InfoACCT 252, HAMILTONSemester ProjectM70The trial balance for Camp, Inc. on June 30, 2012 is given belowCamp, Inc.Trial BalanceJune 30, 2012AccountDebitCreditCash15,000Accounts Receivable9,500Allowance for Doubtful Accounts1,500Prepaid Rent1,500Interest Receivable510Inventory10,000Note Receivable (due before June 2013)12,000Land10,000Plant, Property & Equipment150,000Accumulated Depreciation55,000Goodwill12,000Note Receivable (due 2014 and after)36,000Accounts Payable5,800Notes Payable (due before June 2013)5,000Interest Payable1,200Bonds Payable (Long-Term)10,000Discount on Bonds Payable1,000Notes Payable (due 2014 and after)30,000Common Stock, $10 par value, 800 shares issued and outstanding80,000Paid in Capital in Excess of Par Value20,000Retained Earnings49,010257,510257,510STEP 1: Record July transactions:1-JulTakes out a loan for $10,000 to purchase equipment for $12,000 (paid $2,000 in cash). The terms of the loan are 12-month, 8% interest. 1st payment is due August 1.1-JulRecord collection of note receivable of $12,000. Original note was issued January 1 as a 7-month, 8.5% interest note. Interest has been accrued monthly.1-JulPurchased inventory of $2500 on account2-JulSells merchandise for cash of $4500. The cost of inventory was $12003-JulDeclared a cash dividend of $0.75/share cash dividend9-JulThe president of the company authorizes a write-off of $250 owed by Down the Drain LLC. Camp, Inc uses the allowance method of accounting for bad debts.9-JulPaid salaries of $3,00011-JulSold equipment for $15,000. Received $10,000 in cash and issued a receivable for $5000. The terms of the note were 6 months, 10% interest. The equipment had originally been purchased for $25,000 three years ago. Accumulated depreciation of $15,000 related to the equipment has been recorded.15-JulSells merchandise for $5,000, terms 2/10, n/30. The cost of inventory was $100017-JulPaid for liability insurance premiums for June 2012 of $30023-Jul$250 worth of merchandise sold on July 15 is returned. The original cost of inventory was $100.27-JulMade payment of $800 to accounts payable28-JulPaid cash for additional land of $1600028-JulSells merchandise for cash of $3600. The cost of inventory was $80029-JulReceives balance due for merchandise sold on July 1530-JulPurchased inventory of $500 on account31-JulPaid cash dividend declared on July 331-JulPaid one year flood insurance of $360031-JulPays in full the outstanding payable for inventory purchased on July 131-JulReceived interest from checking account of $10031-JulPaid bank fees of $30Step 2: The following adjusting entries need to be recorded at the end of the month1Calculate & record monthly depreciation on following fixed assets using straight line depreciationBuilding - Depreciable Cost $75,000; Salvage Value = $3,000; Useful Life = 20 YearsVehicles - Depreciable Cost $30,000; Salvage Value = 0; Life = 5 yearsEquipment - Depreciable Cost $10,000; Salvage Value = $400; annual rate of depreciat.
InfoACCT 252, HAMILTONSemester ProjectM70The trial balance for Cam.docx
1. InfoACCT 252, HAMILTONSemester ProjectM70The trial
balance for Camp, Inc. on June 30, 2012 is given belowCamp,
Inc.Trial BalanceJune 30,
2012AccountDebitCreditCash15,000Accounts
Receivable9,500Allowance for Doubtful Accounts1,500Prepaid
Rent1,500Interest Receivable510Inventory10,000Note
Receivable (due before June 2013)12,000Land10,000Plant,
Property & Equipment150,000Accumulated
Depreciation55,000Goodwill12,000Note Receivable (due 2014
and after)36,000Accounts Payable5,800Notes Payable (due
before June 2013)5,000Interest Payable1,200Bonds Payable
(Long-Term)10,000Discount on Bonds Payable1,000Notes
Payable (due 2014 and after)30,000Common Stock, $10 par
value, 800 shares issued and outstanding80,000Paid in Capital
in Excess of Par Value20,000Retained
Earnings49,010257,510257,510STEP 1: Record July
transactions:1-JulTakes out a loan for $10,000 to purchase
equipment for $12,000 (paid $2,000 in cash). The terms of the
loan are 12-month, 8% interest. 1st payment is due August 1.1-
JulRecord collection of note receivable of $12,000. Original
note was issued January 1 as a 7-month, 8.5% interest note.
