Homework Solution: September 2010

Monday, September 27, 2010

ACC 250 WEEK 1 CHECKPOINT:CHOOSING ACCOUNTING SOFTWARE--A++

CheckPoint: Choosing Accounting Software
 Due Day 4 [Post to the Individual forum.]
 Resource: “A Strategy for Finding the Right Accounting Software” at http://www.aicpa.org/pubs/jofa/sep2003/johnston.htm
 Write a 200- to 300-word response addressing the following topics:
o Identify the different types of accounting software.
o Provide the names of different software programs for each type of software.
o Discuss which companies would use each type of software.
CheckPoint: Choosing Accounting Software
 Due Day 4 [Post to the Individual forum.]
 Resource: “A Strategy for Finding the Right Accounting Software” at http://www.aicpa.org/pubs/jofa/sep2003/johnston.htm
 Write a 200- to 300-word response addressing the following topics:
o Identify the different types of accounting software.
o Provide the names of different software programs for each type of software.
o Discuss which companies would use each type of software.

Here's the SOLUTION

ACC 250 WEEK 1 ASSIGNMENT: ACCOUNTING SOFTWARE MEMO--A++

Assignment: Accounting Software Memo
 Due Day 7 [Individual forum]
 Read the following memo:
Your department’s accounting software is extremely outdated and you have included the purchase of new software in this year’s fiscal budget. You have decided it is time to start looking into purchasing your company’s accounting software and have chosen someone in your department to undertake the task. You want to draft a memo for your employee to help guide her in the purchasing process.
 Prepare a 350-word memo discussing the factors to consider when choosing accounting software. Discuss why each factor is important and the risks of not considering each factor.
 Post your paper as an attachment
Assignment: Accounting Software Memo
 Due Day 7 [Individual forum]
 Read the following memo:
Your department’s accounting software is extremely outdated and you have included the purchase of new software in this year’s fiscal budget. You have decided it is time to start looking into purchasing your company’s accounting software and have chosen someone in your department to undertake the task. You want to draft a memo for your employee to help guide her in the purchasing process.
 Prepare a 350-word memo discussing the factors to consider when choosing accounting software. Discuss why each factor is important and the risks of not considering each factor.
 Post your paper as an attachment

Here's the SOLUTION

ACC 250 WEEK 2-DQ 1 AND 2--A++

Discussion Questions
 DQ 1 Due Day 2 [Main forum]
 Post your response to the following: You have just completed training for your new position in a large accounting firm. The trainer has just covered the difference between manual accounting and computerized accounting. What questions do you have regarding the differences? What are the advantages of computerized accounting versus manual accounting?
 DQ 2 Due Day 4 [Main forum]
 Post your response to the following: This week, you learned how to start and back up Peachtree software and you had the opportunity to explore some of Peachtree’s features. What was the most challenging aspect of the material covered this week? What did you find most beneficial?
Discussion Questions
 DQ 1 Due Day 2 [Main forum]
 Post your response to the following: You have just completed training for your new position in a large accounting firm. The trainer has just covered the difference between manual accounting and computerized accounting. What questions do you have regarding the differences? What are the advantages of computerized accounting versus manual accounting?
 DQ 2 Due Day 4 [Main forum]
 Post your response to the following: This week, you learned how to start and back up Peachtree software and you had the opportunity to explore some of Peachtree’s features. What was the most challenging aspect of the material covered this week? What did you find most beneficial?

Here's the SOLUTION

ACC 250 WEEK 2 CheckPoint: Bellwether Garden Supply: Back Up and Restore Data--A++

CheckPoint: Bellwether Garden Supply: Back Up and Restore Data
 Due Day 5 [Individual forum]
 Complete exercises 1-1 and 1-2 on pp. 52-54 of Computer Accounting with Peachtree Complete® 2009 using Peachtree Complete®.
 Save your work as a PDF file. Under the File menu, choose Create PDF.
 Post your PDF file as an attachment
CheckPoint: Bellwether Garden Supply: Back Up and Restore Data
 Due Day 5 [Individual forum]
 Complete exercises 1-1 and 1-2 on pp. 52-54 of Computer Accounting with Peachtree Complete® 2009 using Peachtree Complete®.
 Save your work as a PDF file. Under the File menu, choose Create PDF.
 Post your PDF file as an attachment

Here's the SOLUTION

ACC 250 WEEK 3 CheckPoint: Bellwether Garden Supply: Vendor Transactions--A++

CheckPoint: Bellwether Garden Supply: Vendor Transactions
 Due Day 4 [Individual forum]
 Complete exercises 2-1 and 2-2 on pp. 93-96 of Computer Accounting with Peachtree Complete® 2009 using Peachtree.
 Save your work as a PDF file. Under the File menu, choose Create PDF.
 Post the PDF file as an attachment.
CheckPoint: Bellwether Garden Supply: Vendor Transactions
 Due Day 4 [Individual forum]
 Complete exercises 2-1 and 2-2 on pp. 93-96 of Computer Accounting with Peachtree Complete® 2009 using Peachtree.
 Save your work as a PDF file. Under the File menu, choose Create PDF.
 Post the PDF file as an attachment.

Here's the SOLUTION

ACC 250 WEEK 3 Assignment: Bellwether Garden Supply: Record a Transaction--A++

Assignment: Bellwether Garden Supply: Record a Transaction
 Due Day 7 [Individual forum]
 Complete exercises 3-1 and 3-2 on pp. 136 & 137 of Computer Accounting with Peachtree Complete® 2009 using Peachtree.
 Save your work as a PDF file. Under the File menu, choose Create PDF.
 Post the PDF file as an attachment
Assignment: Bellwether Garden Supply: Record a Transaction
 Due Day 7 [Individual forum]
 Complete exercises 3-1 and 3-2 on pp. 136 & 137 of Computer Accounting with Peachtree Complete® 2009 using Peachtree.
 Save your work as a PDF file. Under the File menu, choose Create PDF.
 Post the PDF file as an attachment

Here's the SOLUTION

ACC 250 WEEK 4 DQ 1 AND 2 A++

Discussion Questions
 DQ 1 Due Day 2 [Main forum]
 Post your response to the following: Computer Accounting with Peachtree Complete® 2009 covers how to enter payroll information for hourly and salary employees. Why is it important to precisely enter information? What are the consequences if the information is not correct?
 DQ 2 Due Day 4 [Main forum]
 Post your response to the following: Entering payroll information is a vital part of accounting. What aspects of setting up payroll in Peachtree did you find most challenging? Explain why.
Discussion Questions
 DQ 1 Due Day 2 [Main forum]
 Post your response to the following: Computer Accounting with Peachtree Complete® 2009 covers how to enter payroll information for hourly and salary employees. Why is it important to precisely enter information? What are the consequences if the information is not correct?
 DQ 2 Due Day 4 [Main forum]
 Post your response to the following: Entering payroll information is a vital part of accounting. What aspects of setting up payroll in Peachtree did you find most challenging? Explain why.

Here's the SOLUTION

ACC 250 WEEK 4 CheckPoint: Bellwether Garden Supply: Payroll--A++

CheckPoint: Bellwether Garden Supply: Payroll
 Due Day 5 [Individual forum]
 Complete exercises 4-1 and 4-2 on pp. 162 & 163 of Computer Accounting with Peachtree Complete® 2009 using Peachtree.
 Save your work as a PDF file. Under the File menu, choose Create PDF.
 Post the PDF file as an attachment
CheckPoint: Bellwether Garden Supply: Payroll
 Due Day 5 [Individual forum]
 Complete exercises 4-1 and 4-2 on pp. 162 & 163 of Computer Accounting with Peachtree Complete® 2009 using Peachtree.
 Save your work as a PDF file. Under the File menu, choose Create PDF.
 Post the PDF file as an attachment

Here's the SOLUTION

ACC 250 WEEK 5 CheckPoint: Chart of Accounts--A++

CheckPoint: Chart of Accounts
 Due Day 4 [Individual forum]
 Address the following:
o What is the purpose of the chart of accounts?
o Why are internal controls and audit trails important in a computerized accounting system?
CheckPoint: Chart of Accounts
 Due Day 4 [Individual forum]
 Address the following:
o What is the purpose of the chart of accounts?
o Why are internal controls and audit trails important in a computerized accounting system?

