compute bullock amp masters rsquo a acid test ratio and b days rsquo sales in averag 580331

Aug 29, 2021 | Uncategorized

(Learning Objective 5: Using the acid test ratio and days’ sales in receivables to evaluate a company) Bullock & Masters, Inc., reported the following items at December 31, 20X6 (amounts in millions):

Compute Bullock & Masters’ (a) acid test ratio and (b) days’ sales in average receivables for 20X6. Evaluate each ratio value as strong or weak. Bullock & Masters sells on terms of net 30 days.

compute best buy rsquo s average collection period during 2006 580332

Aug 29, 2021 | Uncategorized

Best Buy Co., Inc., the electronics and appliance chain, reported these figures in millions of dollars:

Required

1. Compute Best Buy’s average collection period during 2006.

2. Is Best Buy’s collection period long or short? Hewlett Packard takes 41 days to collect its average level of receivables. FedEx, the overnight shipper, takes 38 days. What causes Best Buy’s collection period to be so different? (Challenge)

should ripley shirt company start selling on bankcards show the computations of net 580333

Aug 29, 2021 | Uncategorized

Ripley Shirt Company sells on credit and manages its own receivables. Average experience for the past 3 years has been as follows:

John Ripley, the owner, is considering whether to accept bankcards (VISA, MasterCard). Ripley expects total sales to increase by 10% but cash sales to remain unchanged. If Ripley switches to bankcards, the business can save $8,000 on other expenses, but VISA and MasterCard charge 2% on bankcard sales. Ripley figures that the increase in sales will be due to the increased volume of bankcard sales.

Required

Should Ripley Shirt Company start selling on bankcards? Show the computations of net income under the present plan and under the bankcard plan. (Challenge)

based on past experience snead estimates that the percentage of accounts that will p 580338

Aug 29, 2021 | Uncategorized

Snead Company uses the aging method to adjust the allowance for uncollectible accounts at the end of the period. At December 31, 20X1, the balance of accounts receivable is $210,000 and the allowance for uncollectible accounts has a credit balance of $3,000 (before adjustment). An analysis of accounts receivable produced the following age groups:

Based on past experience, Snead estimates that the percentage of accounts that will prove to be uncollectible within the 3 age groups is 2%, 8%, and 20%, respectively. Based on these facts, the adjusting entry for uncollectible accounts should be made in the amount of

a. $3,000.

b. $6,000.

c. $9,000.

d. $13,000.

v based on your analysis you should be able to readily identify the effects of certa 580352

Aug 29, 2021 | Uncategorized

Computer Giant, Inc., makes all sales on account. Susan Phillips, accountant for the company, receives and opens incoming mail. Company procedure requires Phillips to separate customer checks from the remittance slips, which list the amounts that Phillips posts as credits to customer accounts receivable. Phillips deposits the checks in the bank. At the end of each day she computes the day’s total amount posted to customer accounts and matches this total to the bank deposit slip. This procedure ensures that all receipts are deposited in the bank.

Required

As a consultant hired by Computer Giant, Inc., write a memo to management evaluating the company’s internal controls over cash receipts from customers. If the system is effective, identify its strong features. If the system has flaws, propose a way to strengthen the controls.

prepare t accounts for accounts receivable and allowance for uncollectibles and inse 580353

Aug 29, 2021 | Uncategorized

This problem takes you through the accounting for sales, receivables, and uncollectibles for FedEx Corporation, the overnight shipper. By selling on credit, FedEx cannot expect to collect 100% of its accounts receivable. At May 31, 20X6, and 20X5, respectively, FedEx reported the following on its balance sheet (adapted and in millions of dollars):

During the year ended May 31, 20X6, FedEx earned service revenue and collected cash from customers. Assume uncollectible account expense for the year was 1% of service revenue and that FedEx wrote off uncollectible receivables. At year end FedEx ended with the foregoing May 31, 20X6, balances.

Required

1. Prepare T accounts for Accounts Receivable and Allowance for Uncollectibles and insert the May 31, 20X5, balances as given.

2. Journalize the following assumed transactions of FedEx, Inc., for the year ended May 31, 20X6 (explanations are not required).

a. Service revenue on account, $32,300 million.

b. Collections on account, $31,758 million.

c. Uncollectible account expense, 1% of service revenue.

d. Write offs of uncollectible accounts receivable, $304 million.

3. Post your entries to the Accounts Receivable and the Allowance for Uncollectibles T accounts.

4. Compute the ending balances for the two T accounts and compare your balances to the actual May 31, 20X6, amounts. They should be the same.

5. Show what FedEx would report on its income statement for the year ended May 31, 20X6.

record the transactions in the journal explanations are not required 580354

Aug 29, 2021 | Uncategorized

The

September 30, 20X7, records of First Data Communications include these accounts:

During the year, First Data estimates doubtful account expense at 1% of credit sales. At year end, the company ages its receivables and adjusts the balance in Allowance for Doubtful Accounts to correspond to the aging schedule. During the last quarter of 20X7, the company completed the following selected transactions:

Required

1. Record the transactions in the journal. Explanations are not required.

2. Prepare a T account for Allowance for Doubtful Accounts and post to that account.

3. Show how First Data will report its accounts receivable on a comparative balance sheet for 20X7 and 20X6. At December 31, 20X6, the company’s Accounts Receivable balance was $212,000 and the Allowance for Doubtful

Accounts stood at $4,200.

determine pappadeaux rsquo s correct net income for 20×7 580355

Aug 29, 2021 | Uncategorized

Assume Deloitte & Touche, the accounting firm, advises Pappadeaux Seafood that Pappadeaux’s financial statements must be changed to conform to GAAP. At December 31, 20X7, Pappadeaux’s accounts include the following:

Deloitte & Touche advised Pappadeaux that • Cash includes $20,000 that is deposited in a compensating balance account that is tied up until 20X9.

• The market value of the short term trading investments is $17,000. Pappadeaux purchased the investments a couple of weeks ago.

• Pappadeaux has been using the direct write off method to account for uncollectible receivables. During 20X7, Pappadeaux wrote off bad receivables of $7,000. Deloitte & Touche determines that uncollectible account expense should be 2.5% of sales revenue, which totaled $600,000 in 20X7. The aging of Pappadeaux’s receivables at year end indicated uncollectibles of $5,000.

• Pappadeaux reported net income of $92,000 in 20X7.

Required

1. Restate Pappadeaux’s current accounts to conform to GAAP. (Challenge)

2. Compute Pappadeaux’s current ratio and acid test ratio both before and after your corrections.

3. Determine Pappadeaux’s correct net income for 20X7. (Challenge)

show what kraft will report on its comparative classified balance sheet at december 580356

Aug 29, 2021 | Uncategorized

Assume that Kraft Foods, famous for cheese, Jell O, and Planters nuts, completed the following selected transactions.

Required

1. Record the transactions in Kraft’s journal. Round interest amounts to the nearest dollar. Explanations are not required.

2. Show what Kraft will report on its comparative classified balance sheet at December 31, 20X8, and December 31, 20X7.

write a memo explaining to top management which ratio values improved from 2008 to 2 580357

Aug 29, 2021 | Uncategorized

The comparative financial statements of Sunset Pools, Inc., for 2009, 2008, and 2007 included the following selected data.

Required

1. Compute these ratios for 2009 and 2008:

a. Current ratio b. Acid test ratio c. Days’ sales in receivables

2. Write a memo explaining to top management which ratio values improved from 2008 to 2009 and which ratio values deteriorated. State whether the overall trend is favorable or unfavorable and give the reason for your evaluation.

journalize the foregoing transactions and post to the t accounts 580358

Aug 29, 2021 | Uncategorized

During the fourth quarter of 20X8, the operations of Norris Carpet Center generated excess cash, which the company invested in securities, as follows:

Required

1. Prepare T accounts for Cash, balance of $85,000; Short Term Investment; Dividend Revenue; and Unrealized Gain on Investment (or Unrealized Loss on Investment).

2. Journalize the foregoing transactions and post to the T accounts.

3. Show how to report the short term investment on Norris’s balance sheet at December 31.

4. Show how to report whatever should appear on Norris’s income statement.

5. On January 6, 20X9, Norris sold the trading investment for $29,000. Journalize the sale.

record the transactions in the journal explanations are not required 580361

Aug 29, 2021 | Uncategorized

The September 30, 20X4, records of Synetics Computers include these accounts:

At year end, Synetics ages its receivables and adjusts the balance in Allowance for Doubtful Accounts to correspond to the aging schedule. During the last quarter of 20X4, Synetics completed the following selected transactions:

Required

1. Record the transactions in the journal. Explanations are not required.

2. Prepare a T account for Allowance for Doubtful Accounts and post to that account.

3. Show how Synetics Computers will report its accounts receivable in a comparative balance sheet for 20X4 and 20X3. Use the reporting format on page 272. At December 31, 20X3, the company’s Accounts Receivable balance was $111,000 and the Allowance for Doubtful Accounts stood at $3,700.

restate all current accounts to conform to gaap 580362

Aug 29, 2021 | Uncategorized

The top managers of Hobby Horse Stores seek the counsel of Ernst & Young, the accounting firm, and learn that Hobby Horse must make some changes to bring its financial statements into conformity with generally accepted accounting principles (GAAP). At December 31, 20X1, Hobby Horse’s accounts include the following:

Assume Ernst & Young drew the following conclusions:

• Cash includes $6,000 that is deposited in a compensating balance account that will be tied up until 20X4.

• The market value of the short term trading investments is $32,000. Hobby Horse purchased the investments in early December.

• Hobby Horse has been using the direct write off method to account for uncollectibles. During 20X1, the company wrote off bad receivables of $7,000. Ernst & Young determines that uncollectible account expense should be 3% of sales, which for 20X1 totaled $400,000. An aging of receivables at year end indicated uncollectibles of $5,000.

• Hobby Horse reported net income of $81,000 for 20X1.

Required

1. Restate all current accounts to conform to GAAP. (Challenge)

2. Compute Hobby Horse’s current ratio and acid test ratio both before and after your corrections.

3. Determine Hobby Horse’s correct net income for 20X1. (Challenge)

show what lilley amp taylor will report on its comparative classified balance sheet 580363

Aug 29, 2021 | Uncategorized

Lilley & Taylor, CPAs completed the following selected transactions:

Required

1. Record the transactions in Lilley & Taylor’s journal. Round all amounts to the nearest dollar. Explanations are not required.

2. Show what Lilley & Taylor will report on its comparative classified balance sheet at December 31, 20X8, and December 31, 20X7.

compute these ratios for 20×3 and 20×2 580364

Aug 29, 2021 | Uncategorized

The comparative financial statements of New World Piano Company for 20X3,

20X2, and 20X1 included the following selected data:

Required

1. Compute these ratios for 20X3 and 20X2:

a. Current ratio b. Acid test ratio c. Days’ sales in receivables

2. Write a memo explaining to top management which ratio values showed improvement from 20X2 to 20X3 and which ratio values deteriorated. State whether the overall trend is favorable or unfavorable for the company and give the reason for your evaluation.

prepare a summary income statement for clearview cablevision inc for the year ended 580365

Aug 29, 2021 | Uncategorized

A fire during 2008 destroyed most of the accounting records of Clearview Cablevision, Inc. The only accounting data for 2008 that Clearview can come up with are the following balances at December 31, 2008. The general manager also knows that bad debt expense should be 5% of service revenue.

Prepare a summary income statement for Clearview Cablevision, Inc., for the year ended December 31, 2008. The stockholders want to know whether the company was profitable in 2008. Use a T account for Accounts Receivable to compute service revenue.

v based on your analysis you should be able to readily identify the effects of certa 580366

Aug 29, 2021 | Uncategorized

Suppose you work in the loan department of Superior Bank. Dean Young, owner of Dean Young Beauty Aids, has come to you seeking a loan for $500,000 to expand operations. Young proposes to use accounts receivable as collateral for the loan and has provided you with the following information from the company’s most recent financial statements:

Required

Analyze the trends of sales, days’ sales in receivables, and cash collections from customers for 20X7 and 20X6. Would you make the loan to Young? Support you decision with facts and figures. Sunnyvale Loan Company is in the consumer loan business. Sunnyvale borrows from banks and loans out the money at higher interest rates. Sunnyvale’s bank requires Sunnyvale to submit quarterly financial statements to keep its line of credit. Sunnyvale’s main asset is Notes Receivable. Therefore, Uncollectible Account Expense and Allowance for Uncollectible Accounts are important accounts for the company. Kimberly Burnham, the company’s owner, prefers for net income to increase in smooth pattern, rather than increase in some periods and decrease in other periods. To report smoothly increasing net income, Burnham underestimates Uncollectible Account Expense in some periods. In other periods, Burnham overestimates the expense. She reasons that the income overstatements roughly offset the income understatements over time.

Required

Is Sunnyvale Loans’ practice of smoothing income ethical? Why or why not?

if necessary modify the loan request or the bank rsquo s reply in order to reach agr 580371

Aug 29, 2021 | Uncategorized

Jillian Michaels and Dee Childress worked for several years as sales representatives for Xerox Corporation. During this time, they became close friends as they acquired expertise with the company’s full range of copier equipment. Now they see an opportunity to put their expertise to work and fulfill lifelong desires to establish their own business. Navarro Community College, located in their city, is expanding, and there is no copy center within 5 miles of the campus. Business in the area is booming, office buildings and apartments are springing up, and the population of the Navarro section of the city is growing. Michaels and Childress want to open a copy center, similar to FedEx Kinko’s, near the Navarro campus. A small shopping center across the street from the college has a vacancy that would fit their needs. Michaels and Childress each have $35,000 to invest in the business, but they forecast the need for $200,000 to renovate the store and purchase some of the equipment they will need. Xerox Corporation will lease 2 large copiers to them at a total monthly rental of $6,000. With enough cash to see them through the first 6 months of operation, they are confident they can make the business succeed. The two women work very well together, and both have excellent credit ratings. Michaels and Childress must borrow $130,000 to start the business, advertise its opening, and keep it running for its first 6 months.

Required

Assume 2 roles: (1) Michaels and Childress, the partners who will own Navarro Copy Center; and (2) loan officers at Synergy Bank.

1. As a group, visit a copy center to familiarize yourselves with its operations. If possible, interview the manager or another employee. Then write a loan request that Michaels and Childress will submit to Synergy Bank with the intent of borrowing $130,000 to be paid back over 3 years. The loan will be a personal loan to the partnership of Michaels and Childress, not to Navarro Copy Center. The request should specify all the details of Michaels’ and Childress’s plan that will motivate the bank to grant the loan. Include a budget for each of the first 6 months of operation of the proposed copy center.

2. As a group, interview a loan officer in a bank. Write Synergy Bank’s reply to the loan request. Specify all the details that the bank should require as conditions for making the loan.

3. If necessary, modify the loan request or the bank’s reply in order to reach agreement between the 2 parties.

report inventory on the balance sheet at the most current cost 580372

Aug 29, 2021 | Uncategorized

Suppose a division of Texas Instruments that handles computer microchips has these inventory records for January 20X9:

Company accounting records show sales of 310 units for revenue of $6,770. Operating expense for January was $1,900.

Required

1. Prepare the January income statement, showing amounts for FIFO, LIFO, and average cost. Label the bottom line “Operating income.” Round average cost per unit to 3 decimal places and all other figures to whole dollar amounts. Show your computations.

2. Suppose you are the financial vice president of Texas Instruments. Which inventory method will you use if your motive is to

a. Minimize income taxes?

b. Report the highest operating income?

c. Report operating income between the extremes of FIFO and LIFO?

d. Report inventory on the balance sheet at the most current cost?

e. Attain the best measure of net income for the income statement?