Interest has been accrued monthly.1-JulPurchased inventory of
$2500 on account2-JulSells merchandise for cash of $4500. The
cost of inventory was $12003-JulDeclared a cash dividend of
$0.75/share cash dividend9-JulThe president of the company
authorizes a write-off of $250 owed by Down the Drain LLC.
Camp, Inc uses the allowance method of accounting for bad
debts.9-JulPaid salaries of $3,00011-JulSold equipment for
$15,000. Received $10,000 in cash and issued a receivable for
$5000. The terms of the note were 6 months, 10% interest. The
equipment had originally been purchased for $25,000 three
years ago. Accumulated depreciation of $15,000 related to the
equipment has been recorded.15-JulSells merchandise for
$5,000, terms 2/10, n/30. The cost of inventory was $100017-
2. JulPaid for liability insurance premiums for June 2012 of
$30023-Jul$250 worth of merchandise sold on July 15 is
returned. The original cost of inventory was $100.27-JulMade
payment of $800 to accounts payable28-JulPaid cash for
additional land of $1600028-JulSells merchandise for cash of
$3600. The cost of inventory was $80029-JulReceives balance
due for merchandise sold on July 1530-JulPurchased inventory
of $500 on account31-JulPaid cash dividend declared on July
331-JulPaid one year flood insurance of $360031-JulPays in full
the outstanding payable for inventory purchased on July 131-
JulReceived interest from checking account of $10031-JulPaid
bank fees of $30Step 2: The following adjusting entries need to
be recorded at the end of the month1Calculate & record monthly
depreciation on following fixed assets using straight line
depreciationBuilding - Depreciable Cost $75,000; Salvage
Value = $3,000; Useful Life = 20 YearsVehicles - Depreciable
Cost $30,000; Salvage Value = 0; Life = 5 yearsEquipment -
Depreciable Cost $10,000; Salvage Value = $400; annual rate of
depreciation 25%2Accrued interest on long-term note receivable
is $5003On January 1, $9,000 rent for equipment was prepaid
for 6 months. Record the adjustment, if any, necessary for
June4It is estimated that $1000 of accounts receivable will be
uncollectible5Salaries incurred by the month end but not yet
paid is $23006Compute and record the accrued interest on note
payable taken out on July 1.7The president of the company
thinks Goodwill is understated and wants to write it up to
$20,000Step 3: Complet T-Accounts. This will NOT be graded,
but will prove to be extremely beneficial to you in completing
the rest of the assignment.Step 4: Prepare a Trial Balance after
all JE's and AJE's have been postedStep 5: Prepare a balance
sheet, income statement, and statement of stockholders equity
for July
STEP 1 JEDateAccountDRCR1-
JulEquipment12,000Cash2,000Notes Payable10,000(purchased
equipment for cash and 12-month, 8% note payable)1-
JulCash12,510Notes Recievable12,000Interest Revenue5101-
3. JulInventory2,500Accounts Payable2,5002-JulCash4,500Sales
Revenue4,500Cost of Goods Sold1,200Inventory1,2003-JulCash
Dividends600Dividends Payable600(record declaration of cash
dividend)9-JulAllowance for Doubtful Accounts250Accounts
Recievable- Down the Drain LLC2509-JulSalaries
Expense3,000Cash3,00011-JulCash10,000Notes
Recievable5,000Accumlated Depreciation-
Equpiment15,000Equipment25,000Gain on Disposal of Plant
Assets5,00015-JulAccounts Recievable5,000Sales
Revenue5,000(On Terms of 2/10, n/30)Cost of Goods
sold1,000Inventory1,00017-JulInsurance
Expense300Cash300(Paid insurance premium)23-JulSales
Returns and Allowances250Accounts
Recievable250Inventory100Cost of goods sold10027-
JulAccounts Payable800Cash80028-
JulLand16,000Cash16,00028-JulCash3,600Sales
Revenue3,600Cost if Goods sold800Inventory80029-
JulCash4,750Accounts Payable4,750(Collection of balance due