Here's the SOLUTION

ACC 250 WEEK 5 Assignment: Bellwether Garden Supply: Journalize and Post--A++

Assignment: Bellwether Garden Supply: Journalize and Post
 Due Day 7 [Individual forum]
 Complete exercises 5-1 and 5-2 on p. 203 and exercises 6-1 and 6-2 on pp. 218 & 219 of Computer Accounting with Peachtree Complete® 2009 using Peachtree.
 Save your work as a PDF file. Under the File menu, choose Create PDF.
 Post the PDF file as an attachment.
Assignment: Bellwether Garden Supply: Journalize and Post
 Due Day 7 [Individual forum]
 Complete exercises 5-1 and 5-2 on p. 203 and exercises 6-1 and 6-2 on pp. 218 & 219 of Computer Accounting with Peachtree Complete® 2009 using Peachtree.
 Save your work as a PDF file. Under the File menu, choose Create PDF.
 Post the PDF file as an attachment.

Here's the SOLUTION

ACC 250 WEEK 6 DQ 1 AND 2 A++

Discussion Questions
 DQ 1 Due Day 2 [Main forum]
 Post your response to the following: Peachtree generates several financial statements based on the information entered. Identify and briefly summarize each financial statement. How are these statements used? Why is it important that these statements are accurate?
 DQ 2 Due Day 4 [Main forum]
 Post your response to the following: This week, you learned what is contained in several financial statements generated by Peachtree and how these statements interrelate. What information did you find most challenging? Explain why.
Discussion Questions
 DQ 1 Due Day 2 [Main forum]
 Post your response to the following: Peachtree generates several financial statements based on the information entered. Identify and briefly summarize each financial statement. How are these statements used? Why is it important that these statements are accurate?
 DQ 2 Due Day 4 [Main forum]
 Post your response to the following: This week, you learned what is contained in several financial statements generated by Peachtree and how these statements interrelate. What information did you find most challenging? Explain why.

Here's the SOLUTION

ACC 250 WEEK 6 CheckPoint: Financial Statements Exercises 7-1 and 7-2 --A+

CheckPoint: Financial Statements
 Due Day 5 [Individual forum.]
 Complete exercises 7-1 and 7-2 on pp. 242 & 243 of Computer Accounting with Peachtree Complete® 2009 using Peachtree.
 Write a paragraph on each exercise discussing what the information from each financial statement means and why the information is useful to those who read the financial statements.
 Save your work as a PDF file. Under the File menu, choose Create PDF.
 Post the PDF file as an attachment.
CheckPoint: Financial Statements
 Due Day 5 [Individual forum.]
 Complete exercises 7-1 and 7-2 on pp. 242 & 243 of Computer Accounting with Peachtree Complete® 2009 using Peachtree.
 Write a paragraph on each exercise discussing what the information from each financial statement means and why the information is useful to those who read the financial statements.
 Save your work as a PDF file. Under the File menu, choose Create PDF.
 Post the PDF file as an attachment.

Here's the SOLUTION

ACC 250 WEEK 7 CHECKPOINT--TICKET MEMO --A++

CheckPoint: Ticket Memo
 Due Day 4 [Individual forum]
 Prepare a 250- to 300-word memo discussing time tickets and expense tickets. Include a discussion about what each is used for, how the two are different, and what information is found on each.
 Post the memo as a Microsoft® Word attachment.
CheckPoint: Ticket Memo
 Due Day 4 [Individual forum]
 Prepare a 250- to 300-word memo discussing time tickets and expense tickets. Include a discussion about what each is used for, how the two are different, and what information is found on each.
 Post the memo as a Microsoft® Word attachment.

Here's the SOLUTION

ACC 250 WEEK 7 ASSIGNMENT--TIME AND BILLING Exercises 8-1 and 8-2--A++

Assignment: Time and Billing
 Due Day 7 [Individual forum]
 Complete exercises 8-1 and 8-2 on p. 260 of Computer Accounting with Peachtree Complete® 2009 using Peachtree.
 Write a paragraph for each exercise explaining where you found the information to answer the questions in each exercise and the importance of knowing where to find this information.
 Save your work as a PDF file. Under the File menu, choose Create PDF.
 Post the PDF file as an attachment.
Assignment: Time and Billing
 Due Day 7 [Individual forum]
 Complete exercises 8-1 and 8-2 on p. 260 of Computer Accounting with Peachtree Complete® 2009 using Peachtree.
 Write a paragraph for each exercise explaining where you found the information to answer the questions in each exercise and the importance of knowing where to find this information.
 Save your work as a PDF file. Under the File menu, choose Create PDF.
 Post the PDF file as an attachment.

Here's the SOLUTION

ACC 250 WEEK 8-DQ 1 AND 2--A++

Discussion Questions
 DQ 1 Due Day 2 [Main forum]
 Post your response to the following: When completing the accounting cycle, the accounting professional uses source documents. Discuss the importance of the accuracy of these source documents. What possible problems could arise if the source documents are inaccurate?
 DQ 2 Due Day 4 [Main forum]
 Post your response to the following: This week, you learned how to maintain accounting records for a service business. What did you find to be the most challenging part of the information this week? Explain why.
Discussion Questions
 DQ 1 Due Day 2 [Main forum]
 Post your response to the following: When completing the accounting cycle, the accounting professional uses source documents. Discuss the importance of the accuracy of these source documents. What possible problems could arise if the source documents are inaccurate?
 DQ 2 Due Day 4 [Main forum]
 Post your response to the following: This week, you learned how to maintain accounting records for a service business. What did you find to be the most challenging part of the information this week? Explain why.

Here's the SOLUTION

ACC 250 WEEK 8 CheckPoint: Creating a New Company--A++

CheckPoint: Creating a New Company
 Due Day 5 [Individual forum]
 Complete exercises 9-1 and 9-2 on pp. 326-334 of Computer Accounting with Peachtree Complete® 2009 using Peachtree.
 Save your work as a PDF file. Under the File menu, choose Create PDF.
 Post the PDF file as an attachment
CheckPoint: Creating a New Company
 Due Day 5 [Individual forum]
 Complete exercises 9-1 and 9-2 on pp. 326-334 of Computer Accounting with Peachtree Complete® 2009 using Peachtree.
 Save your work as a PDF file. Under the File menu, choose Create PDF.
 Post the PDF file as an attachment

Here's the SOLUTION

ACC 250 WEEK 9 Capstone CheckPoint: Printing and Adjusting Entries--A++

Capstone CheckPoint: Printing and Adjusting Entries
 Due Day 4 [Individual forum]
 Complete exercises 10-1 and 10-2 on pp. 380-386 of Computer Accounting with Peachtree Complete® 2009 using Peachtree.
 Save your work as a PDF file. Under the File menu, choose Create PDF.
 Post the PDF file as an attachmen
Capstone CheckPoint: Printing and Adjusting Entries
 Due Day 4 [Individual forum]
 Complete exercises 10-1 and 10-2 on pp. 380-386 of Computer Accounting with Peachtree Complete® 2009 using Peachtree.
 Save your work as a PDF file. Under the File menu, choose Create PDF.
 Post the PDF file as an attachmenT

Here's the SOLUTION

ACC 250 WEEK 9 Final Project: Sharon Clarke--A++

Final Project: Sharon Clarke
 Due Day 7 [Individual forum]
 Resources: Appendix A and Project 1: Sharon Clarke, Accounting
 Complete Project 1: Sharon Clarke, Accounting on pp. 389-397 of Computer Accounting with Peachtree Complete® using Peachtree.
 Save your work as a PDF file. Under the File menu, choose Create PDF.
 Post the PDF file as an attachment.
Final Project: Sharon Clarke
 Due Day 7 [Individual forum]
 Resources: Appendix A and Project 1: Sharon Clarke, Accounting
 Complete Project 1: Sharon Clarke, Accounting on pp. 389-397 of Computer Accounting with Peachtree Complete® using Peachtree.
 Save your work as a PDF file. Under the File menu, choose Create PDF.
 Post the PDF file as an attachment.