State the reason for each of your answers.

prepare the bank reconciliation of navajo products at september 30 20×5 2 describe h 580278

Aug 29, 2021 | Uncategorized

The cash data of Navajo Products for September 20X5 follow:

On September 30, 20X5, Navajo received this bank statement:

Additional data for the bank reconciliation:

a. The EFT deposit was for monthly rent revenue. The EFT deduction was for monthly insurance expense.

b. The NSF check was received from a customer.

c. The correct amount of check number 1419, a payment on account, is $4,216. (The Navajo accountant mistakenly recorded the check for $4,126.)

Required

1. Prepare the bank reconciliation of Navajo Products at September 30, 20X5. 2. Describe how a bank account and the bank reconciliation help managers control a firm’s cash.

journalize the transactions needed to update the cash account include an explanation 580279

Aug 29, 2021 | Uncategorized

The January 31 bank statement of Bed & Bath Accessories has just arrived from First National Bank. To prepare the Bed & Bath bank reconciliation, you gather the following data:

a. The January 31 bank balance is $8,400.82.

b. Bed & Bath’s Cash account shows a balance of $7,391.55 on January 31.

c. The following Bed & Bath checks are outstanding at January 31:

d. The bank statement includes 2 special deposits: $899.14, which is the amount of dividend revenue the bank collected from IBM on behalf of Bed & Bath, and $16.86, the interest revenue Bed & Bath earned on its bank balance during January.

e. The bank statement lists a $6.25 bank service charge.

f. On January 31 the Bed & Bath treasurer deposited $381.14, which will appear on the February bank statement.

g. The bank statement includes a $410.00 deduction for a check drawn by Bonjovi Music Company.

h. The bank statement includes 2 charges for returned checks from customers. One is a nonsufficient funds check in the amount of $67.50 received from a customer. The other is a $195.03 check received from another customer. It was returned by the customer’s bank with the imprint “Unauthorized Signature.”

i. A few customers pay monthly bills by EFT. The January bank statement lists an EFT deposit for sales revenue of $200.23.

Required

1. Prepare the bank reconciliation for Bed & Bath Accessories at January 31.

2. Journalize the transactions needed to update the Cash account. Include an explanation for each entry.

you are a new employee of nordhaus energy co write a memo to the company president i 580280

Aug 29, 2021 | Uncategorized

Nordhaus Energy Co. makes all sales on credit. Cash receipts arrive by mail, usually within 30 days of the sale. Dan Webster opens envelopes and separates the checks from the accompanying remittance advices. Webster forwards the checks to another employee, who makes the daily bank deposit but has no access to the accounting records. Webster sends the remittance advices, which show the amount of cash received, to the accounting department for entry in the accounts receivable. Webster’s only other duty is to grant allowances to customers. (An allowance decreases the amount that the customer must pay.) When Webster receives a customer check for less than the full amount of the invoice, he records the allowance in the accounting records and forwards the document to the accounting department.

Required

You are a new employee of Nordhaus Energy Co. Write a memo to the company president identifying the internal control weakness in this situation. Explain how to correct the weakness.

does the company rsquo s cash budget for 20×6 suggest that valero is growing holding 580281

Aug 29, 2021 | Uncategorized

Melissa Becker is chief financial officer of Valero Technology, and is responsible for the company’s budgeting process. Becker’s staff is preparing the Valero budget for 20X6. The starting point is the statement of cash flows of the current year, 20X5, which follows:

Required

1. Prepare the Valero Technology cash budget for 20X6. Date the budget simply “20X6” and denote the beginning and ending cash balances as “beginning” and “ending.” Assume the company expects 20X6 to be the same as 20X5, but with the following changes:

a. In 20X6, the company expects a 10% increase in collections from customers, a 5% increase in purchases of inventory, and a doubling of additions to property and equipment.

b. Operating expenses will drop by $2,000.

c. There will be no sales of investments in 20X6.

d. Becker plans to end the year with a cash balance of $3,000.

2. Does the company’s cash budget for 20X6 suggest that Valero is growing, holding steady, or decreasing in size? (Challenge)

benz also asks you to evaluate the internal controls and to recommend any changes ne 580283

Aug 29, 2021 | Uncategorized

Environmentol Concerns, Inc., has poor internal control. Recently, Oscar Benz, the manager, has suspected the bookkeeper of stealing. Details of the business’s cash position at September 30 follow.

a. The Cash account shows a balance of $10,402. This amount includes a September 30 deposit of $3,794 that does not appear on the September 30 bank statement.

b. The September 30 bank statement shows a balance of $8,224. The bank statement lists a $200 bank collection, an $8 service charge, and a $36 NSF check. The accountant has not recorded any of these items.

c. At September 30, the following checks are outstanding:

d. The bookkeeper receives all incoming cash and makes the bank deposits. He also reconciles the monthly bank statement. Here is his September 30 reconciliation:

Required

Benz has requested that you determine whether the bookkeeper has stolen cash from the business and, if so, how much. He also asks you to explain how the bookkeeper attempted to conceal the theft. To make this determination, you perform a proper bank reconciliation. There are no bank or book errors. Benz also asks you to evaluate the internal controls and to recommend any changes needed to improve them.

identify 2 parties other than hobbs who can be harmed by this theft in what ways can 580284

Aug 29, 2021 | Uncategorized

This case is based on an actual situation experienced by one of the authors. Gilead Construction, headquartered in Topeka, Kansas, built a motel in Kansas City. The construction foreman, Slim Pickins, hired the workers for the project. Pickins had his workers fill out the necessary tax forms and sent the employment documents to the home office. Work on the motel began on May 1 and ended in December. Each Thursday evening, Pickins filled out a time card that listed the hours worked by each employee during the 5 day work week ended at 5 p.m. on Thursday. Pickins faxed the time sheets to the home office, which prepared the payroll checks on Friday morning. Pickins drove to the home office after lunch on Friday, picked up the payroll checks, and returned to the construction site. At 5 p.m. on Friday, Pickins distributed the paychecks to the workers.

a. Describe in detail the internal control weakness in this situation. Specify what negative result could occur because of the internal control weakness.

b. Describe what you would do to correct the internal control weakness.

Kurt Hobbs owns apartment complexes in Columbus, Ohio. Each property has a manager who collects rent, arranges for repairs, and runs advertisements in the local newspaper. The property managers transfer cash to Hobbs monthly and prepare their own bank reconciliations. The manager of one property has been stealing large sums of money. To cover the theft, he understates the amount of the outstanding checks on the monthly bank reconciliation. As a result, each monthly bank reconciliation appears to balance. However, the balance sheet reports more cash than Hobbs actually has in the bank. While negotiating the sale of this property, Hobbs shows the balance sheet to prospective investors.

Required

1. Identify 2 parties other than Hobbs who can be harmed by this theft. In what ways can they be harmed?

2. Discuss the role accounting plays in this situation.

describe all documents needed to account for and safeguard the business rsquo s asse 580285

Aug 29, 2021 | Uncategorized

Suppose YUM’s year end bank statement, dated December 30, 2006, has just arrived at company headquarters. Further assume the bank statement shows YUM’s cash balance at $324 million and that YUM’s Cash and Cash Equivalents account has a balance of $321 million on the books.

1. You must determine how much to report for cash and cash equivalents on the December 30, 2006, balance sheet. Suppose you uncover these reconciling items (all amounts are assumed and in millions):

a. Interest earned on bank balance, $1.

b. Outstanding checks, $8.

c. Bank collections of various items, $2.

d. Deposits in transit, $3.

e. Book error YUM overstated cash by $5.

Prepare a bank reconciliation to show how YUM arrived at the correct amount of cash and cash equivalents to report on its December 30, 2006, balance sheet. Prove that your answer is the actual amount YUM reported. Journal entries are not required.

2. Study YUM Brands’ Management Responsibility for Financial Statements and indicate how that report links to specific items of internal control discussed in this chapter. (Challenge) (Learning Objective 1, 5: Analyzing internal control and cash flows) Refer to the Pier 1 Imports financial statements in Appendix B at the end of this book.

1. Focus on Cash, Including Temporary Investments (this is the same as cash and cash equivalents). Why did cash change during 2006? The statement of cash flows holds the answer to this question. Analyze the 7 largest individual items on the statement of cash flows (not the summary subtotals such as “net cash provided by operating activities”). For each of the 7 individual items, state how Pier 1’s action affected cash. Show amounts in millions and round to the nearest 1/10 of $1 million. (Challenge)

2. Pier 1’s Report of Management describes the company’s internal controls. Show how the management report corresponds to 2 of the 4 elements in the definition of internal control. (Challenge) You are promoting a rock concert in your area. Assume you organize as a corporation, with each member of your group purchasing $10,000 of the corporation’s stock. Therefore, each of you is risking some hard earned money on this venture. Assume it is April 1 and that the concert will be performed on June 30. Your promotional activities begin immediately, and ticket sales start on May 1. You expect to sell all the firm’s assets, pay all the liabilities, and distribute all remaining cash to the group members by July 31.

Required

Write an internal control manual that will help to safeguard the assets of the business. The manual should address the following aspects of internal control:

1. Assign responsibilities among the group members.

2. Authorize individuals, including group members and any outsiders that you need to hire to perform specific jobs.

3. Separate duties among the group and any employees.

4. Describe all documents needed to account for and safeguard the business’s assets.

how much of the december 31 20×2 balance of accounts receivables did str expect to 580289

Aug 29, 2021 | Uncategorized

Superior Technical Resources’ (STR’s) balance sheet at December 31, 20X2, reported:

STR uses both the percent of sales and the aging approaches to account for uncollectible receivables.

Required

1. How much of the December 31, 20X2, balance of accounts receivables did STR expect to collect? Stated differently, what was the net realizable value of STR’s receivables?

2. Journalize, without explanations, 20X3 entries for STR:

a. Estimated doubtful account expense of $40 million, based on the percent of sales method, all during the year.

b. Write offs of uncollectible accounts receivable totaling $58 million. Prepare a T account for Allowance for Doubtful Accounts and post to this account. Show its unadjusted balance at December 31, 20X3.

c. December 31, 20X3, aging of receivables, which indicates that $47 million of the total receivables of $409 million is uncollectible at year end. Post to Allowance for Doubtful Accounts, and show its adjusted balance at December 31, 20X3.

3. Show how STR’s receivables and the related allowance will appear on the December 31, 20X3, balance sheet.

4. Show what STR’s income statement will report for the foregoing transactions.

what should appear on the penick income statement for the year ended december 31 200 580291

Aug 29, 2021 | Uncategorized

Return to Harvey Penick Golf Academy in question 1. What should appear on the Penick income statement for the year ended December 31, 2008, for the trading investments?

a. $50,000

b. $55,000

c. $5,000 unrealized gain

d. Cannot be determined from the data given

Use the following information. Neal Company had the following information relating to credit sales in 20X3:

from the following list of accounts calculate the quick ratio 580303

Aug 29, 2021 | Uncategorized

From the following list of accounts, calculate the quick ratio.

a. 2.1

b. 1.3

c. 1.0

d. 1.4

prepare a t account for allowance for uncollectible accounts to show your computatio 580311

Aug 29, 2021 | Uncategorized

Gulig and Durham, a law firm, started 20X8 with accounts receivable of $60,000 and an allowance for uncollectible accounts of $8,000. The 20X8 service revenue on account was $400,000, and cash collections on account totaled $410,000. During 20X8, Gulig & Durham wrote off uncollectible accounts receivable of $7,000. At December 31, 20X8, the aging of accounts receivable indicated that Gulig & Durham will not collect $10,000 of its accounts receivable. Journalize Gulig & Durham’s (a) service revenue, (b) cash collections on account, (c) write offs of uncollectible receivables, and (d) uncollectible account expense for the year. Explanations are not required. Prepare a T account for Allowance for Uncollectible Accounts to show your computation of uncollectible account expense for the year.

what are the ending balances of accounts receivable and allowance for uncollectible 580312

Aug 29, 2021 | Uncategorized

Perform the following accounting for the receivables of Patillo, Brown & Hill, an accounting firm, at December 31, 20X7. Start with the beginning balances for these T accounts: • Accounts Receivable, $80,000 • Allowance for Uncollectible Accounts, $9,000 Post the following 20X7 transactions to the T accounts:

a. Service revenue of $700,000, all on account

b. Collections on account, $720,000

c. Write offs of uncollectible accounts, $7,000

d. Uncollectible account expense (allowance method), $8,000

2. What are the ending balances of Accounts Receivable and Allowance for Uncollectible Accounts?

3. Show how Patillo, Brown & Hill will report accounts receivable on its balance sheet at December 31, 20X7.

compute botany rsquo s acid test ratio at the end of 20×6 round to 2 decimal places 580317

Aug 29, 2021 | Uncategorized

Botany Clothiers reported the following amounts in its 20X6 financial statements. The 20X5 figures are given for comparison.

Required

1. Compute Botany’s acid test ratio at the end of 20X6. Round to 2 decimal places. How does the acid test ratio compare with the industry average of 0.95?

2. Compare Botany’s days’ sales in receivables measure for 20X6 with the company’s credit terms of net 30 days.

how much net income or net loss did victoria earn for the year 580318

Aug 29, 2021 | Uncategorized

Victoria Medical Service reported the following selected items (amounts in thousands):

1. Classify each item as (a) income statement or balance sheet and as (b) debit balance or credit balance.

2. How much net income (or net loss) did Victoria earn for the year?

3. Compute Victoria’s current ratio. Round to 2 decimal places.

what type of investment is this to merrill lynch give the reason for your answer 580319

Aug 29, 2021 | Uncategorized

(Learning Objective 1: Accounting for a trading investment) Merrill Lynch, the investment banking company, often has extra cash to invest. Suppose Merrill Lynch buys 1,000 shares of Microsoft Corporation stock at $55 per share. Assume Merrill Lynch expects to hold the Microsoft stock for 1 month and then sell it. The purchase occurs on December 15, 20X4. At December 31, the market price of a share of Microsoft stock is $63 per share.

Required

1. What type of investment is this to Merrill Lynch? Give the reason for your answer.

2. Record Merrill Lynch’s purchase of the Microsoft stock on December 15 and the adjustment to market value on December 31.

3. Show how Merrill Lynch would report this investment on its balance sheet at December 31 and any gain or loss on its income statement for the year ended December 31, 20X4.

prepare t accounts for cash short term investment dividend revenue unrealized loss o 580321

Aug 29, 2021 | Uncategorized

(Learning Objective 1: Accounting for a trading investment) PepsiCo reports short term investments on its balance sheet. Suppose a division of PepsiCo completed the following short term investment transactions during 20X8:

Required

1. Prepare T accounts for Cash; Short Term Investment; Dividend Revenue; Unrealized Loss on Investment or Unrealized Gain on Investment; and Gain on Sale of Investment. Show the effects of PepsiCo’s investment transactions. Start with a cash balance of $55,000; all the other accounts start at zero.

show how google will report accounts receivable on its october 31 balance sheet 580324

Aug 29, 2021 | Uncategorized

On September 30, Google Party Planners had a $40,000 balance in Accounts Receivable and a $3,000 credit balance in Allowance for Uncollectible Accounts. During October, Google made credit sales of $100,000. October collections on account were $94,000, and write offs of uncollectible receivables totaled $1,700. Uncollectible account expense is estimated as 2% of revenue. Required

1. Journalize sales, collections, write offs of uncollectibles, and uncollectible account expense by the allowance method during October. Explanations are not required.

2. Show the ending balances in Accounts Receivable, Allowance for Uncollectible Accounts, and Net Accounts Receivable at October 31. How much does Google expect to collect?

3. Show how Google will report Accounts Receivable on its October 31 balance sheet.

show how sunset hills clinic will report accounts receivable on its december 31 bala 580326

Aug 29, 2021 | Uncategorized

At December 31, 20X7, before any year end adjustments, the accounts receivable balance of Sunset Hills Clinic is $235,000. The allowance for doubtful accounts has a $7,400 credit balance. Sunset Hills prepares the following aging schedule for accounts receivable:

Required

1. Based on the aging of accounts receivable, is the unadjusted balance of the allowance account adequate? Too high? Too low?

