COMPLETE COURSE ACCT504 COMPLETE COURSE
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Thursday, 5 November 2015

COMPLETE COURSE ACCT504 COMPLETE COURSE

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ACCT-504 Week 3 Case Study 1 Flower Landscaping Corporation

The Entire Case Study is due Sunday at Midnight Mountain time at the end of Week 3.
This Case Study is worth 100 points or 10% of your final course grade.
This Case Study relates to TCO's D and E and Chapters 3 and 4.
MAKE SURE TO COMPLETE ALL REQUIREMENTS WHICH ARE LISTED BELOW.
There are 10 Sheets in the Workbook including this one.
All of the Information you need for the Project is located in this Workbook.
Requirements
Requirement 1 - Prepare the Journal Entries in the General Journal
Requirement 2 - Post Journal Entries to the General Ledger
Requirement 3 - Prepare a Trial Balance
Requirement 4 - Prepare the Adjusting Entries
Requirement 5 - Post Adjusting Entries to the General Ledger
Requirement 6 - Prepare an Adjusted Trial Balance
Requirement 7 - Prepare the Financial Statements
Requirement 8 - Prepare the Closing Entries
Requirement 9 - Post Closing Entries to the General Ledger
Requirement 10 - Prepare the Post Closing Trial Balance

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

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

ACCT-504 Week 4 Midterm Set 1

Page:
1.
Question :
(TCO A, B, C) External users want answers to all of the following questions except:
Points Received:
3 of 3
2.
Question :
(TCO C) Borrowing money is an example of a(n):
Points Received:
3 of 3
3.
Question :
(TCO C) Buying and selling products are examples of:
Points Received:
3 of 3
4.
Question :
(TCO A) Resources owned by a business are referred to as:
Points Received:
3 of 3
5.
Question :
(TCO C) Jamie Company recorded the following cash transactions for the year: 

Paid $70,000 for salaries.
Paid $20,000 to purchase office equipment.
Paid $6,000 for utilities.
Paid $7,000 in dividends.
Collected $130,000 from customers.

What was Jamie's net cash provided by operating activities?
Points Received:
3 of 3
6.
Question :
(TCO A) In a classified balance sheet, assets are usually classified as:
Points Received:
3 of 3
7.
Question :
(TCO A) An intangible asset:
Points Received:
3 of 3
8.
Question :
(TCO A) These are selected account balances on December 31, 2010.

-Land (location of the corporation's office building) $50,000
-Land (held for future use) 75,000
-Corporate Office Building 300,000
-Inventory 100,000
-Equipment 225,000
-Office Furniture 50,000
-Accumulated Depreciation 150,000

What is the total NET amount of property, plant, and equipment that will appear on the balance sheet?
Points Received:
3 of 3
9.
Question :
(TCO B) For 2010, Ford Corporation reported net income of $15,000; net sales $200,000; and average share outstanding 6,000. There were no preferred stock dividends. What was the 2010 earnings per share?
Points Received:
3 of 3
10.
Question :
(TCO B) Morten Corporation had beginning retained earnings of $764,000 and ending retained earnings of $833,000. During the year they issued common stock totaling $47,000. There were no dividends issued. What was their net income for the year?
Points Received:
3 of 3
11.
Question :
(TCO D) Is the purchase of equipment treated as an expense at the time of purchase? Why or why not?
Points Received:
3 of 3
12.
Question :
(TCO D) The left side of an account is:
Points Received:
3 of 3
13.
Question :
(TCO D) A credit is not the normal balance for which account listed below?
Points Received:
3 of 3
14.
Question :
(TCO D) A debit is not the normal balance for which account listed below?
Points Received:
3 of 3
15.
Question :
(TCO D) Which pair of accounts follows the rules of debit and credit in relation to increases and decreases in the same manner?
Points Received:
3 of 3
Page:
1.
Question :
(TCO E) The time period assumption states that:
Points Received:
3 of 3
2.
Question :
(TCO E) The matching principle matches:
Points Received:
3 of 3
3.
Question :
(TCO E) Expenses sometimes make their contribution to revenue in a different period than when the expense is paid. When wages are incurred in one period and paid in the next period, this often leads to which account appearing on the balance sheet at the end of the first period?
Points Received:
3 of 3
4.
Question :
(TCO E) The following is selected information from J Corporation for the fiscal year ending October 31, 2010. 