Here's the SOLUTION

Tuesday, September 21, 2010

ACC/421 Week 3 Individual Assignment--ANSWER KEY

E4-6 (Multiple-step and Single-step) The accountant of Whitney Houston Shoe Co. has compiled the
following information from the company’s records as a basis for an income statement for the year ended
December 31, 2007.
Rental revenue $ 29,000
Interest on notes payable 18,000
Market appreciation on land above cost 31,000
Wages and salaries—sales 114,800
Materials and supplies—sales 17,600
Income tax 37,400
Wages and salaries—administrative 135,900
Other administrative expenses 51,700
Cost of goods sold 496,000
Net sales 980,000
Depreciation on plant assets (70% selling, 30% administrative) 65,000
Cash dividends declared 16,000
There were 20,000 shares of common stock outstanding during the year.
Instructions
(a) Prepare a multiple-step income statement.
(b) Prepare a single-step income statement.
(c) Which format do you prefer? Discuss.
E4-16 (Various Reporting Formats) The following information was taken from the records of Roland
Carlson Inc. for the year 2007. Income tax applicable to income from continuing operations $187,000;
income tax applicable to loss on discontinued operations $25,500; income tax applicable to extraordinary
gain $32,300; income tax applicable to extraordinary loss $20,400; and unrealized holding gain on
available-for-sale securities $15,000.
Extraordinary gain $ 95,000 Cash dividends declared $ 150,000
Loss on discontinued operations 75,000 Retained earnings January 1, 2007 600,000
Administrative expenses 240,000 Cost of goods sold 850,000
Rent revenue 40,000 Selling expenses 300,000
Extraordinary loss 60,000 Sales 1,900,000
Shares outstanding during 2007 were 100,000.
Instructions
(a) Prepare a single-step income statement for 2007.
(b) Prepare a retained earnings statement for 2007.
(c) Show how comprehensive income is reported using the second income statement format.
E18-4 (Recognition of Profit on Long-Term Contracts) During 2007 Pierson Company started a construction
job with a contract price of $1,500,000. The job was completed in 2009. The following information
is available.
2007 2008 2009
Costs incurred to date $400,000 $935,000 $1,070,000
Estimated costs to complete 600,000 165,000 –0–
Billings to date 300,000 900,000 1,500,000
Collections to date 270,000 810,000 1,425,000
Instructions
(a) Compute the amount of gross profit to be recognized each year assuming the percentage-ofcompletion
method is used.
(b) Prepare all necessary journal entries for 2008.
(c) Compute the amount of gross profit to be recognized each year assuming the completed-contract
method is used.
E18-5 (Analysis of Percentage-of-Completion Financial Statements) In 2007, Beth Botsford Construction
Corp. began construction work under a 3-year contract. The contract price was $1,000,000. Beth
Botsford uses the percentage-of-completion method for financial accounting purposes. The income to be
recognized each year is based on the proportion of cost incurred to total estimated costs for completing
the contract. The financial statement presentations relating to this contract at December 31, 2007, follow.
Balance Sheet
Accounts receivable—construction contract billings $21,500
Construction in progress $65,000
Less: Contract billings 61,500
Cost of uncompleted contract in excess of billings 3,500
Income Statement
Income (before tax) on the contract recognized in 2007 $18,200
Instructions
(a) How much cash was collected in 2007 on this contract?
(b) What was the initial estimated total income before tax on this contract?

Here's the SOLUTION

Dillo vineyards a large winery in texas, produces a full line of varietal wines

Ch16 costs concepts and allocation

P1 Statements of cost of goods manufactured

Dillo vineyards a large winery in texas, produces a full line of varietal wines. The company, whose fiscal year begins on November 1, has just completed a record-breaking year. Its inventory account balances on October 31 of this year were materials inventory, $1,803,800; Work in process inventory, $2,764,500; and finished goods inventory, $1,883,200. At the beginning of the year, the inventory account balances were materials inventory, $2,156,200; Work iin process inventory, $3,371,000; and finished goods inventory, $1,596,400.

During the fiscal year, the company’s purchases of direct materials totaled $6,750,000. Direct labor hours totaled 142,500, and the average labor rate was $8.20 per hour. The following overhead costs were incurred during the year: depreciation, plant, and equipment, $685,600; indirect labor, $207,300; property tax, plant and equipment, $94,200; plant maintenance, $83,700; small tools, $42,400; utilities, $96,500 and employee benefits, $76,100.

Required

Prepare a statement of cost of goods manufactured for the fiscal year ended October 31.

Ch 17 costing systems job order and process costing

E9 Use of process costing information

Tom’s bakery makes a variety of cakes, cookies and pies for distribution to five major chains of grocery stores in the quad city area. The company uses a standard manufacturing process for all items except special order cakes. It currently uses a process costing system. Tom, the owner of the company, has some urgent questions, which are listed below. Which of these questions can be answered using information from a process costing system? Which can be best answered using information from a job order costing system? Explain your answers

1. How much does it cost to make one chocolate cheese cake?
2. Did the cost of making special order cakes exceed the cost budgeted for this month?
3. What is the value of the pue inventory at the end of June?
4. What were the costs of the cookies sold during June?
5. At what price should Tom’s bakery sell its famous brownies to the grocery store chains?
6. Were the planned production costs of $3,000 for making pies in June exceeded?

E10 Equivalent production:Fifo costing method

Olivares enterprises makes rainberry shampoo for beauty salons. On July 31, it had 5200 liters of shampoo in process, which were 80 percent complete in regard to conversation costs and 100 percent complete in regard to direct material costs. During August, it put 212,500 liters of direct materials in production. Data of work in process inventory on August 31 were as follows: shampoo, 4500 liters; stage of completion 60 percent for conversion costs and 100 percent for direct materials. Using these data and the FIFO costing method, compute the equivalent units of production for direct materials and conversion costs for the month.

E11 Equivalent Production: FIFO Costing Method

Cunningham Paper Corporation produces wood pulp that is used in making paper. The following data pertain to the companys production of pulp during September:

Perecentage complete

Tons Direct Conversion

Materials Costs

Work in process. Aug 31 40,000 100% 60%

Places into production 250,000 ----- ------

Work in process , sept.30 80,000 100% 40%

Compute the equivalent units of production for direct materials and conversion costs for September using the Fifo costing method.

Here's the SOLUTION

E2-2 (Qualitative Characteristics) The qualitative characteristics that make accounting information

E2-2 (Qualitative Characteristics) The qualitative characteristics that make accounting information
useful for decision-making purposes are as follows.
Relevance Timeliness Representational faithfulness
Reliability Verifiability Comparability
Predictive value Neutrality Consistency
Feedback value
Instructions
Identify the appropriate qualitative characteristic(s) to be used given the information provided below.
(a) Qualitative characteristic being employed when companies in the same industry are using the
same accounting principles.
(b) Quality of information that confirms users’ earlier expectations.
(c) Imperative for providing comparisons of a company from period to period.
(d) Ignores the economic consequences of a standard or rule.
(e) Requires a high degree of consensus among individuals on a given measurement.
(f) Predictive value is an ingredient of this primary quality of information.
(g) Two qualitative characteristics that are related to both relevance and reliability.
(h) Neutrality is an ingredient of this primary quality of accounting information.
(i) Two primary qualities that make accounting information useful for decision-making purposes.
(j) Issuance of interim reports is an example of what primary ingredient of relevance?

E2-4 (Assumptions, Principles, and Constraints) Presented below are the assumptions, principles, and
constraints used in this chapter.
1. Economic entity assumption 5. Historical cost principle 9. Materiality
2. Going concern assumption 6. Matching principle 10. Industry practices
3. Monetary unit assumption 7. Full disclosure principle 11. Conservatism
4. Periodicity assumption 8. Cost-benefit relationship
Instructions
Identify by number the accounting assumption, principle, or constraint that describes each situation below.
Do not use a letter more than once.
(a) Allocates expenses to revenues in the proper period.
(b) Indicates that market value changes subsequent to purchase are not recorded in the accounts. (Do
not use revenue recognition principle.)
(c) Ensures that all relevant financial information is reported.
(d) Rationale why plant assets are not reported at liquidation value. (Do not use historical cost principle.)
(e) Anticipates all losses, but reports no gains.
(f) Indicates that personal and business record keeping should be separately maintained.
(g) Separates financial information into time periods for reporting purposes.
(h) Permits the use of market value valuation in certain specific situations.
(i) Requires that information significant enough to affect the decision of reasonably informed users
should be disclosed. (Do not use full disclosure principle.)
(j) Assumes that the dollar is the “measuring stick” used to report on financial performance.