2. Make the entry required by the aging schedule. Prepare a T account for the allowance.

3. Show how Sunset Hills Clinic will report Accounts Receivable on its December 31 balance sheet. Include the 2 accounts that come before receivables on the balance sheet, using assumed amounts.

university travel estimates that 2 of revenues will become uncollectible journalize 580327

Aug 29, 2021 | Uncategorized

University Travel experienced the following revenue and accounts receivable write offs.

University Travel estimates that 2% of revenues will become uncollectible. Journalize service revenue (all on account), bad debt expense, and write offs during March. Include explanations.

record the following note receivable transactions in the journal of town amp country 580328

Aug 29, 2021 | Uncategorized

Record the following note receivable transactions in the journal of Town & Country Realty. How much interest revenue did Town & Country earn this year? Use a 365 day year for interest computations, and round interest amounts to the nearest dollar.

this is from a corporate accounting system subject i just need to review the working 579865

Aug 29, 2021 | Uncategorized

this is from a Corporate accounting system subject.. i just need to review the working as i have the solution.. you guys need to fix whats wrong overall.. the totals doesn’t match in consolidation worksheet plus and others too.. i have submitted the solution and question file..

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300000 240000 125000 100000 21000 16800 470500 356800 28000 384800 440000 55200 240000 100000 16800 28000 55200 440000 30000 21000 9000 56520 56520 35000 35000 8640 6000 14640 4392 2592 1800 70200 70200 6720 2880 9600 2 5520 2760 8280 47000 40016 6984 2095 2095 1955 1955 587 587 35000 35000 4 88100 88100 3800 3800 1140 1140 1820 780 2600 6 22600 22600 68800 68800 40000 40000 60000 25000 9100 94100 1054 1054 17836 17836 17200 17200 9 1140 1140 1113639 1113639 1413500 978300 70200 2233500 88100 4 798000 508300 3800 70200 9600 88100 4 2600 1139600 615500 470000 1093900 22600 22600 6 0 69800 68800 1000 126200 49000 6000 56520 1955 126635 22600 22600 6 0 326100 263800 5520 2 6984 588436 255600 134600 379829 76680 40380 2095 587 780 1140 2880 1800 119288 178920 94220 260541 17836 17836 242705 59120 134320 100000 2592 8640 1054 2760 2 6720 1820 25000 52146 150000 86000 68800 150000 17200 88040 142450 144851 850000 300000 240000 60000 850000 88040 142540 144851 16800 21000 9100 4900 1054 94100 93682 17200 17836 191960 115860 307820 95900 66700 162600 75000 50000 40000 85000 950000 565100 35000 35000 1515100 21900 19400 41300 6900 587 9000 1140 9 28000 4392 2095 39876 2279700 1259600 3235329 276300 104100 380400 15500 7000 22500 40500 40000 500 112100 144200 3800 252500 800000 610800 1410800 901200 601200 30000 47000 1579400 294900 194400 56520 14640 40016 1955 489391 28000 28000 56000 700 1140 1140 9 700 55200 55200 8280 2 8280 440000 440000 0 20000 20000 2279700 1259600 1106639 1106639 3178629 2233500 1413500 1139600 798000 1093900 615500 22600 1000 69800 126635 126200 0 588436 326100 379829 255600 119288 76680 260541 178920 260541 178920 260541 178920 17836 242705 1789…

Attachments:

Assignment ca….xlsx

Assignment Qu….docx

file localhost users rakeshshilpakar desktop hi6007 20assessment 2001 20due 20week 2 580077

Aug 29, 2021 | Uncategorized

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HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION HI6007 Assessment One Business Research Report Proposal: Initial Research Proposal Due Friday Week 06 1000 words worth 10% The initial research proposal will consist of the following SIX (6) items: Identify a business research topic Define the research questions for the identified problem or opportunity Select the appropriate research methodologies and techniques to use for the research project Describe the research process Describe data collection and analysis methods Describe expected research outcomes Material on Research Methods will be presented in class from week 4 to 6. Initial Research Proposal due at the end of Week 6 Here are some questions to help you develop your business research proposal: PROBLEM STATEMENT: What exactly do I want to find out? What is a researchable problem? THEORY, ASSUMPTIONS, BACKGROUND LITERATURE: What does the relevant literature in the field indicate about this problem? VARIABLES AND HYPOTHESES: What will I take as given in the environment i.e. what is the starting point? Which are the independent and which are the dependent variables? OPERATIONAL DEFINITIONS AND MEASUREMENT Does the problem need scoping/simplifying to make it achievable? What and how will the variables be measured? What degree of error in the findings is tolerable?   RESEARCH DESIGN AND METHODOLOGY What is my overall strategy for doing this research? Will this design permit me to answer the research question? What constraints will the approach place on the work?   INSTRUMENTATION/SAMPLING How will I get the data I need to test my hypothesis? What tools or devices will I use to make or record observations? How will I choose the sample? What degree of accuracy or level of confidence can I guarantee?   DATA ANALYSIS What combinations of analytical and statistical process will be applied to the data? Which of these will allow me to accept or reject my hypotheses?   CONCLUSIONS,…

Attachments:

HI6007 Assess….docx

sutton industrial is a diversified industrial cleaner processing co they produce 2 p 580110

Aug 29, 2021 | Uncategorized

Sutton Industrial is a diversified industrial cleaner processing Co. they produce 2 products: table cleaner and floor cleaner.? Add update Delete Question (TC) (TSR) TP Total

Production in oz 300,000 300000 300,000

Revenue 216,000 168,000 168k 336k

CDG Costs 70,000 52,500 52.5K 105k

TCP Costs 0 50,000 50k 100k

Total Costs 70,000 102,500 102.5k 205k

Weekly G.Profit 146,000 65,500 65.5k 131k

calculate the Co. Weekly gross profit assuming the TC is not processed.

calculate the Co. total weekly GP assuming the TC is processed further. compare and comment on mangers decision

using incremental analysis, determine if the TC should be processed further.”>Ea. week 900,000oz of chemical input r processed @ a cost of $210,000 into 600,000oz of floor cleaner and 300,000 oz of TC. FC has no market value until it is converted into a polish w/ the trade name FloorShine. The additional processing costs for this conversion amt to $240,000. FloorShine sells at $20 per 30 oz bottle. TC can be sold for $18per 25 oz bottle. TC can be converted into 2 other products by adding 300,000oz of another compound (TCP) to the 300,000oz of table cleaner. This joint process will yield 300,000oz ea of table stain remover (TSR) & table polish (TP). Additional processing costs for this process amount to $100,000. Both table products can be sold for $14 per 25 ounce bottle.The company decided not to process TC into TSR and TP based on the following.

(TC) (TSR) TP Total

Production in oz 300,000 300000 300,000

Revenue 216,000 168,000 168k 336k

CDG Costs 70,000 52,500 52.5K 105k

TCP Costs 0 50,000 50k 100k

Total Costs 70,000 102,500 102.5k 205k

Weekly G.Profit 146,000 65,500 65.5k 131k

calculate the Co. Weekly gross profit assuming the TC is not processed.

calculate the Co. total weekly GP assuming the TC is processed further. compare and comment on mangers decision

using incremental analysis, determine if the TC should be processed further.

what is break even point in number of flights 580167

Aug 29, 2021 | Uncategorized

Kangaroo Airlines

Kangaroo Airlines in small local carrier located in the Kimberly region of Western Australia. All seats are economy class and the following data is available:

1. What is the break even point in number of passengers per month?

2. What is the break even point in sales revenue dollars per month?

3. What is the break even point in number of flights per month (round up)?

4. If Kangaroo Airline currently has on average 40,000 passengers per month what is Kangaroo Airline’s margin of safety in number of passengers?

5. If Kangaroo Airlines raises its average full passenger fare to $85 and the average variable costs per passenger will remain at $30, it is estimated that the load factor will decrease to 60 percent. What will be the break even point in number of flights (round up)?

6. The cost of aviation fuel is a significant variable cost to any airline. If fuel charges increase by $8 per barrel, it is estimated that variable cost per passenger will increase to $40 however that average full passenger fare will remain at the original $70 per passenger as will the original load factor of 75 percent. What will be the new break even point in number of passengers?

7. The cost of aviation fuel is a significant variable cost to any airline. If fuel charges increase by $8 per barrel, it is estimated that variable cost per passenger will increase to $40 however the average full passenger fare will remain at the original $70 per passenger as will the original load factor of 75%. What will be the new break even point in number of passengers? What will be the new break even point in number of flights (round up)?

8. Kangaroo Airlines has experienced an increase in average variable cost per passenger to $35 and an increase in fixed costs to $1,500,000. Kangaroo Airlines has decided to increase the average full passenger fare to $80. How many of passengers are needed to generate an after tax profit of $400,000, if the company tax rate is 30 percent (round up)?

9. Kangaroo Airlines is considering offering a discounted fare of $50 with the average variable costs per passenger remaining at the original $30 per passenger, Kangaroo feels that the discounted fare would increase the load factor from 75 percent to 80 percent. Only the additional seats arising from the increase in the load factor would be sold at the discounted fare. Additional monthly advertising costs promoting the discounted fares would be $80,000. How much pre tax profit per month would the discounted fare provide Kangaroo Airlines if the company has 40 flights per day, 30 days per month?

10. Kangaroo Airlines has an opportunity to obtain a new route. The company feels it can sell seats at an average full passenger fare of $75 on the new route, but the load factor would be only 60 percent. The company will fly the new route 15 times per month. The increase in fixed costs for the additional crew, additional planes, landing fees, maintenance, etc., would total $100,000 per month. Variable costs per passenger would remain at $30. Should Kangaroo Airlines obtain the route? In the on line form, if you think that Kangaroo Airlines should obtain the new route answer True and if you think that Kangaroo Airlines should not obtain the route answer False.

11. Using the information in question 10, how many flights would Kangaroo Airlines need to earn a pre tax profit of $50,500 per month on this new route (round up)?

12. Using the information in question 10, how many flights would be needed to earn a pre tax profit of $50,500 per month on this route if the load factor increased to 75 percent (round up)?

Kangaroo Airlines

Kangaroo Airlines in small local carrier located in the Kimberly region of Western Australia. All seats are economy class and the following data is available:

1. What is the break even point in number of passengers per month?

2. What is the break even point in sales revenue dollars per month?

3. What is the break even point in number of flights per month (round up)?

4. If Kangaroo Airline currently has on average 40,000 passengers per month what is Kangaroo Airline’s margin of safety in number of passengers?

5. If Kangaroo Airlines raises its average full passenger fare to $85 and the average variable costs per passenger will remain at $30, it is estimated that the load factor will decrease to 60 percent. What will be the break even point in number of flights (round up)?

6. The cost of aviation fuel is a significant variable cost to any airline. If fuel charges increase by $8 per barrel, it is estimated that variable cost per passenger will increase to $40 however that average full passenger fare will remain at the original $70 per passenger as will the original load factor of 75 percent. What will be the new break even point in number of passengers?

7. The cost of aviation fuel is a significant variable cost to any airline. If fuel charges increase by $8 per barrel, it is estimated that variable cost per passenger will increase to $40 however the average full passenger fare will remain at the original $70 per passenger as will the original load factor of 75%. What will be the new break even point in number of passengers? What will be the new break even point in number of flights (round up)?

8. Kangaroo Airlines has experienced an increase in average variable cost per passenger to $35 and an increase in fixed costs to $1,500,000. Kangaroo Airlines has decided to increase the average full passenger fare to $80. How many of passengers are needed to generate an after tax profit of $400,000, if the company tax rate is 30 percent (round up)?

9. Kangaroo Airlines is considering offering a discounted fare of $50 with the average variable costs per passenger remaining at the original $30 per passenger, Kangaroo feels that the discounted fare would increase the load factor from 75 percent to 80 percent. Only the additional seats arising from the increase in the load factor would be sold at the discounted fare. Additional monthly advertising costs promoting the discounted fares would be $80,000. How much pre tax profit per month would the discounted fare provide Kangaroo Airlines if the company has 40 flights per day, 30 days per month?

10. Kangaroo Airlines has an opportunity to obtain a new route. The company feels it can sell seats at an average full passenger fare of $75 on the new route, but the load factor would be only 60 percent. The company will fly the new route 15 times per month. The increase in fixed costs for the additional crew, additional planes, landing fees, maintenance, etc., would total $100,000 per month. Variable costs per passenger would remain at $30. Should Kangaroo Airlines obtain the route? In the on line form, if you think that Kangaroo Airlines should obtain the new route answer True and if you think that Kangaroo Airlines should not obtain the route answer False.

11. Using the information in question 10, how many flights would Kangaroo Airlines need to earn a pre tax profit of $50,500 per month on this new route (round up)?

12. Using the information in question 10, how many flights would be needed to earn a pre tax profit of $50,500 per month on this route if the load factor increased to 75 percent (round up)?

which of the following terms relate to e commerce i b2b ii c2b iii b2c iv edi a 580177

Aug 29, 2021 | Uncategorized

SECTION A: MULTIPLE CHOICE MARK YOUR ANSWERS TO QUESTONS IN SECTION A ON THE ANSWER SHEET PROVIDED AND RETURN THE SHEET WITH YOUR ANSWER BOOKLET Answer the questions by placing a circle around the letter on the ANSWER SHEET that you think is the correct answer. There are 30 questions in this Section. All questions carry 1 mark each. Answer ALL questions. Question 1.Which of the following terms relate to e commerce? i. B2B ii. C2B iii. B2C iv. EDI A. i, ii and iii B. ii, iii and iv C. i, ii and iv D. i, iii and iv Question 2. Which of the following are performance measures used by firms to assess their own performance in relation to suppliers? i. Percentage of orders processed by electronic means ii. Number of expedited orders iii. Response time to customer queries iv. Reduction in the number of suppliers A. i, ii and iii B. ii, iii and iv C. i, ii and iv D. All of the given answers Please Turnover 3 Question 3. Doron Ltd has just computed the supplier performance index (SPI) of the company’s two suppliers, Xema and Zetta. Xema’s SPI is 2.11 and Zetta’s SPI is 0.99. Which of the following statements is correct? A. Xema is a preferred supplier because it has a higher SPI than Zetta. B. Xema is a preferred supplier because its SPI is greater than 1.0. C. Both suppliers are considered poor quality suppliers, because their SPI is higher than 0.50. D. The SPI indices suggest that for every $1 purchase price, Doron has to incur $2.11 supplier activity costs for Xema and $0.99 activity costs for Zetta. Question 4. Customer response time may be defined as: A. time between receipt of the customer order and placing that order in production B. time between customer placing an order and customer receiving the completed order C. time between receipt of order and delivery to customer D. time between receipt of order and production commencing Question 5. Which of the following are customer costs at the customer level? i. Regular sales calls ii. Customer inquiries iii. Acceptance of sales order iv. Provision of samples to customers A. i, ii and iii B. i, iii and iv C. i, ii and iv D. All of the given answers Use GoG yea exp rela Que A. B B. B C. B D. B Que A. B B. C. B D. e the follow Go Furnitu ar GoGo Fu perience w ated inform estion 6. Th BolBol $10 BolBol $15 BolBol $50 BolBol $65 estion 7. Th BolBol 0.30 BolBol 1.20 BolBol 1.30 BolBol 1.51 wing data t re needs to urniture ha with these tw mation: he total co 050; TolTol 050; TolTol 300; TolTol 050; TolTol he supplie ; TolTol 0.05 0; TolTol 1.0 ; TolTol 1.05 1; TolTol 0.4 to answer Q o purchase s two supp wo supplie osts of own $4050 $6050 $120 600 $126 050 r performa 5 03 5 40 Questions e glass pan pliers, BolBo ers, GoGo p nership of B ance index 6 and 7. nes to mak ol and TolTo provides y BolBol and x of BolBol a Pl ke glass to ol. Based o ou with the TolTol are, and TolTol Please Turno p coffee ta on last yea e following respective are, respe over 4 ables. Last ar’s g supplier ely: ctively: t Use GoG Que A. $ B. $ C. $ D. $ Qu A. $ B. $ C. $ D. $ Que con A. r B. ir C. r D. r e the follow Go Furnitu estion 8. Th $8500 $18 500 $30 500 $35 500 uestion 9. T $6000 $16 000 $24 500 $29 000 estion 10. A nsidered to relevant fo rrelevant fo relevant on relevant on wing data t re has coll he total cu The total o A future co o be r all alterna or all altern nly for the nly for the l to answer Q ected the stomer lev rder level c ost that is th atives natives most likely least likely Questions following vel cost is: cost is: he same u alternative alternative 8 and 9. customer r nder differ e e Pl related inf rent alterna Please Turno ormation: tives is ver 5 Please Turnover 6 Question 11. Which of the following is NOT a sunk cost? A. depreciation on an existing asset B. acquisition cost of an asset purchased one year ago C. disposal value of an existing asset D. all of the above are sunk costs Question 12. Which of the following costs are relevant to a make or buy decision? A. the original cost of the production equipment B. the annual depreciation of the equipment C. the amount that would be received if the production equipment were sold D. the cost of direct materials purchased last month and used to manufacture the component Question 13. Galaxy Industries manufactures 15,000 components per year. The manufacturing costs of the components were determined to be as follows: Direct materials $150,000 Direct labor 240,000 Variable manufacturing overhead 90,000 Fixed manufacturing overhead 120,000 Total $600,000 Assume $40,000 of the fixed manufacturing overhead could be avoided if the components are purchased from an outside supplier. An outside supplier has offered to sell the component for $34. If Galaxy purchases the component from the supplier instead of manufacturing it, the effect on income (profit) would be a A. $60,000 increase B. $10,000 increase C. $100,000 decrease D. $140,000 increase Please Turnover 7 Question 14. Zandy Beverage Company plans to eliminate a branch that has a contribution margin of $50,000 and fixed costs of $75,000. Of the fixed costs, $55,000 cannot be eliminated. The effect of eliminating this branch on net income (profit) would be a(an) A. decrease of $25,000 B. increase of $25,000 C. decrease of $30,000 D. increase of $30,000