Cash received from customers $75,000
Revenue earned 87,500
Cash paid for expenses 42,500
Expenses incurred 50,000

Based on the accrual basis of accounting, what is J Corporation's net income for the year ending October 31, 2007?
Points Received:
3 of 3
5.
Question :
(TCO E) The general term employed to indicate an expense that has not been paid or revenue that has not been received and has not yet been recognized in the accounts is:
Points Received:
3 of 3
6.
Question :
(TCO A, B) Which of the following expressions is incorrect?
Points Received:
3 of 3
7.
Question :
(TCO B) Hunter Company purchased merchandise inventory with an invoice price of $6,000 and credit terms of 2/10, n/30. What is the net cost of the goods if Hunter Company pays within the discount period?
Points Received:
3 of 3
8.
Question :
(TCO A, B) Jake's Market recorded the following events involving a recent purchase of merchandise: 

Received goods for $20,000, terms 2/10, n/30. 
Returned $400 of the shipment for credit. 
Paid $100 freight on the shipment. 
Paid the invoice within the discount period.

As a result of these events, the company's merchandise inventory:
Points Received:
3 of 3
9.
Question :
(TCO A) The Freight-in account:
Points Received:
3 of 3
10.
Question :
(TCO A) Barnes Company is taking a physical inventory on March 31, the last day of its fiscal year. Which of the following must be included in this inventory count?
Points Received:
3 of 3
11.
Question :
(TCO A) Of the following companies, which one would not likely employ the specific identification method for inventory costing?
Points Received:
3 of 3
12.
Question :
(TCO A) Which of the following statements is correct with respect to inventories?
Points Received:
3 of 3
13.
Question :
(TCO A) In a period of declining prices, which of the following inventory methods generally results in the lowest balance sheet figure for inventory?
Points Received:
3 of 3
14.
Question :
(TCO B) Which of the following is a true statement about inventory systems?
Points Received:
3 of 3
15.
Question :
(TCO B) Two categories of expenses in merchandising companies are:
Points Received:
3 of 3
Page:
1.
Question :
(TCO D) A classmate is considering dropping his accounting class because he cannot understand the rules of debits and credits.
Explain the rules of debits and credits in a way that will help him understand them. Cite examples for each of the major sections of the balance sheet (assets, liabilities and stockholders' equity) and the income statement (revenues and expenses).
Points Received:
24 of 25
Ok
2.
Question :
(TCOs B & E) The Caltor Company gathered the following condensed data for the year ended December 31, 2010:

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

Instructions:
Prepare a multiple-step income statement for the year ended December 31, 2010. Compute the profit margin ratio and gross profit rate. Caltor Company s assets at the beginning of the year were $770,000 and were $830,000 at the end of the year. To qualify for full credit, you must state the formula you are using, show your computations and explain your findings.

ACCT-504 Week 4 Midterm Set 2

Page:
1.
Question :
(TCO A, B, C) External users want answers to all of the following questions except:
Points Received:
3 of 3
2.
Question :
(TCO C) Issuing shares of stock in exchange for cash is an example of a(n):
Points Received:
3 of 3
3.
Question :
(TCO C) Which activities involve putting the resources of the business into action to generate a profit?
Points Received:
3 of 3
4.
Question :
(TCO A) Resources owned by a business are referred to as:
Points Received:
3 of 3
5.
Question :
(TCO C) Jamie Company recorded the following cash transactions for the year: 

Paid $70,000 for salaries.
Paid $20,000 to purchase office equipment.
Paid $6,000 for utilities.
Paid $7,000 in dividends.
Collected $130,000 from customers.

What was Jamie's net cash provided by operating activities?
Points Received:
3 of 3
6.
Question :
(TCO A) On a classified balance sheet, prepaid insurance is classified as:
Points Received:
3 of 3
7.
Question :
(TCO A) Which of the following should not be classified as a current asset?
Points Received:
3 of 3
8.
Question :
(TCO A) These are selected account balances on December 31, 2007.