E2-7 (Accounting Principles—Comprehensive) Presented below are a number of business transactions
that occurred during the current year for Fresh Horses, Inc.
Instructions
In each of the situations, discuss the appropriateness of the journal entries in terms of generally accepted
accounting principles.
(a) The president of Fresh Horses, Inc. used his expense account to purchase a new Suburban solely
for personal use. The following journal entry was made.
Miscellaneous Expense 29,000
Cash 29,000
(b) Merchandise inventory that cost $620,000 is reported on the balance sheet at $690,000, the expected
selling price less estimated selling costs. The following entry was made to record this increase
in value.
Merchandise Inventory 70,000
Revenue 70,000
(c) The company is being sued for $500,000 by a customer who claims damages for personal injury
apparently caused by a defective product. Company attorneys feel extremely confident that the
company will have no liability for damages resulting from the situation. Nevertheless, the company
decides to make the following entry.
Loss from Lawsuit 500,000
Liability for Lawsuit 500,000
(d) Because the general level of prices increased during the current year, Fresh Horses, Inc. determined
that there was a $16,000 understatement of depreciation expense on its equipment and decided
to record it in its accounts. The following entry was made.
Depreciation Expense 16,000
Accumulated Depreciation 16,000
(e) Fresh Horses, Inc. has been concerned about whether intangible assets could generate cash in case
of liquidation. As a consequence, goodwill arising from a purchase transaction during the current
year and recorded at $800,000 was written off as follows.
Retained Earnings 800,000
Goodwill 800,000
(f) Because of a “fire sale,” equipment obviously worth $200,000 was acquired at a cost of $155,000.
The following entry was made.
Equipment 200,000
Cash 155,000
Revenue 45,000

Instructions
Prepare a correct trial balance. (Note: It may be necessary to add one or more accounts to the trial balance.)
E3-5 (Adjusting Entries) The ledger of Duggan Rental Agency on March 31 of the current year includes
the following selected accounts before adjusting entries have been prepared.
Debit Credit
Prepaid Insurance $ 3,600
Supplies 2,800
Equipment 25,000
Accumulated Depreciation—Equipment $ 8,400
Notes Payable 20,000
Unearned Rent Revenue 9,300
Rent Revenue 60,000
Interest Expense –0–
Wage Expense 14,000
An analysis of the accounts shows the following.
1. The equipment depreciates $250 per month.
2. One-third of the unearned rent was earned during the quarter.
3. Interest of $500 is accrued on the notes payable.
4. Supplies on hand total $850.
5. Insurance expires at the rate of $300 per month.
Instructions
Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional
accounts are: Depreciation Expense; Insurance Expense; Interest Payable; and Supplies Expense. (Omit
explanations.)

Here's the SOLUTION

ACC 421 WEEK 2 INDIVIDUAL ASSIGNMENT--ANSWER KEY

Info Systems Technology ( IST) manufacturers microprocessor chips

Info Systems Technology ( IST) manufacturers microprocessor chips for use in appliances and other applications. IST has no debt and 100 million shares outstanding. The correct price for these shares is either $ 14.50 or $ 12.50 per share. Investors view both possibilities as equally likely, so the shares currently trade for $ 13.50. IST must raise
$ 500 million to build a new production facility. Because the firm would suffer a large loss of both customers and engineering talent in the event of financial distress, man-agers believe that if IST borrows the $ 500 million, the present value of financial distress costs will exceed any tax benefits by $ 20 million. At the same time, because investors believe that managers know the correct share price, IST faces a lemons problem if it attempts to raise the $ 500 million by issuing equity.
a. Suppose that if IST issues equity, the share price will remain $ 13.50. To maximize the long- term share price of the firm once its true value is known, would managers choose to issue equity or borrow the $ 500 million if i. They know the correct value of the shares is $ 12.50? ii. They know the correct value of the shares is $ 14.50?
b. Given your answer to part ( a), what should investors conclude if IST issues equity? What will happen to the share price?
c. Given your answer to part ( a), what should investors conclude if IST issues debt? What will happen to the share price in that case?
d. How would your answers change if there were no distress costs, but only tax benefits of leverage?

Here's the SOLUTION

Monday, September 13, 2010

P1 Report preparation Classic Industries, Inc. is deciding whether to expand its line of women’s clothing called pants by olene

P1 Report preparation
Classic Industries, Inc. is deciding whether to expand its line of women’s clothing called pants by olene. Sales in units of this product were 22,500, 28,900, and 36,200 in 20x7, 20x8, and 20x9, respectively. The product has been very profitable, averaging 35 percent profit (above cost) over the three year period. The company has ten sales representative covering seven states in the northeast. Production capacity at present is about 40,000 pants per year. There is adequate plant space for additional equipment, and the labor needed can be easily hired and trained. The organizations management is made up of four vice presidents: the vice president of marketing, the vice president of production, the vice president of finance, and the vice president of management information systems. Each vice president is directly respobsible to the president, Teresa Jefferson.

Required
1. What types of information will Jefferson need before she can decide wheter to expand the pants by olene line
2. Assume that one report needed to support jeffersons decision is an analysis of sales, broken down by sales representative, over the pass three years. How would each of the four w’s pertain to this report?
3. Design a format for the report described in 2.

Here's the SOLUTION

Sunday, September 12, 2010

CVP Analysis (Problem 7-40) Phoenix-based CompTronics manufactures audio speakers for desktop computers

CVP Analysis (Problem 7-40)

Phoenix-based CompTronics manufactures audio speakers for desktop computers. The following data
relate to the period just ended when the company produced and sold 42,000 speaker sets:
Sales ........................................................................................ $4,032,000
Variable costs .............................................................................. 1,008,000
Fixed costs .................................................................................. 2,736,000
Management is considering relocating its manufacturing facilities to northern Mexico to reduce costs.
Variable costs are expected to average $21.60 per set; annual fixed costs are anticipated to be $2,380,800.
(In the following requirements, ignore income taxes.)
Required:
1. Calculate the company’s current income and determine the level of dollar sales needed to double
that figure, assuming that manufacturing operations remain in the United States.
2. Determine the break-even point in speaker sets if operations are shifted to Mexico.
3. Assume that management desires to achieve the Mexican break-even point; however, operations
will remain in the United States.
a. If variable costs remain constant, what must management do to fixed costs? By how much
must fixed costs change?
b. If fixed costs remain constant, what must management do to the variable cost per unit? By
how much must unit variable cost change?
4. Determine the impact (increase, decrease, or no effect) of the following operating changes.
a. Effect of an increase in direct material costs on the break-even point.
b. Effect of an increase in fixed administrative costs on the unit contribution margin.
c. Effect of an increase in the unit contribution margin on net income.
d. Effect of a decrease in the number of units sold on the break-even point.

Here's the SOLUTION

B2. (Pro forma financial statements) Columbus Distributors has the following balance sheet:

B2. (Pro forma financial statements) Columbus Distributors has the following balance sheet:
ASSETS LIABILITIES AND OWNERS’ EQUITY
Cash $ 500,000 Accounts payable $ 1,000,000
Accounts receivable 3,500,000 Bank loan 1,500,000
Inventory 3,000,000 Long-term bond 2,000,000
Fixed assets 3,000,000 Stockholders’ equity 5,500,000
Total assets $10,000,000 Total liabilities and equity $10,000,000
Next year Columbus Distributors is planning for a major sales increase of 40%. Sales are currently
$15,000,000, and they should increase to $21,000,000 next year. Cash, receivables, and inventory will increase proportionally to sales. Fixed assets will increase by $500,000. Payables
will also increase proportionally to sales. The bank loan will increase to $2,000,000. Sinking
fund payments will decrease the bond balance by $200,000. Columbus has a 6.0% profit
margin and is expecting to pay a nominal dividend of $100,000 to its common stockholders.
Prepare a pro forma balance sheet for next year. Does the balance sheet show that
extra external funds are needed or that excess funds are available for investment?

Here's the SOLUTION

A11. (Basic capital budgeting) The investment is $1,000,000, which is depreciated straight line

A11. (Basic capital budgeting) The investment is $1,000,000, which is depreciated straight line
for 10 years down to a zero salvage value. For its 10-year life, the investment will generate
annual sales of $800,000 and annual cash operating expenses of $250,000. Although the
investment is depreciated to a zero book value, you expect to sell it for $200,000 in 10
years. The marginal income tax rate is 30% and the cost of capital is 10%.
a. What after-tax net cash flows are expected?
b. What is the NPV of the investment?

