tag:blogger.com,1999:blog-47697674260541045432024-03-13T15:18:48.791-07:00ACC and FIN HelpUnknownnoreply@blogger.comBlogger99125tag:blogger.com,1999:blog-4769767426054104543.post-50904984840271780072011-08-08T19:31:00.000-07:002011-08-08T19:32:32.230-07:00The comparative balance sheet of House Construction Co. for June 30, 2010 and 2009, is as follows<span style="color: rgb(102, 0, 204);font-size:130%;" ><span style="font-weight: bold;">ACCOUNTING</span></span>
<br />
<br />The comparative balance sheet of House Construction Co. for June 30, 2010 and 2009, is as follows:
<br />
<br />Assets June 30, 2010 June 30, 2009
<br />Cash----- 41600 28200
<br />A/R (Net) ----121900 110700
<br />Inventories---------- 175600 170500
<br />Investments---------- 0 60000
<br />Land -------174000 0
<br />Equipment---------- 258000 210600
<br />Accumulated Depreciation--------- -58300 -49600
<br />Total------------ 712800 530400
<br />
<br />
<br />Liabilities & Stockholders Equity
<br />A/P (Merchandise Creditors) ----------121000 114200
<br />Accrued Expense Payable (Operating Expense)------------ 18000 15800
<br />Dividends Payable--------------- 15000 12000
<br />Common Stock, $1 Par--------------- 67200 60000
<br />Paid-In Capital In Excess Of Par - Common Stock------- 264000 120000
<br />Retained Earnings ------------227600 208400
<br />Total---------- 712800 530400
<br />
<br />The following additional information was taken from the records of House Construction Co.:
<br />
<br />A. Equipment and land were acquired for cash.
<br />B. There were no disposals of equipment during the year.
<br />C. The investments were sold for $54,000 cash.
<br />D. The common stock was issued for cash.
<br />E. There was a $79,200 credit to Retained Earnings for net income.
<br />F. There was a $60,000 debit to Retained Earnings for cash dividends declared.
<br />
<br />A. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
<br />
<br />B. Prepare ratios as required.
<br />
<br /><span style="font-weight: bold; color: rgb(204, 0, 0);">Check: Net Cash Flow from Operating Activities $86,600</span>
<br />
<br />Click here for the <a href="http://homeworkbonanza.com/The%20comparative%20balance%20sheet%20of%20House%20Construction%20Co.%20for%20June%2030,%202010%20and%202009,%20is%20as%20follows" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-size:180%;" >SOLUTION</span></a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4769767426054104543.post-28121309652470052492011-07-10T06:05:00.000-07:002011-07-10T06:08:17.783-07:00On September 1, 2008, the account balances of Rand Equipment Repair, Inc. were as follows<span style="color: rgb(102, 0, 204);font-size:130%;" ><span style="font-weight: bold;">ACCOUNTING</span></span><br /><br />P3-5A On September 1, 2008, the account balances of Rand Equipment Repair, Inc. were as follows.<br /><br />No. Debits No. Credits<br />101 Cash $4,880 154 Accumulated Depreciation $1,500<br />112 Accounts Receivable 3,520 201 Accounts Payable 3,400<br />126 Supplies 2,000 209 Unearned Service Revenue 1,400<br />153 Store Equipment 15,000 212 Salaries Payable 500<br /> 311 Common Stock 15,000<br /> 320 Retained Earnings 3,600<br /> $25,400 $25,400<br />During September the following summary transactions were completed.<br />Sept. 8 Paid $1,400 for salaries due employees, of which $900 is for September.<br />10 Received $1,200 cash from customers on account.<br />12 Received $3,400 cash for services performed in September.<br />15 Purchased store equipment on account $3,000.<br />17 Purchased supplies on account $1,200.<br />20 Paid creditors $4,500 on account.<br />22 Paid September rent $500.<br />25 Paid salaries $1,250.<br />27 Performed services on account and billed customers for services provided $1,500.<br />29 Received $650 from customers for future service.<br />Adjustment data consist of:<br />1. Supplies on hand $1,200.<br />2. Accrued salaries payable $400.<br />3. Depreciation is $100 per month.<br />4. Unearned service revenue of $1,450 is earned.<br /><br />Instructions<br />(a) Journalize the September transactions. (Your instructor may advise you to post to ledger accounts, that should be turned in as part of the problem.)<br />(b) Prepare a trial balance at September 30.<br />(c) Journalize and post adjusting entries.<br />(d) Prepare an adjusted trial balance.<br />(e) Prepare an income statement and a retained earnings statement for September and a balance sheet at September 30.<br /><br />Click here for the <a href="http://homeworkbonanza.com/P3-5A%20On%20September%201,%202008,%20the%20account%20balances%20of%20Rand%20Equipment%20Repair,%20Inc.%20were%20as%20follows" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-size:180%;" >SOLUTION</span></a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4769767426054104543.post-60365767541929099652011-07-09T22:39:00.001-07:002011-07-09T22:39:44.999-07:00Aunt Ethel's Fancy Cookie Company manufactures and sells three flavors of cookies<span style="font-weight: bold; color: rgb(102, 0, 0);">Aunt Ethel's Fancy Cookie Company</span><br /><br /><span style="font-weight: bold; color: rgb(0, 0, 153);">Problem 1 </span><br />Aunt Ethel's Fancy Cookie Company manufactures and sells three flavors of cookies: Macaroon, Sugar, and Buttercream. The batch size for the cookies is limited to 1,000 cookies based on the size of the ovens and cookie molds owned by the company. Based on budgetary projections, the information listed below is available:<br />Macaroon Sugar Buttercream<br />Projected sales in units<br />500,000 800,000 600,000<br />PER UNIT data:<br />Selling price $0.80 $0.75 $0.60<br />Direct materials $0.20 $0.15 $0.14<br />Direct labor $0.04 $0.02 $0.02 Hours per 1000-unit batch:<br />Direct labor hours 2 1 1<br />Oven hours 1 1 1<br />Packaging hours 0.5 0.5 0.5<br />Total overhead costs and activity levels for the year are estimated as follows:<br />Activity Overhead costs Activity levels<br />Direct labor 2,400 hours<br />Oven $210,000 1,900 oven hours<br />Packaging $150,000 950 packaging hours $360,000<br />Questions: 1. Determine the activity-cost-driver rate for packaging costs (3 points).<br />2. Using the ABC system, for the sugar cookie, compute the estimated overhead costs per thousand cookies (3 points).<br />3. Using the ABC system, for the sugar cookie, compute the estimated operating profit per thousand cookies (3 points).<br />4. Using a traditional system (with direct labor hours as the overhead allocation base) for the sugar cookie, compute the estimated overhead costs per thousand cookies (3 points).<br />5. Using a traditional system (with direct labor hours as the overhead allocation base) for the sugar cookie, compute the estimated operating profit per thousand cookies (3 points).<br />6. Explain the difference between the profits obtained from the traditional system and the ABC system. Which system provides a better estimate of profitability? Why? (3 points).<br /><span style="font-weight: bold; color: rgb(0, 0, 153);">Problem 2: </span><br />What is activity-based management and how can it be used to improve the profitability of a company? (12 points).