from sale on July-15)30-JulInventory500Accounts
Payable500(purchase of inventory)31-JulDividends
Payable600Cash600(Payment of dividend)31-JulPrepaid
Insurance3,600Cash3,600(paid 1-year flood insuance)31-
JulAccount Payable10,067Cash10,067(paid accounts payable
July-1 in full with 1month interest)31-JulInterest
Recievable100Accounts Payable100(intrest received from
Checking Account)31-JulCash30Service Revenue30(Record the
bank fees)
Step 2 AJEDateAccountDRCR31-JulDepreciation
Expense300Accumulated Depreciation-Building300(to record
monthly depreciation)31-JulDepreciation
Expense500Accumulated Depreciation-Vehicles500(monthly
depreciation)31-JulDepreciation Expense200Accumulated
Depreciation-Equipment200(monthly depreciation)31-JulIntrest
Receviable500Interest Revenue500(record of accured intrest of
long-term notes recievable)31-JulBad Debits
Expense1,000Allowance for Doubtful Accounts1,000(to record
4. the estimated accounts recievable uncollected)31-JulSalary
Expense2,300Salaries Payable2,300(to record Accured
Salaries)31-JulInterest Expense67Intrest Payable67(to record
monthly intrest on note payable)31-JulGood will cannot be
changed unless there is an exchange transaction that involves
the purchase of an entire business. Goodwill is the excess of
cost over the fair value of the net assets aquired.
Step 3 T-AccountsThis is NOT required, but is recommended
and will be helpful to complete the assignment.I have started a
couple of accounts, you can add accounts as you feel is
necessaryCashAccounts RecievableAllowance for Doubtful
AccountsLandSalary expenseAccounts PayableSales Returns &
Allowances12,5102,0002502501,00016,0003000800250025010,
0003,0005,000250230010,0675004,500300Debit 16,000Debit
5300100+47503,600800debit 3,017debit
2504,75016,00030600EquipmentInsurance expenseAccumulated
DepreciationPrepaid
Insurance3,60012,00025,00030015,000300360010,067debit
4,500credit 750500credit 977200Intrest RevenueGain on
Disposal of AssetsCredit 13,000debit 300debit 14,000Debit
36005105000Interest Recievable500Notes RecievableNotes
PayableDepreciation ExpenseBad Debits ExpenseService
Expense500credit 1010Credit
500050001200010,000300100030100500debit 600credit
7,000credit 10,000200debit 1000Debit 30Sales RevenueCash
DividendsInventorydebit 1000450060025001200Cost of Goods
SoldDividends PayableSalary PayableInterest ExpenseInterest
Payable500010010001200100600600230067673600Debit
6005008001000Credit 13,100Debit 100800Debit 29000Credit
2300debit 67credit 67
Step 4 TBTrial BalanceDr.Cr.Cash$977Accounts
Recievable4,500Bad Debits Expense1,000Interest
Recievable600Inventory100Notes Recievable7000Prepaid
Insurance3,600Land16,000Equipment13,000Accumulated
Depreciation-Equipment, building, vehicles14,000Accounts
Payable3,017Notes Payable10,000Interest Payable67Salaries
5. Payable-Accrued2,300Salaries Expense5,300Sales Returns &
Allowances250Retained Earnings0Allowance for Doubtful
Accounts750Interest Revenue1010Sales Revenue13,100Gain on
Disposal of Asset5,000Cost of Goods Sold2,900Insurance
Expense300Depreciation Expense1,000Service Expense30Cash
Dividends600Interest Expense67Dividends053,23453,234
Step 5 Balance Sheet
Step 5 Income Statement
Step 5 Statement of SE
The Case For, or Against, New Orleans
Sometimes one’s choices may involve catastrophic decisions
and bear great risk and yet there can be no clear answer. For
example, if a person gets a divorce, shutters a plant, sells a
losing investment, or closes their business, will he or she be
better off? The following case incorporates nearly all of the
material you have covered this far and presents an example of
one such choice where nearly all of the alternatives have a
significant downside risk.