Attachments:

AF201 Exam.pdf

question 580236

Aug 29, 2021 | Uncategorized

QUESTION

Using the information below and on the next two pages, prepare the following as at 30th June 2014:

PART A: Adjustment/elimination journal entries for consolidation at that date; and

PART B:Detailed calculation of non controlling interest balance and consolidation worksheet; and

PART C:Consolidated financial statements and statements of changes in equity for the group and parent.

INFORMATION

For the year ended 30 June 2012:

1. On 1 July 2011 Harbour Ltd created a group entity when it purchased 80% of the issued capital of Bridge Ltd for $440,000 cash. On acquisition Bridge Ltd’s accounts showed: Share capital $300,000 and Retained earnings $125,000. All assets and liabilities appearing in Bridge Ltd’s financial statements were fairly valued, except:

· An item of Bridge Ltd’s plant, that had originally cost $157,000 and had a carrying value of $100,480, was undervalued by $30,000. The plant was still on hand at 30 June 2014.

· Bridge Ltd had an internally developed identifiable intangible asset, a patent, with a fair value of $35,000.

During the year Bridge Ltd made sales of inventory to Harbour Ltd of $70,200. Harbour Ltd’s closing inventories on 30 June 2012 included $33,600 bought from Bridge Ltd (which included the intragroup mark up on original cost price).

For the year ended 30 June 2013:

2. On 1 January 2013 it was decided that goodwill acquired in Bridge Ltd should be marked down at a rate of 10% per annum from this date forward (% based on the original value you calculated at acquisition).

3. Also on 1 January 2013 Harbour Ltd sold plant to Bridge Ltd for $35,000. This was financed by a short term interest free loan from Harbour Ltd. The plant had originally cost $82,000 when purchased on 1 January 2010.

Harbour Ltd declared and paid dividends of $50,000 for the year. Bridge Ltd did not declare or pay any dividends for the year.

For the year ended 30 June 2014:

4. During the year Bridge Ltd made sales of inventory to Harbour Ltd of $88,100.

5. Harbour Ltd’sinventories included the following amounts bought from Bridge Ltd (which included the intragroup mark up on original cost price): Closing inventory on 30 June 2014 was $13,300; and Opening inventory on 1 July 2013 was $9,100.

6. Harbour Ltd charged management fees to Bridge Ltd.

7. Dividends were declared/paid by both companies.

8. Non controlling interests to be recognized.

ADDITIONAL INFORMATION:

· The company tax rate is currently 30% and it has been this rate for many years.

· Harbour has the following accounting policies for the group:

(i) Revaluation adjustments on acquisition are to be made on consolidation only, not in the books ofany subsidiary;

(ii) Non controlling interests are measured at the proportionate share of a subsidiary’s identifiable net assets;

(iii) Intragroup sales of inventory to be at a markup of 40% on cost;

(iv) Plant is depreciated using the diminishing value method at a rate of 20% p.a. (also known as thedeclining balance or diminishing balance method); and

(v) All calculated amounts to be rounded to the nearest whole dollar.

NOTE:

· You MUST number your journal entries as they relate to the point numbers for each “event” as given in the information. Where more than one journal is needed for an “event” to be completely accounted for add the letters a,b,c,…etc to them as necessary. [For example, if three separate journal entries are required to fully record the information detailed in point number 1, then the first journal will be 1a and the second is to be 1b and the third 1c.] Short narrations are expected for each journal entry. Marks will be lost if journals are not presented in a clear and professional manner (i.e. poor or unclear presentation can include showing the debit entry on one page but the credit entry on another, or not clearly distinguishing between debit and credit entries).

· The required statements for both the group and the parent company are: the statement of comprehensive income, statement of financial position, and statement of changes in equity. Follow the formats shown in Chapter 29 of the textbook. Notes to the statements are not required. Marks will be lost if statements are not presented in a clear and professional manner (i.e. poor or unclear presentation can include splitting the reports over two pages, so start each statement on a new page!).

· You may “cut and paste” the financial information on the next page into your excel file, but no other information is to be copied into your file from anywhere else.

· You are expected to use at least the basic formula functions in Excel when preparing worksheets and financial statements (i.e. use Excel formulas to add totals and sub totals etc, rather than calculating values manually and then just typingthem in to the spreadsheet!).

prepare the bank reconciliation of baylor associates at february 28 2009 580237

Aug 29, 2021 | Uncategorized

The cash account of Baylor Associates at February 28, 2009, follows.

Baylor Associates received the bank statement on February 28, 2009 (negative amounts are in parentheses):

Additional data:

Baylor deposits all cash receipts in the bank and makes all payments by check.

Required

1. Prepare the bank reconciliation of Baylor Associates at February 28, 2009.

2. Journalize the entries based on the bank reconciliation.

state how the person can hurt the company 580243

Aug 29, 2021 | Uncategorized

internal control weakness in the following situations. State how the person can hurt the company.

a. Jerry Miller works as a security guard at ALTEX parking in Denver. Miller has a master key to the cash box where commuters pay for parking. Each night Miller prepares the cash report that shows (a) the number of cars that parked on the lot and (b) the day’s cash receipts. Sandra Covington, the ALTEX treasurer, checks Miller’s figures by multiplying the number of cars by the parking fee per car. Covington then deposits the cash in the bank.

b. Sharon Fisher is the purchasing agent for Manatee Golf Equipment. Fisher prepares purchase orders based on requests from division managers of the company. Fisher faxes the purchase order to suppliers who then ship the goods to Manatee. Fisher receives each incoming shipment and checks it for agreement with the purchase order and the related invoice. She then routes the goods to the respective division managers and sends the receiving report and the invoice to the accounting department for payment. c. The external auditor for Mattson Financial Services takes a global view of the audit. To form his professional opinion of Mattson’s financial statements, the auditor runs no tests of Mattson’s financial statements or of the underlying transactions. Instead, the auditor computes a few ratios and compares the current year ratio values to the ratio values a year ago. If the ratio values appear reasonable, the auditor concludes that Mattson’s financial statements are okay.

where a mail clerk opens envelopes and totals the cash receipts for the day 580244

Aug 29, 2021 | Uncategorized

(Learning Objective 1: Identifying internal control strengths and weaknesses) The following situations describe 2 cash payment situations and 2 cash receipt situations. In each pair, one set of internal controls is better than the other. Evaluate the internal controls in each situation as strong or weak, and give the reason for your answer.

Cash payments:

a. Jim McCord Construction policy calls for construction supervisors to request the equipment needed for their jobs. The home office then purchases the equipment and has it shipped to the construction site.

b. Granite & Marble, Inc., policy calls for project supervisors to purchase the equipment needed for jobs.

The supervisors then submit the paid receipts to the home office for reimbursement. This policy enables supervisors to get the equipment quickly and keep construction jobs moving.

Cash receipts:

a. At McClaren Chevrolet, cash received by mail goes straight to the accountant, who debits Cash and credits Accounts Receivable to record the collections from customers. The McClaren accountant then deposits the cash in the bank.

b. Cash received by mail at Lone Star Orthopedic Clinic goes to the mail room, where a mail clerk opens envelopes and totals the cash receipts for the day. The mail clerk forwards customer checks to the cashier for deposit in the bank and forwards the remittance slips to the accounting department for posting credits to customer accounts.

leann bryant rsquo s check book lists the following 580247

Aug 29, 2021 | Uncategorized

(Learning Objective 2: Preparing a bank reconciliation) LeAnn Bryant’s check book lists the following:

The November bank statement shows

Required

Prepare Bryant’s bank reconciliation at November 30, 20X6.

will the budgeted level of cash receipts leave cellular with the desired ending cash 580252

Aug 29, 2021 | Uncategorized

Cellular Communications, Inc., is preparing its cash budget for 20X8. Cellular ended 20X7 with cash of $81 million, and managers need to keep a cash balance of at least $75 million for operations. Collections from customers are expected to total $11,284 million during 20X8, and payments for the cost of services and products should reach $6,166 million. Operating expense payments are budgeted at $2,543 million. During 20X8, Cellular expects to invest $1,825 million in new equipment and sell older assets for $115 million. Debt payments scheduled for 20X8 will total $597 million. The company forecasts net income of $890 million for 20X8 and plans to pay dividends of $338 million. Prepare Cellular Communications’ cash budget for 20X8. Will the budgeted level of cash receipts leave Cellular with the desired ending cash balance of $75 million, or will the company need additional financing? If so, how much?

apply the decision guidelines for ethical judgments outlined to decide how the accou 580253

Aug 29, 2021 | Uncategorized

Sunbelt Bank recently appointed the accounting firm of Baker, Jackson, and Trent as the bank’s auditor. Sunbelt quickly became one of the Baker, Jackson, and Trent’s largest clients. Subject to banking regulations, Sunbelt must provide for any expected losses on notes receivable that Sunbelt may not collect in full. During the course of the audit, Baker, Jackson, and Trent determined that 3 large notes receivable of Sunbelt seem questionable. Baker, Jackson and Trent discussed these loans with Stephanie Carson, controller of Sunbelt. Carson assured the auditors that these notes were good and that the makers of the notes will be able to pay their notes after the economy improves.

Baker, Jackson, and Trent stated that Sunbelt must record a loss for a portion of these notes receivable to account for the likelihood that Sunbelt may never collect their full amount. Carson objected and threatened to dismiss Baker, Jackson, and Trent if the auditor demands that the bank record the loss. Baker, Jackson, and Trent want to keep Sunbelt as a client. In fact, Baker, Jackson, and Trent were counting on the revenue from the Sunbelt audit to finance an expansion of the firm. Apply the decision guidelines for ethical judgments outlined to decide how the accounting firm of Baker, Jackson, and Trent should proceed.

in each instance also identify how copeland can determine whether major rsquo s acti 580255

Aug 29, 2021 | Uncategorized

Jan Copeland, the owner of Jan’s Perfect Presents, has delegated management of the business to Lou Major, a friend. Copeland drops by to meet customers and check up on cash receipts, but Major buys the merchandise and handles cash payments. Business has been very good lately, and cash receipts have kept pace with the apparent level of sales. However, for a year or so, the amount of cash on hand has been too low. When asked about this, Major explains that suppliers are charging more for goods than in the past. During the past year, Major has taken 2 expensive vacations, and Copeland wonders how Major can afford these trips on her $60,000 annual salary and commissions. List at least 3 ways Major could be defrauding Copeland of cash. In each instance also identify how Copeland can determine whether Major’s actions are ethical. Limit your answers to the store’s cash payments. The business pays all suppliers by check

identify all the major internal control weaknesses in avant garde rsquo s system and 580269

Aug 29, 2021 | Uncategorized

Avant Garde Imports is an importer of silver, brass, and furniture items from Mexico. Kay Jones is the general manager of Avant Garde Imports. Jones employs 2 other people in the business. Marco Gonzalez serves as the buyer for Avant Garde. In his work Gonzalez travels throughout Mexico to find interesting new products. When Gonzalez finds a new product, he arranges for

Avant Garde to purchase and pay for the item. He helps the Mexican artisans prepare their invoices and then faxes the invoices to Jones in the company office. Jones operates out of an office in Tucson, Arizona. The office is managed by Rita Bowden, who handles the mail, keeps the accounting records, makes bank deposits, and prepares the monthly bank reconciliation. Virtually all of Avant Garde’s cash receipts arrive by mail—from sales, made to Target, Pier 1 Imports, and Wal Mart. Bowden also prepares checks for payment based on invoices that come in from the suppliers who have been contacted by Gonzalez. To maintain control over cash payments, Jones examines the paperwork and signs all checks.

Required

Identify all the major internal control weaknesses in Avant Garde’s system and how the resulting action could hurt Avant Garde. Also state how to correct each weakness.

identify the missing internal control characteristic in each situation 580270

Aug 29, 2021 | Uncategorized

Each of the following situations reveals an internal control weakness.

a. Accounting firms use paraprofessional employees to perform routine tasks. For example, an accounting paraprofessional might prepare routine tax returns for clients. In the firm of Dunham & Lee, Rodney Lee, one of the partners, turns over a significant portion of his high level accounting work to his paraprofessional staff.

b. In evaluating the internal control over cash payments of Butler Manufacturing, an auditor learns that the purchasing agent is responsible for purchasing diamonds for use in the company’s manufacturing process, approving the invoices for payment, and signing the checks. No supervisor reviews the purchasing agent’s work.

c. Charlotte James owns an architecture firm. James’s staff consists of 12 professional architects, and James manages the office. Often, James’s work requires her to travel to meet with clients. During the past 6 months, James has observed that when she returns from a business trip, the architecture jobs in the office have not progressed satisfactorily. James learns that when she is away, 2 of her senior architects take over office management and neglect their normal duties. One employee could manage the office.

d. B.J. Tanner has been an employee of the City of Marlin for many years. Because the city is small, Tanner performs all accounting duties, plus opening the mail, preparing the bank deposit, and preparing the bank reconciliation.

e. Part of an internal auditor’s job is to evaluate how efficiently the company is running. For example, is the company purchasing inventory from the least expensive supplier? After a particularly bad year, Long Photographic Products eliminates its internal audit department to reduce expenses.

Required

1. Identify the missing internal control characteristic in each situation.

2. Identify each firm’s possible problem.

3. Propose a solution to the problem.

prepare the alta vista toyota bank reconciliation at june 30 20×4 580271

Aug 29, 2021 | Uncategorized

The cash data of Alta Vista Toyota for June 20X4 follow:

Alta Vista received the following bank statement on June 30, 20X4:

Additional data for the bank reconciliation include the following:

a. The EFT deposit was a receipt of monthly rent. The EFT debit was a monthly insurance payment.

b. The unauthorized signature check was received from a customer.

c. The correct amount of check number 3115, a payment on account, is $1,390. (Alta Vista’s accountant mistakenly recorded the check for $1,930.)