<br /><br />Click here for the <a href="http://homeworkbonanza.com/Aunt%20Ethel%27s%20Fancy%20Cookie%20Company%20manufactures%20and%20sells%20three%20flavors%20of%20%20cookies" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-family:arial;font-size:180%;" >SOLUTION</span></a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4769767426054104543.post-20439027024037415822011-07-09T20:13:00.000-07:002011-07-09T20:14:56.009-07:00The management of Sharrar Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity<span style="color: rgb(102, 0, 204);font-size:130%;" ><span style="font-weight: bold;">ACCOUNTING</span></span><br /><br />The management of Sharrar Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity rather than on the estimated amount of activity for the year. The company’s controller has provided an example to illustrate how this new system would work. In this example, the allocation base is machine-hours and the estimated amount of the allocation base for the upcoming year is 45,000 machine- hours. In addition, capacity is 52,000 machine-hours and the actual activity for the year is 47,100 machine-hours. All of the manufacturing overhead is fixed and is $1,029,600 per year. For simplicity, it’s assumed that this is the estimated manufacturing overhead for the year as well as the manufacturing overhead at capacity and the actual amount of manufacturing overhead for the year.<br /><br />Required:<br />A. Determine the predetermined overhead rate if the predetermined overhead rate is based on the estimated amount of the allocation base.<br />B. Determine the underapplied or overapplied overhead for the year if the predetermined overhead rate is based on the estimated amount of the allocation base.<br /><br />C. Determine the predetermined overhead rate if the predetermined overhead rate is based on the amount of the allocation base at capacity.<br /><br />D. Determine the underapplied or overapplied overhead for the year if the predetermined overhead rate is based on the amount of the allocation base at capacity.<br /><br />Click here for the <a href="http://homeworkbonanza.com/The%20management%20of%20Sharrar%20Corporation" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-size:180%;" >SOLUTION</span></a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4769767426054104543.post-11751017331362883622011-07-01T09:50:00.001-07:002011-07-01T09:50:56.427-07:00Comprehensive Problem 1 Kelly Consulting<span style="font-size:130%;"><span style="font-weight: bold; color: rgb(102, 0, 0);">ACCOUNTING</span></span><br /><br />Comprehensive Problem 1 Kelly Consulting<br />Comprehensive Problem 1 Kelly Pitney<br /><br /><span style="font-weight: bold; color: rgb(0, 0, 153);">VERSIONS:</span><br /><br />Accounting, <span style="color: rgb(204, 0, 0);font-size:180%;" ><span style="font-weight: bold;">23rd</span></span> Edition <span><a href="http://homeworkbonanza.com/Comprehensive%20Problem%201:%20Kelly%20Pitney%20began%20her%20consulting%20business,%20Kelly%20Consulting,%20on%20April%201,%202010" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-size:180%;" >SOLUTION</span></a></span><br /><span style="font-size:85%;">Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2010</span><br /><br /><br />Accounting, <span style="color: rgb(0, 102, 0);font-size:180%;" ><span style="font-weight: bold;">24th</span></span> Edition <span><a href="http://homeworkbonanza.com/Kelly%20Pitney%20began%20her%20consulting%20business,%20Kelly%20Consulting,%20on%20April%201,%202012" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-size:180%;" >SOLUTION</span></a></span><br /><span style="font-size:85%;">Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2012</span><br /><br /><br />For <span style="color: rgb(102, 0, 204);font-size:180%;" ><span style="font-weight: bold;">ACT101</span></span> and <span style="font-weight: bold; color: rgb(153, 102, 51);font-size:180%;" >ACT300</span> <span><a href="http://homeworkbonanza.com/ACT300%20Portfolio%20Project%20Kelly%20Consulting%20Practice%20Set" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-size:180%;" >SOLUTION</span></a></span><br /><span style="font-size:85%;">Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2008</span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4769767426054104543.post-83939072347522109482011-06-27T14:30:00.000-07:002011-06-27T14:31:05.935-07:00Selected balances from a company's financial statements are shown below. Calculate the following ratios for 2012<span style="color: rgb(102, 0, 204);font-size:130%;" ><span style="font-weight: bold;">ACCOUNTING</span></span><br /><br />Selected balances from a company's financial statements are shown below. Calculate the following ratios for 2012:<br /><br />(a) accounts receivable turnover<br />(b) inventory turnover<br />(c) days' sales uncollected<br />(d) days' sales in inventory<br />(e) profit margin.<br />(f) return on total assets.<br /><br />December 31 December 31<br />For the 2012 2011 Year 2012<br />Accounts receivable……………………. $ 27,000 $ 24,000<br />Merchandise inventory………………. 25,000 20,000<br />Total assets…………………………………. 296,000 244,000<br />Accounts payable………………………… 26,000 32,000<br />Salaries payable…………………………… 3,000 4,400<br />Sales (all on credit)………………………. $312,000<br />Cost of goods sold……………………….. 165,600<br />Salaries expenses………………………… 48,000<br />Other expenses…………………………… 75,000<br />Net income………………………………….. 24,000<br /><br />Click here for the <a href="http://homeworkbonanza.com/Accounting/Selected%20balances%20from%20a%20company-s%20financial%20statements%20are%20shown%20below.%20Calculate%20the%20following%20ratios%20for%202012" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-size:180%;" >SOLUTION</span></a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4769767426054104543.post-68841756473802892322011-05-16T07:13:00.000-07:002011-05-16T07:14:36.546-07:00Comprehensive Problem 1 The Accounting Cycle<span style="color: rgb(204, 0, 0);font-size:130%;" ><span style="font-weight: bold;">The General's Favorite Fishing Hole</span></span><br /><br />College Accounting<br />Heintz and Parry.<br />The General’s Favorite Fishing Hole<br /><br />Comprehensive Problem 1, <span style="font-weight: bold; color: rgb(102, 0, 0);">Period 1</span> The Accounting Cycle <a href="http://homeworkbonanza.com/Bob%20night%20opened%20The%20General%27s%20Favorite%20Fishing%20Hole" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-family:arial;font-size:180%;" >SOLUTION</span></a><br /><br />Comprehensive Problem 1, <span style="font-weight: bold; color: rgb(102, 0, 0);">Period 2</span> The Accounting Cycle <a href="http://homeworkbonanza.com/Bob%20Night%E2%80%99s%20fishing%20camp%20The%20General%E2%80%99s%20Favorite%20Fishing%20Hole%20is%20in%20the%20second%20month%20of%20operation" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-family:arial;font-size:180%;" >SOLUTION</span></a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4769767426054104543.post-88268683330209172582011-04-12T12:57:00.001-07:002011-04-12T12:57:48.311-07:00Earrings Unlimited: Case 9-30 Master Budget with Supporting Schedules<span style="color: rgb(102, 0, 0);font-size:180%;" ><span style="font-weight: bold;">ACCOUNTING</span></span><br /><br /><span style="font-weight: bold; color: rgb(0, 0, 153);">Case 9-30 Master Budget with Supporting Schedules</span> <a href="http://homeworkbonanza.com/Earrings%20Unlimited:%20Case%209-30%20Master%20Budget%20with%20Supporting%20Schedules" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-family:arial;font-size:180%;" >SOLUTION</span></a><br /><br /><span style="font-weight: bold; color: rgb(102, 0, 0);">Earrings Unlimited</span><br /><br />Required:<br />Prepare a master budget for the three-month period ending June 30. Include the following detailed budgets:<br />1. a. A sales budget, by month and in total.