ACCT 610: Seminar in Empirical Accounting Research
1. Moss Co. issued $42,000,000 of five-year, 11% bonds, with interest payable semiannually, at a mar...
Moss Co. issued $42,000,000 of five-year, 11% bonds, with interest payable semiannually, at a market (effective) interest rate of 9%. Determine the present value of the bonds payable using the present value tables in Exhibit 8 and Exhibit 10. Round to the nearest dollar.
2. Palisade Creek Co. May 1 2018 Answers+ Questions provided... Comprhensive Problem 2 Parts 1-10 Pa...
Palisade Creek Co. May 1 2018 Answers+ Questions provided...
Comprhensive Problem 2 Parts 1-10
Part 1 Journalize tranactions
Part 4/6 Adjusting Entries-Journal
Part 3 Unajusted Trial Balance May 31 2018
End of year spreadsheet, Income, R/E Statment... ect
Comprehensive Problem 2 Part 1 and Part 2 are as follows. Assume all accounts have normal balances Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 2018, Cash $83,600 312 Dividends 5135,000 12 Acco ts Receivable 233,900 313 ncome Summary 15 Inventory 624,400 410 Sales 5,09,000 116 Estimated Returns Inventory 28,000 S10 Cost: Goods Sold 2,823,000 117 Prepaid Insurance 6,800 520 Sales Salaries Expense 664,800 118 Store supplies 11,400 521 Advertising Expense 23 Store Equipme 569,500 522 Depreciation Expense 24 Accumulated Depreciation Store Equipme 6,700 523 Store Supplies Expense 210 Accounts Payable 96,600 529 Miscellaneous Selling Expense 2,600 211 S Payable S30 Offi Salari 382,100 212 Customers Refunds Payable 0,000 531 Expense 83,700 310 Common Stock 00,000 532 nsurance Expense 311 Retained Earnings 585,300 539 Miscellaneous Administrative Expense 7,800 Part 1: Journalize the transactions below for May, the last month of the fiscal year. For e compound transaction, if an amount box does not require an entry, leave it blank. Part 2: Using the attached spreadsheet, post the journal entries from Part 1 to the general ledger. Extend the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidary ledgers. May 1: Paid rent for May, $5,000, Description Credi Date Post. Ref Debit May 1 Rent E 5,000 v Cash v 5,000 May 3: Purchased merchandise on account from Martin Co, terms 2/10, n/30 OB pping point, s36,000 Date Description Debi Cred Ref May 3 Inventory v 35,280 Accounts Payable Martin Co. v 35,280 May 4: Paid freight on purchase of May 3, s600. Date Post. R Debit Cred Inventory v 600 v May 4 600
3. One of the major measures of the quality of service provided by any organization is the speed with...
One of the major measures of the quality of service provided by any organization is the speed with which it responds to customer complaints. A large family-held department store selling furniture and flooring, including carpets, had undergone a major expansion in the past several years. In particular, the flooring department had expanded from 2 installation crews to an installation supervisor, a measurer, and 15 installation crews. Last year, there were 30 complaints concerning carpet installation. The following data represent the number of days between the receipt of a complaint and the resolution of the complaint:
54 5 35 137 31 27 152 2 123 81 74 27 11 19 126
110 110 29 61 35 94 31 26 5 12 4 165 32 29 28
Construct a 95% confidence interval estimate of the mean number of days between the receipt of a complaint and the resolution of the complaint.
You can use Excel to calculate the std and mean of the sample, but please use a calculator and tables for the rest of your answer. Please submit all of your calculations, Excel printouts, and the final answer. Please justify all steps of your solution.
4. Depreciation on a personal computer used in the marketing department of a manufacturing firm would...
Depreciation on a personal computer used in the marketing department of a manufacturing firm would be classified as:
A) a product cost that is fixed with respect to the company"s output.
B) a period cost that is fixed with respect to the company"s output.
C) a product cost that is variable with respect to the company"s output.
D) a period cost that is fixed with respect to the company"s output.
5. You are given the following data:
You are given the following data:
Fixed expenses = Rs. 4,000
BEP = Rs. 10,000
Calculate:
- P/V Ratio.
- Profit when sales are Rs. 20,000.
- New BEP, if the Selling Price is reduced by 20%.
6. Materials X and Y are used as follows:
Materials X and Y are used as follows:
Minimum usage - 50 units each per week
Maximum usage - 150 units each per week
Normal usage - 100 units each per week
Ordering quantities X = 600 units
Y = 1,000 units
Delivery period X = 4 6 weeks
Y = 2 4 weeks
Calculate for each material (i) maximum level (ii) Minimum level and (iii) Ordering level.
7. *Problem 1-2A (Part Level Submission) Judi Salem opened a law office on July 1, 2017. On July 31,...