Required

1. Prepare the Alta Vista Toyota bank reconciliation at June 30, 20X4.

2. Describe how a bank account and the bank reconciliation help the general manager control Alta Vista’s cash.

prepare the bank reconciliation for varian engineering associates 580272

Aug 29, 2021 | Uncategorized

The May 31 bank statement of Varian Engineering Associates has just arrived from Carolina First Bank. To prepare the Varian bank reconciliation, you gather the following data:

a. Varian’s Cash account shows a balance of $2,256.14 on May 31.

b. The May 31 bank balance is $3,374.22.

c. The bank statement shows that Varian earned $38.19 of interest on its bank balance during May. This amount was added to Varian’s bank balance.

d. Varian pays utilities ($750) and insurance ($290) by EFT.

e. The following Varian checks did not clear the bank by May 31:

f. The bank statement includes a deposit of $891.17, collected on account by the bank on behalf of Varian.

g. The bank statement lists a $10.50 bank service charge.

h. On May 31, the Varian treasurer deposited $16.15, which will appear on the June bank statement.

i. The bank statement includes a $300.00 deposit that Varian did not make. The bank added $300 to Varian’s account for another company’s deposit.

j. The bank statement includes 2 charges for returned checks from customers. One is a $395.00 check received from a customer with the imprint “Unauthorized Signature.” The other is a nonsufficient funds check in the amount of $146.67 received from another customer.

Required

1. Prepare the bank reconciliation for Varian Engineering Associates.

2. Journalize the May 31 transactions needed to update Varian’s Cash account. Include an explanation for each entry.

apply the ethical judgment framework outlined in the chapter to help raborn decide w 580275

Aug 29, 2021 | Uncategorized

(Learning Objective 5: Making an ethical judgment) Larry Raborn is executive vice president of Quality Bank. Active in community affairs, Raborn serves on the board of directors of The Salvation Army. The Salvation Army is expanding rapidly and is considering relocating. At a recent meeting, The Salvation Army decided to buy 200 acres of land on the edge of town. The owner of the property is Freda Rader, a major depositor in Quality Bank. Rader is completing a bitter divorce, and Raborn knows that Rader is eager to sell her property. In view of Rader’s difficult situation, Raborn believes Rader would accept a low offer for the land. Realtors have appraised the property at $2.2 million.

Required

Apply the ethical judgment framework outlined in the chapter to help Raborn decide what role he should play in The Salvation Army’s attempt to buy the land from Rader.

identify several combinations of duties that should not be performed by the same per 580276

Aug 29, 2021 | Uncategorized

Trey Osborne, administration of Valley View Clinic, seeks your advice. Valley View Clinic employs 2 people in the office, Jim Bates and Rhonda Clark. Osborne asks you how to assign the various office functions to the 3 people (including Osborne) to achieve good internal control. Here are the duties to be performed by the 2 office workers and Osborne:

a. Record cash payments d. Reconcile the bank account

b. Record cash receipts e. Deposit cash receipts

c. Receive incoming cash from patients f. Sign checks for payment

Required

1. Propose a plan that divides duties a. through f. to Bates, Clark, and Osborne. Your goal is to divide the duties so as to achieve good internal control for the clinic.

2. Identify several combinations of duties that should not be performed by the same person.

identify the missing internal control characteristics in each situation 580277

Aug 29, 2021 | Uncategorized

Each of the following situations has an internal control weakness: a. Retail stores such as Target and Best Buy receive a significant portion of their sales revenue in cash. At the end of each day, sales clerks compare the cash in their own register with the record of sales kept within the register. They then forward the cash to a Brinks security officer for deposit in the bank.

b. The office supply company from which Martin Audiology Service purchases cash receipt forms recently notified Martin that the last shipped sales receipts were not pre numbered. Derek Martin, the owner, replied that he did not use the receipt numbers, so the omission is unimportant to him.

c. Azbell Electronics specializes in programs with musical applications. The company’s most popular product prepares musical programs for large gatherings. In the company’s early days, the owner and 8 employees wrote the programs, lined up production of the programs, sold the products, and performed the general management of the company. As Azbell has grown, the number of employees has increased dramatically. Recently, the development of a new musical series stopped while the programmers redesigned Azbell’s sound system. Azbell could have hired outsiders to do this task.

d. Paul Allen, who has no known sources of outside income, has been a trusted employee of Chapparall Cosmetics for 20 years. Allen performs all cash handling and accounting duties, including opening the mail, preparing the bank deposit, accounting for cash and accounts receivable, and preparing the bank reconciliation. Allen has just purchased a new Lexus. Linda Altman, owner of the company, wonders how Allen can afford the new car on his salary.

e. Monica Wade employs 3 professional interior designers in her design studio. The studio is located in an area with a lot of new construction, and her business is booming. Ordinarily, Wade does all the purchasing of materials needed to complete jobs. During the summer, Wade takes a long vacation, and in her absence she allows each designer to purchase materials. On her return, Wade reviews operations and observes that expenses are higher and net income is lower than in the past.

Required

1. Identify the missing internal control characteristics in each situation.

2. Identify each firm’s possible problem.

3. Propose a solution to the problem.

prepare a balance sheet for the general fund of the city of orchard park at december 579619

Aug 29, 2021 | Uncategorized

Preparation of a general fund balance sheet

The unadjusted trial balance for the general fund of the City of Orchard Park at December 31, 2011, is as follows:

Supplies on hand at December 31, 2011, are $3,000. The $50,000 encumbrance relates to equipment ordered November 28 for the Department of Public Works but not received by year end. The equipment purchase was approved by the City Council.

REQUIRED: Prepare a balance sheet for the general fund of the City of Orchard Park at December 31, 2011.

prepare a statement of revenues expenditures and changes in total fund balance for t 579620

Aug 29, 2021 | Uncategorized

Preparation of general fund statements

The preclosing account balances of the general fund of the City of Batavia on June 30, 2012, were as follows:

The fund balance—unassigned at the beginning of the year was $80,000, and there were no carryover encumbrances at the beginning of the fiscal year. The end of year encumbrances are a result of enabling legislation.

REQUIRED

1. Prepare a statement of revenues, expenditures, and changes in total fund balance for the year ended June 30, 2012.

2. Prepare a general fund balance sheet at June 30, 2012.

prepare a conversion worksheet to determine the change in net assets and the net ass 579621

Aug 29, 2021 | Uncategorized

Governmental fund conversion worksheet

The post closing trial balance for the City of Fort Collins governmental funds at June 30, 2011, shows the following ledger account balances:

ADDITIONAL INFORMATION

1. During the year, Fort Collins purchased $9,000 in equipment, which was not depreciated.

2. Fort Collins also has other fixed assets with a historical cost of $95,000 and accumulated depreciation of $65,000.

3. Fort Collins has capital project fund construction expenditures totaling $20,000.

4. During the year, the city issued a bond at $500,000 par value.

5. During the year, the city entered into a lease agreement. The entire amount should be recognized as general long term debt.

6. The city’s deferred revenue would be treated as revenue under accrual accounting.

7. The transfers in and out were made between governmental funds.

8. The city does not report internal service funds.

REQUIRED: Prepare a conversion worksheet to determine the change in net assets and the net asset balance for the city’s governmental funds.

prepare a statement of revenues expenditures and changes in fund balance for the vol 579623

Aug 29, 2021 | Uncategorized

Preparation of a fund statement of revenues, expenditures and changes in fund balance

The following information regarding the fiscal year ended December 31, 2011, was drawn from the accounts and records of the Volendam County general fund:

REQUIRED: Prepare a statement of revenues, expenditures, and changes in fund balance for the Volendam County general fund for the year ended December 31, 2011.

prepare a statement of revenues expenditures and changes in fund balance for the tow 579624

Aug 29, 2021 | Uncategorized

Debt service fund journal entries

The Town of Lilehammar has $3,000,000 of 6 percent bonds outstanding. Interest on the general obligation, general government indebtedness is payable semiannually each March 31 and September 30. December 31 is the fiscal year end. Record the following transactions in the town’s debt service fund.

1. Received a transfer from the general fund to provide financing for the March 31, interest payment.

2. Paid the interest due on March 31.

3. Received a transfer from the general fund to provide financing for the September 30, interest payment and retirement of $1,000,000 of the bonds.

4. Paid the interest on September 31, and repaid $1,000,000 of the bonds.

5. December 31 is the fiscal year end. Record any appropriate adjustments.

6. Received a transfer from the general fund to provide financing for the March 31 interest payment for year two of the bond.

7. Paid the interest due on March 31 for year two of the bond.

REQUIRED: Prepare a statement of revenues, expenditures, and changes in fund balance for the Town of Lilehammar debt service fund for the year ended December 31, 2011.

prepare journal entries for the capital projects fund and any other fund involved to 579625

Aug 29, 2021 | Uncategorized

Capital projects fund journal entries

The City of Stockholm authorized construction of a $600,000 addition to the municipal building in September 2011. The addition will be financed by $200,000 from the general fund and a $400,000 serial bond issue to be sold in April 2012.

REQUIRED: Prepare journal entries for the capital projects fund and any other fund involved to the extent of requiring journal entries to record the transactions described.

1. On October 1, 2011, the general fund transferred $200,000 to the capital projects fund.

2. On November 1, 2011, a contract for the addition was awarded to Crooked Construction for $580,000.

3. On April 15, 2012, the $400,000, 7% bonds were sold for $401,000 and the premium was transferred to the debt service fund.

4. On May 2, 2012, construction was completed and Crooked Construction submitted a bill for $580,000.

5. On May 12, 2012, the bill to Crooked Construction was paid in full. The CPF was closed, and the remaining cash was transferred to the general fund.

prepare all journal entries in the funds necessary to account for the transactions a 579628

Aug 29, 2021 | Uncategorized

Capital projects fund journal entries and financial statements

The City of Catalina authorized the construction of a new recreation center at a total cost of $1,000,000 on June 15, 2011. On the same date, the city approved a $1,000,000, 8 percent, 10 year general obligation serial bond issue to finance the project. During the year July 1, 2011, to June 30, 2012, the following transactions and events occurred relative to the recreation center project:

1. On July 1, 2011, the city sold $500,000 par of the authorized bonds, with interest payment dates on December 31 and June 30 and the first serial retirement to be made on June 30, 2009. The bonds were sold at 102.

2. On July 5, 2011, a construction contract for the recreation center was created in the amount of $960,000.

3. On December 15, 2011, the contractor’s bill for $320,000 was received based on certification that the work was one third completed.

4. The contractor was paid for one third of the contract less a 10% retained percentage to ensure performance.

5. On December 30, 2011, the GF transferred $30,000 to the fund responsible for servicing the serial bonds.

6. Interest on the serial bonds was paid on December 31, 2011, with the money transferred from the GF and the CPF.

7. On June 15, 2012, the contractor’s bill for $320,000 was received based on certification that the work was two thirds completed.

8. On June 28, 2012, the GF transferred $90,000 to the fund responsible for servicing the serial bonds: $40,000 for interest and $50,000 for principal.

9. Interest and principal on the serial bonds were paid on June 30, 2012.

10. On June 30, 2012, the city sold the remaining $500,000 par of authorized bonds at par.

REQUIRED

1. Prepare all journal entries in the funds necessary to account for the transactions and events given. (If amounts are not known, use xxx.)

2. Prepare financial statements for the CPF for the year ended June 30, 2012.

what amount of the forgoing revenues should be accounted for in arvida rsquo s gover 579658

Aug 29, 2021 | Uncategorized

Multiple choice

The following revenues were among those reported by Arvida Township in 2012:

What amount of the forgoing revenues should be accounted for in Arvida’s governmental funds?

a $6,140,000

b $6,100,000

c $6,040,000

d $6,000,000

prepare a statement of fiduciary net assets for the city of laramee tax agency fund 579664

Aug 29, 2021 | Uncategorized

Agency fund statement of net assets

The City of Laramee established a tax agency fund to collect property taxes for the City of Laramee, Bloomer County, and Bloomer School District. Total tax levies of the three governmental units were $200,000 for 2011, of which $60,000 was for the City of Laramee, $40,000 for Bloomer County, and $100,000 for Bloomer School District.

The tax agency fund charges Bloomer County and Bloomer School District a 2 percent collection fee that it transfers to the general fund of the City of Laramee in order to cover costs incurred for agency fund operations.

During 2011 the tax agency fund collected and remitted $150,000 of the 2011 levies to the various governmental units. The collection fees associated with the $150,000 were remitted to Laramee’s general fund before year end.

REQUIRED: Prepare a statement of fiduciary net assets for the City of Laramee Tax Agency Fund at December 31, 2011.

a county government offers to pool the cash available for investment from cities loc 579666

Aug 29, 2021 | Uncategorized

Identification of fund type

For each of the following events or transactions, identify the fund or funds that will be affected.

1. A governmental unit operates a municipal pool. Costs are intended to be recovered primarily from user charges.

2. A bond offering was issued at par to subsidize the construction of a new convention center.

3. A bond offering was issued at a premium to subsidize the construction of a new convention center.

4. A town receives a donation of cash that must be used for the benefit of the town’s bird sanctuary, which is not operated by the town.

5. A central computing center was established to handle the data processing needs of a municipality.

6. A local municipality provides water and sewer services to residents of nearby communities for a fee.

7. A village receives a grant from the state government. The funds are to be used solely for preserving wetlands.

8. Property taxes are levied by a city government.

9. A county government serves as a tax collection agency for all towns and cities located within the county.

10. A county government offers to pool the cash available for investment from cities located within its boundaries. A formal agreement exists, and income will be recognized in the fund.

a village is awarded a grant of 250 000 from the state government for highway beauti 579667

Aug 29, 2021 | Uncategorized

Journal entries—various funds

For each of the following events or transactions, prepare the necessary journal entry or entries and identify the fund or funds that will be affected.

1. A governmental unit collects fees totaling $4,500 at the municipal pool. The fees are charged to recover costs of pool operation and maintenance.

2. A county government that serves as a tax collection agency for all towns and cities located within the county collects county sales taxes totaling $125,000 for the month.

3. A $1,000,000 bond offering was issued, with a premium of $50,000, to subsidize the construction of a city visitor center.

4. A town receives a donation of $50,000 in bonds. The bonds should be held indefinitely, but bond income is to be donated to the local zoo. The zoo is not associated with the town.

5. A central printing shop is established with a $150,000 nonreciprocal transfer from the general fund.

6. A $1,000,000 revenue bond offering was issued at par by a fund that provides water and sewer services to residents of nearby communities for a fee. The funds are to be used for facility expansion.

7. A village is awarded a grant of $250,000 from the state government for highway beautification. The general fund provides a $50,000 loan, because grant funds will be disbursed after valid expenditures are documented.

8. Property taxes of $5,000,000 are levied by a city government. One percent is considered uncollectible, and the taxes will be used to fund current obligations.

prepare all necessary journal entries for the printing services internal service fun 579669

Aug 29, 2021 | Uncategorized

Internal service fund journal entries

The City of Thomasville established an internal service fund to provide printing services to all city offices and departments. The following transactions related to the fund took place in 2011:

1. On January 15 the general fund transferred equipment valued at $550,000 and provided a $500,000 loan to the internal service fund.

2. On February 1 the internal service fund acquired $200,000 worth of printing equipment and computers. The assets have a five year life with no salvage, and the city uses straight line depreciation. Assume half year depreciation in the year of acquisition.

3. Throughout the year, the internal service fund billed various departments $345,000 for service rendered and collected $300,000 of the amount billed.

4. Various expenses for the year were as follows: wages and salaries, $180,000; payroll taxes, $37,800; repayment to the general fund, $50,000; and other operating expenses, $120,000.

REQUIRED: Prepare all necessary journal entries for the printing services internal service fund for the year ended December 31, 2011.

prepare all necessary journal entries and an adjusted trial balance for the utility 579670

Aug 29, 2021 | Uncategorized

Enterprise fund journal entries and trial balance

The following transactions relate to the Fiedler County Utility Plant, a newly established municipal facility financed with debt secured solely by net revenue from fees and charges to external users.

