ACCT 504 MART Education for Service--acct504mart.com

ACCT 504 Case Study 1 (Gordon Construction)
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Case Study 1 (Part A)Analyze the impact of business transactions on
accounts; record (journalize and post) transactions in the books;
construct and use a trial balance) During the first month of operation
of Gordon Construction, Inc., completed the following
transactions:June2Gordon received $55,000 cash and issued common
stock to the stockholders.3 Purchased supplies, $3,000, and
equipment, $5,200, on account.4 Performed services for a client and
received cash, $6,300.7 Paid cash to acquire land, $37,000.11
Performed services for a customer and billed the customer, $1,200.
Johnson expects to collect within one month.16 Paid partial for the
equipment purchased June 3 on account $2,800.17 Paid the
telephone bill, $230.18 Received partial payment from customer on
account, $700.22 Paid the water and electricity bills, $400.29
Received $5,000 cash for repairing the pipes of a customer.30 Paid
employee salary, $4,300.30 Declared and paid dividends of
$3,000.▸Requirements• 1. Record each transaction in the journal. Key
each transaction by date. Explanations are not required.• 2. Post the
transactions to the T-accounts, using transaction dates as posting
references.• 3. Prepare the trial balance of Gordon Construction, Inc.,
at June30, 2014.• 4. The manager asks you how much in total
resources the business has to work with and, how much it
owes.Adjust the accounts; construct the financial statements) Record
the following month end adjusting entries for Gordon Construction,
Inc. at June 30, 2014Month end accruals at June 30, 2014:• a.
Accrued advertising revenue at June 30, $3,100.• b. Supplies used

during June, $3,090.• c. Accrued salary expense at June 30 for
Monday, Tuesday, and Wednesday. The five-day weekly payroll is
$6,100 and will be paid on Friday.Requirement 2Prepare adjusted
trial balance for Gordon Construction at June 30, 2014.
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ACCT 504 Case Study 2 (Williams Oil)
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Case study (Learning Objectives 2, 4: Explain the components of
internal control; evaluate internal controls) Each of the following
situations reveals an internal control weakness: Situation a. In
evaluating the internal control over inventory for the Williams Oil
Services Company, an auditor learns that the warehouse receiving
clerk is responsible for ordering parts for supply inventory use in
drilling services, counts the inventory when received at the dock,
records the receipts into the inventory ledger, and takes the annual
inventory, No supervisor reviews the receiving clerks work. Situation
b. Nicole Lopez handles employee travel and expense reports for
Scott Sales Services. With the growth in the economy, the sales team
began traveling extensively gaining new business. Because of the
heavy volume, she no longer required the sales team to provide
original airline, hotel, or car rental receipts. She told them to just
keep their meals under the $100 per day per diem and no receipts
were required. She allowed them to use their own credit cards so they
could get the frequent flyer points. She required them to turn in a
summary of the travel expenses quarterly. Situation c. Michael

Jordon is a new employee hired from Craigs List recommended by a
co-worker. Mike was hired as a Human Resource Assistant. Mikes
first day on the job he is told that he should follow his own judgments
when deciding how employee issues such as hiring and firing of
employees, sexual harassment, and ethical infractions should be
handled. Top of Form ? Requirements 1. Identify the missing internal
control characteristic in each situation. 2. Identify each firms possible
problem. 3. Propose a solution to the problem.
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ACCT 504 Case Study 3 (Wang Appliance Store)
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Construct and use a cash budget) Nathan Farmer, chief financial
officer of Wang Appliance Store, is responsible for the company?s
budgeting process. Farmer?s staff is preparing the Wang cash budget
for 2014. A key input to the budgeting process is last year?s
statement of cash flows, which follows (amounts in thousands):
Wang Appliance Store
Statement of Cash Flows
2013 (in thousands) Cash
Flows from Operating Activities Collections from
customers $51,000 Interest
Received 500 Purchase of
inventory (36,000) Operating
expenses (10,200) Net
cash provided by operating activities 5,300 Cash Flows

from Investing Activities Purchase of
equipment (3,500) Purchase
of investments (500) Sale of
investments 1,000
Net cash used for investing activities
(3,000 ) Cash Flows from Financing Activities
Payment of long term debt (400)
Issuance of Stock
2,000 Payment of cash
dividends (500) Net
cash provided by financing activities 1,000 Cash
Increase (decrease) in Cash 3,300
Cash, beginning of year 2,900 Cash,
end of year 5,900 ?
Requirements 1. Prepare the Wang cash budget for 2014. Date the
budget simply ?2014? and denote the beginning and ending cash
balances as ?beginning? and ?ending.? Assume the company expects
2014 to be the same as 2013, but with the following changes: a. In
2014, the company expects a 20% increase in collections from
customers and a 30% increase in purchases of inventory. b. There will
be no sales of investments in 2014. c. Wang does not plan to issue
stock in 2014. d. Wang plans to end the year with a cash balance of
$5,550.
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ACCT 504 Course Project Analysis of Nike, Inc. and Under
Armour, Inc.
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Course Project: A Financial Statement Analysis A Comparative
Analysis of Nike, Inc. and Under Armour, Inc. Below is the link for the
financial statements for Nike, Inc. for the fiscal year ending 2014.
First, select 2014using the drop-down arrow labeled Year, and then
select Annual Filings using the drop-down arrow labeled All. You
should select the 10k dated 7/15/2014,and choose to download in
PDF, Word, or Excel format.
http://investors.nike.com/investors/news-events-and-
reports/?toggle=filings Below is the link for the financial statements
for Under Armour, Inc. for the fiscal year ending 2014. First, select
Annual using the drop-down arrow labeled View, and then select
2015 using the drop-down arrow labeled Year. You should select the
10k dated 2/20/2015, and choose to download it in PDF or Excel
format. http://www.uabiz.com/sec.cfm A sample project template is
available for download from the Course Resources page’s Course-
Specific Resources section.The sample project compares the ratio
performance of Tootsie Roll and Hershey using the 2014 financial
statements of Tootsie Roll and Hershey provided at their websites.
Description This course contains a Course Project, where you will be
required to submit one draft of the project at the end of Week 5, and
the final completed project at the end of Week 7. Using the financial
statements for Nike, Inc. and Under Armour, Inc.,respectively, you will
calculate and compare the financial ratios listed further down this
documentfor the fiscal year ending 2014, and prepare your
comments about the two companies’performancesbased on your
ratio calculations. The entire project will be graded by the instructor
at the end of the final submission in Week 7, and one grade will be
assigned for the entire project. Overall Requirements For the Final
Submission: Your final Excel workbook submission should contain the

following. You cannot use any other software but Excel to complete
this project. 1. A Completed Worksheet Title Page tab, which is really
a cover sheet with your name, the course, the date, your instructor’s
name, and the title for the project. 2. A CompletedWorksheetProfiles
tab which contains a one-paragraph description regarding each
company with information about their history, what products they
sell, where they are located,and so forth. 3. All 16 ratios for each
company with the supporting calculations and commentary on your
Worksheet Ratio tab. Supporting calculations must be shown either
as a formula or as text typed into a different cell.The ratios are listed
further down this document. Your comments for each ratio should
include more than just a definition of the ratio.You should focus on
interpreting each ratio number for each company and support your
comments with the numbers found in the ratios.You need to
specifically state which company performed better for each ratio. 4.
The Summary and ConclusionsWorksheet tab is an overall
comparison of how each company compares in terms of the major
category of ratios described in Chapter 13 of your textbook.A nice
way to conclude is to state which company you think is the better
investment and why. 5. The Bibliography Worksheet tab must contain
at least your textbook as a reference. Any other information that you
use to profile the companies should also be cited as a reference.
Required Ratios for Final Project Submission 1. Earnings per Share of
Common Stock 2. Current Ratio 3. Gross (Profit) MarginPercentage 4.
Rate of Return (Net Profit Margin) on Sales 5. Inventory Turnover 6.
Days’ Inventory Outstanding (DIO) 7. Accounts Receivable Turnover 8.
Days’ Sales Outstanding (DSO) 9. AssetTurnover 10. Rate of Return on
Total Assets (ROA) 11. Debt Ratio 12. Times-Interest-Earned Ratio 13.
Dividend Yield[For the purposes of this ratio, use Yahoo Finance to
look up current dividend per share and stock price; just note the date
that you looked up this information.] 14. Rate of Return on Common

Stockholders’ Equity (ROE) 15. Free cash flow 16. Price-Earnings Ratio
(Multiple) [For the purpose of this ratio, for Nike, use the market
price per share on May 30, 2014,and for Under Armour, use the
market price per share on December 31, 2014.] The Excel files
uploaded in the Dropboxes should not include any unnecessary
numbers or information (such as previous years' ratios, ratios that
were not specifically asked for in the project, etc.).
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ACCT 504 Course Project Oracle and Microsoft Corporation
(Devry)
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Course Project
Financial Statement Analysis Project -- A Comparative Analysis of
Oracle Corporation and Microsoft Corporation
Here is the link for the financial statements for Oracle Corporation
for the fiscal year ending 2007. First, select 2007 using the drop-
down arrow labeled for Year on the right-hand side of the page, and
then select Annual Reports using the drop-down arrow labeled Filing
Type on the left-hand side of the page.
You should select the 10k dated 6/29/2007 and choose to download in
PDF, Word, or Excel format.
Here is the link for the financial statements for Microsoft Corporation
for the fiscal year ending 2007. You should select the Annual report
dated 8/3/2007 and choose to download in Word or Excel format.
A sample Project template is available for download in Doc Sharing.
The sample project compares the ratio performance of Tootsie Roll
and Hershey using the 2007 financial statements of Tootsie Roll and
Hershey provided in Appendix A and Appendix B of your textbook.
Description | Overall Requirements | Grade Information

Description
This course contains a course project where you will be required to
submit one draft of the project at the end of Week 5 and the final
completed project at the end of Week 7. Using the financial
statements for Oracle Corporation and Microsoft Corporation,
respectively, you will calculate and compare the financial ratios listed
further down this document for the fiscal year ending 2007 and
prepare your comments about the liquidity, solvency and profitability
of the two companies based on your ratio calculations. The entire
project will be graded by the instructor at the end of the final
submission in week 7 and one grade will be assigned for the entire
project.
Overall Requirements
For the Final Submission:
Your final Excel workbook submission should contain the following.
You cannot use any other software but Excel to complete this Project.
1. A completed worksheet title page tab which is really a cover
sheet with your name, my name, the class name, and the date.
2. A completed worksheet profiles tab which contains a one
paragraph description regarding each company with information
about their history, what products they sell, where they are located
etc.
3. All 18 ratios for each company with the supporting
calculations and commentary on your worksheet ratio tab. Supporting
calculations must be shown either as a formula or as text typed into a
different cell. The ratios are listed further down this document. Your
comments for each ratio should include more than just a definition of
the ratio. You should focus on interpreting each ratio number for
each company and support your comments with the numbers found in
the ratios.
4. The Summary and Conclusions worksheet tab which is an
overall comparison of how each company compares in terms of the
major category of ratios (Liquidity, Profitability, and Solvency).