Here's the SOLUTION

Entries for the 2010 income statement for Happy Clinic are shown below in alphabetical order. Reorder the information in proper Income Statement format.

Finance Problem 2—Creating an Income Statement

Several income statement entries are shown below.

All of the information you need to create an income statement is shown. Please prepare an income statement.

Entries for the 2010 income statement for Happy Clinic are shown below in alphabetical order. Reorder the information in proper Income Statement format.

Bad debt expense 40,000
Depreciation expense 90,000
General/administrative expenses 70,000
Interest expense 20,000
Interest income 40,000
Net income 30,000
Other revenue 10,000
Patient service revenue 440,000
Purchased clinic services 90,000
Salaries and benefits 150,000
Total revenues 490,000
Total expenses 460,000

Here's the SOLUTION

Friday, September 10, 2010

Shown below is the information needed to prepare a bank reconciliation for Warren Electric at December 31

Shown below is the information needed to prepare a bank reconciliation for Warren Electric at December 31:

1. At December 31, cash per the bank statement was $15,200; cash per the company's records was $17,500.

2. Two debit memoranda accompanied the bank statement; service charges for December of $25, and $775 check drawn by Jane Jones marked "NFS".

3. Cash receipts of $10,000 on December 31 were not deposited until January 4.

4. The following checks has been issued in December but were not included among the paid checks returned by the bank: No. 620 for $1000, no.630 for $3,000, and no. 641 for $ 4,500.

a. Prepare a bank reconciliation at December 31.
b. Prepare the necessary journal entries to update the accounting records.
c. Assume that the company normally is not required to pay a bankk service charge if it maintains a minimum average daily balance of $1,000 throughout the month. If the company's average daily balance for December had been $8,000 why did it have to pay a $25 service charge?

Here's the SOLUTION

Micro Technology is considering two alternative proposals for modernizing its production facilities.

Chapter 26 Capital Budgeting

Problem 26.2 Analyzing Capital Investment Proposals

Micro Technology is considering two alternative proposals for modernizing its production facilities. To provide a basis for selection, the cost accounting department has developed the following data regarding the expected annual operating results for the two proposals. (Round the payback period to the nearest tenth of a year and the return on investment to the nearest tenth of a percent). Proposal 1 Proposal 2 Required investment in equipment 360,000 350,000 Estimated service life of equipment (years) 8 7 Estimated salvage value - 14,000 Estimated annual cost savings (net cash flow) 75,000 76,000 Depreciation on equipment (straight-line basis) 45,000 48,000 Estimated increase in annual net income 30,000 28,000 Instructions: a. For each proposal, compute the (1) payback period, (2) return on average investment, and (3) net present value, discounted at an annual rate of 12 percent. (round the payback period tot eh nearest tenth of a year and the return on investment to the nearest tenth of a percent.) Use this exhibit when necessary. b. Based on your analysis in part a, state which proposal you would recommend and explain the reason for your choice

Here's the SOLUTION

Using the tables in Exhibits 26-3 and 26-4, determine the present value of the foIl flows , discounted at an annual rate of 15 percent

Chapter 26 Capital Budgeting

Exercise 26.4 Discounting Cash Flows

Using the tables in Exhibits 26-3 and 26-4, determine the present value of the foIl flows , discounted at an annual rate of 15 percent: discounted at an annual rate 15% a. $10,000 to be received 20 years from today. b. $15,000 to be received annually for 10 years. c. $10,000 to be received annually for five years, with an additional $12,000 salvage value expected at the end of the fifth year. d. $30,000 to be received annually fo rthe first three years, followed by $20,000 received annually for the next two years (total of five years in which cash is received).

Here's the SOLUTION

Payback period; heartland paper company is considering the purchase of a new high speed cutting machine.

Chapter 26 Capital Budgeting
Exercise 26.2 Payback Period
Payback period; heartland paper company is considering the purchase of a new high speed cutting machine. Two cutting machine manufacturers have approached heartland with proposals: (1) Toledo tools and (2) Akron industries. Regardless of which vendor heartland chooses, the following incremental cash flows are expected to be realized:
Incremental cash Incremental Cash
Year &n bsp; inflows outflows
1 $26,000 $20,000
2 &nbs p; 27,000 21,000
3 &nbs p; 32,000 26,000
4 &nb sp; 35,000 29,000
5 &nb sp; 34,000 28,000
6 &n bsp; 33,000 27,000

a. If the machine manufactured by Toledo tools cost $27,000, what is its expected payback period?
b. If the machine manufactured by Akron industries has a payback period of 66 months, what is its cost?
c. Which of the machines is most attractive based on its respective payback period? Should heartland base its decision entirely on this criterion? Explain your answer

Here's the SOLUTION

On January 15,2007. BassTrack sold 1,000 Ace-5 fishing reels to Angler’s Warehouse

Problem 8.1A
On January 15,2007. BassTrack sold 1,000 Ace-5 fishing reels to Angler’s Warehouse. Immediately prior to this sale, BassTrack’s perpetual Inventory records for Ace-5 reels included the following cost layers:

Purchase Date Qty Unit Cost Total Cost
Dec. 12, 2006 ; 600 $29 $17,400
Jan, 9, 2007 &n bsp; 900 32 28,800
Total on hand ; 1,500 $46,200

Instructions:
Note: We present this problem in the normal sequence of the accounting cycle—that is, journal entries before ledger entries. However, you may find it helpful to world part B first.

a. Prepare a separate journal entry to record the cost of goods sold relating to the January 15 sale of 1,000 Ace-5 reels, assuming that BassTrack uses:
1. Specific identification (500 of the units sold were purchase on December 12, and the remaining 500 were purchase on January 9).

2. Average cost
3. FIFO
4. LIFO
B. Complete a subsidiary ledger record for Ace-5 reels using each of the four inventory valuation methods listed above. Your inventory records should show both purchases of this product, the sale on January 15, and the balance on hand at December 12, January 9, and January 15. Use the formats for inventory subsidiary records illustrated on pages 349-353 of this chapter.

c. Refer to the cost of goods sold figures computed in part A. for financial reporting purposes, can the company use the valuation method that resulted in the lowest cost of goods sold if, for tax purposes, it used the method that resulted in the highest cost of goods sold? Explain.

Here's the SOLUTION

Late in the year, software City began carrying WordCrafter, a new word processing software

Exercise 8.6
Late in the year, software City began carrying WordCrafter, a new word processing software program. At December 31, Software City’s perpetual inventory records included the following cost layers in its inventory of WordCrafter programs:
Purchase Date Qty Unit Cost Total Cost
Nov 14 &nbs p; 8 $400 $3,200
Dec 12 20 310 6,200
Total available for sale at Dec 31 28 $9,400

a) At December 31, Software City takes a physical inventory and finds that all 28 units of WordCrafter are on hand. However, the current replacement cost(wholesale price) of this product is only $250 per unit. Prepare the entries to record:
1. This write-down of the inventory to the lower-of-market at December 31. ( company policy is to charge LCM adjustments of less than $2,000 to cost of Goods Sold and larger amounts to a separate loss accounts.)
2. The cash sale of 15 WordCrafter programs on January 9, at a retail price of $350 each. Assume that software City uses the FIFO flow assumption.
b) Now assume that the current replacement cost of the WordCrafter programs is $405 each. A physical inventory finds only 25 of these programs on hand at December 31. (For this part, return to the original information and ignore what you did in part a.)
1. Prepare the journal entry to record the shrinkage loss assuming that Software City uses the FiFO flow assumption.
2. Prepare the journal entry to record the shrinkage loss assuming that Software city uses the LIFO flow assumption.
3. Which cost flow assumption (FIFO or LIFO) results in the lowest net income for the period? Would using this assumption really mean that the company’s operation are less efficient? Explain.

Here's the SOLUTION

Thursday, September 9, 2010

On January 1, 2003, Rand Corp. issued shares of its common stock for all of the outstanding common stock of Spaulding Inc.

On January 1, 2003, Rand Corp. issued shares of its common stock for all of the outstanding common stock of
Spaulding Inc. This combination was accounted for as a purchase with any excess treated as goodwill.