-Land (location of the corporation's office building) $200,000
-Land (held for future use) 300,000
-Corporate Office Building 1,200,000
-Inventory 400,000
-Equipment 900,000
-Office Furniture 200,000
-Accumulated Depreciation 600,000

What is the total NET amount of property, plant, and equipment that will appear on the balance sheet?
Points Received:
3 of 3
.
9.
Question :
(TCO B) For 2010, Mossland Corporation reported net income of $28,000; net sales $400,000; and average share outstanding 6,000. There were no preferred stock dividends. What was the 2010 earnings per share?
Points Received:
3 of 3
10.
Question :
(TCO B) At December 31, 2010, Shorts Company had retained earnings of $2,184,000. During 2010 they issued stock for $98,000, and paid dividends of $34,000. Net income for 2010 was $402,000. The retained earnings balance at the beginning of 2010 was:
Points Received:
3 of 3
11.
Question :
(TCO D) On March 1, 2010, Dillon Company hires a new employee who will start the work on March 6. The employee will be paid on the last day of each month. Should a journal entry be made on March 6? Why or why not?
Points Received:
3 of 3
12.
Question :
(TCO D) Which one of the following is not a part of an account?
Points Received:
3 of 3
13.
Question :
(TCO D) The classification and normal balance of the dividend account is:
Points Received:
3 of 3
14.
Question :
(TCO D) A debit is not the normal balance for which account listed below?
Points Received:
3 of 3
15.
Question :
(TCO D) Which of the following is not always true of the terms debit and credit?
Points Received:
3 of 3
Page:
Page:
1.
Question :
(TCO E) The time period assumption states that:
Points Received:
3 of 3
2.
Question :
(TCO E) In a service-type business, revenue is considered earned:
Points Received:
3 of 3
3.
Question :
(TCO E) Expenses sometimes make their contribution to revenue in a different period than when the expense is paid. When wages are incurred in one period and paid in the next period, this often leads to which account appearing on the balance sheet at the end of the first period?
Points Received:
3 of 3
4.
Question :
(TCO E) The following is selected information from M Corporation for the fiscal year ending October 31, 2010:

Cash received from customers $300,000
Revenue earned 350,000
Cash paid for expenses 170,000
Expenses incurred 200,000

Based on the accrual basis of accounting, what is M Corporation's net income for the year ending October 31, 2010?
Points Received:
3 of 3
5.
Question :
(TCO E) The general term employed to indicate an expense that has not been paid or revenue that has not been received and has not yet been recognized in the accounts is:
Points Received:
3 of 3
6.
Question :
(TCO A, B) Detailed records of movements in merchandise (each purchase and sale) are not maintained in the inventory account in a:
Points Received:
3 of 3
7.
Question :
(TCO B) Hunter Company purchased merchandise inventory with an invoice price of $12,000 and credit terms of 2/10, n/30. What is the net cost of the goods if Hunter Company pays within the discount period?
Points Received:
3 of 3
8.
Question :
(TCO A, B) Zach's Market recorded the following events involving a recent purchase of merchandise:

Received goods for $50,000, terms 2/10, n/30. 
Returned $1,000 of the shipment for credit. 
Paid $250 freight on the shipment. 
Paid the invoice within the discount period.

As a result of these events, the company's merchandise inventory:
Points Received:
3 of 3
9.
Question :
(TCO A) The Freight-in account:
Points Received:
3 of 3
10.
Question :
(TCO A) Which statement is false?
Points Received:
3 of 3
11.
Question :
(TCO A) Of the following companies, which one would not likely employ the specific identification method for inventory costing?
Points Received:
3 of 3
12.
Question :
(TCO A) Which of the following statements is correct with respect to inventories?
Points Received:
3 of 3
13.
Question :
(TCO A) In a period of rising prices, which of the following inventory methods generally results in the lowest net income figure?
Points Received:
3 of 3
14.
Question :
(TCO B) Which of the following is a true statement about inventory systems?
Points Received:
3 of 3
15.
Question :
(TCO B) Two categories of expenses in merchandising companies are:
Points Received:
3 of 3
Page:
1.
Question :
(TCO D) An account is an important accounting record where financial information is stored until needed. Briefly explain (1) the nature of an account, (2) the different types of accounts, and (3) the manner in which an account is increased and decreased, and the normal balance of each type of accounts.
Points Received:
24 of 25
2.
Question :
(TCOs B & E) The adjusted trial balance of Gertz Company included the following selected accounts:

Debit Credit
Sales $575,000
Sales Returns and Allowances $ 50,000 
Sales Discounts 9,500 
Cost of Goods Sold 347,000 
Freight-out 2,000 
Advertising Expense 15,000 
Interest Expense 19,000 
Store Salaries Expense 74,000 
Utilities Expense 18,000 
Depreciation Expense 3,500 
Interest Revenue 25,000