5. The Bibliography worksheet tab must contain at least your
textbook as a reference. Any other information you use to profile the
companies should also be cited as a reference.
Required Ratios for Final Project Submission:
1. Earnings per Share
2. Current Ratio
3. Gross Profit Rate
4. Profit Margin Ratio
5. Inventory Turnover Ratio
6. Days in Inventory
7. Receivables Turnover Ratio
8. Average Collection Period
9. Asset Turnover Ratio
10. Return on Assets Ratio
11. Debt to Total Assets Ratio
12. Times Interest Earned Ratio
13. Payout ratio
14. Return on Common Stockholders' Equity Ratio
15. Free Cash Flow
16. Current Cash Debt Coverage Ratio
17. Cash Debt Coverage Ratio
18. Price/Earnings Ratio [For the purpose of this ratio, use the
market price per share on June 1, 2007 for each company]
The Excel files uploaded to the Dropbox should not include any
unnecessary numbers or information (such as previous years' ratios,
ratios that were not specifically asked for in the project, etc.).
Please upload your final submission to the Dropbox by the end of
Week 7. See Syllabus/"Due Dates for Assignments & Exams" for due
date information.
For the Draft:
Create an Excel spreadsheet or use the Project template to show your
computations for the first 12 ratios listed above. The more you can
complete regarding the other requirements the closer you will be to
completion when Week 7 arrives. Supporting calculations must be
shown either as a formula or as text typed into a different cell. If you
plan on creating your own spreadsheet, please follow the format
provided in the Tootsie Roll and Hershey template file.

Please upload your draft submission to the Dropbox by the end of
Week 5. See Syllabus/"Due Dates for Assignments & Exams" for due
date information.
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ACCT 504 Entire Course (Devry)
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ACCT 504 Week 1-7 All Discussion Questions
ACCT 504 Week 3 Case Study 1 Flower Landscaping Corporation
ACCT 504 Week 4 Midterm Exam Set 1
ACCT 504 Week 4 Midterm Set 2
ACCT 504 Week 4 Midterm Set 3
ACCT 504 Week 5 Case Study 2 Internal Control - LJB Company
ACCT 504 Week 5 Course Project Draft Spreadsheet
ACCT 504 Week 6 Case Study 3 - Cash Budgeting - LBJ Company
ACCT 504 Week 7 Course Project JCP Kohls
ACCT 504 Final Exam
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ACCT 504 Final Exam (3 different finals) (Devry)

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1. (TCO A) Which one of the following is an advantage of
corporations relative to partnerships and sole proprietorships?
(Points : 5)
Reduced legal liability for investors
Harder to transfer ownership
Lower taxes
Most common form of organization
2. (TCO A) When a corporation distributes a dividend, _____. (Points
: 5)
the most common form of distribution is a cash dividend
the Dividends account will be increased with a credit
the Retained Earnings account will be directly increased with a debit
the Dividends account will be decreased with a debit
3. (TCOs A, B) Below is a partial list of account balances for Cerner
Company:
Cash $5,000
Prepaid insurance 500
Accounts receivable 2,500
Accounts payable 2,000
Notes payable 3,000
Common stock 1,000
Dividends 500
Revenues 15,000
Expenses 12,500
What did Cerner Company show as total credits? (Points : 5)
$21,500
$21,000

$20,500
$22,000
4. (TCOs B, E) A small and private company may be able to justify
using a cash basis of accounting if it has _____. (Points : 5)
sales under $1,000,000
no accountants on staff
insignificant receivables and payables
all sales and purchases on account
5. (TCO D) Three companies report the same cost of goods available
for sale, but each employs a different inventory costing method. If the
price of goods has increased during the period, then the company
using _____. (Points : 5)
LIFO will have the highest ending inventory
FIFO will have the highest cost of goods sold
All three companies will have the same value for ending inventory.
average cost will have an ending inventory value that falls between
FIFO and LIFO
6. (TCOs A, E) Equipment was purchased for $60,000. Freight
charges amounted to $2,800 and there was a cost of $8,000 for
building a foundation and installing the equipment. It is estimated
that the equipment will have a $12,000 salvage value at the end of its
5-year useful life. Depreciation expense each year using the straight-
line method will be _____. (Points : 5)
$14,160
$11,760
$9,840
$9,600
7. (TCOs D, G) Mendez Corporation issues 2,000 ten-year, 8%,
$1,000 bonds dated January 1, 2007, at 103. The journal entry to
record the issuance will show a _____. (Points : 5)
debit to Cash of $2,000,000
debit to Premium on Bonds Payable for $60,000

credit to Bonds Payable for $2,000,000
credit to Cash for $2,060,000
8. (TCO C) Accounts receivable arising from sales to customers
amounted to $35,000 and $40,000 at the beginning and end of the
year, respectively. Income reported on the income statement for the
year was $120,000. Exclusive of the effect of other adjustments, the
cash flows from operating activities to be reported on the statement of
cash flows is _____. (Points : 5)
$120,000
$125,000
$155,000
$115,000
9. (TCO F) One variation of the horizontal analysis is known as
_____. (Points : 5)
nonlinear analysis
vertical analysis
trend analysis
common-size analysis
10. (TCO F) In a common-size balance sheet, the 100% figure is
_____. (Points : 5)
total current assets
total property, plant, and equipment
total liabilities
total assets
11. (TCO F) In vertical analysis, the base amount for studying salary
and wages expense is generally _____. (Points : 5)
net sales
salary and wages expense in a previous year
gross profit
net income
12. (TCO F) A common measure of profitability is the _____. (Points
: 5)

current ratio
current cash debt coverage ratio
return on common stockholder's equity ratio
debt to total assets
13. (TCO F) Return-on-assets ratio is most closely related to _____.
(Points : 5)
profit margin and debt-to-total-assets ratio
profit margin and asset-turnover ratio
times interest earned and debt-to-stockholders equity ratio
profit margin and free cash flow
14. (TCO G) To calculate the market value of a bond, we need to
_____. (Points : 5)
find out the present value of all of the future cash payments promised
by the bond
calculate the present value of the principal only
calculate the present value of the interest only
multiply the bond price by the interest rate
1. (TCO A) An advantage of the corporate form of business is that
_____. (Points : 5)
it has limited life
its owner's personal resources are at stake
its ownership is easily transferable via the sale of shares of stock
it is simple to establish
2. (TCO A) When a corporation distributes a dividend, _____. (Points
: 5)
the most common form of distribution is a cash dividend
the Dividends account will be increased with a credit
the Retained Earnings account will be directly increased with a debit
the Dividends account will be decreased with a debit
3. (TCOs A, B) Below is a partial list of account balances for Denton
Company:
Cash $7,000
Prepaid insurance 700

Accounts receivable 3,500
Accounts payable 2,800
Notes payable 4,200
Common stock 1,400
Dividends 700
Revenues 21,000
Expenses 17,500
What did Denton Company show as total credits? (Points : 5)
$30,100
$29,400
$28,700
$30,800
4. (TCOs B, E) A small and private company may be able to justify
using a cash basis of accounting if it has _____. (Points : 5)
sales under $1,000,000
no accountants on staff
insignificant receivables and payables
all sales and purchases on account
5. (TCO D) In a period of increasing prices, which inventory cost
flow assumption will result in the lowest amount of income tax
expense? (Points : 5)
FIFO
LIFO
The average cost method
Income tax expense for the period will be the same under all
assumptions.
6. (TCOs A, E) Equipment was purchased for $60,000. Freight
charges amounted to $2,800 and there was a cost of $8,000 for
building a foundation and installing the equipment. It is estimated
that the equipment will have a $12,000 salvage value at the end of its
5-year useful life. Depreciation expense each year using the straight-
line method will be _____. (Points : 5)
$14,160
$11,760
$9,840
$9,600