1. The general fund made a $30,000,000 contribution to establish the working capital of the new utility enterprise fund.

2. The utility fund purchased a utility plant for $25,250,000.

3. The utility fund issued a $5,000,000 revenue bond for renovations to the facility.

4. Utility bills of $4,500,000 were mailed to customers.

5. Utility collections totaled $4,400,000.

6. Renovations of $3,500,000 were completed during the year and recorded as building improvements.

7. Salaries of $700,000 were paid to employees.

8. Interest expense of $300,000 related to the revenue bonds was paid during the year, and

$100,000 was accrued at year end.

9. Operating expenses totaling $1,000,000 were paid during the year, and an additional $100,000 of operating expenses was accrued at year end.

10. Depreciation of $1,050,000 was recorded.

REQUIRED: Prepare all necessary journal entries and an adjusted trial balance for the utility enterprise fund for the year.

prepare fund financial statements for the motor pool for the year ended june 30 2012 579671

Aug 29, 2021 | Uncategorized

Preparation of internal service fund statements

Comparative adjusted trial balances for the motor pool of Douwe County at June 30, 2011, and June 30, 2012, are as follows:

REQUIRED: Prepare fund financial statements for the motor pool for the year ended June 30, 2012. (The statement of cash flows is to be included.)

prepare a statement of fiduciary net assets and a statement of changes in fiduciary 579672

Aug 29, 2021 | Uncategorized

Preparation of trust fund statements

On January 1, 2011, J. G. Monee created a student aid trust fund to which he donated a building valued at $400,000 (his cost was $250,000), bonds having a market value of $500,000, and $100,000 cash. The trust agreement stipulated that principal was to be maintained intact and earnings were to be used to support needy students. Consider gains on investments and depreciation as adjustments of earnings rather than of trust fund principal. Activities for 2011

1. During the year, net rentals of $40,000 were collected for building rental.

2. The bonds were sold for $550,000 on June 30, 2011. Of the proceeds, $30,000 represented interest accrued from January 1 to June 30.

3. Stocks were purchased for $600,000 cash.

4. Depreciation on the building was calculated at $20,000 for the year.

5. Dividends receivable of $60,000 were recorded at December 31, 2011.

REQUIRED: Prepare a statement of fiduciary net assets and a statement of changes in fiduciary net assets for this private purpose trust fund at December 31, 2011.

prepare a statement of fiduciary net assets and a statement of changes in fiduciary 579673

Aug 29, 2021 | Uncategorized

Preparation of trust fund statements

On July 1, 2011, Duchy County receives a $500,000 contribution from the local chapter of Homeless No More. A trust agreement specifying that the income from the contribution be distributed each May 15 to the downtown homeless shelter accompanies the contribution. The principal amount is intended to remain intact indefinitely. The following transactions related to the contribution occur during the fiscal year:

1. On September 1, the county invests the contribution in bonds, which yield 4.5% annually (payable on March 1 and September 1).

2. On March 1, the county receives the first interest payment.

3. On May 15, the county distributes the interest to the homeless shelter.

4. On June 30, the county closes its accounts.

REQUIRED: Prepare a statement of fiduciary net assets and a statement of changes in fiduciary net assets for this private purpose trust fund at June 30, 2012.

prepare a statement of cash flows for the caleb county enterprise fund 579675

Aug 29, 2021 | Uncategorized

Enterprise fund statement of cash flows

Caleb County had a beginning cash balance in its enterprise fund of $714,525. During the year, the following transactions affecting cash flows occurred:

1. Acquired equity investments totaling $165,000

2. Receipts from sales of goods or services totaled $3,276,500

3. Payments for materials used in providing services were made in the amount of $2,694,500

4. A capital grant, whose proceeds of $750,000 are restricted for the acquisition of constructing or improving a fixed asset, was awarded (cash was received during the year).

5. Payments to employees for salaries amounted to $479,300

6. The fund’s allocated portion of property taxes was $217,000

7. Other cash expenses for operations were $819,200

8. Capital assets used in providing goods and services were sold for $522,000. They had a book value of $550,000

9. Long term debt payments totaled $515,000

REQUIRED: Prepare a statement of cash flows for the Caleb County enterprise fund.

net present value 579775

Aug 29, 2021 | Uncategorized

Runway Apparel Inc. is considering two investment projects. The estimated net cash flows from each project are as follows:

Each project requires an investment of $700,000. A rate of 15% has been selected for the net present value analysis.

Required:

1a.Compute the cash payback period for each project.

federal taxation of individuals tax 650 mid term exam may 2014 579827

Aug 29, 2021 | Uncategorized

FEDERAL TAXATION OF INDIVIDUALS (TAX 650. MID TERM EXAM.: May, 2014

1) Please write your name on the exam paper.

2) If writing your exam, please write legibly. Do not cram your work on one or two sheets of paper if using your computer. Identify each problem clearly. Please CIRCLE your choice of the correct answer on the “Multiple Choice” problem,.

3) All exams must be turned in no later than May 15 (6:00 PM).

4) The exam should be your work. It should not be prepared in collaboration with anyone

5) Assume 2013 as the tax year for all problems.

6) If you cannot attend class on the due date, please e mail the exam to me. Use the e mail address shown on the syllabus, that iwarafarialaa.

Thank you,

Attachments:

TAX 650.pdf

please discuss why it is desirable for corporations charities and ngos to change the 579842

Aug 29, 2021 | Uncategorized

Holmes Institute HA3032 Memo 01 – Semester 01, 2014

Using a standard format memo (i.e. a short report of ½ to 1½ pages) please discuss the why it is desirable for corporations, charities, and NGOs to change their External Audit firms every 7 10 years. Include in your discussion such concepts as: Independence, “Moral Hazard”, and the Market for Lemons market failure.

Attachments:

HA3032 Memo 0….docx

Memo.Marking…..docx

enter the balances at july 1 in the receivable accounts post the entries to all of t 579501

Aug 29, 2021 | Uncategorized

Marty Co. closes its books monthly. On June 30, selected ledger account balances are:

Notes Receivable include the following.

During July, the following transactions were completed.

Instructions

(a) Journalize the July transactions and the July 31 adjusting entry for accrued interest receivable. (Interest is computed using 360 days.)

(b) Enter the balances at July 1 in the receivable accounts. Post the entries to all of the receivable accounts.

(c) Show the balance sheet presentation of the receivable accounts at July 31.

on january 1 2010 furball company had accounts receivable 98 000 and allowance for d 579502

Aug 29, 2021 | Uncategorized

On January 1, 2010, Furball Company had Accounts Receivable $98,000 and Allowance for Doubtful Accounts $8,100. Furball Company prepares financial statements annually. During the year the following selected transactions occurred.

prepare an accounts receivable aging schedule for sek company using the age categori 579503

Aug 29, 2021 | Uncategorized

SEK Company sells office equipment and supplies to many organizations in the city and surrounding area on contract terms of 2/10, n/30. In the past, over 75% of the credit customers have taken advantage of the discount by paying within 10 days of the invoice date.

The number of customers taking the full 30 days to pay has increased within the last year.

Current indications are that less than 60% of the customers are now taking the discount. Bad debts as a percentage of gross credit sales have risen from the 2.5% provided in past years to about 4.5% in the current year.

The company’s Finance Committee has requested more information on the collections of accounts receivable. The controller responded to this request with the report reproduced below.

The fact that some credit accounts will prove uncollectible is normal. Annual bad debts write offs have been 2.5% of gross credit sales over the past 5 years. During the last fiscal year, this percentage increased to slightly less than 4.5%. The current Accounts Receivable balance is $1,400,000. The condition of this balance in terms of age and probability of collection is as follows. The Allowance for Doubtful Accounts had a credit balance of $29,500 on June 1, 2009. SEK has provided for a monthly bad debts expense accrual during the current fiscal year based on the assumption that 4.5% of gross credit sales will be uncollectible.Total gross credit sales for the 2009–10 fiscal year amounted to $2,900,000. Write offs of bad accounts during the year totaled $102,000.

Instructions

(a) Prepare an accounts receivable aging schedule for SEK Company using the age categories identified in the controller’s report to the Finance Committee showing the following.

(1) The amount of accounts receivable outstanding for each age category and in total.

(2) The estimated amount that is uncollectible for each category and in total.

(b) Compute the amount of the year end adjustment necessary to bring Allowance for Doubtful Accounts to the balance indicated by the age analysis. Then prepare the necessary journal entry to adjust the accounting records.

(c) In a recessionary environment with tight credit and high interest rates:

(1) Identify steps SEK Company might consider to improve the accounts receivable situation.

(2) Then evaluate each step identified in terms of the risks and costs involved.

determine the net credit and collection expense in dollars and as a percentage of sa 579506

Aug 29, 2021 | Uncategorized

Molly and Joe Mayne own Campus Fashions. From its inception Campus Fashions has sold merchandise on either a cash or credit basis, but no credit cards have been accepted.

During the past several months, the Maynes have begun to question their sales policies. First, they have lost some sales because of refusing to accept credit cards. Second, representatives of two metropolitan banks have been persuasive in almost convincing them to accept their national credit cards. One bank, City National Bank, has stated that its credit card fee is 4%.

The Maynes decide that they should determine the cost of carrying their own credit sales.

From the accounting records of the past 3 years they accumulate the following data.

Credit and collection expenses as a percentage of net credit sales are: uncollectible accounts 1.6%, billing and mailing costs 0.5%, and credit investigation fee on new customers 0.15%. Molly and Joe also determine that the average accounts receivable balance outstanding during the year is 5% of net credit sales. The Maynes estimate that they could earn an average of 8% annually on cash invested in other business opportunities.

Instructions

With the class divided into groups, answer the following.

(a) Prepare a table showing, for each year, total credit and collection expenses in dollars and as a percentage of net credit sales.

(b) Determine the net credit and collection expense in dollars and as a percentage of sales after considering the revenue not earned from other investment opportunities.

(c) Discuss both the financial and nonfinancial factors that are relevant to the decision.

a right to sell certain products or services or to use certain trademarks or trade n 579512

Aug 29, 2021 | Uncategorized

Match the statement with the term most directly associated with it.

1. _______ The allocation of the cost of a natural resource to expense in a rational and systematic manner.

2. _______ Rights, privileges, and competitive advantages that result from the ownership of long lived assets that do not possess physical substance.

3. _______ An exclusive right granted by the federal government to reproduce and sell an artistic or published work.

4. ________ A right to sell certain products or services or to use certain trademarks or trade names within a designated geographic area.

5. ________ Costs incurred by a company that often lead to patents or new products.

These costs must be expensed as incurred.

a fund used to report any activity that provides goods or services to other funds de 579563

Aug 29, 2021 | Uncategorized

Identification of fund type

Identify each of the fund types described.

1. A fund that is used to report assets held in a trustee capacity for others and that cannot be used to support the government’s own programs.

2. A fund used to report any activity for which a fee is charged to external users for goods and services.

3. A fund used to account for all financial resources except those required to be accounted for in another fund.

4. A fund used to account for the accumulation of resources for, and the payment of, general long term debt principal and interest.

5. A fund used to report resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government’s programs—that is, for the benefit of the government or its citizenry.

6. A fund used to account for the proceeds of specific revenue sources (other than trusts for individuals, private organizations, or other governments or for major capital projects) that are legally restricted to expenditures for specified purposes.

7. A fund used to report any activity that provides goods or services to other funds, departments, or agencies of the primary government and its component units, or to other governments, on a cost reimbursement basis.

8. A fund used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds or in trust funds for individuals, private organizations, or other governments).

determined that it is probable that a lawsuit involving a claim against a department 579564

Aug 29, 2021 | Uncategorized

Transaction analysis—governmental funds

Use transaction analysis to determine the effects of each of the following transactions in the general fund.

1. Salaries paid totaled $30,000. Additional salaries incurred, but not paid, totaled $2,500.

2. Levied property taxes of $100,000; $98,000 was collected during the year. The balance is expected to be uncollectible.

3. Borrowed $60,000 by issuing a nine month note bearing interest at 7%.

4. Repaid the note plus interest when due.

5. Borrowed $600,000 by issuing bonds at par. The bonds mature in 10 years.

6. Purchased equipment costing $25,000 with cash.

7. Sold equipment at the end of its expected useful life. The equipment had no expected residual value when acquired (at a cost of $13,000), but it sold for $1,200.

8. Determined that it is probable that a lawsuit involving a claim against a department will result in a settlement of at least $50,000. However, it is not expected that any payments will be required for two years or more.

the city of sioux falls entered into a number of transactions for the current fiscal 579569

Aug 29, 2021 | Uncategorized

Identification of fund type and transaction analysis

The City of Sioux Falls entered into a number of transactions for the current fiscal year. Identify the fund or funds affected by each transaction and determine how each transaction will affect the accounting equation of the particular fund.

1. Sioux Falls paid salaries to general government employees, $95,000.

2. Sioux Falls purchased an automobile by issuing a $25,000, 8% note to the vendor. The purchase occurred at midyear, and the note is a one year note.

3. The city sold general fixed assets with an original cost of $300,000 for $30,000 at the end of their useful life. The use of the resources received is not restricted.

4. In the second fiscal year, the city repaid the principal and interest on the note issued in transaction 2 at the due date of the note.

5. “Profits” of $500,000 from the airport enterprise fund were transferred to the general fund of the city to subsidize general fund operations.

6. Interest income collected on Sioux Falls’s general fund investments totaled $70,000 for the year.

perez county entered into a number of transactions for the current fiscal year ident 579570

Aug 29, 2021 | Uncategorized

Identification of fund type and transaction analysis

Perez County entered into a number of transactions for the current fiscal year. Identify the fund or funds affected by each transaction and determine how each transaction will affect the accounting equation of the particular fund.

1. Perez County issued $10 million of general obligation bonds at par to finance construction of a new county office building.

2. The county purchased a truck for a general governmental department. The cost of the truck, $22,000, was paid in cash.

3. The county owned and operated electric utility billed residents and businesses $500,000 for electricity sales.

4. The county paid $2 million to High Rise Construction Company during 2008 for work completed during the year.

5. The county paid general governmental employee salaries of $4,500. Another $500 of salaries accrued but has not been paid.

6. The county borrowed $7,500 on a six month note to finance general operating costs of the government.

for the year ended december 31 2011 walnut corners should recognize revenues of 579605

Aug 29, 2021 | Uncategorized

Multiple choice

The following information pertains to Walnut Corners:

For the year ended December 31, 2011, Walnut Corners should recognize revenues of:

a. $14,000,000

b. $16,000,000

c. $17,000,000

d. $19,000,000

what amount should coral city report for 2011 net property tax revenues 579607

Aug 29, 2021 | Uncategorized

The following information pertains to property taxes levied by Coral City for the calendar year 2011:

What amount should Coral City report for 2011 net property tax revenues?

a. $700,000

b. $690,000

c. $600,000

d. $500,000

how will property taxes be presented in the december 31 2011 balance sheet 579610

Aug 29, 2021 | Uncategorized

General fund journal entries

The following events and transactions relate to the levy and collection of property taxes for Jedville Township: March 21, 2011—Property tax bills for $2,500,000 are sent to property owners. An estimated 2% of the property tax levies are uncollectible. The taxes are due on May 1. May 4, 2011—$1,900,000 in taxes have been collected. The remaining receivables are reclassified as delinquent. May 5 to December 31, 2011—An additional $150,000 of taxes are collected. November 1, 2011—A $5,000 tax receivable account is determined to be uncollectible and is written off. January 1, 2012, to February 28, 2012—An additional $87,750 of 2011 taxes are collected.