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

ACCT-504 Week 4 Midterm Set 3

Page:
1.
Question :
(TCO A, B, C) External users want answers to all of the following questions except:
Points Received:
3 of 3
2.
Question :
(TCO C) Debt securities sold to investors that must be repaid at a particular date some years in the future are called:
Points Received:
3 of 3
3.
Question :
(TCO C) Which activities involve putting the resources of the business into action to generate a profit?
Points Received:
3 of 3
4.
Question :
(TCO A) The cost of assets consumed or services used is also known as:
Points Received:
3 of 3
5.
Question :
(TCO C) Finley Company recorded the following cash transactions for the year: 

Paid $90,000 for salaries.
Paid $40,000 to purchase office equipment.
Paid $10,000 for utilities.
Paid $4,000 in dividends.
Collected $150,000 from customers.

What was Finley's net cash provided by operating activities?
Points Received:
3 of 3
6.
Question :
(TCO A) In a classified balance sheet, assets are usually classified as:
Points Received:
3 of 3
7.
Question :
(TCO A) An intangible asset:
Points Received:
3 of 3
8.
Question :
(TCO A) These are selected account balances on December 31, 2007.

-Land (location of the corporation's office building) $200,000
-Land (held for future use) 300,000
-Corporate Office Building 1,200,000
-Inventory 400,000
-Equipment 900,000
-Office Furniture 200,000
-Accumulated Depreciation 600,000

What is the total NET amount of property, plant, and equipment that will appear on the balance sheet?
Points Received:
3 of 3
9.
Question :
(TCO B) For 2010, Ford Corporation reported net income of $15,000; net sales $200,000; and average share outstanding 6,000. There were no preferred stock dividends. What was the 2010 earnings per share?
Points Received:
3 of 3
10.
Question :
(TCO B) Liondale Corporation had beginning retained earnings of $2,292,000 and ending retained earnings of $2,499,000. During the year, they issued common stock totaling $141,000. There were no dividends issued. What was their net income for the year?
Points Received:
3 of 3
11.
Question :
(TCO D) Is the purchase of equipment treated as an expense at the time of purchase? Why or why not?
Points Received:
3 of 3
12.
Question :
(TCO D) The left side of an account is:
Points Received:
3 of 3
13.
Question :
(TCO D) The classification and normal balance of the dividend account is:
Points Received:
3 of 3
14.
Question :
(TCO D) In recording an accounting transaction in a double-entry system:
Points Received:
3 of 3
15.
Question :
(TCO D) Which pair of accounts follows the rules of debit and credit in relation to increases and decreases in the same manner?
Points Received:
3 of 3
Page:
1.
Question :
(TCO E) The time period assumption states that:
Points Received:
3 of 3
2.
Question :
(TCO E) In a merchandising business, revenue may be considered earned when:
Points Received:
3 of 3
3.
Question :
(TCO E) Expenses sometimes make their contribution to revenue in a different period than when the expense is paid. When wages are incurred in one period and paid in the next period, this often leads to which account appearing on the balance sheet at the end of the first period?
Points Received:
3 of 3
4.
Question :
(TCO E) The following is selected information from M Corporation for the fiscal year ending October 31, 2010:

Cash received from customers $300,000
Revenue earned 350,000
Cash paid for expenses 170,000
Expenses incurred 200,000

Based on the accrual basis of accounting, what is M Corporation's net income for the year ending October 31, 2010?
Points Received:
3 of 3
5.
Question :
(TCO E) Adjusting entries are made to ensure that:
Points Received:
3 of 3
6.
Question :
(TCO A, B) A perpetual inventory system would most likely be used by a(n):
Points Received:
3 of 3
7.
Question :
(TCO B) Hunter Company purchased merchandise inventory with an invoice price of $3,000 and credit terms of 2/10, n/30. What is the net cost of the goods if Hunter Company pays within the discount period?
Points Received:
3 of 3
8.
Question :
(TCO A, B) Lindy's Market recorded the following events involving a recent purchase of merchandise: 

Received goods for $80,000, terms 2/10, n/30. 
Returned $2,000 of the shipment for credit. 
Paid $500 freight on the shipment. 
Paid the invoice within the discount period.