7. (TCOs D, G) Lopez Corporation issues 500 ten-year, 8%, $1,000
bonds dated January 1, 2007, at 96. The journal entry to record the
issuance will show a _____. (Points : 5)
debit to Cash of $500,000
credit to Discount on Bonds Payable for $20,000
credit to Bonds Payable for $480,000
debit to Cash for $480,000
8. (TCO C) Accounts receivable arising from sales to customers
amounted to $35,000 and $40,000 at the beginning and end of the
year, respectively. Income reported on the income statement for the
year was $120,000. Exclusive of the effect of other adjustments, the
cash flows from operating activities to be reported on the statement of
cash flows is _____. (Points : 5)
$120,000
$125,000
$155,000
$115,000
9. (TCO F) Which one of the following is not a tool in financial
statement analysis? (Points : 5)
Horizontal analysis
Circular analysis
Vertical analysis
Ratio analysis
10. (TCO F) In vertical analysis, the base amount for studying salary
and wages expense is generally _____. (Points : 5)
net sales
salary and wages expense in a previous year
gross profit
net income
11. (TCO F) Ratios are most useful in identifying _____. (Points : 5)
trends
differences
causes
relationships among different numbers
12. (TCO F) A common measure of liquidity is _____. (Points : 5)
return on assets
current ratio

profit margin
debt to equity
13. (TCO F) Return-on-assets ratio is most closely related to _____.
(Points : 5)
profit margin and debt-to-total-assets ratio
profit margin and asset-turnover ratio
times interest earned and debt-to-stockholders equity ratio
profit margin and free cash flow
14. (TCO G) To calculate the market value of a bond, we need to
_____. (Points : 5)
find out the present value of all of the future cash payments promised
by the bond
calculate the present value of the principal only
calculate the present value of the interest only
multiply the bond price by the interest rate
1. (TCO A) Below you will find selected information (in millions)
from Coca-Cola Co.’s 2012 Annual Report:
................................................................................................................
.........................................................
Required:
1. Using the information provided prepare a Balance Sheet. Separate
the current assets from non-current assets and provide a total for
each. Also separate the current liabilities from the non-current
liabilities and provide a total for each.
2. Using the Balance Sheet from your answer above calculate;
Current Ratio, Days in Inventory, Average Collection Period, Return
on Assets Ratio, Debt to Total Assets and Return on common
stockholders’ equity ratio. (Make sure to show all your work)
2. (TCO B) The following selected data was retrieved from the Wal-
Mart, Inc. financial statements for the year ending January 31, 2013:
................................................................................................................
........................................................................................................

Required:
Using the information provided above:
1. Prepare a multiple-step income statement
2. Calculate the Profit Margin, and Gross profit rate for the company.
Be sure to provide the formula you are using, show your calculations,
and discuss your findings/results.
3. (TCO C) Please review the following real-world Hewlett Packard
Statement of Cash flows and address the 2 questions below:
................................................................................................................
................................................................................................
Required:
1) Please calculate the percentage increase or decrease in cash for
the operating, investing, and financing sections and explain the major
reasons for the increase or decrease for each of these sections.
2) Please calculate the free cash flow for 2012 and explain the
meaning of this ratio.
4. (TCO D) You are CFO of Goforit, Inc., a wholesale distribution
company specializing in emerging technologies. Your CEO is a
brilliant marketer, but relies on you to explain issues and choices in
accounting and finance. She has heard from other members of a CEO
organization to which she belongs that a company’s net income can
vary widely depending on which accounting choices are made from
the “GAAP menu.”
Assuming the goal is to maximize net income, choose an accounting
treatment from each of the following scenarios, and explain to your
CEO why the choice will produce the desired effect on reported Net
Income for the current year. Include in your answer the effect of the
choice on both the income statement and balance sheet.
Required:
a. Goforit carries significant electronics inventory in a competitive
environment where prices are actually falling. Which inventory
valuation method would you choose—LIFO, FIFO, or average cost?
Assume that unit purchases exceed unit sales.

b. Goforit has a large investment in warehouse equipment including
conveyor belts, forklifts, and automated packaging systems. Which
depreciation method would you choose: Straight line (SL) or double
declining balance (DDB)?
5. (TCO F) Please review the following real-world ratios for Johnson
& Johnson and Pfizer for the year ended 2012 and address the 2
questions below.
................................................................................................................
..................................................................................................
Required:
1) Please explain the meaning of each of the Pfizer ratios above.
2) Please state which company performed better for each ratio.
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ACCT 504 Final Exam Guide (2 Set, New 2017)
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This Tutorial contains 2 Set of Final Exam Question 1.1. (TCO D)
Please describe the purpose of the Income Statement and the
interrelationship between the income statement and the other major
financial statements that we covered in this class. In your answer,
please also address which financial statements should be created
before the Income Statement, if any, and which financial statements
need to be completed after the Income Statement, if any. (Points : 25)
Question 1—Set 2 1. Please describe the purpose of the Balance
Sheet and the interrelationship between the balance sheet and the
other major financial statements that we covered in this class. In your
answer, please also address which financial statements should be
created before the Balance Sheet, if any, and which financial

statements need to be completed after the Balance Sheet, if any
Question 2.2. (TCO E) Your friend, Lisa, plans to open a nail salon. Lisa
states that she does not have time to develop and implement a
system of internal controls. (a) Explain to Lisa the components of
internal control. (10 points) (b) Explain to Lisa at least 5 internal
control procedures she must establish to protect herself against
fraud. You should state specific internal control procedures from the
textbook, and relate your answer to her nail salon business. (15
points) (Points : 25) Q-2-Set 2 2. Your friend, John, plans to open a
parking garage business. John states that he does not have time to
develop and implement a system of internal controls. (a) Explain to
John the objectives of a system of internal control. (b) Explain to John
at least 5 internal control procedures that he must establish to
protect himself against fraud. You should state specific internal
control procedures from the textbook and relate your answer to his
parking garage business. solution Question 3. (TCO A) The following
items are taken from the financial statements of PQR Company for
2013: Cash $100,000 Instructions: (1) Create a classified balance
sheet in good form for the year ended 2013. (30 points) (2) Calculate
the current ratio and debt ratio and explain your findings. (6 points)
(Points : 36) Question 3—Set 2 (TCO H) Corporations in need of cash
can either issue stock or bonds to raise capital. What are the
differences between these two activities and why might a company
choose one over the other? (Points : 20) Q-3 Set 3 Question 4.4. (TCO
A) The following items are taken from the financial statements of BCT
Company for 2013: Instructions: (1) Create a classified balance sheet
in good form for the year ended 2013. (30 points) (2) Calculate the
current ratio and debt ratio and explain your findings. (6 points)
(Points : 36) Question 4. (TCO B) The Caldor Company gathered the
following condensed data for the year ended December 31, 2014:
Instructions: (1) Prepare a multiple-step income statement for the

year ended December 31, 2014. (30 points) (2) Compute the gross
margin percentage and net profit margin ratio. Caldor Company’s
assets at the beginning of the year were $900,000, and the assets
were $950,000 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. (6 points) (Points : 36) Q-4 Set 2 Question 3.3.
(TCO H) Simpson Inc. purchased 5, $4,000, 11% bonds of Hillsdale
Corporation when the market rate of interest was 10%. Interest is
paid semiannually on the bonds, and the bonds mature in 4 years.
Instructions: Compute the total price paid by Simpson Inc. for the
bonds showing your calculation for the present value of the principal
and the present value of the interest payments. Present value tables
(Exhibit 8-14 and Exhibit 8-15) are available on pages 452 and 453 of
your Harrison, Horngren, and Thomas textbook. NOTE: Be sure you
review the PV Tables completely to ensure you find the correct period
and interest rate for the calculation. (Points : 20) Question 5. (TCO C)
This is a 2-part question. Part 1) Indicate which section of the
statement of cash flows should contain each of the following items,
and whether each item would result in an inflow or outflow of cash.
The sections are Operating, Investing, and Financing. (30 points) Part
2) Please explain how to calculate free cash flow and the importance
of free cash flow to investors. (6 points) (Points : 36) Q-5 Set 2 5. The
Alpha Company gathered the following condensed data for the year
ended December 31, 2014: Instructions: (1) Prepare a multiple-step
income statement for the year ended December 31, 2014. (2)
Compute the gross margin percentage and net profit margin ratio.
Alpha Company’s assets at the beginning of the year were
$1,500,000, and the assets were $1,400,000 at the end of the year.
To qualify for full credit, you must state the formula you are using,
show your computations, and explain your findings. Question 6. (TCO
F) This is a 2-part question. Part 1) Journalize the adjusting entries

below at year-end December 31, XXXX. Please share your supporting
calculations for the adjusting entries requiring computations. (a) The
unadjusted balance of the Supplies account is $2,200. The total cost
of supplies remaining is $1,000. (b) Accrued Service Revenue of
$9,000. (c) Equipment was purchased at the beginning of the year for
$45,000. The equipment’s useful life is 5 years, and the residual value
is $5,000. Record the depreciation for this year. (d) The weekly
payroll is $25,000. Employees are owed for 3 days of a 5-day work
week. (e) Beginning unearned service revenue is $7,500, and ending
unearned service revenue is $3,500. (f) The business has interest
expense of $750 that is due in January. (30 points) Q-7 (TCO G) Please
review the following 6 ratios for Langley Company and XYZ Inc. for
the year ended 2014, and address the 2 questions below.
Instructions: This is a 2-part question. (1) Explain the meaning of each
of the Langley Company ratios above. (18 points) (2) State which
company performed better for each ratio. (18 points) (Points : 36)
Question 7 – Set 2 (TCO F) This is a 2-part question. Part 1) Journalize
the adjusting entries below at year-end December 31, XXXX. Please
share your supporting calculations for the adjusting entries requiring
computations. Beginning prepaid insurance, $500. Payments for
insurance during the period are $900. Ending prepaid insurance is
$600. (b) Interest revenue of $1,500 has been earned but not yet
received. (c) Accrued Service Revenue of $12,000 (d) The weekly
payroll is $20,000. Employees are owed for 4 days of a 5-day work
week. The unadjusted balance of the Supplies account is $1,200. The
total cost of supplies remaining is $300. (f) Equipment was purchased
at the beginning of the year for $25,000. The equipment’s useful life
is 5 years, and the residual value is $5,000. Record the depreciation
for this year. Question 8.8. (TCO G) Please review the following 6
ratios for Johnson Company and Lee Enterprises for the year ended
2014, and address the 2 questions below. Instructions: This is a 2-part