<br />b. A schedule of expected cash collections from sales, by month and in total.<br />c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total.<br />d. A schedule of expected cash disbursements for merchandise purchase, by month and in total.<br />2. A cash budget. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $50,000.<br />3. A budgeted income statement for the three-month period ending June 30. Use the contribution approach.<br />4. A budgeted balance sheet as of June 30.XX<br /><br />Click here for the <a href="http://homeworkbonanza.com/Earrings%20Unlimited:%20Case%209-30%20Master%20Budget%20with%20Supporting%20Schedules" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-family:arial;font-size:180%;" >SOLUTION</span></a><br /><span style="color: rgb(255, 255, 255);font-size:78%;" >Case 9-30 Master Budget with Supporting Schedules<br />Case 9-30 Master Budget with Supporting Schedules Earrings Unlimited<br />Case 9-30 Master Budget with Supporting Schedules Earrings Unlimited<br />Case 9-30 Master Budget with Supporting Schedules Earrings Unlimited<br />Case 9-30 Master Budget with Supporting Schedules Earrings Unlimited<br />Case 9-30 Master Budget with Supporting Schedules Earrings Unlimited<br />Case 9-30 Master Budget with Supporting Schedules Earrings Unlimited<br />Case 9-30 Master Budget with Supporting Schedules Earrings Unlimited<br />Case 9-30 Master Budget with Supporting Schedules Earrings Unlimited<br />Case 9-30 Master Budget with Supporting Schedules Earrings Unlimited<br />Case 9-30 Master Budget with Supporting Schedules Earrings Unlimited<br />Case 9-30 Master Budget with Supporting Schedules Earrings Unlimited<br />Case 9-30 Master Budget with Supporting Schedules Earrings Unlimited<br />Case 9-30 Master Budget with Supporting Schedules Earrings Unlimited</span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4769767426054104543.post-6249036079149110872011-04-12T12:51:00.001-07:002011-04-12T12:51:50.099-07:00SOLUTION: Case 9-30 Master Budget with Supporting Schedules<span style="color: rgb(102, 0, 0);font-size:180%;" ><span style="font-weight: bold;">ACCOUNTING</span></span><br /><br /><span style="font-weight: bold; color: rgb(0, 0, 153);">Case 9-30 Master Budget with Supporting Schedules</span> <a href="http://homeworkbonanza.com/Earrings%20Unlimited:%20Case%209-30%20Master%20Budget%20with%20Supporting%20Schedules" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-family:arial;font-size:180%;" >SOLUTION</span></a><br /><br /><span style="font-weight: bold; color: rgb(102, 0, 0);">Earrings Unlimited</span><br /><br />Required:<br />Prepare a master budget for the three-month period ending June 30. Include the following detailed budgets:<br />1. a. A sales budget, by month and in total.<br />b. A schedule of expected cash collections from sales, by month and in total.<br />c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total.<br />d. A schedule of expected cash disbursements for merchandise purchase, by month and in total.<br />2. A cash budget. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $50,000.<br />3. A budgeted income statement for the three-month period ending June 30. Use the contribution approach.<br />4. A budgeted balance sheet as of June 30.XX<br /><br />Click here for the <a href="http://homeworkbonanza.com/Earrings%20Unlimited:%20Case%209-30%20Master%20Budget%20with%20Supporting%20Schedules" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-family:arial;font-size:180%;" >SOLUTION</span></a><br /><span style="color: rgb(255, 255, 255);font-size:78%;" >Case 9-30 Master Budget with Supporting Schedules<br />Case 9-30 Master Budget with Supporting Schedules Earrings Unlimited<br />Case 9-30 Master Budget with Supporting Schedules Earrings Unlimited<br />Case 9-30 Master Budget with Supporting Schedules Earrings Unlimited<br />Case 9-30 Master Budget with Supporting Schedules Earrings Unlimited<br />Case 9-30 Master Budget with Supporting Schedules Earrings Unlimited<br />Case 9-30 Master Budget with Supporting Schedules Earrings Unlimited<br />Case 9-30 Master Budget with Supporting Schedules Earrings Unlimited<br />Case 9-30 Master Budget with Supporting Schedules Earrings Unlimited<br />Case 9-30 Master Budget with Supporting Schedules Earrings Unlimited<br />Case 9-30 Master Budget with Supporting Schedules Earrings Unlimited<br />Case 9-30 Master Budget with Supporting Schedules Earrings Unlimited<br />Case 9-30 Master Budget with Supporting Schedules Earrings Unlimited<br />Case 9-30 Master Budget with Supporting Schedules Earrings Unlimited</span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4769767426054104543.post-61808615916231121542010-08-12T04:02:00.000-07:002010-09-07T21:30:07.614-07:00BYP 13-4 BYP13-4 Decision Making Across The Organization Kemper Corporation<span style="font-size:130%;"><span style="font-weight: bold; color: rgb(153, 0, 0);">FIN ACCT 557 (ACC 557)</span></span><br /><br />Axia College of University of Phoenix (UoP)<br /><br /><span style="font-size:130%;"><span style="font-weight: bold; color: rgb(0, 102, 0);"><span style="color: rgb(102, 0, 0);">Accounting Principles</span><br />Financial Accounting</span></span><br />Weygandt, Kieso, and Kimmel, <span style="color: rgb(255, 255, 255);">5th Edition</span><br /><br /><span style="font-size:130%;"><span style="color: rgb(0, 0, 153); font-weight: bold;">Financial Accounting<br /><br />Decision Making Across The Organization</span></span><br /><br /><span style="font-size:130%;"><span style="font-weight: bold; color: rgb(0, 0, 153);">BYP 13-4</span></span> At the beginning of the question and answer portion of the annual stockholders' meeting of Kemper Corporation, stockholder Mike Kerwin asks, “Why did management sell the holdings in UMW Company at a loss when this company has been very profitable during the period its stock was held by Kemper?”<br /><br />Since president Tony Chavez has just concluded his speech on the recent success and bright future of Kemper, he is taken aback by this question and responds, “I remember we paid $1,300,000 for that stock some years ago, and I am sure we sold that stock at a much higher price. You must be mistaken.”<br /><br />Kerwin retorts, “Well, right here in footnote number 7 to the annual report it shows that 240,000 shares, a 30% interest in UMW, were sold on the last day of the year. Also, it states that UMW earned $520,000 this year and paid out $160,000 in cash dividends. Further, a summary statement indicates that in past years, while Kemper held UMW stock, UMW earned $1,240,000 and paid out $440,000 in dividends. Finally, the income statement for this year shows a loss on the sale of UMW stock of $180,000. So, I doubt that I am mistaken.”<br />Red-faced, president Chavez turns to you.<br /><br />Instructions<br />(a) What dollar amount did Kemper receive upon the sale of the UMW stock? Please explain<br />(b) Explain why both stockholder Kerwin and president Chavez are correct.