Review the following information from the article “A Cost-
Benefit Analysis of the New Orleans Flood Protection System”
by Stéphane Hallegatte (2005):
· Hallegatte, an environmentalist, assigns a probability (p) of a
Katrina-like hurricane of 1/130 in his cost-benefit analysis for
flood protection. However, the levees that protect New Orleans
also put other regions at greater risk. You may assume the
frequency of other floods is greater than Katrina-like events
(Vastag & Rein, 2011).
· The new levees that were built in response to Katrina cost
approximately fourteen billion dollars (in 2010). This is in
addition to the direct costs of Katrina (eighty-one billion dollars
in 2005).
· 50 percent of New Orleans is at or below sea level.
· A 100-year event means that there is a 63 percent chance that
such an event will occur within a 100-year period.
· The following are the interested (anchored and/or biased)
6. constituencies:
· Residents of New Orleans—both those that can move and
those who cannot move
· Residents of the surrounding floodplains at risk from New
Orleans levees
· The Mayor of New Orleans
· The federal government—specifically taxpayers and the
Federal Emergency Management Agency (FEMA)
Assume that the availability heuristics makes people more risk
averse (populations drop, at least in the short term). Consider
how this would affect the local economy.
You are an analyst at FEMA and are in charge of developing a
recommendation for both the state and the local governments on
whether or not to redevelop New Orleans.
Write a report with your recommendation. Address the
following in your report:
Part A
· Analyze the economics of New Orleans in light of the above
parameters and develop your own Cost-Benefit Analysis (CBA)
for rebuilding.
· Evaluate the value of the CBA for each constituency and
integrate these estimates into a scenario model and/or decision
tree. Analyze the results.
· Clearly each of these constituencies may both overlap and be
prey to a variety of group dynamics internally. For one of these
options, discuss the decision pitfalls to which they may be
susceptible and make a recommendation on how to alleviate
these pressures.
· Starting with your CBA, estimate the relevant expected utility
for the interested constituencies.
Note: You need not have absolute amounts but your relevant
utilities should be proportional to one another. Hint: If you
assume that your total CBA for New Orleans is fixed for each
constituency (do not forget the overlaps), then each
constituency will have a piece of the utility pie.
Part B
7. · Make a case for or against rebuilding the city of New Orleans.
This should be an executive summary; be concise and brief.
Include exhibits.
· Whether you are for or against, discuss how social heuristics
could be used to your advantage, both ethically and unethically,
in making your case. You may choose to fill the role of one of
the constituents, if you prefer.
Write an 8–10-page report in Word format. Apply APA
standards to citation of sources. Use proper spelling and
grammar throughout, and keep the text legible and balanced
with visuals.
Hallegatte, S. (2006). A cost-benefit analysis of the New
Orleans flood protection system. Center for Environmental
Sciences and Policy. Stanford University. Retrieved from
http://hal.cirad.fr/docs/00/16/46/28/PDF/Hallegatte_NewOrle
ans_CBA9.pdf
Vastag, B., & Rein, L. (2011, May 11). In Louisiana, a choice
between two floods. TheWashington Post. Retrieved from
http://www.washingtonpost.com/national/in-louisiana-a-
choice-between-two- floods/2011/05/11/AFrjFotG_story.html
LASA 2—The Case For, or Against, New Orleans Grading
Rubric
NOTE: If a component is absent, student receives a zero for that
component.
9. points
e.g.
(80% / 100) x 12 =
9.6
Analyze the
economics of New
Orleans in light of
the given
parameters and
develop a Cost-
Benefit Analysis
(CBA) for
rebuilding.