question. (1) Explain the meaning of each of the Johnson Company
ratios above. (18 points) (2) State which company performed better
for each ratio. (18 points) (Points : 36)
==============================================
ACCT 504 Group Course Project (A Comparative Analysis of
Celgene Corporation and Gilead Sciences, Inc)
www.acct504mart.com
Group Course Project: A Financial Statement Analysis A Comparative
Analysis of Celgene Corporation and Gilead Sciences, Inc. Groups
The students will be assigned to work in teams of two no later
than Week 2. The teams will be required to collaborate at least three
weeks on the project using a collaboration tool, such as Cisco Spark,
or similar technology, and provide evidence of use of the tool. It will
be recommended that the students begin their project no later than
week 5, when the draft is due, and continue through the end of week
7, when the final project is to be delivered. Financial Statements
Below is the link for the financial statements for Celgene
Corporation for the fiscal year ending 2015.
http://ir.celgene.com/sec.cfm?view=all When you arrive at this
website, please do the following. First, under View, select Annual
Filings using the drop-down arrow labeled All Filings and then select
2016 using the drop-down arrow labeled Year, You should select the
10k dated 2/11/2016 and choose to download in PDF, HTML, or Excel
format. The PDF format is the best format for searching. Below is the
link for the financial statements for Gilead Sciences, Inc. for the fiscal
year ending 2015.

http://investors.gilead.com/phoenix.zhtml?c=69964&p=irol-sec First,
select 2016 under the Year filter using the drop-down arrow labeled
All Years and then select Annual filings under the Groupings filter
using the drop-down arrow labeled All Forms. Press the large Search
button to access the requested annual filing for 2016. You should
select the 10k dated 2/24/2016, and choose to download it in PDF,
Word, or Excel format. The PDF format is the best format for
searching. A sample project template is available for download from
the Course Resources page’s Course-Specific Resources section. The
sample project compares the ratio performance of Tootsie Roll and
Hershey using the 2014 financial statements of Tootsie Roll and
Hershey provided at their websites. Description This course
contains a Course Project, where you will be required to submit one
draft of the project at the end of Week 5, and the final completed
project at the end of Week 7. Using the financial statements for
Celgene Corporation and Gilead Sciences, Inc., respectively, you will
calculate and compare the financial ratios listed further down this
document for the fiscal year ending 2015, and prepare your
comments about the two companies’ performances based on your
ratio calculations. The entire project will be graded by the instructor
at the end of the final submission in Week 7, and one grade will be
assigned for the entire project. Overall Requirements For the Final
Submission: Your final Excel workbook submission should contain the
following. You cannot use any other software but Excel to complete
this project. 1. A Completed Worksheet Title Page tab, which is really
a cover sheet with your name, the course, the date, your instructor’s
name, and the title for the project. 2. A Completed Worksheet
Profiles tab which contains a one-paragraph description regarding
each company with information about their history, what products
they sell, where they are located, and so forth. 3. All 16 ratios for
each company with the supporting calculations and commentary on

your Worksheet Ratio tab. Supporting calculations must be shown
either as a formula or as text typed into a different cell. The ratios
are listed further down this document. Your comments for each ratio
should include more than just a definition of the ratio. You should
focus on interpreting each ratio number for each company and
support your comments with the numbers found in the ratios. You
need to specifically state which company performed better for each
ratio. 4. The Summary and Conclusions Worksheet tab is an overall
comparison of how each company compares in terms of the major
category of ratios described in Chapter 13 of your textbook. A nice
way to conclude is to state which company you think is the better
investment and why. 5. The Bibliography Worksheet tab must
contain at least your textbook as a reference. Any other information
that you use to profile the companies should also be cited as a
reference. Required Ratios for Final Project Submission 1. Earnings
per Share of Common Stock 1. Current Ratio 2. Gross (Profit)
Margin Percentage 3. Rate of Return (Net Profit Margin) on Sales 4.
Inventory Turnover 5. Days’ Inventory Outstanding (DIO) 7. Accounts
Receivable Turnover 8. Days’ Sales Outstanding (DSO) 1. Asset
Turnover 2. Rate of Return on Total Assets (ROA) 3. Debt
Ratio 4. Times-Interest-Earned Ratio 5. Dividend Yield [For the
purposes of this ratio, use Yahoo Finance to look up current dividend
per share and stock price; just note the date that you looked up this
information.] 6. Rate of Return on Common Stockholders’ Equity
(ROE) 7. Free cash flow 8. Price-Earnings Ratio (Multiple) [For
the purpose of this ratio, look up the market price per share as of
December 31, 2015 for Celgene Corporation and for Gilead Sciences,
Inc..] The Excel files uploaded in the Dropboxes should not include
any unnecessary numbers or information (such as previous years'
ratios, ratios that were not specifically asked for in the project, etc.).
Please upload your final submission to the Week 7 Dropbox by the

Sunday ending Week 7. For the Draft: Create an Excel spreadsheet or
use the project template to show your computations for the first 10
ratios listed above. The more you can complete regarding the other
requirements, the closer you will be to completion when Week 7
arrives. Supporting calculations must be shown either as a formula or
as text typed into a different cell. If you plan on creating your own
spreadsheet, please follow the format provided in the Tootsie Roll
and Hershey template file. Please upload your draft submission to
the Week 5 Dropbox by the Sunday at the end of Week 5. Other
Helpful Information: If you feel uncomfortable with Excel, you can
find many helpful tutorials on Excel by performing a Google search.
Chapter 13 contains ratio calculations and comparison comments
related to Apple and Dell, so you will likely find this information
helpful. BigCharts.com provides historical stock quotes. Either APA or
MLA style can be used to complete the references on your
Bibliography tab. There is a tutorial for APA and MLA style within the
Plagiarism link, which can be accessed through the Syllabus. Grade
Information The entire project will be graded by the instructor at
the end of the final submission in Week 7, and one grade will be
assigned for the entire project. The project will count for 15% of your
overall course grade.
==============================================
ACCT 504 Midterm Exam (4 Sets, 2017)
www.acct504mart.com

This Tutorial contains 4 Set of Midterm Exam 1. Question : (TCOs A
and E) Your friend, Ellen, has hired you to evaluate the following
internal control procedures. Explain to your friend whether each of
the numbered items below is an internal control strength or
weakness. You must also state which internal control procedure
relates to each of the internal controls. For the weaknesses, you also
need to state a recommendation for improvement. (1) The cashier
counts the total receipts and reconciles the receipts with the cash
register total. (2) Electronic documents are password-protected. (3)
The accountant is completely independent of the sales department.
(4) Invoices are not numbered. (5) Large purchase orders must be
approved by a manager. TCOs A and E) Your friend, Ellen, has hired
you to evaluate the following internal control procedures. Explain to
your friend whether each of the numbered items below is an internal
control strength or weakness. You must also state which internal
control procedure relates to each of the internal controls. For the
weaknesses, you also need to state a recommendation for
improvement. (1) The cashier counts the total receipts and reconciles
the receipts with the cash register total. (2) Electronic documents are
password-protected. (3) The accountant is completely independent of
the sales department. (4) Invoices are not numbered. (5) Large
purchase orders must be approved by a manager. (Points : 30) Set 2
1: Invoices are pre-numbered. 2: The controller approves of the
purchases and makes the payment since he or she is familiar with the
purchases. 3: The office manager is in charge of the petty cash fund.
4: Blank checks are stored in the safe. 5: At the end of the day, the
total receipts are counted by the cashier on duty and reconciled to
the cash register total. (Points : 30) Set 3 Invoices are pre-numbered.
The controller approves of the purchases and makes the payment
since he or she is familiar with the purchases. The office manager is in
charge of the petty cash fund. Blank checks are stored in the safe. At

the end of the day, the total receipts are counted by the cashier on
duty and reconciled to the cash register total Set 4 Question 14.
Question : (TCO D) Your friend Dean has hired you to evaluate the
following internal control procedures. a: Explain to your friend
whether each of the numbered items below is an internal control
strength or weakness. You must also state which principle relates to
each of the internal controls. b: For the weaknesses, you also need to
state a recommendation for improvement. 1: Bonding of the cashiers
is not required because all of the cashiers have significant experience.
2: The treasurer is the only one allowed to sign checks. 3: All
employees may operate cash registers. 4: Blank checks are stored in
the safe. 5: Supervisors count cash receipts daily. 12. (TCOs E and F)
Please prepare the following journal entries. Indicate which account
should be debited and which account should be credited, along with
the dollar amount of the debit and credit. (1) Investors invest
$500,000 in exchange for 50,000 shares of common stock. (2)
Company purchased equipment for $25,000 on account. (3) Company
paid Rent for $4,000. (4) Company received $15,000 for services not
yet performed. (5) Employees work Monday through Friday and are
paid on Friday. Salary expense is $10,000 per day and this year,
December 31 falls on a Wednesday. (Points : 30) Set 2 Question
Please prepare the following journal entries. Indicate which account
should be debited and which account should be credited, along with
the dollar amount of the debit and credit. (1) Investors invest
$300,000 in exchange for 30,000 shares of common stock. (2)
Company made payment on account for $500. (3) Employees work
Monday through Friday and are paid on Friday. Salary expense is
$20,000 per day, and December 31 falls on a Tuesday. (4) Company
purchased Supplies for $2,000. (5) The company needs to record
Supplies used for $500. Set 3 13. Question : (TCOs D and E) Please
prepare the following journal entries. Indicate which account should