<br /><br />Click here for the <a href="http://studentoffortune.com/question/466127/ANSWER-KEY-BYP-13-4-At-the-beginning-of-the-question-and-answer-portion-of-the-annual-stockholders-meeting-of-Kemper" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-family:arial;font-size:180%;" >SOLUTION</span></a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4769767426054104543.post-71201177496629583172010-08-12T03:42:00.000-07:002010-09-07T21:30:07.635-07:00BYP 8-5 BYP8-5 Communication Activity CPA firm of Croix, Marais, and Kale<span style="font-size:130%;"><span style="font-weight: bold; color: rgb(153, 0, 0);">FIN ACCT 557 (ACC 557)</span></span><br /><br />Axia College of University of Phoenix (UoP)<br /><br /><span style="font-size:130%;"><span style="font-weight: bold; color: rgb(0, 102, 0);"><span style="color: rgb(102, 0, 0);">Accounting Principles</span><br />Financial Accounting</span></span><br />Weygandt, Kieso, and Kimmel, <span style="color: rgb(255, 255, 255);">5th Edition</span><br /><br /><span style="font-size:130%;"><span style="color: rgb(0, 0, 153); font-weight: bold;">Financial Accounting</span></span><br /><br /><span style="font-weight: bold; color: rgb(0, 0, 153);">Communication Activity</span><br /><br /><span style="font-size:130%;"><span style="font-weight: bold; color: rgb(0, 0, 153);">BYP 8-5 </span></span> As a new auditor for the CPA firm of Croix, Marais, and Kale, you have been assigned to review the internal controls over mail cash receipts of Manhattan Company. Your review reveals the following: Checks are promptly endorsed "For Deposit Only," but no list of the checks is prepared by the person opening the mail. The mail is opened either by the cashier or by the employee who maintains the accounts receivable records. Mail receipts are deposited in the bank weekly by the cashier.<br />Instructions:<br />Write a letter to Jerry Mays, owner of the Manhattan Company, explaining the weaknesses in internal control and your recommendations for improving the system.<br /><br />Click here for the <a href="http://studentoffortune.com/question/466327/ANSWER-KEY-BYP-8-5-As-a-new-auditor-for-the-CPA-firm-of-Croix-Marais-and-Kale-you-have-been-assigned-to-review" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-family:arial;font-size:180%;" >SOLUTION</span></a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4769767426054104543.post-44809316075095566192010-08-12T03:38:00.000-07:002010-09-07T21:30:07.642-07:00BYP 9-6 BYP9-6 Ethics Case Ruiz Co<span style="font-weight: bold; color: rgb(0, 153, 0);">ACC 280 / XACC 280</span><br /><br />Axia College of University of Phoenix (UoP)<br /><br /><span style="color: rgb(0, 153, 0); font-weight: bold;">Principles of Accounting</span><br /><br />Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). <span style="color: rgb(102, 0, 204);">Financial Accounting</span> (6th ed.). Hoboken, NJ: Wiley.<br /><span style="font-weight: bold; color: rgb(204, 0, 0);font-size:130%;" ><br /></span><span style="font-size:130%;"><span style="color: rgb(204, 0, 0); font-weight: bold;">ACC 280 / XACC 280 Solution</span></span><br /><span style="font-weight: bold;font-size:78%;" ><span style="color: rgb(0, 153, 0);">Help in ACC 280</span><br /><span style="color: rgb(255, 102, 0);">Help in XACC 280</span></span><br /><span style="font-size:130%;"><span style="font-weight: bold; color: rgb(0, 0, 153);"><br />Ethics Case BYP 9-6</span></span><span style="font-size:100%;"> </span>The controller of Ruiz Co. believes that the yearly allowance for doubtful accounts for Ruiz. co. should be 2% of net credit sales. The presdident of Ruiz Co., nervous that the stockholders might expect the company to sustain its 10% growth rate, suggests that the controller increase the allowance for doubtful accounts to 4%. The president thinks that the lower net income, which refects a 6% growth rate, will be a more sustainable rate for Ruiz Co.<br /><br />Instructions:<br />a) Who are the stakeholders in this case?<br />b) Does the president's request pose an ethical dilemma for the controller?<br />c) Should the controller be concerned with Ruiz co.'s growth rate? Explain your answer.<br /><br />Click here for the <a href="http://studentoffortune.com/question/464882/ANSWER-KEY-BYP-9-6-The-controller-of-Ruiz-Co-believes-that-the-yearly-allowance-for-doubtful-accounts-for-Ruiz-Co" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-family:arial;font-size:180%;" >SOLUTION</span></a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4769767426054104543.post-70452564988981265192010-08-12T03:22:00.000-07:002010-09-07T21:30:07.647-07:00BYP 7-1 BYP7-1 Financial Reporting Problem Bluma Co<span style="font-weight: bold; color: rgb(0, 153, 0);">ACC 280 / XACC 280</span><br /><br />Axia College of University of Phoenix (UoP)<br /><br /><span style="color: rgb(0, 153, 0); font-weight: bold;">Principles of Accounting</span><br /><br />Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). <span style="color: rgb(102, 0, 204);">Financial Accounting</span> (6th ed.). Hoboken, NJ: Wiley.<br /><span style="font-weight: bold; color: rgb(204, 0, 0);font-size:130%;" ><br /></span><span style="font-size:130%;"><span style="color: rgb(204, 0, 0); font-weight: bold;">ACC 280 / XACC 280 Solution</span></span><br /><span style="font-weight: bold;font-size:78%;" ><span style="color: rgb(0, 153, 0);">Help in ACC 280</span><br /><span style="color: rgb(255, 102, 0);">Help in XACC 280</span></span><br /><span style="font-size:130%;"><span style="font-weight: bold; color: rgb(0, 0, 153);"><br />Financial Reporting Problem - Mini Case<br /><br />BYP 7-1</span></span><span style="font-size:100%;"> </span>Bluma Co. uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledger for Bluma are indicated in the working papers. Presented below are a series of transactions for Bluma Co. for the month of January.<br /><br /><span style="font-weight: bold; color: rgb(102, 0, 0);">AND SO ON</span><br /><br /><span style="font-size:130%;"><span style="font-weight: bold; color: rgb(204, 0, 0);">Hint: </span></span>Trial Balance Totals are <span style="font-weight: bold;">$202,900</span>, Adjusted Trial Balance Totals are <span style="font-weight: bold;">$203,075</span>, Net Income is <span style="font-weight: bold;">$20,755</span>, Total Assets are<span style="font-weight: bold;"> $143,505</span> and Post Closing Trial Balance Totals are <span style="font-weight: bold;">$145,130</span>.<br /><br />Click here for the <a href="http://studentoffortune.com/question/472565/ANSWER-KEY-BYP-7-1-Bluma-Co-uses-a-perpetual-inventory-system-and-both-an-accounts-receivable-and-an-accounts-payable" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-family:arial;font-size:180%;" >SOLUTION</span></a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4769767426054104543.post-48045561341315261572010-08-09T21:12:00.000-07:002010-09-07T21:30:07.651-07:00BYP 14-7 BYP14-7 BYP 14-7 BYP14-7 Tappit Corp. is a medium-sized wholesaler of automotive parts<span style="font-weight: bold; color: rgb(0, 153, 0);">ACC 280 / XACC 280</span><br /><br />Axia College of University of Phoenix (UoP)<br /><br /><span style="color: rgb(0, 153, 0); font-weight: bold;">Principles of Accounting</span><br /><br />Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). <span style="color: rgb(102, 0, 204);">Financial Accounting</span> (6th ed.). Hoboken, NJ: Wiley.