REQUIRED

1. Prepare summary journal entries for the events and transactions described for the Jedville general fund.

2. How will property taxes be presented in the December 31, 2011, balance sheet?

3. What amount of property tax revenues should be reported for 2011?

a general ledger trial balance for any city contained the following balances at june 579611

Aug 29, 2021 | Uncategorized

Governmental fund closing entries

A general ledger trial balance for Any City contained the following balances at June 30, 2011, just before closing entries were made:

REQUIRED: Prepare the necessary closing entries.

millar city uses a purchases basis in accounting for supplies open encumbrances are 579612

Aug 29, 2021 | Uncategorized

Preparation of fund balance sheet

A general ledger trial balance at June 30, 2011, for Millar City is as follows:

Millar City uses a purchases basis in accounting for supplies. Open encumbrances are considered constrained by the highest decision making level of the city.

REQUIRED: Prepare a fund balance sheet as of June 30, 2011.

prepare a statement of revenues expenditures and changes in total fund balance for m 579613

Aug 29, 2021 | Uncategorized

Preparation of a fund statement of revenues, expenditures, and changes in fund balance

The trial balance of the general fund of Madelyn City before closing at December 31, 2011, contained the following accounts and balances:

REQUIRED: Prepare a statement of revenues, expenditures, and changes in (total) fund balance for Madelyn City’s general fund in 2011. (Details of revenue and expenditure accounts are omitted to simplify the requirement.)

delinquent taxes of 30 000 were collected before year end the remaining net realizab 579614

Aug 29, 2021 | Uncategorized

General fund journal entries

Prepare entries in the general fund to record the following transactions and events:

1. Estimated revenues for the fiscal year were $250,000 and appropriations were $248,000.

2. The tax levy for the fiscal year, of which 99% is believed to be collectible, was $200,000.

3. Taxes collected were $150,000.

4. A short term loan of $15,000 was made to the special revenue fund.

5. Orders for supplies were placed in the amount of $18,000.

6. The items ordered in transaction 5 were received. Actual cost was $18,150, and vouchers for that amount were prepared.

7. Materials were acquired from the stores fund (an internal service fund) in the amount of $800 (without encumbrance).

8. A $5,000 payment (transfer) was made to the debt service fund.

9. A cash payment of $15,000 was made for the purchase of equipment.

10. Licenses were collected in the amount of $3,000.

11. The balance of taxes receivable became delinquent.

12. Delinquent taxes of $30,000 were collected before year end. The remaining net realizable value of delinquent taxes is expected to be collected uniformly over the first four months of the next fiscal year.

prepare the journal entries required to record the following transactions in the gen 579615

Aug 29, 2021 | Uncategorized

General fund journal entries

Prepare the journal entries required to record the following transactions in the general fund of Rochester Township.

1. Borrowed $75,000 by issuing six month tax anticipation notes.

2. Ordered equipment with an estimated cost of $33,000.

3. Received the equipment along with an invoice for its actual cost, $33,250.

4. Transferred $200,000 of general fund resources to a debt service fund.

5. On January 1, the township levied property taxes of $1,000,000. The township expects to collect all except $100,000 by the end of the fiscal year or within not more than 60 days thereafter. Of the remaining $100,000, half is expected to prove uncollectible.

6. The township received a $100,000 restricted grant for certain library programs from another unit of government.

The grant will be accounted for in the general fund.

7. The township incurred $75,000 of expenditures for the programs covered by the library grant.

general obligation bonds with a par value of 750 000 are issued at 769 000 to financ 579616

Aug 29, 2021 | Uncategorized

Governmental fund journal entries

For each of the following transactions, note the fund(s) affected, and prepare appropriate journal entries.

1. General obligation bonds with a par value of $750,000 are issued at $769,000 to finance construction of a government office building.

2. A Community Block Development Grant in the amount of $450,000 is awarded for residential services within a city.

3. Upon approval of a new town band shell, the general fund transfers $500,000 to create a new fund.

4. A wealthy citizen donates $10,000,000 for city park maintenance. The principal cannot be spent.

5. Automobiles and vans for general governmental use are purchased for $375,000.

6. General fixed assets with an original cost of $300,000 sold for $30,000 at the end of their useful life.

7. Sold equipment at the end of its expected useful life. The equipment had no expected residual value when acquired (at a cost of $13,000), but it sold for $1,200.

8. The general fund transfers $50,000 for an interest payment on debt. The interest payment is made.

determine the village rsquo s general fund net assets that will appear on the govern 579617

Aug 29, 2021 | Uncategorized

Governmental fund reconciliation to total net assets

The postclosing trial balance for the Village of Alantown general fund at June 30, 2011, shows the following ledger account balances:

ADDITIONAL INFORMATION

1. The village owns general fixed assets with a historical cost of $100,000 and accumulated depreciation totaling $65,000.

2. General long term debt recorded in the internal debt records is $100,000. This was recorded as an other financing source in the general fund.

3. A capital lease payable in the amount of $75,000 is noted in the internal debt records. This was recorded as an other financing source in the general fund.

4. Revenues reported as deferred on the fund balance sheet using the 60 day criteria are recognized as revenue in the government wide statement.

REQUIRED: Determine the village’s general fund net assets that will appear on the government wide statement of net assets.

determine the city rsquo s change in net assets of governmental activities that will 579618

Aug 29, 2021 | Uncategorized

Governmental fund reconciliation to total net assets

The following data are available from the City of Boulder’s financial records on September 30, 2011:

a. The net change in fund balance—total governmental funds for the city is $1,408,950.

b. The city purchased general fixed assets at a historical cost of $225,000 during the year. No depreciation is recorded in the year of purchase.

c. Grants receivable in the amount of $165,000 are recorded as deferred revenue in the fund statements but would be recognized as revenue under accrual accounting.

d. A capital lease payable in the amount of $75,000 has been recorded as expenditure in the general fund. The related long term debt at year end is $55,000.

e. General long term debt in the amount of $350,000 has been issued and recorded in the general fund.

REQUIRED: Determine the city’s change in net assets of governmental activities that will appear in the government wide statements.

what church policies should be changed to improve internal control 579427

Aug 29, 2021 | Uncategorized

The board of trustees of a local church is concerned about the internal accounting controls for the offering collections made at weekly services. The trustees ask you to serve on a three person audit team with the internal auditor of a local college and a CPA who has just joined the church.

At a meeting of the audit team and the board of trustees you learn the following.

1. The church’s board of trustees has delegated responsibility for the financial management and audit of the financial records to the finance committee.This group prepares the annual budget and approves major disbursements. It is not involved in collections or record keeping. No audit has been made in recent years because the same trusted employee has kept church records and served as financial secretary for 15 years. The church does not carry any fidelity insurance.

2. The collection at the weekly service is taken by a team of ushers who volunteer to serve one month. The ushers take the collection plates to a basement office at the rear of the church.

They hand their plates to the head usher and return to the church service. After all plates have been turned in, the head usher counts the cash received. The head usher then places the cash in the church safe along with a notation of the amount counted. The head usher volunteers to serve for 3 months.

3. The next morning the financial secretary opens the safe and recounts the collection. The secretary withholds $150–$200 in cash, depending on the cash expenditures expected for the week, and deposits the remainder of the collections in the bank.To facilitate the deposit, church members who contribute by check are asked to make their checks payable to “Cash.”

4. Each month, the financial secretary reconciles the bank statement and submits a copy of the reconciliation to the board of trustees. The reconciliations have rarely contained any bank errors and have never shown any errors per books.

Instructions

With the class divided into groups, answer the following.

(a) Indicate the weaknesses in internal accounting control over the handling of collections.

(b) List the improvements in internal control procedures that you plan to make at the next meeting of the audit team for (1) the ushers, (2) the head usher, (3) the financial secretary, and (4) the finance committee.

(c) What church policies should be changed to improve internal control?

who will suffer negative effects if you do not comply with gena schmitt rsquo s inst 579429

Aug 29, 2021 | Uncategorized

You are the assistant controller in charge of general ledger accounting at Riverside Bottling Company.Your company has a large loan from an insurance company. The loan agreement requires that the company’s cash account balance be maintained at $200,000 or more, as reported monthly.

At June 30 the cash balance is $80,000, which you report to Gena Schmitt, the financial vice president. Gena excitedly instructs you to keep the cash receipts book open for one additional day for purposes of the June 30 report to the insurance company. Gena says, “If we don’t get that cash balance over $200,000, we’ll default on our loan agreement.They could close us down, put us all out of our jobs!” Gena continues, “I talked to Oconto Distributors (one of Riverside’s largest customers) this morning.They said they sent us a check for $150,000 yesterday.We should receive it tomorrow. If we include just that one check in our cash balance, we’ll be in the clear. It’s in the mail!”

Instructions

(a) Who will suffer negative effects if you do not comply with Gena Schmitt’s instructions? Who will suffer if you do comply?

(b) What are the ethical considerations in this case?

(c) What alternatives do you have?

prepare the journal entries for the transactions 579434

Aug 29, 2021 | Uncategorized

The following selected transactions relate to Falcetto Company.

Instructions

Prepare the journal entries for the transactions.

blinka retailers accepted 50 000 of citibank visa credit card charges for merchandis 579445

Aug 29, 2021 | Uncategorized

Blinka Retailers accepted $50,000 of Citibank Visa credit card charges for merchandise sold on July 1. Citibank charges 4% for its credit card use.The entry to record this transaction by Blinka Retailers will include a credit to Sales of $50,000 and a debit(s) to:

foti co accepts a 1 000 3 month 12 promissory note in settlement of an account with 579446

Aug 29, 2021 | Uncategorized

Foti Co. accepts a $1,000, 3 month, 12% promissory note in settlement of an account with Bartelt Co. The entry to record this transaction is as follows.

ginter co holds kolar inc rsquo s 10 000 120 day 9 note the entry made by ginter co 579447

Aug 29, 2021 | Uncategorized

Ginter Co. holds Kolar Inc.’s $10,000, 120 day, 9% note. The entry made by Ginter Co. when the note is ollected, assuming no interest has been previously accrued, is:

compute the missing amounts for each of the following notes 579459

Aug 29, 2021 | Uncategorized

Compute the missing amounts for each of the following notes.

prepare journal entries for the transactions above 579480

Aug 29, 2021 | Uncategorized

Presented below are selected transactions of Pale Force Company. Pale Force sells in large quantities to other companies and also sells its product in a small retail outlet.

Instructions

Prepare journal entries for the transactions above.

prepare the entries on pierson co rsquo s books related to the transactions that occ 579481

Aug 29, 2021 | Uncategorized

Presented below are two independent situations.

(a) On January 6, Arneson Co. sells merchandise on account to Cortez Inc. for $9,000, terms 2/10, n/30. On January 16, Cortez Inc. pays the amount due. Prepare the entries on Arneson’s books to record the sale and related collection.

(b) On January 10, Mary Dawes uses her Pierson Co. credit card to purchase merchandise from Pierson Co. for $9,000. On February 10, Dawes is billed for the amount due of $9,000. On February 12, Dawes pays $5,000 on the balance due. On March 10, Dawes is billed for the amount due, including interest at 2% per month on the unpaid balance as of February 12.

Prepare the entries on Pierson Co.’s books related to the transactions that occurred on January 10, February 12, and March 10.

if allowance for doubtful accounts has a debit balance of 200 in the trial balance j 579482

Aug 29, 2021 | Uncategorized

The ledger of Hixson Company at the end of the current year shows Accounts Receivable $120,000, Sales $840,000, and Sales Returns and Allowances $30,000.

Instructions

(a) If Hixson uses the direct write off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Hixson determines that Fell’s $1,400 balance is uncollectible.

(b) If Allowance for Doubtful Accounts has a credit balance of $2,100 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 1% of net sales, and (2) 10% of accounts receivable.

(c) If Allowance for Doubtful Accounts has a debit balance of $200 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 0.75% of net sales and (2) 6% of accounts receivable.

prepare the adjusting entry at march 31 to record bad debts expense 579483

Aug 29, 2021 | Uncategorized

Ingles Company has accounts receivable of $93,100 at March 31. An analysis of the accounts shows the information on the page.

Credit terms are 2/10, n/30. At March 31, Allowance for Doubtful Accounts has a credit balance of $1,200 prior to adjustment. The company uses the percentage of receivables basis for estimating uncollectible accounts. The company’s estimate of bad debts is as follows.

Instructions

(a) Determine the total estimated uncollectibles.

(b) Prepare the adjusting entry at March 31 to record bad debts expense.

indicate the statement presentation of the financing charges and the credit card ser 579488

Aug 29, 2021 | Uncategorized

Topeka Stores accepts both its own and national credit cards. During the year the following selected summary transactions occurred.

Instructions

(a) Journalize the transactions for Topeka Stores.

(b) Indicate the statement presentation of the financing charges and the credit card service charge expense for Topeka Stores.

record the collection of the givens note at its maturity in 2011 579489

Aug 29, 2021 | Uncategorized

Orosco Supply Co. has the following transactions related to notes receivable during the last 2 months of 2010.

Instructions

(a) Journalize the transactions for Orosco Supply Co.

(b) Record the collection of the Givens note at its maturity in 2011.

prepare the journal entry to record bad debts expense for 2010 assuming that an agin 579493

Aug 29, 2021 | Uncategorized

At December 31, 2009, Leis Co. reported the following information on its balance sheet.

During 2010, the company had the following transactions related to receivables.

Instructions

(a) Prepare the journal entries to record each of these five transactions.Assume that no cash discounts were taken on the collections of accounts receivable.

(b) Enter the January 1, 2010, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts (use T accounts), and determine the balances.

(c) Prepare the journal entry to record bad debts expense for 2010, assuming that an aging of accounts receivable indicates that expected bad debts are $115,000.

(d) Compute the accounts receivable turnover ratio for 2010.

what type of account is allowance for doubtful accounts how does it affect how accou 579495

Aug 29, 2021 | Uncategorized

At December 31, 2010, the trial balance of Worcester Company contained the following amounts before adjustment.

Instructions

(a) Based on the information given, which method of accounting for bad debts is Worcester Company using—the direct write off method or the allowance method? How can you tell?

(b) Prepare the adjusting entry at December 31, 2010, for bad debts expense under each of the following independent assumptions.

(1) An aging schedule indicates that $11,750 of accounts receivable will be uncollectible.

(2) The company estimates that 1% of sales will be uncollectible.

(c) Repeat part (b) assuming that instead of a credit balance there is an $2,000 debit balance in Allowance for Doubtful Accounts.

(d) During the next month, January 2011, a $3,000 account receivable is written off as uncollectible.

Prepare the journal entry to record the write off.

(e) Repeat part (d) assuming that Worcester uses the direct write off method instead of the allowance method in accounting for uncollectible accounts receivable.

(f) What type of account is Allowance for Doubtful Accounts? How does it affect how accounts receivable is reported on the balance sheet at the end of the accounting period?

enter the balances at october 1 in the receivable accounts post the entries to all o 579496

Aug 29, 2021 | Uncategorized

Mendosa Company closes its books monthly. On September 30, selected ledger account balances are:

Notes Receivable include the following.

Interest is computed using a 360 day year. During October, the following transactions were completed.

Instructions

(a) Journalize the October transactions and the October 31 adjusting entry for accrued interest receivable.

(b) Enter the balances at October 1 in the receivable accounts. Post the entries to all of the receivable accounts.

(c) Show the balance sheet presentation of the receivable accounts at October 31.

on january 1 2010 kloppenberg company had accounts receivable 139 000 notes receivab 579497

Aug 29, 2021 | Uncategorized

On January 1, 2010, Kloppenberg Company had Accounts Receivable $139,000, Notes Receivable $25,000, and Allowance for Doubtful Accounts $13,200.The note receivable is from Sara Rogers Company. It is a 4 month, 12% note dated December 31, 2009. Kloppenberg Company prepares financial statements annually. During the year the following selected transactions occurred.

Instructions

Journalize the transactions.

prepare the journal entry to record bad debts expense for 2010 assuming that an agin 579498

Aug 29, 2021 | Uncategorized

At December 31, 2009, Dill Imports reported the following information on its balance sheet.

During 2010, the company had the following transactions related to receivables.

Instructions

(a) Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable.

(b) Enter the January 1, 2010, balances in Accounts Receivable and Allowance for Doubtful Accounts. Post the entries to the two accounts (use T accounts), and determine the balances.