be debited and which account should be credited, along with the
dollar amount of the debit and credit. Investors invest $50,000 in
exchange for 1,000 shares of common stock. Company purchased
equipment for $10,000 on credit. Company received $5,000 for
services performed. Company made payment on account for $2,000.
Set 4 Question 13. Question : (TCO D and TCO E) Please prepare the
following journal entries. Indicate which account should be debited
and which account should be credited, along with the dollar amount
of the debit and credit. a: Investors invest $100,000 in exchange for
10,000 shares of common stock. b: Company paid a utility bill for
$600. c: Company received cash of $15,000 for services performed. d:
Company made payment on account for $1,000. e: Company received
$12,000 for services not yet performed. Set 5 Question 12. Question :
(TCOs B and D) Please prepare the following journal entries. Indicate
which account should be debited and which account should be
credited, along with the dollar amount of the debit and credit. (1)
Investors invest $300,000 in exchange for 30,000 shares of common
stock. (2) Company made payment on account for $500. (3)
Employees work Monday through Friday and are paid on Friday.
Salary expense is $20,000 per day, and December 31 falls on a
Tuesday. (4) Company purchased Supplies for $2,000. (5) The
company needs to record Supplies used for $500. Question 3 .The
following items are taken from the financial statements of BGS
Company for 2012: Cash $500,000 Accounts Receivable 200,000
Supplies 70,000 Accounts Payable 147,300 Unearned Service Revenue
18,000 Equipment, net of accumulated depreciation 212,000
Common Stock 500,000 Retained Earnings 12/31/2011 78,300 Long-
term debt 142,400 Service revenue 240,000 Cost of Goods Sold
72,000 Rent expense 36,000 Supplies expense 12,000 Set 2 14. (TCO
D) The following items are taken from the financial statements of
SRW Company for 2012: Cash $375,000 Accounts Receivable 125,000

Prepaid Insurance 100,000 Accounts Payable 88,000 Unearned
Service Revenue 15,000 Equipment, net of accumulated depreciation
177,000 Question 4 13. (TCOs B and D) The following items are taken
from the financial statements of Lacey Company for 2012:
Advertising Expense $14,000 Accounts Receivable 12,000 Cost of
Goods Sold 65,000 Accumulated Depreciation—Equipment 20,000
Accounts Payable 21,000 Cash 44,000 Depreciation Expense 17,000
Common Stock 100,000 Instructions (a) Calculate the net income. (18
points) (b) Calculate the balance of Retained Earnings that would
appear on a balance sheet at December 31, 2012. (7 points) (c)
Calculate the gross profit percentage. (5 points) (Points : 30 Lacey
Company Income Statement Question 13. Question : (TCOs B and D)
The following items are taken from the financial statements of Ashe
Company for 2012: Equipment $100,000 Accounts Receivable 12,000
Accounts Payable 9,000 Cost of Goods Sold 72,000 Utilities Expense
11,000 Depreciation Expense 17,000 Insurance Expense 9,000
Question 14. Question : (TCO D) The following items are taken from
the financial statements of BGS Company for 2012: Cash $500,000
Accounts Receivable 200,000 Supplies 70,000 Accounts Payable
147,300 Unearned Service Revenue 18,000 Equipment, net of
accumulated depreciation 212,000 Instructions (a) Please create a
classified balance sheet in good form for the year ended 2012. (25
points) (b) Please calculate the current ratio. (5 points) Question 12.
Question : (TCOs B and E) The adjusted trial balance of Gertz
Company included the following selected accounts. Debit Credit Sales
$575,000 Sales returns and allowances $ 50,000 Sales discounts
9,500 Cost of goods sold 347,000 Instructions: 1: Use the above
information to prepare a multiple-step income statement for the year
ended December 31, 2010. 2: Calculate the profit margin ratio and
gross profit rate. To qualify for full credit, you must state the formula
you are using, show your computations, and explain your findings.

Question 11. Question : (TCO D) A classmate is considering dropping
his or her accounting class because he or she cannot understand the
rules of debits and credits. Explain the rules of debits and credits in a
way that will help him or her understand them. Cite examples for
each of the major sections of the balance sheet (assets, liabilities and
stockholders' equity) and the income statement (revenues and
expenses). 11. Question : (TCO D) Describe the process of preparing a
trial balance. What is the purpose of preparing a trial balance? If a
trial balance does not balance, identify what might be the reasons
why it does not balance. If the trial balance does balance, does that
ensure that the ledger accounts are correct? Explain. 1. Question :
(TCO D) An account is an important accounting record where
financial information is stored until needed. Briefly explain (1) the
nature of an account, (2) the different types of accounts, and (3) the
manner in which an account is increased and decreased, and the
normal balance of each type of accounts. Question 1.1. (TCO A)
Assets include (Points : 3) prepaid insurance and prepaid rent.
dividends paid to shareholders. loans obtained by the company.
stockholders’ investment in the business. Question 2.2. (TCO B) For
2014, CAP Corporation reported net income of $96,000; net sales
$1,440,000; and weighted average shares outstanding of 9,600.
There were no preferred dividends. What was the 2014 earnings per
share? (Points : 3) $100.00 $150.00 $10.00 $15.00 Question 3.3. (TCO
C) Issuing debt is an example of a(n) (Points : 3) operating activity.
investing activity. financing activity. noncash investing and financing
activity. Question 4.4. (TCO D) Dividends declared are reported on
which of the following statements? (Points : 3) Income Statement
Statement of Retained Earnings Balance Sheet Statement of Financial
Position Question 5.5. (TCO E) Which of the following describes the
normal balance and classification of the Unearned Revenue account?
(Points : 3) Credit, liability Debit, liability Debit, stockholders’ equity

Credit, stockholders’ equity Question 6.6. (TCO F) The accrual
accounting term used to indicate recording an expense before paying
cash for the item is (Points : 3) deferral. accrual. depreciation.
prepayment. Question 7.7. (TCO A) LBJ Company recorded the
following events involving a recent purchase of merchandise. -
Received goods for $95,000, terms 2/10, n/30. - Returned $4,500 of
the shipment for credit due to damaged goods. - Paid $1,000 for
freight in. - Paid the invoice within the discount period. As a result of
these events, the company's merchandise inventory (Points : 3)
increased by 89,580. increased by $89,690. increased by $89,600.
increased by $91,500. = (95000-4500)*0.98+ 1000 Question 8.8. (TCO
B) In periods of rising prices, which of the following inventory
methods results in the highest gross profit figure? (Points : 3) FIFO
LIFO Average cost method Cannot be determined based on the
information given Question 9.9. (TCO A) On a classified balance
sheet, prepaid expenses are classified as (Points : 3) current liabilities.
long-term liabilities. current assets. Prepaid expenses do not belong
on the Balance Sheet. Question 10.10. (TCO E) Which of the following
is an internal control procedure? (Points : 3) Control environment
Comparisons and compliance monitoring Promote operational
efficiency Encourage employees to follow company policies Question
1. Question : (TCO A) Which of the following accounts is recorded as
part of stockholders’ equity on the Balance Sheet? Question 2.
Question : (TCO B) For 2014, CAP Corporation reported net income of
$96,000; net sales $1,440,000; and weighted average shares
outstanding of 9,600. There were no preferred dividends. What was
the 2014 earnings per share? Question 3. Question : (TCO C)
Purchasing inventory is an example of a(n) Question 4. Question :
(TCO D) Dividends declared are reported on which of the following
statements? Question 5. Question : (TCO E) Which of the following
describes the normal balance and classification of the Unearned

Revenue account? Question 6. Question : (TCO F) The accrual
accounting term used to indicate recording an expense before paying
cash for the item is Question 7. Question : (TCO A) XYZ Company
recorded the following events involving a recent merchandise
purchase. Question 8. Question : (TCO B) In periods of rising prices,
which of the following inventory methods results in the highest gross
profit figure? Question 9. Question : (TCO A) Which of the following is
not a current liability? Question 10. Question : (TCO E) Which of the
following is an internal control procedure? 1. Question : (TCOs A, B,
and C) Which type of corporate information is available to investors?
2. Question : (TCO C) Collecting cash from customers would be an
example of which type of activity? 3. Question : (TCO A) Resources
owned by a business are referred to as 4. Question : (TCO A) In a
classified balance sheet, assets are usually classified as 5. Question :
(TCO B) For 2012, LBJ Corporation reported net income of $25,000;
net sales $250,000; and weighted average shares outstanding of
5,000. There were no preferred stock dividends. What was the 2012
earnings per share? 6. Question : (TCO D) Which of the following
accounts has a normal balance of a credit? 7. Question : (TCO E) The
accrual accounting term used to indicate recording an expense before
paying cash for the item is _____ : 8. Question : (TCOs A and B) A
periodic inventory system would most likely be used by a(n) _____ 9.
Question : (TCOs A and B) LBJ Company recorded the following events
involving a recent purchase of merchandise. Comments: 10. Question
: (TCO A) In a period of declining prices, which of the following
inventory methods generally results in the lowest gross profit figure?
Question : (TCOs A, B, and C) Shareholders want answers to all of the
following questions except: Question 2. Question : (TCO C) Paying
cash dividends is an example of a(n) Question 3. Question : (TCO C)
Buying a new plant would be an example of which type of activity?
Question 4. Question : (TCO A) Which of the following should not be

classified as a current liability? Question 5. Question : (TCO B) For
2012, LBJ Corporation reported net income of $75,000; net sales
$750,000; and weighted average shares outstanding of 7,500. There
were no preferred stock dividends. What was the 2012 earnings per
share? Question 6. Question : (TCO D) Which of the following
describes the normal balance and classification of the Unearned
Revenue account? Question 7. Question : (TCO E) Which of the
following statements is correct? Question 8. Question : (TCOs A and
B) A periodic inventory system would most likely be used by a(n)
Question 9. Question : (TCOs A and B) LBJ Company recorded the
following events involving a recent merchandise purchase. - Received
goods for $40,000, terms 2/10, n/30 - Returned $1,200 of the
shipment for credit due to damaged goods - Paid $1,000 for freight in
- Paid the invoice within the discount period Question 10. Question :
(TCO A) In a period of declining prices, which of the following
inventory methods generally results in the lowest gross profit figure?
Question 1. Question : (TCOs A, B, and C) Which of the following
statements concerning users of accounting information is incorrect?
Question 2. Question : (TCO C) Paying cash dividends is an example of
a(n) Question 3. Question : (TCO C) Buying a new plant would be an
example of which type of activity? Question 4. Question : (TCO A) On
a classified balance sheet, prepaid expenses are classified as
Question 5. Question : (TCO B) For 2012, LBJ Corporation reported net
income of $75,000; net sales $750,000; and weighted average shares
outstanding of 7,500. There were no preferred stock dividends. What
was the 2012 earnings per share? Question 6. Question : (TCO D)
Which of the following accounts has a normal balance of a credit?
Question 7. Question : (TCO E) The accrual accounting term used to
indicate recording an expense before paying cash for the item is
Question 8. Question : (TCOs A and B) A periodic inventory system
would most likely be used by a(n) Question 9. Question : (TCOs A and