On January 1, 2003:
Shares Par Value Share FMV
Common Stock issued by Rand 12,000 $ 1.00 $ 20.00

Selected items on Spaulding's Books:
Buildings (ten year life), undervalued by $ 50,000
Equipment (five year life), undervalued by $ 25,000
Total book value $ 140,000

Following are the individual financial records for these two companies for the year ended December 31, 2006:
Rand Spaulding PART B
Corp. Inc. ELIMINATIONS
dr(cr) dr(cr) dr cr TOTALS
Revenues (372,000) (108,000)
Expenses 264,000 72,000
Equity in subsidiary earnings (26,000) -
Net income (134,000) (36,000)

Retained earnings, January 1, 2006 (768,000) (102,000)
Net income (above) (134,000) (36,000)
Dividends paid 84,000 24,000
Retained earnings, December 31, 2006 (818,000) (114,000)

Current assets 150,000 22,000
Investment in Spaulding Inc. 246,000 -

Buildings (net) 525,000 85,000
Equipment (net) 389,250 129,000
Goodwill
Total assets 1,310,250 236,000

Liabilities 82,250 50,000
Common stock 360,000 72,000
Additional paid-in capital 50,000 -
Retained earnings, December 31, 2006 (above) 818,000 114,000
Total liabilities and stockholders’ equity 1,310,250 236,000

REQUIRED:
A. Determine any goodwill and amortizations due to the combination.
B. Complete the worksheet eliminations with proper labeling and amounts and totals.
If you need additional rows for eliminations insert rows as needed.

Here's the SOLUTION

Suppose the market risk premium is 6.5% and the risk free interest is 5%

Chapter 10

Problem 31
Suppose the market portfolio is equally likely to increase by 30% or decrease by 10%
a. Calculate the beta of a firm that goes up on average by 43% when the market goes up and goes down by 17% when the market goes down
b. Calculate the beta of a firm that goes up on average by 18% when the market goes down and goes down by 22% when the market goes up
c. Calculate the beta of a firm that is expected to go up by 4% independently of the market.

Problem 35
Suppose the market risk premium is 6.5% and the risk free interest is 5%. Calculate the cost of capital of investing in a project with a beta of 1.2

Here's the SOLUTION

6.6. Laurel Street, president of Uvalde Manufacturing Inc. is preparing a proposal to present

6.6. Laurel Street, president of Uvalde Manufacturing Inc. is preparing a proposal to present to
her board of directors regarding a planned plant expansion that will cost $10 million.
At issue is whether the expansion should be financed with debt (a long-term note at First
National Bank of Uvalde with an interest rate of 15%) or through the issuance of common
stock (200,000 shares at $50 per share).
Uvalde Manufacturing currently has a capital structure of:
Debt (12% interest) 40,000,000
Equity 50,000,000
The firm’s most recent income statement is presented next:
Sales $100,000,000
Cost of goods sold 65,000,000
Gross profit 35,000,000
Operating expenses 20,000,000
Operating profit 15,000,000
Interest expense 4,800,000
Earnings before tax 10,200,000
Income tax expense (40%) 4,080,000
Net income $ 6,120,000
Earnings per share (800,000 shares) $ 7.65
Laurel Street is aware that financing the expansion with debt will increase risk but could
also benefit shareholders through financial leverage. Estimates are that the plant expansion
will increase operating profit by 20%.The tax rate is expected to stay at 40%.Assume
a 100% dividend payout ratio.
Required
a. Calculate the debt ratio, time interest earned, earnings per share, and the financial
leverage index under each alternative, assuming the expected increase in operating
profit is realized.
b. Discuss the factors the board should consider in making a decision.
Understanding

Here's the SOLUTION

Consider the following scenario: The Ski Pro Corporation, which produces and sells to wholesalers a highly successful line (INSTANT DOWNLOAD)

ACCT310-1004A-03 Managerial Accounting Assignment Name: Unit 3 Individual Project Deliverable Length: Excel spreadsheet and 1-2 pages Details: Consider the following scenario: The Ski Pro Corporation, which produces and sells to wholesalers a highly successful line of water skis, has decided to diversify to stabilize sales throughout the year. The company is considering the production of cross-country skis. After considerable research, a cross-country ski line has been developed. Because of the conservative nature of the company management, however, MinnetonkaÂ’s president has decided to introduce only one type of the new ski for this coming winter. If the product is a success, further expansion in future years will be initiated. The ski selected is a mass-market ski with a special binding. It will be sold to wholesalers for $80 per pair. Because of availability capacity, no additional fixed charges will be incurred to produce the skis. A $100,000 fixed charge will be absorbed by the skis, however, to allocate a fair share of the companyÂ’s present fixed costs to the new product. Using the estimated sales and production of 10,000 pairs of skis as the expected volume, the accounting department has developed the following cost per pair of skis and bindings: Direct Labor: $35 Direct Material: $30 Total Overhead: $15 Total: $80 Ski Pro has approached a subcontractor to discuss the possibility of purchasing the bindings. The purchase price of the bindings from the subcontractor would be $5.25 per binding, or $10.50 per pair. If the Ski Pro Corporation accepts the purchase proposal, it is predicted that direct-labor and variable-overhead costs would be reduced by 10% and direct-material costs would be reduced by 20%. Write a 1Â–2 page paper, and create a spreadsheet that answers the following questions: 1. Should the Ski Pro Corporation make or buy the bindings? Show calculations to support your answer. 2. What would be the maximum purchase price acceptable to the Ski Pro Corporation for the bindings? Support your answer with an appropriate explanation. 3. Instead of sales of 10,000 pairs of skis, revised estimates show sales volume at 12,500 pairs. At this new volume, additional equipment, at an annual rental of $10,000 must be acquired to manufacture the bindings. This incremental cost would be the only additional fixed cost required even if sales increased to 30,000 pairs. (This 30,000 level is the goal for the third year of production.) Under these circumstances, should the Ski Pro Corporation make or buy the bindings? Show calculations to support your answer. 4. What qualitative factors (that is, issues with vendors, customers, or within the product itself) should the Ski Pro Corporation consider in determining whether they should make or buy the bindings?

Here's the SOLUTION

ACC 250 WEEK 8 CheckPoint: Creating a New Company (INSTANT DOWNLOAD)

Complete exercises 9-1 and 9-2 on pp. 326-334 of Computer Accounting with Peachtree Complete® 2009 using Peachtree. • Save your work as a PDF file. Under the File menu, choose Create PDF. I could use some help like within the next hour on just exercises 9-2 I am doing the peachtree software

Here's the SOLUTION

Wednesday, September 8, 2010

01-25-09 $15,000 worth of bandages are purchased with cash. On the same day, a $50,000 temporarily

Ledger Worksheet
This worksheet shall be used to post amounts to ledger accounts. The totals will calculate automatically.
Then, record each transaction in chronological order. (Note--check transaction date before inputting values!!)
You will only input data into the yellow highlighted cells. You may find that some yellow highlighted cells do not require an entry.

TRANSACTIONS:
01-25-09 $15,000 worth of bandages are purchased with cash. On the same day, a $50,000 temporarily restricted donation was received.
02-13-09 Wages due to employees that had been previously recorded as a liability are now paid in cash in the amount of $3,000.
02-07-09 $5,000 worth of tongue depressors are used in the delivery of care.
01-30-09 $10,000 worth of drugs are purchased on account. On the same day, a $4,000 labor expenses was recorded but not yet paid.
04-05-09 Bills are submitted to insurance companies in the amount of $45,000 for services rendered to patients.
03-31-09 Cash payments of $25,000 are received for services previously provided and billed.

Here's the SOLUTION

RES 342 WEEK 5 Discussion Question 1 (INSTANT DOWNLOAD)

What are the components of a time series? What external factors might affect each of the different components?

Here's the SOLUTION

RES 342 Week 4 Discussion Question 2 (INSTANT DOWNLOAD)

What is the purpose of forecasting? Why are forecasts not always correct? What are the limitations of forecasting?

Here's the SOLUTION

RES 342 Week 5 Discussion Question 3 (INSTANT DOWNLOAD)

Why is the trend commonly thought to be the most important component of forecasting? How is the linear trend method related to linear regression? Why are simple moving averages and weighted averages commonly used forms of forecasting?