<br /><span style="font-weight: bold; color: rgb(204, 0, 0);font-size:130%;" ><br /></span><span style="font-size:130%;"><span style="color: rgb(204, 0, 0); font-weight: bold;">ACC 280 / XACC 280 Solution</span></span><br /><span style="font-weight: bold;font-size:78%;" ><span style="color: rgb(0, 153, 0);">Help in ACC 280</span><br /><span style="color: rgb(255, 102, 0);">Help in XACC 280</span></span><br /><br />Ethics Case<br /><br /><span style="font-size:130%;"><span style="font-weight: bold; color: rgb(153, 0, 0);">BYP 14-7</span></span> Tappit Corp. is a medium-sized wholesaler of automotive parts. It has 10 stockholders who have been paid a total of $1 million in cash dividends for 8 consecutive years. The board’s policy requires that, for this dividend to be declared, net cash provided by operating activities as reported in Tappit’s current year’s statement of cash flows must exceed $1 million. President and CEO Willie Morton’s job is secure so long as he produces annual operating cash flows to support the usual dividend. At the end of the current year, controller Robert Jennings presents president Willie Morton with some disappointing news: The net cash provided by operating activities is calculated by the indirect method to be only $970,000. The president says to Robert, “We must get that amount above $1 million. Isn’t there some way to increase operating cash flow by another $30,000?” Robert answers, “These figures were prepared by my assistant. I’ll go back to my office and see what I can do.” The president replies, “I know you won’t let me down, Robert.”<br /><br />Upon close scrutiny of the statement of cash flows, Robert concludes that he can get the operating cash flows above $1 million by reclassifying a $60,000, 2-year note payable listed in the financing activities section as “Proceeds from bank loan—$60,000.” He will report the note instead as “Increase in payables—$60,000” and treat it as an adjustment of net income in the operating activities section. He returns to the president, saying, “You can tell the board to declare their usual dividend. Our net cash flow provided by operating activities is $1,030,000.”<br /><br />“Good man, Robert! I knew I could count on you,” exults the president.<br /><!--filtered--><!--filtered--><!--filtered--><br />Instructions<br /><!--filtered--><!--filtered-->(a) Who are the stakeholders in this situation?<br />(b) Was there anything unethical about the president’s actions? Was there anything unethical about the controller’s actions?<br /><!--filtered--><!--filtered--><!--filtered-->(c) Are the board members or anyone else likely to discover the misclassification?<br /><br />Click here for the <a href="http://studentoffortune.com/question/474367/ANSWER-KEY-BYP-14-7-BYP14-7-BYP-14-7-BYP14-7-Tappit-Corp-is-a-medium-sized-wholesaler-of-automotive-parts" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-family:arial;font-size:180%;" >SOLUTION</span></a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4769767426054104543.post-91266232232442415022010-08-09T21:07:00.000-07:002010-09-07T21:30:07.655-07:00BYP1-7 BYP 1-7 BYP1-7 BYP 1-7 Wayne Terrago Wayne Terrago, controller for Robbin Industries, was reviewing production cost reports for the year<span style="font-weight: bold; color: rgb(0, 153, 0);">ACC 280 / XACC 280</span><br /><br />Axia College of University of Phoenix (UoP)<br /><br /><span style="color: rgb(0, 153, 0); font-weight: bold;">Principles of Accounting</span><br /><br />Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). <span style="color: rgb(102, 0, 204);">Financial Accounting</span> (6th ed.). Hoboken, NJ: Wiley.<br /><span style="font-weight: bold; color: rgb(204, 0, 0);font-size:130%;" ><br /></span><span style="font-size:130%;"><span style="color: rgb(204, 0, 0); font-weight: bold;">ACC 280 / XACC 280 Solution</span></span><br /><span style="font-weight: bold;font-size:78%;" ><span style="color: rgb(0, 153, 0);">Help in ACC 280</span><br /><span style="color: rgb(255, 102, 0);">Help in XACC 280</span></span><br /><br />Ethics Case<br /><br /><span style="font-size:130%;"><span style="font-weight: bold; color: rgb(153, 0, 0);">BYP 1-7</span></span> Wayne Terrago, controller for Robbin Industries, was reviewing production cost reports for the year. One amount in these reports continued to bother him-advertising. During the year, the company had instituted an expensive advertising campaign to sell some of its slower-moving products. It was still too early to tell whether the advertising campaign was successful. There had been much internal debate as how to report advertising cost. The vice president of finance argued that advertising costs should be reported as a cost of production, just like direct materials and direct labor. He therefore recommended that this cost be identified as manufacturing overhead and reported as part of inventory costs until sold. Others disagreed. Terrago believed that this cost should be reported as an expense of the current period, based on the conservatism principle. Others argued that it should be reported as Prepaid Advertising and reported as a current asset.<br /><br />The president finally had to decide the issue. He argued that these costs should be reported as inventory. His arguments were practical ones. He noted that the company was experiencing financial difficulty and expensing this amount in the current period might jeopardize a planned bond offering. Also, by reporting the advertising costs as inventory rather than as prepaid advertising, less attention would be directed to it by the financial community.<br /><br />Instructions<br />(a) Who are the stakeholders in this situation?<br />(b) What are the ethical issues involved in this situation?<br />(c) What would you do if you were Wayne Terrago?<br /><br />Click here for the <a href="http://studentoffortune.com/question/474364/ANSWER-KEY-BYP1-7--BYP-1-7-Wayne-Terrago-controller-for-Robbin-Industries-was-reviewing-production-cost-reports" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-family:arial;font-size:180%;" >SOLUTION</span></a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4769767426054104543.post-22997276188986398822010-08-09T20:05:00.000-07:002010-09-07T21:30:07.663-07:00BYP3-6 BYP 3-6 Bluestem Company BYP3-6 BYP 3-6 Bluestem Company BYP3-6 BYP 3-6 Bluestem Company BYP3-6 BYP 3-6 Bluestem Company BYP3-6 BYP 3-6<span style="font-size:130%;"><span style="font-weight: bold; color: rgb(102, 0, 0);">ACCT 100 : Introduction to Financial Accounting </span></span><br />San Francisco State University (SFSU)<br /><br /><span style="color: rgb(0, 0, 153);font-size:180%;" ><span style="font-weight: bold;">Financial Accounting</span></span><br />Jerry J. Weygandt<br /><br />Ethics Case<br /><br /><span style="font-size:130%;"><span style="font-weight: bold; color: rgb(153, 0, 0);">BYP 3-6</span></span> Bluestem Company is a pesticide manufacturer. Its sales declined greatly this year due to the passage of legislation outlawing the sale of several of Bluestem’s chemical pesticides. In the coming year, Bluestem will have environmentally safe and competitive chemicals to replace these discontinued products. Sales in the next year are expected to greatly exceed any prior year’s. The decline in sales and profits appears to be a one-year aberration. But even so, the company president fears a large dip in the current year’s profits. He believes that such a dip could cause a significant drop in the market price of Bluestem’s stock and make the company a takeover target. To avoid this possibility, the company president calls in Cathi Bell, controller, to discuss this period’s year-end adjusting entries. He urges her to accrue every possible revenue and to defer as many expenses as possible. He says to Cathi, “We need the revenues this year, and next year can easily absorb expenses deferred from this year.We can’t let our stock price be hammered down!” Cathi didn’t get around to recording the adjusting entries until January 17, but she dated the entries December 31 as if they were recorded then. Cathi also made every effort to comply with the president’s request.