B) LBJ Company recorded the following events involving a recent
merchandise purchase. Question 10. Question : (TCO A) In a period of
increasing prices, which of the following inventory methods generally
results in the highest gross profit? Question 11. Question : (TCO D) A
classmate is considering dropping his or her accounting class because
he or she cannot understand the rules of debits and credits. Explain
the rules of debits and credits in a way that will help him or her
understand them. Cite examples for each of the major sections of the
balance sheet (assets, liabilities and stockholders' equity) and the
income statement (revenues and expenses). Question 12. Question :
(TCOs B and E) The Caltor Company gathered the following
condensed data for the Year Ended December 31, 2010. Cost of goods
sold $ 710,000 Net sales 1,279,000 Administrative expenses 239,000
Interest expense 68,000 Dividends paid 38,000 Selling expenses
45,000 Instructions: 1: Prepare a multiple-step income statement for
the year ended December 31, 2010. 2: Compute the profit margin
ratio and gross profit rate. Caltor Company’s assets at the beginning
of the year were $770,000 and were $830,000 at the end of the year.
To qualify for full credit, you must state the formula you are using,
show your computations, and explain your findings. Question 13.
Question : (TCO D and E) Please prepare the following journal entries.
Indicate which account should be debited and which account should
be credited, along with the dollar amount of the debit and credit. a:
Investors invest $50,000 in exchange for 1,000 shares of common
stock. b: Company purchased equipment for $10,000 on credit. c:
Company received $5,000 for services performed. d: Company made
payment on account for $2,000. e: Company received $7,000 for
services not yet performed. Question 14. Question : (TCO D) Your
friend Wendy plans to open a hair salon. Wendy states that she does
not have time to develop and implement a system of internal
controls. a: Explain to Wendy the objectives of a system of internal

control. b: Explain to Wendy at least four key controls she must
establish to protect herself against fraud. You should state specific
internal control principles and relate your answer to her hair salon
business.
==============================================
ACCT 504 Week 1 Homework (E117A E129B E22A E123A
E124A)
www.acct504mart.com
This Tutorial contains Excel Files which can be used to solve for any
values (your Question may have different company name or values,
but that can be solved using Excel file) E 1-17A CoffeeShop
Doughnuts has current assets of $280 million; property, plant, and
equipment of $430 million; and other assets totaling $170 million.
Current liabilities are $170 million and long-term liabilities total $300
million. 1. Use these data to write CoffeeShop Doughnuts’ accounting
equation. 2. How much in resources does CoffeeShop have to work
with? 3. How much does CoffeeShop owe creditors? 4. How much of
the company’s assets do the CoffeeShop stockholders actually own?
E1-29B Assume Chen, Inc., is expanding into France. The company
must decide where to locate and how to finance the expansion.
Requirement Identify the financial statement where these decision
makers can find the following information about Chen, Inc. In some
cases, more than one statement will report the needed data. a. Net
income b. Current liabilities c. Cash spent to acquire the building
d. Adjustments to reconcile net income to net cash provided by
operations e. Selling, general, and administrative expenses f. Ending

cash balance g. Ending balance of retained earnings h. Income tax
expense i. Long-term debt j. Revenue k. Total assets l. Dividends m.
Income tax payable n. Common stock E1-22A (similar to) Assume the
Carter Coffee Roasters Corp. ended the month of August 2015 with
these data: Requirement 1. Prepare the income statement and the
statement of retained earnings of Carter Coffee Roasters Corp., for
the month ended August 31,2015 Prepare the income statement.
Start with the heading and then complete the rest of the statement.
Part 1 Carter Coffee Roasters Corp. Income Statement For the Month
Ended August 31, 2015 E1-23A (similar to) Assume the Ebert Coffee
Roasters Corp. ended the month of August 2015 with these data:
Requirement 1. Prepare the balance sheet of Ebert Coffee Roasters
Corp., for August 31, 2015. First prepare the balance sheet header,
then complete the assets section of the statement and finally
complete the liabilities and stockholders' equity section of the
statement. E1-24A (similar to) Assume the Earl Coffee Roasters Corp.
ended the month of August 2015 with this data: Requirement 1.
Prepare the statement of cash flows of Earl Coffee Roasters Corp., for
the month ended August 31, 2015. Explain the relationship among
the income statement, statement of retained earnings, balance
sheet, and statement of cash flows. Explain the relationship among
the income statement, statement of retained earnings, balance
sheet, and statement of cash flows. Net income on the statement of
retained earnings comes directly from the income statement . Ending
retained earnings on the balance sheet comes directly from the
statement of retained earnings . Ending cash on the statement of
cash flows is reported on the balance sheet
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ACCT 504 Week 1-7 All Discussion Questions (Devry)

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Week 1DQ 1 - Financial Reporting Environment and GAAP
Week 1DQ 2 - Details of Financial Statements and Ratios
Week 2DQ 1 - Accounting EquationAccounting Cycle
Week 2DQ 2 - Accrual Accounting and Adjusting Entries
Week 3DQ 1 - Merchandising Operations and Income Statements
Week 3DQ 2 - Inventory Cost-Flow Assumptions
Week 4DQ 1 - Understanding Internal Control and Reporting Cash
Week 4DQ 2 - Accounting for and Reporting Receivables
Week 5DQ 1 - Plant Assets and Intangibles
Week 5DQ 2 - Accounting for Liabilities
Week 6DQ 1 - Accounting for and Reporting Equity
Week 6DQ 2 - Statement of Cash Flows
Week 7DQ 1 - Issues in Income Reporting
Week 7DQ 2 - Different Tools for Financial Analysis
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ACCT 504 Week 2 Homework (E2-17A, E2-18A, E3-22A, E3-
23A)
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but that can be solved using Excel file) E2-17A Dr Anna Grayson
opened a medical practice specializing in physical therapy. During the
first month of operation (May), the business, titled. Anna Grayson,

Professional Corporation (P.C.), experienced the following events: 1.
Record the transactions in the journal of Dr. Anna Grayson, P.C. List
the transactions by date and give an explanation for each transaction
6 Grayson invested $138,000 in the business, which in turn issued its
common stock to her. 9 The business paid cash for land costing
$63,000. Grayson plans to build an office building on the land. 12 The
business purchased medical supplies for $1,500 on account. 15 Dr.
Anna P.C., officially opened for business. 15-31 During the rest of the
month, Grayson treated patients and earned service revenue of
$9,400, receiving cash for half the revenue earned. 15-31 The
business paid cash expenses: employee salaries, $2,800; office rent, $
900$900; utilities, $ 900$900. 31 The business sold supplies to
another physician for cost of $400. 31 The business borrowed 30,000,
signing a note payable to the bank. 31 The business paid $600 on
account. E3-22A Clark Truck Rentals Company faced the following
situations. a. The business has interest expense of $ 3,000 that it
must pay early in January 2015 b. Interest revenue of $4,500 has
been earned but not yet received. c. On July 1, 2014, when the
business collected $13,900 rent in advance, it debited Cash and
credited Unearned Rent Revenue. The tenant was paying for two
years' rent. d. Salary expense is $5,500 per daylong dash—Monday
through Friday dash—and the business pays employees each Friday.
For the purpose of this calculation, assume December 31 falls on a
Thursday. e. The unadjusted balance of the Supplies account is
$3,000. The total cost of supplies on hand is $ 1,500. f. Equipment
was purchased at the beginning of this year at a cost of $120,000.
The equipment's useful life is five years. There is no residual value.
Record depreciation for this year and then determine the equipment's
book value. Journalize the adjusting entry needed at December 31,
2014, for each situation. Consider each fact separately E3-23A The
adjusted trial balance of Homemade HamsHomemade Hams, Inc.,