Here's the SOLUTION

Tuesday, September 7, 2010

ACC 250 WEEK 8-DQ 1 (INSTANT DOWNLOAD)

Here's the SOLUTION

ACC 250 WEEK 8-DQ 2 (INSTANT DOWNLOAD)

DQ 2 Due Day 4 [Main forum]
 Post your response to the following: This week, you learned how to maintain accounting records for a
service business. What did you find to be the most challenging part of the information this week? Explain
why.

Here's the SOLUTION

Trace the impulse, listing the steps in as much detail as possible, from which your brain sends the message (INSTANT DOWNLOAD)

Instructions:
(Part 1) Trace the impulse, listing the steps in as much detail as possible, from which your brain sends the message to the appropriate muscles to lift a glass of water to drink. As in the previous Application Assignment (parts one and two), detail the steps involved in the transmission of the neural impulse to the muscle fiber and then the steps involved in the sliding filament mechanism.

1. Macroscopic Neurology-trace impulses macroscopically through the nervous system from the brain to the muscle.

2. Microscopic Neurology-trace impulse as it passes through the neuron, neuron to neuron, and across the NMJ

Then,
specify which muscles are pulling on which bones and what type of joints are involved.

(Part 2)
Finally, trace the path of the water from the mouth to the urethra, listing the path in as much detail as possible.

Here's the SOLUTION

define the purpose of accounting and identify the four basic financial statements (INSTANT DOWNLOAD)

Individual Assignment: Financial Statements Paper Â• Prepare a 700- to 1,050-word paper in which you define the purpose of accounting and identify the four basic financial statements. Â• Explain how they are interrelated with each other, and why they are useful to managers, investors, creditors, and employees. Â• Format your paper according to APA standards

Here's the SOLUTION

Working Capital Management. Indicate how each of the following six different transactions that Dynamic Mattress

QUIZ
Working Capital Management. Indicate how each of the following six different transactions that Dynamic Mattress might make would affect (i) cash and (ii) net working capital:
Paying out a $2 million cash dividend.
A customer paying a $2,500 bill resulting from a previous sale.
Paying $5,000 previously owed to one of its suppliers.
Borrowing $1 million long-term and investing the proceeds in inventory.
Borrowing $1 million short-term and investing the proceeds in inventory.
Selling $5 million of marketable securities for cash.
2. Short-Term Financial Plans. Fill in the blanks in the following statements:
. A firm has a cash surplus when its ________ exceeds its ________. The surplus is normally invested in ________.
In developing the short-term financial plan, the financial manager starts with a(n) ________ budget for the next year. This budget shows the ________ generated or absorbed by the firm's operations and also the minimum ________ needed to support these operations. The financial manager may also wish to invest in ________ as a reserve for unexpected cash requirements.
3. Sources and Uses of Cash. State how each of the following events would affect the firm's balance sheet. State whether each change is a source or use of cash.
. An automobile manufacturer increases production in response to a forecast increase in demand. Unfortunately, the demand does not increase.
Competition forces the firm to give customers more time to pay for their purchases.
The firm sells a parcel of land for $100,000. The land was purchased 5 years earlier for $200,000.
The firm repurchases its own common stock.
The firm pays its quarterly dividend.
The firm issues $1 million of long-term debt and uses the proceeds to repay a short-term bank loan.
4. Cash Conversion Cycle. What effect will the following events have on the cash conversion cycle?
. .Higher financing rates induce the firm to reduce its level of inventory.
. The firm obtains a new line of credit that enables it to avoid stretching payables to its suppliers.
The firm factors its accounts receivable.
A recession occurs, and the firm's customers increasingly stretch their payables.
5. Managing Working Capital. A new computer system allows your firm to more accurately monitor inventory and anticipate future inventory shortfalls. As a result, the firm feels more able to pare down its inventory levels. What effect will the new system have on working capital and on the cash conversion cycle?
6. Cash Conversion Cycle. Calculate the accounts receivable period, accounts payable period, inventory period, and cash conversion cycle for the following firm:
Income statement data:
Sales
5,000
Cost of goods sold
4,200
Balance sheet data:
Â
Beginning of Year
End of Year
Inventory
500
600
Accounts receivable
100
120
Accounts payable
250
290
7. Cash Conversion Cycle. What effect will the following have on the cash conversion cycle?
. A. Customers are given a larger discount for cash transactions.
The inventory turnover ratio falls from 8 to 6.
New technology streamlines the production process.
The firm adopts a policy of reducing outstanding accounts payable.
The firm starts producing more goods in response to customers' advance orders instead of producing for inventory.
A temporary glut in the commodity market induces the firm to stock up on raw materials while prices are low.

Here's the SOLUTION

Pick a company that pays dividends, then calculate the expected growth rate of your company using the CAPM.

First view the prompt, then complete the Distinguished Scholar Project.
http://kucourses.com/ec/media/store/mediausobu/MT217_0902A/pop_ups_unit6ds.html
Distinguished Scholar Project

Pick a company that pays dividends, then calculate the expected growth rate of your company using the CAPM.
Once this task is complete, calculate the expected growth rate using the Constant Growth (or Gordon Growth) Model.

You may need additional information to complete this exercise. You can find a stock's beta and growth rate athttp://quote.yahoo.com/. Once there, enter the ticker for the company in question. Then, click on "Key Statistics" about halfway down the left hand side of the page. You can find the beta here.

Alternatively, you can go to http://www.reuters.com/.Click on News & Markets, the Stocks (Under Markets). Enter the ticker symbol for the company in question. Click on "Ratios" about halfway down the left hand side of the page.

Here's the SOLUTION

Suppose the market portfolio is equally likely to increase by 30% or decrease by 10%--ANSWER KEY

Monday, September 6, 2010

Crede and Rensing, CPAs, are preparing their services revenue (sales) budget for the coming year (2011)

Crede and Rensing, CPAs, are preparing their services revenue (sales) budget for the coming year (2011). The practice is divided into three departments: auditing, tax. And consulting. Billable hours for each department, by quarter, are provided below.

Department Quarter 1 Quarter 2 Quarter 3 Quarter 4
Auditing 2,200 1,600 2,000 2,400
Tax 3,000 2,400 2,000 2,500
Consulting 1,500 1,500 1,500 1,500

Average hourly billing rates are: auditing $80, tax $90, and consulting $100.

Prepare the service revenue (sales) budget for 2011 by the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue.

Pletcher Company produces and sells automobile batteries, the heavy- duty HD-240.
The 2011 sales forecast is as follows:

Quarter HD-240
1 5,000
2 7,000
3 8,000
4 10,000

The January 1, 2011, inventory of HD-240 is 2,500 units. Management desire an ending inventory each quarter equal to 50% of the next quarter's sales. Sales in the first quarter of 2012 are expected to be 30% higher than sales in the same quarter in 2011.

Prepare a quarterly production budgets for each quarter and in total for 2011.

Dewitt Industries has adopted the following production budget for the first 4 months of 2012

Month Units Month Units
January 10, 000 March 5,000
February 8,000 April 4,000

Each unit requires 3 pounds of raw materials costing $2 per pound. On December 31, 2011, the ending raw materials inventory was 9,000 pounds. Management wants to have a raw n=materials inventory at the end of the month equal to 30% of the next month's production requirements.
Prepare a direct materials purchases budget by month for the first quarter.

Ortiz Company's sales budget projects unit sales of part 198Z of 10,000 units in January, 12,000 units in February, and 13,000 units in March. Each unit of part 198Z requires 2 pounds of materials , which cost $3 per pound. Ortiz Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 25% of the next month's expected unit sales. These goals were met at December 31, 2011.

Prepare a production budget for January and February 2011.
Prepare a direct material budget for January 2011.

Here's the SOLUTION

Pletcher Company produces and sells automobile batteries, the heavy- duty HD-240

SURVEY OF ACCOUNTING--Address Problems P5-4, A5-2, P6-1 & P6-4 (ANSWER KEY)

"Address Problems P5-4, A5-2, P6-1 & P6-4"

Here's the SOLUTION

American Chip Corporation's fiscal year end is December 31--ANSWER KEY

American Chip Corporation's fiscal year end is December 31. The following is a partial adjusted trial balance as of December 31, 2009.

