use the following data of
TortoiseTortoise Sales, Inc.: Unit Total Units Units Cost
Cost Sold Beginning inventory 16 $3 $48 Purchase on
Apr 25 25 6 150 Purchase on Nov 16 11 8 88 Sales 40 ?
? Tortoise Sales' average cost of ending inventory is An
auditor report by independent accountants 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 of
SeasideSeaside Sales, Inc.: Unit Total Units Units Cost
Cost Sold Beginning inventory 18 $4 $72 Purchase on
Apr 25 43 7 301 Purchase on Nov 16 19 10 190 Sales
45 ? ? SeasideSeaside Sales' LIFO cost of ending
inventory would be Use the following data of
SeaspraySeaspray Sales, Inc.: Unit Total Units Units
Cost Cost Sold Beginning inventory 24 $7 $168
Purchase on Apr 25 30 8 240 Purchase on Nov 16 14 9
126 Sales 50 ? ? SeaspraySeaspray Sales uses a FIFO
inventory system. Cost of goods sold for the period is
The quality of earnings suggests that A. stockholders
want the corporation to earn enough income to be able
to pay its debts. B. income from continuing operations
is a more relevant predictor of future performance than
income from one-time transactions. C. net income is
the best measure of the results of operations. 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 5

LJB Company, a local distributor, has asked your accounting firm to

evaluate their system of internal controls because they are planning
to go public in the future. The President wants to be aware of any new
regulations required of his company if they go public so he met with a
colleague of yours at a local restaurant. The President of the
company explained the current system of internal controls to your
colleague. Your colleague has since been promoted to a tax position
so she has passed on the information below so you can generate
recommendations for the partner at your accounting firm to share
with the President of LJB Company.

Since LJB Company is a relatively lean organization, they have a lot

of faith in their long-term employees. They have one accountant who
serves as Treasurer and Controller which streamlines many of their
processes. In this dual role, he purchases all of the supplies and pays
for these purchases. He also receives the checks and completes the
monthly bank reconciliation. The accountant is so busy that the
company handles petty cash a bit differently. All employees have
access to the petty cash in a desk drawer and are asked to only place
a note if they use any of the cash.

The accountant has recently started using pre-numbered invoices and

wants to buy an indelible ink machine to print their checks. The
President is waiting to hear from you if this is a necessary purchase
before authorizing.

On payday, the checks are picked up by the accountant and left in his
office for pick-up. Before he leaves for the weekend, he will move the
checks into a safe in his office.

The President is still quite embarrassed because he had to fire one of

his employees for viewing pornography on a company computer. He
later found out this individual was a convicted felon who served time
for molesting children. The company had a hard time getting the
employee to admit it was him because the company does not assign
individual passwords. The President expressed his frustration because
both he and the accountant both interview and approve all of the new
hires.
Required:

Based on the above information, prepare a Word document to address

the following:

Inform the President of any new internal control requirements if the

company decides to go public. (7 points) Advise the President of what
the company is doing right (they are doing some things well) and also
recommend to the President whether or not they should buy the
indelible ink machine. When you advise the President, please be sure
to reference the applicable internal control principle that applies. (13
points) Advise the President of what the company is doing wrong
(they are definitely doing some things poorly). Please be sure to
include the internal control principle that is being violated along with
a recommendation for improvement. (20 points)

You must prepare a formal report for the partner to distribute to the
President so no abbreviations or short-hand answers. You also must
cite your references. At a minimum, your textbook should be cited.

Below is a grading rubric for this assignment.

Category

Points

Description

Understanding

10

Demonstrate a strong grasp of the problem at hand. Demonstrate

understanding of how the course concepts apply to the problem.

Analysis
30

Apply original thought to solving the business problem. Apply

concepts from the course material correctly toward solving the
business problem.

Execution

10

Write your answer clearly and succinctly using strong organization

and proper grammar. Use citations correctly.

Total

50

A quality paper will meet or exceed all of the above requirements.

Best Practices

The following are best practices in preparing this paper.

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

The purpose of an introduction or opening is to introduce the subject

and why the subject is important; preview the main ideas and the
order in which they will be covered; and establish the tone of the
document.

Include in the introduction a reason for the audience to read the

paper. Also include an overview of what you will cover and the
importance of the material. (This should include or introduce the
questions you are asked to answer in each assignment.)

Body of the Report: Use a header with the name of the case study. An
example is, "The Development of Hotel X: A World Class Resort."
Proceed to break out the main ideas: State the main ideas, the major
points of each idea, and provide evidence. Show some type of
division, such as separate, labeled sections; separate groups of
paragraphs; or headers. Include the information you found during
your research and investigation. Summary and Conclusion:
Summarizing is similar to paraphrasing but presents the gist of the
material in fewer words than the original. An effective summary
identifies the main ideas and the major support points from the body
of the report; minor details are left out. Summarize the benefits of the
ideas and how they effect the subject. Work Cited: Use the citation
format specified in the Syllabus.
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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 (Devry)
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ACCT 504 Week 5 Homework (E7-15A, E7-19A,

E8-20A, E9-23A, E9-29A)

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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 QQThis 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?
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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 Budgeting

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

The LBJ Company has budgeted sales revenues as follows:

April May June

Credit sales $94,000 $89,500 $75,000

Cash sales 48,000 75,000 57,000

Total sales $142,000 $164,500 $132,000

Past experience indicates that 30% of the credit sales will be

collected in the month of sale and the remaining 70% will be
collected in the following month.

Purchases of inventory are all on credit and 40% is paid in the month
of purchase and 60% in the month following purchase. Budgeted
inventory purchases are $195,000 in April, $135,000 in May, and
$63,000 in June.

Other budgeted cash receipts: (a) sale of plant assets for $33,000 in
May, and (b) sale of new common stock for $50,000 in June. Other
budgeted cash disbursements: (a) operating expenses of $15,000 each
month, (b) selling and administrative expenses of $10,150 each
month, (c) purchase of equipment for $19,000 cash in June, and (d)
dividends of $20,000 will be paid in June.
The company has a cash balance of $20,000 at the beginning of May
and wishes to maintain a minimum cash balance of $20,000 at the
end of each month. An open line of credit is available at the bank and
carries an annual interest rate of 10%. Assume that all borrowing is
done on the first day of the month in which financing is needed and
that all repayments are made on the last day of the month in which
excess cash is available. Also assume that there is no outstanding
financing as of May 1.

Requirements:

1. Use this information to prepare a Cash Budget for the months of

May and June, using the template provided in Doc Sharing.

2. What are the three sections of a Cash Budget, and what is included
in each section?

3. Why is a Cash Budget so vital to a company?

4. What are the five basic principles of cash management that a

company can follow in order to improve its chances of having
adequate cash?
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ACCT 504 Week 6 Homework (E10-19A, E10-25A,

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 (Devry)