follows. Homemade Hams, Inc. Adjusted Trial Balance 31-Dec-14
Account (Amounts in thousands) Cash Debit cash 4400 Accounts
receivable 1,800 Inventories 2,400 Prepaid expenses 1,900 Property,
plant, and equipment 16,700 Accumulated depreciation, property,
plant, and equipment Other assets 9,700 Accounts payable Income
tax payable Other liabilities Common stock Retained earnings
(beginning, December 31, 2013) Dividends 1,700 Sales revenue Cost
of goods sold 25,600 Selling, administrative, and general expense
10,400 Income tax expense 2,000
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ACCT 504 Week 3 Case Study 1 (Melvin Plumbing
Corporation) **New**
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MAKE SURE TO COMPLETE ALL REQUIREMENTS WHICH ARE LISTED
BELOW. There are 10 sheets in the Workbook, including this one. All
of the information that you need for the project is located in this
Workbook. Requirement #1: During its first month of operation, the
Melvin Plumbing Corporation, which specializes in residential
plumbing, completed the following transactions. July 1 Began
business by making a deposit in a company bank account of $90,000,
in exchange for 9,000 shares of $10 par value common stock. July 3
Paid the current month's rent, $5,500. July 5 Paid the premium on a
1-year insurance policy, $4,800 July 7 Purchased supplies on account
from Little Company, $900. July 10 Paid employee salaries, $3,300
Requirement #2: Post the July journal entries to the following T-

accounts and compute ending balances. Cash (111) Revenue (411)
Requirement #3: Prepare a trial balance for July in the space below.
Melvin Plumbing Corporation Trial Balance July 31 Requirement #4:
Prepare adjusting entries using the following information in the
General Journal below. Show your calculations! a) One month's
insurance has expired. b) Supplies used during the period $375. c) The
estimated depreciation on equipment is $175. Requirement #6:
Prepare an adjusted trial balance in the space below. Melvin
Plumbing Corporation Adjusted Trial Balance July 31 Requirement #7:
Prepare the financial statements for the Melvin Plumbing
Corporation as of July 31 in the space below. You will only be
preparing the income statement, statement of retained earnings, and
the balance sheet. The statement of cash flows is a required financial
statement, but is not required for this case study. Requirement #10:
Prepare a post-closing trial balance as of July 31 in the space below.
Melvin Plumbing Corporation Post-Closing Trial Balance
==============================================
ACCT 504 Week 3 Case Study 1 Flower Landscaping
Corporation (Devry)
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The Entire Case Study is due Sunday at MidnightMountain 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 3 Quiz
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Q -1 Other comprehensive income A. includes extraordinary gains
and losses. B. affects earnings per share. C. includes unrealized gains
and losses on available-for-sale investments. D. has no effect on
income tax. Q-2 Use the following data of TortoiseTortoise Sales, Inc.:
Unit Total Units Units Cost Cost Sold Beginning inventory 16 $3 $48
Purchase on Apr 25 25 6 150 Purchase on Nov 16 11 8 88 Sales 40 ? ?
Tortoise Sales' average cost of ending inventory is An auditor report
by independent accountants A. gives investors assurance that the
company's stock is a safe investment. B. is ultimately the
responsibility of the management of the client company. C. ensures
that the financial statements are error-free. D. gives investors
assurance that the company's financial statements conform to GAAP.
Use the following data of SeasideSeaside Sales, Inc.: Unit Total Units
Units Cost Cost Sold Beginning inventory 18 $4 $72 Purchase on Apr
25 43 7 301 Purchase on Nov 16 19 10 190 Sales 45 ? ?
SeasideSeaside Sales' LIFO cost of ending inventory would be Use the
following data of SeaspraySeaspray Sales, Inc.: Unit Total Units Units
Cost Cost Sold Beginning inventory 24 $7 $168 Purchase on Apr 25 30

8 240 Purchase on Nov 16 14 9 126 Sales 50 ? ? SeaspraySeaspray
Sales uses a FIFO inventory system. Cost of goods sold for the period
is The quality of earnings suggests that A. stockholders want the
corporation to earn enough income to be able to pay its debts. B.
income from continuing operations is a more relevant predictor of
future performance than income from one-time transactions. C. net
income is the best measure of the results of operations. D. continuing
operations and one-time transactions are of equal importance.
Deferred Tax Liability is usually Type of Account Reported on the A.
Long-term Income statement B. Short-term Statement of
stockholders' equity C. Short-term Income statement D. Long-term
Balance sheet Which statement is true? A. Discontinued operations
are a separate category on the income statement. B. Extraordinary
items are combined with continuing operations on the income
statement. C. Extraordinary items are part of discontinued
operations. Hazard Company had anan $18,000 beginning inventory
and aa $25,000 ending inventory. Net sales ere $153,000; purchases,
$76,000; purchase returns and allowances, $3,000; and freight in,
$9,000. Cost of goods sold for the period is $75,000.What is Hazard
gross profit percentage (rounded to the nearest percentage)?
==============================================
ACCT 504 Week 4 Quiz
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Q -1 Anderson Company had the following information in 20142014.
Accounts receivable 12/31/14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . $14,000 Allowance for uncollectible account 12/31/14 (before
adjustment). . . . . . . 850 Credit sales during 2014. . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . 36,000 Cash sales during 2014. . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,000 Collections from
customers on account during 2014. . . . . . . . . . . . . . . . . . 45,000 If
uncollectible accounts are determined by the aging-of-receivables
method to be $1,260 the uncollectible-account expense for 2014
would be:. Q-2 All of the following are controls for cash received over
the counter except A.the cash drawer should open only when the
sales clerk enters an amount on the keys. B.the sales clerk must have
access to the cash register tape. C.a printed receipt must be given to
the customer. D.the customer should be able to see the amounts
entered into the cash register. Q-3 Patrick Company had the
following information in 2014. Accounts receivable 12/31/14. . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,000 Allowance for uncollectible
account 12/31/14 (before adjustment). . . . . . . 800 Credit sales during
2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,000 Cash
sales during 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16,000 Collections from customers on account during 2014. . . . . . . . .
. . . . . . . . . 47,000 If uncollectible accounts are determined by the
aging-of-receivables method to be $1,050, the uncollectible account
expense for 2014 would be $250. The balance of the Allowance
account after the adjusting entry would be Q-4 All of the following
are objectives of internal control except A.to safeguard assets. B.to
comply with legal requirements. C.to maximize net income. D.to
ensure accurate and reliable accounting records. Q-5All of the
following are internal control procedures except A.Sarbanes-Oxley
reforms. B.assignment of responsibilities. C.adequate records.
D.internal and external audits. Q-6 Ryan Company had the following
information in 2014. Accounts receivable 12/31/14. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . $8,000 Allowance for uncollectible account

12/31/14 (before adjustment). . . . . . . 700 Credit sales during 2014. . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000 Cash sales during
2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000
Collections from customers on account during 2014. . . . . . . . . . . . . . . .
. . 45,000 Uncollectible accounts are determined by the percent-of-
sales method to be 4% of credit sales. How much is uncollectible-
account expense for 2014? Q-7 Which of the following assets are not
included in "cash equivalents" in a typical balance sheet? A.Time
deposits B.Certain very low-risk equity securities C.Foreign
government securities D.U.S. government securities E.All of the above
might be included in "cash equivalents." Q-8 Net sales total
$584,000. Beginning and ending accounts receivable are $46,000 and
$50,000, respectively. Calculate days' sales in receivables. Q-9 Tennis
Academy held investments in trading securities with a fair value of
$50,000 at December 31, 2014. These investments cost Fairway Pro
Fairway Pro 45,000 on January 1, 2014 What is the appropriate
amount for Fairway Pro Fairway Pro to report for these investments
on the December 31, 2014 balance sheet? Q-10 Requiring that an
employee with no access to cash do the accounting is an example of
which characteristic of internal control? A.Competent and reliable
personnel B.Assignment of responsibility C.Monitoring of controls
D.Separation of duties
==============================================
ACCT 504 Week 5 Case Study 2 Internal Control - LJB
Company (Devry)
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Case Study 2 - Internal Control- Due by Sunday of week 5
LJB Company, a local distributor, has asked your accounting firm to
evaluate their system of internal controls because they are planning
to go public in the future. The President wants to be aware of any new
regulations required of his company if they go public so he met with a
colleague of yours at a local restaurant. The President of the
company explained the current system of internal controls to your
colleague. Your colleague has since been promoted to a tax position
so she has passed on the information below so you can generate
recommendations for the partner at your accounting firm to share
with the President of LJB Company.
Since LJB Company is a relatively lean organization, they have a lot
of faith in their long-term employees. They have one accountant who
serves as Treasurer and Controller which streamlines many of their
processes. In this dual role, he purchases all of the supplies and pays
for these purchases. He also receives the checks and completes the
monthly bank reconciliation. The accountant is so busy that the
company handles petty cash a bit differently. All employees have
access to the petty cash in a desk drawer and are asked to only place
a note if they use any of the cash.
The accountant has recently started using pre-numbered invoices and
wants to buy an indelible ink machine to print their checks. The
President is waiting to hear from you if this is a necessary purchase
before authorizing.
On payday, the checks are picked up by the accountant and left in his
office for pick-up. Before he leaves for the weekend, he will move the
checks into a safe in his office.
The President is still quite embarrassed because he had to fire one of
his employees for viewing pornography on a company computer. He
later found out this individual was a convicted felon who served time
for molesting children. The company had a hard time getting the
employee to admit it was him because the company does not assign
individual passwords. The President expressed his frustration
because both he and the accountant both interview and approve all of
the new hires.
Required:

Based on the above information, prepare a Word document to address
the following:
Inform the President of any new internal control requirements if the
company decides to go public. (7 points) Advise the President of what
the company is doing right (they are doing some things well) and also
recommend to the President whether or not they should buy the
indelible ink machine. When you advise the President, please be sure
to reference the applicable internal control principle that applies. (13
points) Advise the President of what the company is doing wrong
(they are definitely doing some things poorly). Please be sure to
include the internal control principle that is being violated along with
a recommendation for improvement. (20 points)
You must prepare a formal report for the partner to distribute to the
President so no abbreviations or short-hand answers. You also must
cite your references. At a minimum, your textbook should be cited.
Below is a grading rubric for this assignment.
Category
Points
Description
Understanding
10
Demonstrate a strong grasp of the problem at hand. Demonstrate
understanding of how the course concepts apply to the problem.
Analysis
30
Apply original thought to solving the business problem. Apply
concepts from the course material correctly toward solving the
business problem.
Execution
10
Write your answer clearly and succinctly using strong organization
and proper grammar. Use citations correctly.
Total
50
A quality paper will meet or exceed all of the above requirements.
Best Practices
The following are best practices in preparing this paper.