<br /><br />Instructions<br />(a) Who are the stakeholders in this situation?<br />(b) What are the ethical considerations of (1) the president’s request and (2) Cathi’s dating the adjusting entries December 31?<br />(c) Can Cathi accrue revenues and defer expenses and still be ethical?<br /><br />Click here for the <a href="http://studentoffortune.com/question/438858/BYP-3-6-Bluestem-Company-is-a-pesticide-manufacturer-Its-sales-declined-greatly-this-year-due-to-the-passage" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-family:arial;font-size:180%;" >SOLUTION</span></a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4769767426054104543.post-1733742240186013532010-08-09T20:02:00.000-07:002010-09-07T21:30:07.685-07:00BYP9-6 BYP 9-6 Ruiz Co BYP9-6 BYP 9-6 Ruiz Co BYP9-6 BYP 9-6 Ruiz Co BYP9-6 BYP 9-6 Ruiz Co BYP9-6 BYP 9-6 Ruiz Co<span style="font-weight: bold; color: rgb(0, 153, 0);">ACC 280 / XACC 280</span><br /><br />Axia College of University of Phoenix (UoP)<br /><br /><span style="color: rgb(0, 153, 0); font-weight: bold;">Principles of Accounting</span><br /><br />Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). <span style="color: rgb(102, 0, 204);">Financial Accounting</span> (6th ed.). Hoboken, NJ: Wiley.<br /><span style="font-weight: bold; color: rgb(204, 0, 0);font-size:130%;" ><br /></span><span style="font-size:130%;"><span style="color: rgb(204, 0, 0); font-weight: bold;">ACC 280 / XACC 280 Solution</span></span><br /><span style="font-weight: bold;font-size:78%;" ><span style="color: rgb(0, 153, 0);">Help in ACC 280</span><br /><span style="color: rgb(255, 102, 0);">Help in XACC 280</span></span><br /><span style="font-size:130%;"><span style="font-weight: bold; color: rgb(0, 0, 153);"><br />Ethics Case BYP 9-6</span></span><span style="font-size:100%;"> </span>The controller of Ruiz Co. believes that the yearly allowance for doubtful accounts for Ruiz. co. should be 2% of net credit sales. The presdident of Ruiz Co., nervous that the stockholders might expect the company to sustain its 10% growth rate, suggests that the controller increase the allowance for doubtful accounts to 4%. The president thinks that the lower net income, which refects a 6% growth rate, will be a more sustainable rate for Ruiz Co.<br /><br />Instructions:<br />a) Who are the stakeholders in this case?<br />b) Does the president's request pose an ethical dilemma for the controller?<br />c) Should the controller be concerned with Ruiz co.'s growth rate? Explain your answer.<br /><br />Click here for the <a href="http://studentoffortune.com/question/464882/ANSWER-KEY-BYP-9-6-The-controller-of-Ruiz-Co-believes-that-the-yearly-allowance-for-doubtful-accounts-for-Ruiz-Co" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-family:arial;font-size:180%;" >SOLUTION</span></a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4769767426054104543.post-59648016783535305902010-07-22T01:11:00.000-07:002010-09-08T02:08:20.343-07:00The Gilster Company: COMPREHENSIVE PROBLEM 5: The Gilster Company The Gilster Company The Gilster Company<span style="color: rgb(102, 0, 0); font-weight: bold;">Financial and Managerial Accounting</span><br />Williams Haka Bettner<br /><br /><span style="color: rgb(0, 0, 153); font-weight: bold;">COMPREHENSIVE PROBLEM 5 (CP5):</span><span style="font-weight: bold;"> <span style="color: rgb(204, 0, 0);">The Gilster Company</span></span><br /><br />The Gilster Company, a machine tooling firm, has several plants. One plant located in St. Falls, Minnesota, uses a job order costing system for its batch production processes.<br /><br /><span style="font-weight: bold; color: rgb(102, 0, 0);">AND SO ON</span><br /><br />Click here for the <a href="http://studentoffortune.com/question/456238/The-Gilster-Company-COMPREHENSIVE-PROBLEM-5-The-Gilster-Company-The-Gilster-Company-The-Gilster-Company-" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-family:arial;font-size:180%;" >SOLUTION</span></a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4769767426054104543.post-40717301873573789432010-07-22T00:38:00.000-07:002010-09-08T02:08:20.361-07:00The Home Depot, Inc: COMPREHENSIVE PROBLEM 4 : The Home Depot, Inc The Home Depot, Inc The Home Depot, Inc The Home Depot, Inc The Home Depot, Inc<span style="color: rgb(102, 0, 0); font-weight: bold;">Financial and Managerial Accounting</span><br />Williams Haka Bettner<br /><br /><span style="color: rgb(0, 0, 153); font-weight: bold;">COMPREHENSIVE PROBLEM 4 (CP4):</span><span style="font-weight: bold;"> <span style="color: rgb(204, 0, 0);">The Home Depot, Inc</span></span><br /><br />Click here for the<span style="font-weight: bold;"> </span><a style="font-weight: bold;" href="http://studentoffortune.com/question/456223/The-Home-Depot-Inc-COMPREHENSIVE-PROBLEM-4--The-Home-Depot-Inc-The-Home-Depot-Inc-The-Home-Depot-Inc-" target="_blank"><span style="color: rgb(0, 0, 153);font-family:arial;font-size:180%;" >SOLUTION</span></a><br /><br /><span style="font-weight: bold;"></span>Instructions: Answer each of the following questions and briefly explain where in the statements, notes, or other sections of the annual report you located the information used in your answer.<br /><br />a. How many years are covered in each of the primary comparative financial statements? Were all of these statements audited? Name the auditors. What were the auditors' conclusions concerning these statements?<br />b. Home Depot combines its statement of retained earnings with another financial statement. Where are details about changes in the amount of retained earnings fund?<br />c. Over the three years presented, have the company's annual net cash flows been positive or negative from 1) operating activities, 2) investing activities, and 3) financing activities? Has the company's cash balance increased or decreased during each of these three years?<br /><br />Part II<br /><br />Home Depot wants to make credit purchases from your company, with payment due in 60 days assuming you are a credit manager of a medium sized supplier.<br /><br />a. read the first note to the financial statements, "Summary of Significant Accounting Policies". Compute the following for the fiscal years ending feb. 3, 2008, and jan. 28, 2007 (round percentages to the nearest tenth of 1 percent, and other computations to one decimal place):<br />1. Current Ratio<br />2. Quick Ratio<br />3. Amount of Working Capital<br />4. Percentage change in working capital from the prior year<br />5. Percentage change in cash and cash equivalents from the prior year.