As a result of these events, the company's merchandise inventory:
Points Received:
3 of 3
9.
Question :
(TCO A) The factor which determines whether or not goods should be included in a physical count of inventory is:
Points Received:
3 of 3
10.
Question :
(TCO A) Barnes Company is taking a physical inventory on March 31, the last day of its fiscal year. Which of the following must be included in this inventory count?
Points Received:
3 of 3
11.
Question :
(TCO A) A problem with the specific identification method is that:
Points Received:
3 of 3
12.
Question :
(TCO A) Which of the following statements is true regarding inventory cost flow assumptions?
Points Received:
3 of 3
13.
Question :
(TCO A) In a period of declining prices, which of the following inventory methods generally results in the lowest balance sheet figure for inventory?
Points Received:
3 of 3
14.
Question :
(TCO B) The figure for which of the following items is determined at a different time under the perpetual inventory method than under the periodic method?
Points Received:
3 of 3
15.
Question :
(TCO B) The primary source of revenue for a retailer is:
Points Received:
3 of 3
Page:
1 2 3
1.
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 insure that the ledger accounts are correct? Explain.
Points Received:
25 of 25
2.
Question :
(TCOs B & E) The Caltor Company gathered the following condensed data for the year ended December 31, 2010:

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

Instructions:
Prepare a multiple-step income statement for the year ended December 31, 2010. Compute the profit margin ratio and gross profit rate. Caltor Company s assets at the beginning of the year were $770,000 and were $830,000 at the end of the year. To qualify for full credit, you must state the formula you are using, show your computations and explain your findings.

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

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.

ACCT-504 Week 5 Course Project Draft Spreadsheet

ACCT-504 Week 5 Course Project Draft Spreadsheet

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

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?

ACCT-504 Week 7 Course Project JCP Kohls

ACCT-504 Week 7 Course Project JCP Kohls

ACCT-504 Devry - All 7 Weeks Discussions

w1 dq1 - Financial Reporting Environment and GAAP
w1 dq2 - Details of Financial Statements and Ratios
w2 dq1 - Accounting EquationAccounting Cycle
w2 dq2 - Accrual Accounting and Adjusting Entries
w3 dq1 - Merchandising Operations and Income Statements
w3 dq2 - Inventory Cost-Flow Assumptions
w4 dq1 - Understanding Internal Control and Reporting Cash
w4 dq2 - Accounting for and Reporting Receivables
w5 dq1 - Plant Assets and Intangibles
w5 dq2 - Accounting for Liabilities
w6 dq1 - Accounting for and Reporting Equity
w6 dq2 - Statement of Cash Flows
w7 dq1 - Issues in Income Reporting
w7 dq2 - Different Tools for Financial Analysis

ACCT-504 Final Exam - 3 different finals

1. (TCO A) Which one of the following is an advantage of corporations relative to partnerships and sole proprietorships? (Points : 5)
Reduced legal liability for investors
Harder to transfer ownership
Lower taxes
Most common form of organization

2. (TCO A) When a corporation distributes a dividend, _____. (Points : 5)
the most common form of distribution is a cash dividend
the Dividends account will be increased with a credit
the Retained Earnings account will be directly increased with a debit
the Dividends account will be decreased with a debit

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

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

What did Cerner Company show as total credits? (Points : 5)
$21,500
$21,000
$20,500
$22,000
4. (TCOs B, E) Using accrual accounting, expenses are recorded and reported only _____. (Points : 5)
when they are incurred, whether or not cash is paid
when they are incurred and paid at the same time
if they are paid before they are incurred
if they are paid after they are incurred

5. (TCO D) Three companies report the same cost of goods available for sale, but each employs a different inventory costing method. If the price of goods has increased during the period, then the company using _____. (Points : 5)
LIFO will have the highest ending inventory
FIFO will have the highest cost of goods sold
All three companies will have the same value for ending inventory.
average cost will have an ending inventory value that falls between FIFO and LIFO

6. (TCOs A, E) Equipment with a cost of $192,000 has an estimated salvage value of $18,000 and an estimated life of 4 years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours? (Points : 5)
$48,000
$52,500
$49,500
$43,500

7. (TCOs D, G) Joyce Corporation issues 1,000 ten-year, 8%, $1,000 bonds dated January 1, 2007, at 102. The journal entry to record the issuance will show a _____. (Points : 5)
debit to Cash of $1,020,000
debit to Discount on Bonds Payable for $20,000
credit to Bonds Payable for $1,020,000
credit to Cash for $1,000,0008. (TCO C) Accounts receivable arising from sales to customers amounted to $80,000 and $70,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $240,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is _____. (Points : 5)
$240,000
$250,000
$310,000
$230,000