Cover Page: Include whom you prepared the paper for, who prepared
it, and the date. Table of Contents: List the main ideas and sections of
the paper and the pages where they are located. Illustrations should
be included separately. Introduction: Use a header on your paper.
This will indicate that you are introducing the paper.
The purpose of an introduction or opening is to introduce the subject
and why the subject is important; preview the main ideas and the
order in which they will be covered; and establish the tone of the
document.
Include in the introduction a reason for the audience to read the
paper. Also include an overview of what you will cover and the
importance of the material. (This should include or introduce the
questions you are asked to answer in each assignment.)
Body of the Report: Use a header with the name of the case study. An
example is, "The Development of Hotel X: A World Class Resort."
Proceed to break out the main ideas: State the main ideas, the major
points of each idea, and provide evidence. Show some type of
division, such as separate, labeled sections; separate groups of
paragraphs; or headers. Include the information you found during
your research and investigation. Summary and Conclusion:
Summarizing is similar to paraphrasing but presents the gist of the
material in fewer words than the original. An effective summary
identifies the main ideas and the major support points from the body
of the report; minor details are left out. Summarize the benefits of the
ideas and how they effect the subject. Work Cited: Use the citation
format specified in the Syllabus.
=========================================
ACCT 504 Week 5 Course Project Draft Spreadsheet (Devry)
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ACCT 504 Week 5 Course Project Draft Spreadsheet (Devry)

=========================================
ACCT 504 Week 5 Homework (E7-15A, E7-19A, E8-20A, E9-
23A, E9-29A)
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The units-of-production method tracks the wear and tear on the van
most closely. Requirement 3. Which method would Tasteful's prefer
to use for income tax purposes? Explain in detail why Tasteful's
prefers this method. For income tax purposes, Tasteful's would prefer
the double-declining-balance method because it provides the most
depreciation, and thus, the largest tax deductions in the early life of
the asset. E8-20A Corp. purchased 10, $1,000, 77% bonds of Power
Source Corporation when the market rate of interest was 12%.
Interest is paid semiannually on the bonds, and the bonds will mature
in ten years. Using the PV function in Excel Superscript ®Excel®,
compute the price Haygood paid (the present value) on the bond
investment. (Assume that all payments of interest and principal occur
at the end of the period. Round your answer to the nearest cent.) E9-
23A Assume that Jasper Electronics completed these selected
transactions during March 2014: a. Sales of $2,100,000 are subject to
estimated warranty cost of 2%. The estimated warranty payable at
the beginning of the year was $34,000, and warranty payments for
the year totaled $57,000. b. On March 1, Jasper Electronics signed a
45,000 note payable that requires annual payments of $9,000 plus
4% interest on the unpaid balance each March 2. c. Music For You,

Inc., a chain of music stores, ordered $135,000 worth of CD players.
With its order, Music For You, Inc., sent a check for $135,000 in
advance, and Jasper shipped $80,000 of the goods. Jasper will ship
the remainder of the goods on April 3, 2014. d. The March Payroll of
$260,000 is subject to employee withheld income tax of 30,000 and
FICA tax of 7.65%. On March 31, Jasper pays employees their take-
home pay and accrues all tax amounts. 1. Report these items on
Jasper Electronics' balance sheet at March 31, 2014. E9-29A
Companies that operate in different industries may have very
different financial ratio values. These differences may grow even
wider when we compare companies located in different countries.
(Click the icon to view the financial statements.) Requirement 1
Compare three leading companies on their current ratio, debt ratio,
leverage ratio, and times-interest-earned ratio. Compute the ratios
for Company BB, Company NN, and Company QQ. Based on your
computed ratio values, which company looks the least risky? Begin by
computing the ratios. Start by selecting the formula for the current
ratio. Then calculate the current ratios for Company BB, NN, and QQ
but that can be solved using Excel file) E 7-15A Potvin Self Storage
purchased land, paying $175,000 cash as a down payment and
signing a $185,000 note payable for the balance. Potvin also had to
pay delinquent property tax of $5,500, title insurance costing $3,000,
and $2,000 to level the land and remove an unwanted building. The
company paid $55,000 to add soil for the foundation and then
constructed an office building at a cost of $1100,000. It also paid
$47,000 for a fence around the property, $16,000 for the company
sign near the property entrance, and $10,000 for lighting of the
grounds. Requirement 1. What is the capitalized cost of each of
Potvin's land, land improvements, and building? 2. cost of land

improvement 3. Cost of building E 7-19A Tasteful's Pizza bought a
used Toyota delivery van on January 2, 2014, for $18,000. The van
was expected to remain in service for four years left parenthesis
(41,750 miles). At the end of its useful life, Tasteful's officials
estimated that the van's residual value would be $1,300. The van
traveled 13,000 miles the first year, 11,250 miles the second year,
10,250 miles the third year, and 7,250 miles in the fourth year.
Requirements 1. Prepare a schedule of depreciation expense per year
for the van under the three depreciation methods. 2. Which method
best tracks the wear and tear on the van? 3. Which method would
Tasteful's prefer to use for income tax purposes? Explain in detail why
Tasteful's prefers this method. Prepare a schedule of depreciation
expense per year for the van under the three depreciation methods
Requirement 2. Which method best tracks the wear and tear on the
van?
==============================================
ACCT 504 Week 6 Case Study 3 - Cash Budgeting - LBJ
Company (Devry)
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ACCT504 Case Study 3 on Cash Budgeting
The cash budget was covered during Week 4 when we covered TCO D
and you read Chapter 7. There is also a practice case study to work
on. Your Professor will provide the solution to the practice case study
at the end of Week 5. This case study should be uploaded by 11:59PM
Mountain time of the Sunday ending Week 6 to the Week 6
Assignment Dropbox. You are encouraged to use the Excel template
file provided in Doc Sharing.

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

ACCT 504 Week 6 Homework (E10-19A, E10-25A, E12-16A,
E12-20A)
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This Tutorial contains Excel Files which can be used to solve for any values
(your Question may have different company name or values, but that can
be solved using Excel file)E10-19A Army Navy Sporting Goods is
authorized to issue 10,000 shares of common stock. During a two-month
period, Army Navy completed these stock-issuance transactions: Apr 23
Issued 3,000 shares of $1.00 par common stock for cash of $13.00 per
share. May 12 Receivedinventory with a market value of $20,000 and
equipment with market value of $39,000 for 3,600 shares of the $1.00 par
common stock.Requirements 1. Journalize the transactions. 2. Prepare the
stockholders' equity section of Army Navy Sporting Goods' balance sheet
for the transactions given in this exercise.RetainedEarnings has a
balance of $45,000. E10-25A (similar to) Question Help Ontario
Manufacturing, Inc., reported the following at December 31, 2014 and
December 31, 2015: Stockholders' Equity Preferred stock, cumulative,
$1.00 par, 12%, 45,000 shares issued$45,000 Common stock, $0.60 par,
9,070,000 shares issued5,442,000 Ontario Manufacturing has paid all
preferreddividends through 2011 Requirement 1. Compute the total
amounts of dividends to both preferredand common stockholders for
2014 and 2015 if total dividends are $30,000 in 2014 and $45,000 in 2015.
Begin with 2014. Compute the total amounts of dividends to both
preferredand common stockholders for 2014 if total dividends are
$30,000. E12-16A Donnahoo Investments specializes in low-risk
government bonds. Identify each of Donnahoo's transactions as operating

(O), investing(I), financing (F), noncash investing and financing (NIF), or a
transaction that is not reported on the statement of cash flows (N).
Indicate whether each item increases (+) or decreases a. Cash sale of land
b. Issuance of long-term note payable in exchange for cash c. Depreciation
of equipment d. Purchase of treasury stock e. Issuance of common stock
for cash f. Increase in accounts payable g. Net income h. Payment of cash
dividend i. Decrease in accrued liabilities j.Loss on sale of land k.
Acquisition of building by issuance of notes payable l. Payment of long-
term debt m. Acquisition of building by issuance of common stock n.
Decrease in accounts receivable o. Decrease in inventory p. Increase in
prepaid expenses E12-20A The income statement and additional data of
Newton Travel Products, Inc., follow: Requirements 1. Prepare Newton
Travel Products's statement of cash flows for the year ended December
31, 2014, using the indirect method. 2. Evaluate Noel' cash flows for the
year. In your evaluation, mention all three categories of cash flows and
give the reason for your evaluation. Requirement 1. Prepare Newton's
statement of cash flows for the year ended December 31, 2014, using the
indirect method. Start by completing the cash flows from operating
activities.Then complete each section of the statement of cash flows,
including the noncash investing and financing activities.( Newton Travel
Products, Inc. Income Statement Year Ended December 31, 2014
Requirement 2. Evaluate Newton's cash flows for the year. In your
evaluation, mention all three categories of cash flows and give the reason
for your evaluation. Newton's .
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ACCT 504 Week 7 Course Project JCP Kohls (Devry)
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ACCT 504 Week 7 Course Project JCP Kohls (Devry)
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ACCT 504 Week 8 Course Project Celgene & Gilead Sciences
Presentation (12 Slides)
www.acct504mart.com
Group Course Project: A Financial Statement Analysis A Comparative
Analysis of Celgene Corporation and Gilead Sciences, Inc.
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