<br /><br />B. Based upon your analysis in part a, does teh company's liquidity appear to have increased or decreased during the most recent fiscal year? Explain.<br /><br />C. Other than the ability of Home Depot to pay for it's purchases, do you see any major considerations that should enter into your company's decision? Explain.<br /><br />D. Your company assigns each customer one of the four credit ratings listed below. Assign a credit rating to Home Depot and write a memorandum explaining your decision.<br /><br />Possible Credit Ratings:<br /><br />A- Outstanding<br />B- Good<br />C- Marginal<br />D- Unacceptable<br /><br />Part III<br />a. compute the following for the fiscal years ending Feb. 3, 2008 and jan. 28, 2007 (round percentages to the nearest tenth):<br /><br />1. percentage change in net sales (relative to the prior year)<br />2. Percentage change in net earnings<br />3. Gross profit rate.<br />4. Net income as a percentage of sales.<br />5. Return on average total assets.<br />6. Return on average total equity.<br /><br />B. Write a statement that describes your conclusion(s) concerning rends in Home Depot's profitability during the period covered in your analysis in part a above2009, following these guidelines:<br /><br /><span style="font-weight: bold; color: rgb(102, 0, 0);">AND SO ON</span><br /><br />Click here for the <a href="http://studentoffortune.com/question/456223/The-Home-Depot-Inc-COMPREHENSIVE-PROBLEM-4--The-Home-Depot-Inc-The-Home-Depot-Inc-The-Home-Depot-Inc-" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-family:arial;font-size:180%;" >SOLUTION</span></a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4769767426054104543.post-27111418174233654252010-07-22T00:08:00.000-07:002010-09-08T02:08:20.367-07:00Guitar Universe, Inc: COMPREHENSIVE PROBLEM 2: Guitar Universe, Inc<span style="font-weight: bold; color: rgb(102, 0, 0);">Financial and Managerial Accounting</span><br />Williams Haka Bettner<br /><br /><span style="color: rgb(0, 0, 153); font-weight: bold;">COMPREHENSIVE PROBLEM 2 (CP2):</span><span style="font-weight: bold;"> <span style="color: rgb(204, 0, 0);">Guitar Universe, Inc</span></span><br /><br />Guitar Universe, Inc., is a popular source of musical instruments for professional and amateur musicians. The company's accountants make necessary adjusting entries monthly, and they make all closing entries annually. Guitar Universe is growing rapidly and prides itself on having no long-term liabilities.<br /><br />The company has provided the following trial balance dated December 31, 2009:<br /><br /><span style="font-weight: bold; color: rgb(102, 0, 0);">AND SO ON</span><br /><br />Click here for the <a href="http://studentoffortune.com/question/456172/Guitar-Universe-Inc--COMPREHENSIVE-PROBLEM-2-Guitar-Universe-Inc" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-family:arial;font-size:180%;" >SOLUTION</span></a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4769767426054104543.post-74485484121360888502010-07-22T00:07:00.000-07:002010-09-08T02:08:20.418-07:00McMinn Retail, Inc: COMPREHENSIVE PROBLEM 3: McMinn Retail, Inc<span style="font-weight: bold; color: rgb(102, 0, 0);">Financial and Managerial Accounting</span><br />Williams Haka Bettner<br /><br /><span style="color: rgb(0, 0, 153); font-weight: bold;">COMPREHENSIVE PROBLEM 3 (CP3):</span><span style="font-weight: bold;"> <span style="color: rgb(204, 0, 0);">McMinn Retail, Inc</span></span><br /><br />McMinn Retail, Inc., is a retailer that has engaged you to assist in the preparation of its financial statements at December 31, 2009. Following are the correct adjusted account balances, in alphabetical order, as of that date. Each balance is the “normal” balance for that account. (Hint: The “normal” balance is the same as the debit or credit side that increases the account.)<br /><br />Instructions<br /><br />1. Prepare an income statement for the year ended December 31, 2009, which includes amounts for gross profit, income before income taxes, and net income. List expenses (other than cost of goods sold and income tax expense) in order, from the largest to the smallest dollar balance. You may ignore earnings per share.<br />2. Prepare a statement of retained earnings for the year ending December 31, 2009.<br />3. Prepare a statement of financial position (balance sheet) as of December 31, 2009, following these guidelines:<br /><br /><span style="font-weight: bold; color: rgb(102, 0, 0);">AND SO ON</span><br /><br />Click here for the <a href="http://studentoffortune.com/question/456173/McMinn-Retail-Inc-COMPREHENSIVE-PROBLEM-3-McMinn-Retail-Inc" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-family:arial;font-size:180%;" >SOLUTION</span></a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4769767426054104543.post-48525395996185393212010-07-21T23:59:00.000-07:002010-09-08T02:08:20.420-07:00McMinn Retail, Inc McMinn Retail, Inc McMinn Retail, Inc McMinn Retail, Inc McMinn Retail, Inc<span style="font-weight: bold; color: rgb(102, 0, 0);">Financial and Managerial Accounting</span><br />Williams Haka Bettner<br /><br /><span style="color: rgb(0, 0, 153); font-weight: bold;">COMPREHENSIVE PROBLEM 3 (CP3):</span><span style="font-weight: bold;"> <span style="color: rgb(204, 0, 0);">McMinn Retail, Inc</span></span><br /><br />McMinn Retail, Inc., is a retailer that has engaged you to assist in the preparation of its financial statements at December 31, 2009. Following are the correct adjusted account balances, in alphabetical order, as of that date. Each balance is the “normal” balance for that account. (Hint: The “normal” balance is the same as the debit or credit side that increases the account.)<br /><br />Instructions<br /><br />1. Prepare an income statement for the year ended December 31, 2009, which includes amounts for gross profit, income before income taxes, and net income. List expenses (other than cost of goods sold and income tax expense) in order, from the largest to the smallest dollar balance. You may ignore earnings per share.<br />2. Prepare a statement of retained earnings for the year ending December 31, 2009.<br />3. Prepare a statement of financial position (balance sheet) as of December 31, 2009, following these guidelines:<br /><br /><span style="font-weight: bold; color: rgb(102, 0, 0);">AND SO ON</span><br /><br />Click here for the <a href="http://studentoffortune.com/question/456173/McMinn-Retail-Inc-COMPREHENSIVE-PROBLEM-3-McMinn-Retail-Inc" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-family:arial;font-size:180%;" >SOLUTION</span></a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4769767426054104543.post-37707302363847233322010-07-18T17:44:00.000-07:002010-09-15T07:31:24.135-07:00Advanced Accounting: Chapter 3 E3-2 General Questions<span style="color: rgb(255, 102, 0);font-size:130%;" ><span style="font-weight: bold;">BA 459</span></span><br /><br /><span style="font-size:130%;"><span style="font-weight: bold;"><span style="color: rgb(0, 0, 153);">Advanced Accounting</span>: <span style="color: rgb(153, 0, 0);">Beams, Clement, Anthony, Lowensohn</span></span></span><br />Floyd A. Beams<br />Robin P. Clement<br />Joseph H. Anthony<br />Suzanne Lowensohn<br /><span style="color: rgb(255, 255, 255);">9th Edition 10th Edition</span><br /><span style="font-weight: bold; color: rgb(0, 102, 0);">Chapter 3</span><br /><br /><span style="color: rgb(153, 0, 0); font-weight: bold;">Exercise 3-2 (E3-2)</span><br />General problems<br />1. Under FASB Statement No. 94, “Consolidation of All Majority-Owned Subsidiaries,” a parent company should exclude a subsidiary from consolidation if:<br /><br />2. The FASB’s primary motivation for issuing FASB Statement No. 94, “Consolidation of All Majority-Owned Subsidiaries,” was to:<br /><br />3. Parent-company and consolidated financial statement amounts would not be the same for:<br /><br />4. Noncontrolling interest, as it appears in a consolidated balance sheet, refers to:<br /><br />5. Pat Corporation acquired an 80% interest in Sal Corporation on January 1, 2007, and issued consolidated financial statements at and for the year ended December 31, 2007. Pat and Sal had issued separate-company financial statements in 2006.