Course Objectives
(CO) 3 & 4
Analysis of New
Orleans economics is
inaccurate or
incomplete. It includes
an estimated cash
flow/CBA, but it is
unreasonable. A few
outcomes and possible
scenarios are
presented but many are
not likely. Too few
constituencies and
interdependencies are
represented.
10. CBA for rebuilding is
unreasonable in
regards to scope,
resources, and/or
objectives. CBA
provides resources
needed but how they
will achieve objectives
is unclear. Research
Analysis of New
Orleans’ economics is
somewhat accurate or
somewhat incomplete. It
includes an estimated
cash flow/CBA but is
somewhat
unreasonable. A variety
of outcomes and several
possible scenarios are
presented but some may
not be likely. Most
constituencies and their
interdependencies are
represented.
CBA for rebuilding is
somewhat unreasonable
in regards to scope,
resources, or objectives.
CBA provides resources
11. needed to achieve
objectives but is not
specific in detail.
Analysis of New
Orleans’ economics is
accurate and complete.
It includes a reasonably
estimated cash
flow/CBA with a variety
of likely outcomes and
several possible
scenarios. All
constituencies and their
interdependencies are
represented.
CBA for rebuilding is
reasonable in regards to
scope, resources, and
objectives. CBA
provides specific details
and resources needed to
achieve objectives.
Research and evidence
from the case study are
used to support ideas.
Analysis of New
Orleans’ economics
is insightful and
thorough. It includes
a soundly estimated
cash flow/CBA with
14. CO 1, 4, & 5
Evaluation presents
benefits of the CBA for
the constituency, but is
either inaccurate or too
vague. Some
constituencies are
described but some are
missing. Most are
appropriate to the
situation.
Scenario model and/or
decision tree is unclear
or does not
appropriately integrate
the estimates.
Integration of
constituencies is
addressed but is
inaccurate. Examples
of how decisions are
conditional upon each
other are present but
are inaccurate.
Evaluation presents
benefits of the CBA for
each constituency but is
not specific. Generally,
each constituency is
described and
15. appropriate to the
situation, but either a
few constituencies are
missing or they are
under-explained.
Scenario model and/or
decision tree is
somewhat clear or does
not completely integrate
the estimates
appropriately. Integration
of constituencies is
addressed but left a bit
vague. Examples of how
the decisions are
conditional upon each
other are present, but
some conditions must be
inferred.
Evaluation presents
specific benefits of the
CBA for each
constituency, and each
constituency is clearly
described and
appropriate to the
situation.
Scenario model and/or
decision tree clearly and
16. appropriately integrates
the estimates.
Integration of
constituencies is clearly
addressed and specific
examples of how the
decisions are conditional
upon each other are
present.
Analysis of the results is
specific and provides a
scenario model and
explains interrelation of
constituencies’
decisions.
Evaluation presents
specific, acute
benefits of the CBA
for each
constituency, and
each constituency is
completely
described and
insightfully apt to the
situation.
Scenario model
and/or decision tree
completely,
concisely, and
18. explains interrelation
of constituencies’
decision in detail.
Discuss the
decision pitfalls to
which the
constituencies may
be susceptible and
make a
recommendation on
how to alleviate
those pressures.
CO 2 & 5
Decision problems to
which the
constituencies may be
susceptible are unclear
or inappropriate to the
situation.
Recommendations are
unreasonable. Any
theory or research
reference is unclear in
regards to its support.
Decision problems to
which the constituencies
may be susceptible are
19. not clearly identified or
they are somewhat
inappropriate to the
situation.
Recommendations are
somewhat reasonable
and reference theory or
research (but support
must be inferred).
Decision problems to
which the constituencies
may be susceptible are
clearly identified and
appropriate to the
situation.
Recommendations are
reasonable and
grounded in theory or
research.
Decision problems
to which the
constituencies may
be susceptible are
astutely identified
and appropriate to
the situation.
Recommendations
are thoughtful and
grounded in theory
or research.