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

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

11. (TCO F) Which one of the following is not a characteristic generally evaluated in ratio analysis? (Points : 5)
Liquidity
Profitability
Marketability of the product
Solvency

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

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

14. (TCO G) To calculate the market value of a bond, we need to _____. (Points : 5)
find out the present value of all of the future cash payments promised by the bond
calculate the present value of the principal only
calculate the present value of the interest only
multiply the bond price by the interest rate
1. (TCO A) Which one of the following is an advantage of corporations relative to partnerships and sole proprietorships? (Points : 5)

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

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

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

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

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

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

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

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

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

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

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

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

net sales
salary and wages expense in a previous year
gross profit
net income
12. (TCO F) A common measure of profitability is the _____. (Points : 5)

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

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

find out the present value of all of the future cash payments promised by the bond
calculate the present value of the principal only
calculate the present value of the interest only
multiply the bond price by the interest rate
1. (TCO A) An advantage of the corporate form of business is that _____. (Points : 5)
it has limited life
its owner's personal resources are at stake
its ownership is easily transferable via the sale of shares of stock
it is simple to establish
2. (TCO A) When a corporation distributes a dividend, _____. (Points : 5)
the most common form of distribution is a cash dividend
the Dividends account will be increased with a credit
the Retained Earnings account will be directly increased with a debit
the Dividends account will be decreased with a debit
3. (TCOs A, B) Below is a partial list of account balances for Denton Company:

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

What did Denton Company show as total credits? (Points : 5)
$30,100
$29,400
$28,700
$30,800
4. (TCOs B, E) A small and private company may be able to justify using a cash basis of accounting if it has _____. (Points : 5)
sales under $1,000,000
no accountants on staff
insignificant receivables and payables
all sales and purchases on account
5. (TCO D) In a period of increasing prices, which inventory cost flow assumption will result in the lowest amount of income tax expense? (Points : 5)
FIFO
LIFO
The average cost method
Income tax expense for the period will be the same under all assumptions.
6. (TCOs A, E) Equipment was purchased for $60,000. Freight charges amounted to $2,800 and there was a cost of $8,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $12,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be _____. (Points : 5)
$14,160
$11,760
$9,840
$9,600
7. (TCOs D, G) Lopez Corporation issues 500 ten-year, 8%, $1,000 bonds dated January 1, 2007, at 96. The journal entry to record the issuance will show a _____. (Points : 5)
debit to Cash of $500,000
credit to Discount on Bonds Payable for $20,000
credit to Bonds Payable for $480,000
debit to Cash for $480,000
8. (TCO C) Accounts receivable arising from sales to customers amounted to $35,000 and $40,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $120,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is _____. (Points : 5)
$120,000
$125,000
$155,000
$115,000
9. (TCO F) Which one of the following is not a tool in financial statement analysis? (Points : 5)
Horizontal analysis
Circular analysis
Vertical analysis
Ratio analysis
10. (TCO F) In vertical analysis, the base amount for studying salary and wages expense is generally _____. (Points : 5)
net sales
salary and wages expense in a previous year
gross profit
net income
11. (TCO F) Ratios are most useful in identifying _____. (Points : 5)
trends
differences
causes
relationships among different numbers
12. (TCO F) A common measure of liquidity is _____. (Points : 5)
return on assets
current ratio
profit margin
debt to equity
13. (TCO F) Return-on-assets ratio is most closely related to _____. (Points : 5)
profit margin and debt-to-total-assets ratio
profit margin and asset-turnover ratio
times interest earned and debt-to-stockholders equity ratio
profit margin and free cash flow
14. (TCO G) To calculate the market value of a bond, we need to _____. (Points : 5)
find out the present value of all of the future cash payments promised by the bond
calculate the present value of the principal only
calculate the present value of the interest only
multiply the bond price by the interest rate

1. (TCO A) Below you will find selected information (in millions) from Coca-Cola Co.’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 company’s net income can vary widely depending on which accounting choices are made from the “GAAP menu.”

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

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

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

ACCT 504 COMPLETE COURSE ACCT504 COMPLETE COURSE
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