<br /><br />6. The noncontrolling interest expense that appears in the consolidated income statement is computed as follows:<br /><br />7. The retained earnings that appear on the consolidated balance sheet of a parent company and its 60%-owned subsidiary are:<br /><br />Click here for the <a href="http://studentoffortune.com/question/454174/Advanced-Accounting-Chapter-3-E3-2-General-Questions" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-family:arial;font-size:180%;" >SOLUTION</span></a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4769767426054104543.post-66645632010733185042010-07-18T17:13:00.000-07:002010-09-15T07:31:24.383-07:00Advanced Accounting: Chapter 3 E3-1 General Questions<span style="color: rgb(255, 102, 0);font-size:130%;" ><span style="font-weight: bold;">BA 459</span></span><br /><br /><span style="font-size:130%;"><span style="font-weight: bold;"><span style="color: rgb(0, 0, 153);">Advanced Accounting</span>: <span style="color: rgb(153, 0, 0);">Beams, Clement, Anthony, Lowensohn</span></span></span><br />Floyd A. Beams<br />Robin P. Clement<br />Joseph H. Anthony<br />Suzanne Lowensohn<br /><span style="color: rgb(255, 255, 255);">9th Edition 10th Edition</span><br /><span style="font-weight: bold; color: rgb(0, 102, 0);">Chapter 3</span><br /><br /><span style="color: rgb(153, 0, 0); font-weight: bold;">Exercise 3-1 (E3-1)</span><br />General problems<br />1. A 75%-owned subsidiary should not be consolidated under the provisions of FASB Statement No. 94, “Consolidation of All Majority-Owned Subsidiaries,” when:<br /><br />2. Under the provisions of FASB Statement No. 94, an 80% owned subsidiary that cannot be consolidated must be accounted for:<br /><br />3. Consolidated statements for Porter Corporation and its 60%-owned investee, Spinelli Company, will not be prepared under the provisions of FASB Statement No. 94 if:<br /><br />4. Armor Industries owns 7,000,000 shares of Babbitt Corporation’s outstanding common stock (a 70% interest). The remaining 3,000,000 outstanding common shares of Babbitt are held by Ottman Insurance Company. On Armor Industries’ consolidated financial statements, Ottman Insurance Company is considered:<br /><br />5. Pella Corporation owns a 60% interest in Sanico Company and an 80% interest in Talbert Company. Pella consolidates its investment in Sanico, but Talbert, which is currently under protection of the bankruptcy court, is not consolidated, and Pella accounts for this investment by the equity method. Which statement is correct?<br /><br />6. On January 1, 2006, Paxton Company purchased 75% of the outstanding shares of Salem Company at a cost exceeding the book value and fair value of Salem’s net assets. Using the following notations, describe the amount at which the plant assets will appear in a consolidated balance sheet of Paxton Company and Subsidiary prepared immediately after the acquisition:<br />Pbv = book value of Paxton’s plant assets<br />Pfv = fair value of Paxton’s plant assets<br />Sbv = book value of Salem’s plant assets<br />Sfv = fair value of Salem’s plant assets<br /><br />Click here for the <a href="http://studentoffortune.com/question/454159/Advanced-Accounting-Chapter-3-E3-1-General-Questions" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-family:arial;font-size:180%;" >SOLUTION</span></a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4769767426054104543.post-7280877153435509732010-07-18T17:01:00.000-07:002010-09-15T07:31:24.392-07:00Advanced Accounting: Chapter 2 E2-7 General Questions<span style="color: rgb(255, 102, 0);font-size:130%;" ><span style="font-weight: bold;">BA 459</span></span><br /><br /><span style="font-size:130%;"><span style="font-weight: bold;"><span style="color: rgb(0, 0, 153);">Advanced Accounting</span>: <span style="color: rgb(153, 0, 0);">Beams, Clement, Anthony, Lowensohn</span></span></span><br />Floyd A. Beams<br />Robin P. Clement<br />Joseph H. Anthony<br />Suzanne Lowensohn<br /><span style="color: rgb(255, 255, 255);">9th Edition 10th Edition</span><br /><span style="font-weight: bold; color: rgb(0, 102, 0);">Chapter 2</span><br /><br /><span style="color: rgb(153, 0, 0); font-weight: bold;">Exercise 2-7 (E2-7)</span><br />General problems<br />1. On January 3, 2006, Harrison Company purchases a 15% interest in Bennett Corporation’s common stock for $50,000 cash. Harrison accounts for the investment using the cost method. Bennett’s net income for 2006 is $20,000, but it declares no dividends. In 2007, Bennett’s net income is $80,000, and it declares dividends of $120,000. What is the correct balance of Harrison’s Investment in Bennett account at December 31, 2007?<br /><br />2. Screwsbury Corporation’s stockholders’ equity at December 31, 2006, follows (in thousands):<br />Capital stock, $100 par $3,000<br />Additional paid-in capital 500<br />Retained earnings 500<br />Total stockholders’ equity $4,000<br />On January 3, 2007, Screwsbury sells 10,000 shares of previously unissued $100 par common stock to Pannell Corporation for $1,400,000. On this date the recorded book values of Screwsbury’s assets and liabilities equal their fair values. Goodwill from Pannell’s investment in Screwsbury at the date of purchase is:<br /><br />3. On January 1, Leighton Company paid $300,000 for a 20% interest in Monroe Corporation’s voting common stock, at which time Monroe’s stockholders’ equity consisted of $600,000 capital stock and $400,000 retained earnings. Leighton was not able to exercise any influence over the operations of Monroe and accounted for its investment in Monroe using the cost method. During the year, Monroe had net income of $200,000 and paid dividends of $150,000. The balance of Leighton’s Investment in Monroe account at December 31 is:<br /><br />4. Jollytime Corporation owns a 40% interest in Krazy Products acquired several years ago at book value. Krazy Products’ income statement contains the following information (in thousands):<br />Income before extraordinary item $200<br />Extraordinary loss 50<br />Net income $150<br />Jollytime should report income from Krazy Products in its income from continuing operations at:<br /><br />Click here for the <a href="http://studentoffortune.com/question/454155/Advanced-Accounting-Chapter-2-E2-7-General-Questions" target="_blank"><span style="font-weight: bold; color: rgb(0, 0, 153);font-family:arial;font-size:180%;" >SOLUTION</span></a>Unknownnoreply@blogger.com0