Account Title Debits Credits
Retained Earnings 80,000
Sales Revenue 750,000
Interest Revenue 3,000
Cost of Goods Sold 420,000
Salaries Expense 100,000
Rent Expense 15,000
Depreciation Expense 30,000
Interest Expense 5,000
Insurance Expense 6,000

1. what is the amount of the debit to sales revenue?
2. what is the amount of the credit to income summary in the revenue closing?
3. what is the amount of the debit to income summary in the expense closing entry?
4. what is the debit to close the income summary account?

Here's the SOLUTION

The following transactions occurred during the month of June 2009 for the Stridewell Corporation.--ANSWER KEY

The following transactions occurred during the month of June 2009 for the Stridewell Corporation. The company owns and operates a retail shoe store.
Issues 100,000 shares of common stock in exchange for $500,000 cash.
Purchased furniture and fixtures at a cost of $100,000. $40,000 was paid in cash and a note payable was signed for the balanced owed.
Purchased inventory on account at a cost of $200,000. The company uses the perpetual inventory system.
Credit sales for the month totaled $280,000. The cost of goods sold was $140,000.
Paid $6,000 in rent on the store building for the month of June.
Paid $3,000 to an insurance company for fire and liability insurance for a one-year period beginning, June 1, 2009.
Paid $120,000 on account for the merchandise purchased in 3.
Collected $55,000 from customers on account.
Paid shareholders a cash dividend of $5,000.
Recorded depreciation expense of $2,000 for the month on the furniture and fixtures.
Recorded the amount of prepaid insurance that expired for the month.

Questions:
The entry to record item #3 is a debit and credit to what accounts for $200,000?
a) Debit accounts payable, credit inventory
b) Debit inventory, credit cash
c) Debit inventory, credit accounts payable
d) Debit inventory, credit accounts receivable

1. The entry to record item #4 is a debit and credit to what accounts for $280,000?
a) Debit accounts receivable, credit inventory
b) Debit accounts receivable, credit sales revenue
c) Debit accounts payable, credit accounts receivable
d) Debit cash, credit sales revenue

2. The entry to record item #6 is a debit and credit to what accounts for $3,000?
a) Debit insurance expense, credit prepaid insurance
b) Debit prepaid insurance, credit accounts payable
c) Debit insurance expense, credit cash
d) Debit prepaid insurance, credit cash

3. The entry to record item #9 is a debit and credit to what accounts for $5,000?
a) Debit interest expense, credit cash
b) Debit retained earnings, credit cash
c) Debit cash, credit dividends payable
d) Debit accounts payable, credit cash

4. The entry to record item #11 is a debit and credit to what accounts for $250?
a) Debit insurance expense, credit prepaid insurance
b) Debit prepaid insurance, credit insurance expense
c) Debit prepaid insurance, credit cash
d) Debit insurance expense, credit cash

Here's the SOLUTION

Depreciation on equipment totaled $15,000 for the year

True or False
1. Depreciation on equipment totaled $15,000 for the year.
Question: Is the entry for a debit to depreciation expense and a credit to accumulated depreciation for $15,000?
2. The company determined that accounts receivable in the amount of $6,500 will probably not be collected. The allowance for uncollectible accounts account has a credit balance of $2,000 before any adjustment.
Question: Is the entry for a debit to bad debt expense and a credit to allowance for uncollectible accounts for $4,500?
3. On November 1, 2009, the company borrowed $200,000 from a bank. The note requires principal and interest at 12% to be paid on April 30, 2010.
Question: Is the entry for a debit to interest expense and a credit to interest payable for $4,000?
4. On December 1, 2009, the company received $3,000 in cash from another company that is renting office space in Falwell’s building. The payment, representing rent for December and January, was credited to unearned rent revenue.
Question: Is the entry for a debit to unearned rent revenue and credit rent revenue for $1,500?

Here's the SOLUTION

9-5 Dewitt Industries has adopted the following production budget

9-5 Dewitt Industries has adopted the following production budget for the first 4 months of 2012 Month Units Month Units January 10, 000 March 5,000 February 8,000 April 4,000 Each unit requires 3 pounds of raw materials costing $2 per pound. On December 31, 2011, the ending raw materials inventory was 9,000 pounds. Management wants to have a raw n=materials inventory at the end of the month equal to 30% of the next month's production requirements. Prepare a direct materials purchases budget by month for the first quarter.

Here's the SOLUTION

American Chip Corporation's fiscal year end is December 31

American Chip Corporation's fiscal year end is December 31. The following is a partial adjusted trial balance as of December 31, 2009.

Account Title Debits Credits

Retained Earnings 80,000

Sales Revenue 750,000

Interest Revenue 3,000

Cost of Goods Sold 420,000

Salaries Expense 100,000

Rent Expense 15,000

Depreciation Expense 30,000

Interest Expense 5,000

Insurance Expense 6,000

1. what is the amount of the debit to sales revenue?

2. what is the amount of the credit to income summary in the revenue closing?

3. what is the amount of the debit to income summary in the expense closing entry?

4. what is the debit to close the income summary account?

Here's the SOLUTION

The following transactions occurred during the month of June 2009 for the Stridewell Corporation

The following transactions occurred during the month of June 2009 for the Stridewell Corporation. The company owns and operates a retail shoe store.

1. Issues 100,000 shares of common stock in exchange for $500,000 cash.
2. Purchased furniture and fixtures at a cost of $100,000. $40,000 was paid in cash and a note payable was signed for the balanced owed.
3. Purchased inventory on account at a cost of $200,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $280,000. The cost of goods sold was $140,000.
5. Paid $6,000 in rent on the store building for the month of June.
6. Paid $3,000 to an insurance company for fire and liability insurance for a one-year period beginning, June 1, 2009.
7. Paid $120,000 on account for the merchandise purchased in 3.
8. Collected $55,000 from customers on account.
9. Paid shareholders a cash dividend of $5,000.
10. Recorded depreciation expense of $2,000 for the month on the furniture and fixtures.
11. Recorded the amount of prepaid insurance that expired for the month.

Questions:

1. The entry to record item #3 is a debit and credit to what accounts for $200,000?

a) Debit accounts payable, credit inventory

b) Debit inventory, credit cash

c) Debit inventory, credit accounts payable

d) Debit inventory, credit accounts receivable

1. The entry to record item #4 is a debit and credit to what accounts for $280,000?

a) Debit accounts receivable, credit inventory

b) Debit accounts receivable, credit sales revenue

c) Debit accounts payable, credit accounts receivable

d) Debit cash, credit sales revenue

2. The entry to record item #6 is a debit and credit to what accounts for $3,000?

a) Debit insurance expense, credit prepaid insurance

b) Debit prepaid insurance, credit accounts payable

c) Debit insurance expense, credit cash

d) Debit prepaid insurance, credit cash

3. The entry to record item #9 is a debit and credit to what accounts for $5,000?

a) Debit interest expense, credit cash

b) Debit retained earnings, credit cash

c) Debit cash, credit dividends payable

d) Debit accounts payable, credit cash

4. The entry to record item #11 is a debit and credit to what accounts for $250?

a) Debit insurance expense, credit prepaid insurance

b) Debit prepaid insurance, credit insurance expense

c) Debit prepaid insurance, credit cash

d) Debit insurance expense, credit cash

Here's the SOLUTION

Sunday, September 5, 2010

Fin 534 Chapter 19--Under the assumption that Ideko market share will increase by 0.5% per year, you determine that the plant will require an expansion in 2010

Fin 534 Chapter 19

3. Under the assumption that Ideko market share will increase by 0.5% per year, you determine that the plant will require an expansion in 2010. The cost of this expansion will be $15 million. Assuming the financing of the expansion will be delayed accordingly, calculate the projected interest payments and the amount of the projected interest tax shields (assuming that the interest rates on the term loans remain the same as in the chapter) through 2010.

Answer:

4. Under the assumption that Ideko’s market share will increase by 0.5% per year (and the investment and financing will be adjusted as described in Problem 3), you project the following depreciation:

Year 2005 2006 2007 2008 2009 2010

Fixed Assets and Capital Investment ($ 000)

2. New Investment 5,000 5,000 5,000 5,000 5,000 20,000

3. Depreciation (5,500) (5,450) (5,405) (5,365) (5,328) (6,795)

Using this information, project net income through 2010 (that is, reproduce Table 19.7 under the new assumptions).

Here's the SOLUTION