/ 40
Starting with the
20. CBA, estimate the
relevant expected
utility for these
parties.
CO 4
Estimation of the
relevant expected utility
for these parties is
unreasonable or not
proportional to one
another. Evidence are
sporadic or does not
support ideas.
Estimation does not
reflect the CBA
proposed.
Estimation of the
relevant expected utility
for these parties is
somewhat reasonable
and somewhat
proportional to one
another. Evidence is
provided, but how it
supports the ideas is
unclear. Estimation
references the CBA
proposal, but reflection
is unclear.
Estimation of the
relevant expected utility
21. for these parties is
reasonable, proportional
to one another, and
grounded in evidence.
Estimation reflects the
CBA proposed.
Estimation of the
relevant expected
utility for these
parties is thoughtful,
proportional to one
another, and
grounded in
insightful evidence.
Estimation clearly
reflects and relates
to the CBA
proposed.
/ 40
Make a case for or
against rebuilding
the city of New
Orleans. This
should be an
executive
summary—be
concise and brief.
Include exhibits.
Executive summary
waffles between
whether or not to
rebuild New Orleans.
22. Evidence and research
is sporadic or does not
support the ideas.
Stance occasionally is
biased or
Executive summary
takes a stance on
whether to rebuild New
Orleans or not, but
stance is unclear.
Evidence and research
are provided, but how
they support the ideas is
unclear. Stance is
generally reasonable
Executive summary
clearly takes a stance on
whether to rebuild New
Orleans or not. Specific
evidence and research
are provided to support
ideas. Stance is
reasonable and
unbiased.
Executive summary
insightfully takes a
stance on whether
to rebuild New
Orleans or not.
Specific, astute
evidence and
research are
provided to support
24. Evidence and research
are sporadic or does
not support the ideas.
Ethical and unethical
advantages are
incomplete or
inaccurately identified.
Discussion of how social
heuristics can be used to
gain advantage is
somewhat unclear or
somewhat inaccurate.
Evidence and research
is provided, but how they
support the ideas is
unclear. Ethical and
unethical advantages
are identified but are
incomplete or unclear.
Discussion of how social
heuristics can be used to
gain advantage is clear,
accurate, and provides
specific examples to
support its ideas. Ethical
and unethical
advantages are
identified and discussed.
Discussion of how
social heuristics can
be used to gain
advantage is
thoughtful,
25. complete, and
provides specific
examples to support
its ideas. Ethical and
unethical
advantages are
precisely identified
and insightfully
discussed.
/ 40
Estimate what
percentage of the
class was for,
versus against,
rebuilding and
provide a
confidence interval
for the estimate.
CO 2
Estimation is inaccurate
or unsupported.
Confidence interval is
underdeveloped or
inaccurate.
Estimation is somewhat
inaccurate or not clearly
grounded in evidence
from the case study.
Confidence interval is
somewhat vague or
26. inaccurate.
Estimation is accurate
and grounded in
evidence from the case
study. Confidence
interval is detailed and
accurate.
Estimation is
insightful and
grounded in
evidence from the
case study.
Confidence interval
is precise, detailed
clear, and accurate.
/ 12
Ensure academic
writing, such as
grammar, spelling,
and attribution of
sources, is
appropriate.
Writing is unclear and
disorganized and
rereading to solidify
understanding is
frequently necessary.
Although an attempt at
ethical scholarship is
attempted, it is sloppy
or incomplete
27. throughout. Spelling,
grammar, or
punctuation errors
severely interfere with
readers’
Writing is somewhat
clear and is somewhat
organized, although
rereading to solidify
understanding is
occasionally necessary.
It demonstrates an
attempt at ethical
scholarship in accurate
representation and
attribution of sources, but
errors are occasional or
minor. Writing has good
Writing is generally clear
and in an organized
manner. It demonstrates
ethical scholarship in
accurate representation
and attribution of
sources; and generally
displays accurate
spelling, grammar, and
punctuation. Errors are
few, isolated, and do not
interfere with reader’s
comprehension.
Writing is clear,
concise, and in an