(c) Prepare the journal entry to record bad debts expense for 2010, assuming that an aging of accounts receivable indicates that estimated bad debts are $22,000.

(d) Compute the accounts receivable turnover ratio for the year 2010.

what is the weakness of the direct write off method of reporting bad debts expense 579499

Aug 29, 2021 | Uncategorized

Information related to Bee Company for 2010 is summarized below.

Instructions

(a) What amount of bad debts expense will Bee Company report if it uses the direct write off method of accounting for bad debts?

(b) Assume that Bee Company decides to estimate its bad debts expense to be 2% of credit sales. What amount of bad debts expense will Bee record if Allowance for Doubtful Accounts has a credit balance of $3,000?

(c) Assume that Bee Company decides to estimate its bad debts expense based on 6% of accounts receivable. What amount of bad debts expense will Bee Company record if Allowance for Doubtful Accounts has a credit balance of $4,000?

(d) Assume the same facts as in (c), except that there is a $2,000 debit balance in Allowance for Doubtful Accounts. What amount of bad debts expense will Bee record?

(e) What is the weakness of the direct write off method of reporting bad debts expense?

what are the advantages of using the allowance method in accounting for uncollectibl 579500

Aug 29, 2021 | Uncategorized

At December 31, 2010, the trial balance of Liquid Snake Company contained the following amounts before adjustment.

Instructions

(a) Prepare the adjusting entry at December 31, 2010, to record bad debts expense under each of the following independent assumptions.

(1) An aging schedule indicates that $12,500 of accounts receivable will be uncollectible.

(2) The company estimates that 2% of sales will be uncollectible.

(b) Repeat part (a) assuming that instead of a credit balance, there is a $1,100 debit balance in Allowance for Doubtful Accounts.

(c) During the next month, January 2011, a $3,200 account receivable is written off as uncollectible.

Prepare the journal entry to record the write off.

(d) Repeat part (c) assuming that Liquid Snake Company uses the direct write off method instead of the allowance method in accounting for uncollectible accounts receivable.

(e) What are the advantages of using the allowance method in accounting for uncollectible accounts as compared to the direct write off method?

indicate whether each procedure is an example of good internal control or of weak in 579402

Aug 29, 2021 | Uncategorized

Listed below are five procedures followed by The Beat Company.

1. Several individuals operate the cash register using the same register drawer.

2. A monthly bank reconciliation is prepared by someone who has no other cash responsibilities.

3. Ellen May writes checks and also records cash payment journal entries.

4. One individual orders inventory, while a different individual authorizes payments.

5. Unnumbered sales invoices from credit sales are forwarded to the accounting department every four weeks for recording.

Instructions

Indicate whether each procedure is an example of good internal control or of weak internal control.

If it is an example of good internal control, indicate which internal control principle is being followed. If it is an example of weak internal control, indicate which internal control principle is violated. Use the table below.

Q

if it is an example of good internal control indicate which internal control princip 579403

Aug 29, 2021 | Uncategorized

Listed below are five procedures followed by Collins Company.

1. Employees are required to take vacations.

2. Any member of the sales department can approve credit sales.

3. Jethro Bodine ships goods to customers, bills customers, and receives payment from customers.

4. Total cash receipts are compared to bank deposits daily by someone who has no other cash responsibilities.

5. Time clocks are used for recording time worked by employees.

Instructions Indicate whether each procedure is an example of good internal control or of weak internal control.

If it is an example of good internal control, indicate which internal control principle is being followed. If it is an example of weak internal control, indicate which internal control principle is violated. Use the table below.

lincolnville company uses an imprest petty cash system the fund was established on m 579405

Aug 29, 2021 | Uncategorized

Lincolnville Company uses an imprest petty cash system. The fund was established on March 1 with a balance of $100. During March the following petty cash receipts were found in the petty cash box.

The fund was replenished on March 15 when the fund contained $3 in cash. On March 20, the amount in the fund was increased to $150.

Instructions

Journalize the entries in March that pertain to the operation of the petty cash fund.

prepare a correct bank reconciliation 579406

Aug 29, 2021 | Uncategorized

Anna Pelo is unable to reconcile the bank balance at January 31.Anna’s reconciliation is as follows.

Instructions

(a) Prepare a correct bank reconciliation.

(b) Journalize the entries required by the reconciliation.

on april 30 the bank reconciliation of galena company shows three outstanding checks 579407

Aug 29, 2021 | Uncategorized

On April 30, the bank reconciliation of Galena Company shows three outstanding checks: no. 254, $650, no. 255, $820, and no. 257, $410.The May bank statement and the May cash payments journal show the following.

Instructions

Using step 2 in the reconciliation procedure, list the outstanding checks at May 31.

prepare the adjusting entries at september 30 assuming 1 the nsf check was from a cu 579409

Aug 29, 2021 | Uncategorized

The information below relates to the Cash account in the ledger of Robertson Company.

Balance September 1—$17,150; Cash deposited—$64,000.

Balance September 30—$17,404; Checks written—$63,746.

The September bank statement shows a balance of $16,422 on September 30 and the following memoranda.

At September 30, deposits in transit were $4,450, and outstanding checks totaled $2,383.

Instructions

(a) Prepare the bank reconciliation at September 30.

(b) Prepare the adjusting entries at September 30, assuming (1) the NSF check was from a customer on account, and (2) no interest had been accrued on the note.

the cash records of givens company show the following four situations 579410

Aug 29, 2021 | Uncategorized

The cash records of Givens Company show the following four situations.

1. The June 30 bank reconciliation indicated that deposits in transit total $720. During July the general ledger account Cash shows deposits of $15,750, but the bank statement indicates that only $15,600 in deposits were received during the month.

2. The June 30 bank reconciliation also reported outstanding checks of $680. During the month of July, Givens Company books show that $17,200 of checks were issued.The bank statement showed that $16,400 of checks cleared the bank in July.

3. In September, deposits per the bank statement totaled $26,700, deposits per books were $25,400, and deposits in transit at September 30 were $2,100.

4. In September, cash disbursements per books were $23,700, checks clearing the bank were $25,000, and outstanding checks at September 30 were $2,100.

There were no bank debit or credit memoranda. No errors were made by either the bank or Givens Company.

Instructions

Answer the following questions.

(a) In situation (1), what were the deposits in transit at July 31?

(b) In situation (2), what were the outstanding checks at July 31?

(c) In situation (3), what were the deposits in transit at August 31?

(d) In situation (4), what were the outstanding checks at August 31?

what amount should lipkus report as ldquo cash and cash equivalents rdquo on its bal 579411

Aug 29, 2021 | Uncategorized

Lipkus Company has recorded the following items in its financial records.

The cash in bank is subject to a compensating balance of $5,000. The highly liquid investments had maturities of 3 months or less when they were purchased.The stock investments will be sold in the next 6 to 12 months.The plant expansion project will begin in 3 years.

Instructions

(a) What amount should Lipkus report as “Cash and cash equivalents” on its balance sheet?

(b) Where should the items not included in part (a) be reported on the balance sheet?

(c) What disclosures should Lipkus make in its financial statements concerning “cash and cash equivalents”?

identify the internal control principles and their application to cash disbursements 579412

Aug 29, 2021 | Uncategorized

Luby Office Supply Company recently changed its system of internal control over cash disbursements.The system includes the following features.

Instead of being unnumbered and manually prepared, all checks must now be pren umbered and written by using the new checkwriting machine purchased by the company. Before a check can be issued, each invoice must have the approval of Sally Morgan, the purchasing agent, and John Countryman, the receiving department supervisor. Checks must be signed by either AnnLynn, the treasurer, or Bob Skabo, the assistant treasurer. Before signing a check, the signer is expected to compare the amount of the check with the amount on the invoice.

After signing a check, the signer stamps the invoice PAID and inserts within the stamp, the date, check number, and amount of the check.The “paid” invoice is then sent to the accounting department for recording. Blank checks are stored in a safe in the treasurer’s office. The combination to the safe is known only by the treasurer and assistant treasurer. Each month, the bank statement is reconciled with the bank balance per books by the assistant chief accountant. All employees who handle or account for cash are bonded.

Instructions

Identify the internal control principles and their application to cash disbursements of Luby Office Supply Company.

what internal control features exist in a petty cash fund 579413

Aug 29, 2021 | Uncategorized

Winningham Company maintains a petty cash fund for small expenditures. The following transactions occurred over a 2 month period.

Instructions

(a) Journalize the petty cash transactions.

(b) Post to the Petty Cash account.

(c) What internal control features exist in a petty cash fund?

prepare the necessary adjusting entries for logan company at may 31 2010 579414

Aug 29, 2021 | Uncategorized

On May 31, 2010, James Logan Company had a cash balance per books of $6,781.50.

The bank statement from Farmers State Bank on that date showed a balance of $6,404.60. A comparison of the statement with the cash account revealed the following facts.

1. The statement included a debit memo of $40 for the printing of additional company checks.

2. Cash sales of $836.15 on May 12 were deposited in the bank.The cash receipts journal entry and the deposit slip were incorrectly made for $886.15. The bank credited Logan Company for the correct amount.

3. Outstanding checks at May 31 totaled $576.25. Deposits in transit were $1,916.15.

4. On May 18, the company issued check No. 1181 for $685 to Barry Trest, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Logan Company for $658.

5. A $2,500 note receivable was collected by the bank for Logan Company on May 31 plus $80 interest. The bank charged a collection fee of $20. No interest has been accrued on the note.

6. Included with the cancelled checks was a check issued by Bridgetown Company to Tom Lujak for $800 that was incorrectly charged to Logan Company by the bank.

7. On May 31, the bank statement showed an NSF charge of $680 for a check issued by Sandy Grifton, a customer, to Logan Company on account.

Instructions

(a) Prepare the bank reconciliation at May 31, 2010.

(b) Prepare the necessary adjusting entries for Logan Company at May 31, 2010.

prepare the adjusting entries based on the reconciliation hint the correction of any 579415

Aug 29, 2021 | Uncategorized

The bank portion of the bank reconciliation for Backhaus Company at November 30, 2010, was as follows.

The adjusted cash balance per bank agreed with the cash balance per books at November 30.

The December bank statement showed the following checks and deposits.

The cash records per books for December showed the following.

The bank statement contained two memoranda:

1. A credit of $4,145 for the collection of a $4,000 note for Backhaus Company plus interest of $160 and less a collection fee of $15. Backhaus Company has not accrued any interest on the note.

2. A debit of $572.80 for an NSF check written by D. Chagnon, a customer.At December 31, the check had not been redeposited in the bank.

At December 31 the cash balance per books was $12,485.20, and the cash balance per the bank statement was $20,154.30. The bank did not make any errors, but two errors were made by Backhaus Company.

Instructions

(a) Using the four steps in the reconciliation procedure, prepare a bank reconciliation at December 31.

(b) Prepare the adjusting entries based on the reconciliation. (Hint:The correction of any errors pertaining to recording checks should be made to Accounts Payable. The correction of any errors relating to recording cash receipts should be made to Accounts Receivable.)

journalize the adjusting entries to be made by haverman company at july 31 2010 assu 579416

Aug 29, 2021 | Uncategorized

Haverman Company maintains a checking account at the Commerce Bank. At July 31, selected data from the ledger balance and the bank statement are shown below.

Analysis of the bank data reveals that the credits consist of $79,000 of July deposits and a credit memorandum of $3,470 for the collection of a $3,400 note plus interest revenue of $70.The July debits per bank consist of checks cleared $74,700 and a debit memorandum of $56 for printing additional company checks.

You also discover the following errors involving July checks: (1) A check for $230 to a creditor on account that cleared the bank in July was journalized and posted as $320. (2) A salary check to an employee for $255 was recorded by the bank for $155.

The June 30 bank reconciliation contained only two reconciling items: deposits in transit $7,000 and outstanding checks of $6,200.

Instructions

(a) Prepare a bank reconciliation at July 31.

(b) Journalize the adjusting entries to be made by Haverman Company at July 31, 2010.Assume that interest on the note has not been accrued.

identify as many internal control weaknesses as you can in this scenario and suggest 579417

Aug 29, 2021 | Uncategorized

Emporia Middle School wants to raise money for a new sound system for its auditorium.

The primary fund raising event is a dance at which the famous disc jockey Obnoxious Ed will play classic and not so classic dance tunes.Tom Wickman, the music and theater instructor, has been given the responsibility for coordinating the fund raising efforts. This is Tom’s first experience with fund raising. He decides to put the eighth grade choir in charge of the event; he will be a relatively passive observer.

Tom had 500 unnumbered tickets printed for the dance. He left the tickets in a box on his desk and told the choir students to take as many tickets as they thought they could sell for $5 each. In order to ensure that no extra tickets would be floating around, he told them to dispose of any unsold tickets.When the students received payment for the tickets, they were to bring the cash back to Tom, and he would put it in a locked box in his desk drawer.

Some of the students were responsible for decorating the gymnasium for the dance. Tom gave each of them a key to the money box and told them that if they took money out to purchase materials, they should put a note in the box saying how much they took and what it was used for.

After 2 weeks the money box appeared to be getting full, so Tom asked Luke Gilmor to count the money, prepare a deposit slip, and deposit the money in a bank account Tom had opened. The day of the dance, Tom wrote a check from the account to pay the DJ. Obnoxious Ed, however, said that he accepted only cash and did not give receipts. So Tom took $200 out of thecash box and gave it to Ed.At the dance Tom had Mel Harris working at the entrance to the gymnasium, collecting tickets from students and selling tickets to those who had not prepurchased them.Tom estimated that 400 students attended the dance.

The following day Tom closed out the bank account, which had $250 in it, and gave that amount plus the $180 in the cash box to Principal Foran. Principal Foran seemed surprised that, after generating roughly $2,000 in sales, the dance netted only $430 in cash. Tom did not know how to respond.

Instructions

Identify as many internal control weaknesses as you can in this scenario, and suggest how each could be addressed.

identify the internal control principles and their application to the cash receipts 579418

Aug 29, 2021 | Uncategorized

Discount Theater is located in the Mishawaka Mall. A cashier’s booth is located near the entrance to the theater.Three cashiers are employed. One works from 1–5 P.M., another from 5–9 P.M.The shifts are rotated among the three cashiers.The cashiers receive cash from customers and operate a machine that ejects serially numbered tickets.The rolls of tickets are inserted and locked into the machine by the theater manager at the beginning of each cashier’s shift.

After purchasing a ticket, the customer takes the ticket to an usher stationed at the entrance of the theater lobby some 60 feet from the cashier’s booth. The usher tears the ticket in half, admits the customer, and returns the ticket stub to the customer. The other half of the ticket is dropped into a locked box by the usher.

At the end of each cashier’s shift, the theater manager removes the ticket rolls from the machine and makes a cash count. The cash count sheet is initialed by the cashier. At the end of the day, the manager deposits the receipts in total in a bank night deposit vault located in the mall.The manager also sends copies of the deposit slip and the initialed cash count sheets to the theater company treasurer for verification and to the company’s accounting department. Receipts from the first shift are stored in a safe located in the manager’s office.

Instructions

(a) Identify the internal control principles and their application to the cash receipts transactions of the Discount Theater.

(b) If the usher and cashier decide to collaborate to misappropriate cash, what actions might they take?

what internal control features exist in a petty cash fund 579419

Aug 29, 2021 | Uncategorized

Loganberry Company maintains a petty cash fund for small expenditures. The following transactions occurred over a 2 month period.

Instructions

(a) Journalize the petty cash transactions.

(b) Post to the Petty Cash account.

(c) What internal control features exist in a petty cash fund?

prepare the necessary adjusting entries for wolverine genetics company at may 31 201 579420

Aug 29, 2021 | Uncategorized

Wolverine Genetics Company of Flint, Michigan, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2010, the company’s cash account per its general ledger showed the following balance.

The bank statement from Flint State Bank on that date showed the following balance.