Problem 1-2A (Part Level Submission) Judi Salem opened a law office on July 1, 2017. On July 31, the balance sheet showed Cash $5,900, Accounts Receivable $1,800, Suppli Equipment $5,600, Accounts Payable $3,900, and Owner's Capital $10,000. During August, the following transactions occurred 1. Collected $1,500 of accounts receivable 2. Paid $2,600 cash on accounts payable 3. Recognized revenue of $7,500, of which $3,000 is collected in cash and the balance is due in September. 4. Purchased additional equipment for $1,900, paying $500 in cash and the balance on account. 5. Paid salaries $1,900, rent for August $1,000, and advertising expenses $300. 6. Withdrew $1,000 in cash for personal use. 7. Received $1,000 from Standard Federal Bank-money borrowed on a note payable. 8. Incurred utility expenses for month on account $230. (a) Prepare a tabular analysis of the August transactions beginning with July 31 balances. (If a transaction results in a decrease in Ass See Illustration 1-8 for example.) Assets Accounts Cash Receivable Supplies Equipment Bal
8. 1. A fire has destroyed many of the financial records at Anderson Associates. You are assigned to...
1. A fire has destroyed many of the financial records at Anderson Associates. You are assigned to piece together information to prepare a financial report. You have found that the firm’s return on equity is 12 percent and its debt ratio is .40. What is its return on assets?
2. Pinkerton Packaging’s ROE last year was 2.5 percent, but its management has developed a new operating plan designed to improve things. The new plan calls for a total debt ratio of 50 percent, which will result in interest charges of $240 per year. Management projects an EBIT of $800 on sales of $8,000, and it expects to have a total assets turnover ratio of 1.6. Under these conditions, the federal-plus-state tax rate will be 40 percent. If the changes are made, what return on equity will Pinkerton earn?
3. Henderson Chemical Company has $5 million in sales. Its ROE is 10 percent and its total assets turnover is 2.5. The company is 60 percent equity financed. What is the company’s net income?
9. 21. Outsourcing some production is a means of _________ a capacity constraint. A. Identifying B....
21. Outsourcing some production is a means of
_________ a capacity constraint.
A. Identifying
B. Modifying
C. Supporting
D. Overcoming
E. Repeating
22. A basic question in capacity planning is:
A. what kind is needed
B. how much is needed
C. when is it needed
D. all of the above
E. none of the above
23. Which of these factors wouldn’t be subtracted from
design capacity when calculating effective capacity?
A. personal time
B. maintenance
C. scrap
D. operating hours per day
E. all of the above would
be subtracted in the calculation
24. A reason for the importance of capacity decisions
is that capacity:
A. limits the rate of output possible
B. affects operating costs
C. is a major determinant of initial costs
D. is a long-term commitment of resources
E. all of the above
25. Which of the following is the case where capacity
is measured in terms of inputs?
A. hospital
B. theater
C. restaurant
D. all of the above
E. none of the above
26. Unbalanced systems are evidenced by¼
A. Top heavy operations
B. Labor unrest
C. Bottleneck operations
D. Increasing capacities
E. Assembly lines
27. Maximum capacity refers to the upper limit
of:
A. inventories
B. demand
C. supplies
D. rate of output
E. finances
28. The impact that a significant change in capacity
will have on a key vendor is a:
A. supply chain factor
B. process limiting factor
C. internal factor
D. human resource factor
E. operational process factor
29. The maximum possible output given a product mix,
scheduling difficulties, quality factors, and so on, is:
A. utilization
B. design capacity
C. efficiency
D. effective capacity
E. available capacity
30. Efficiency is defined as the ratio of:
A. actual output to
effective capacity
B. actual output to design capacity
C. design capacity to effective capacity
D. effective capacity to actual output
E. design capacity to actual output
10. A depreciation schedule for semi-trucks of Ichiro Manufacturing Company was requested by your...
A depreciation schedule for semi-trucks of Ichiro Manufacturing Company was requested by your auditor soon after December 31, 2013, showing the additions, retirements, 2 depreciation, and other data affecting the income of the company in the 4-year period 2010 to 2013, inclusive. The following data were ascertained.
Balance of Trucks account, Jan. 1, 2010
Truck No. 1 purchased Jan. 1, 2007, cost ……………$18,000
Truck No. 2 purchased July 1, 2007, cost ……………..22,000
Truck No. 3 purchased Jan. 1, 2009, cost ……………..30,000
Truck No. 4 purchased July 1, 2009, cost ……………..24,000
Balance, Jan. 1, 2010 …………………………………$94,000
The Accumulated Depreciation—Trucks account previously adjusted to January 1, 2010, and entered in the ledger, had a balance on that date of $30,200 (depreciation on the four trucks from the respective dates of purchase, based on a 5-year life, no salvage value). No charges had been made against the account before January 1, 2010. Transactions between January 1, 2010, and December 31, 2013, which were recorded in the ledger, are as follows.
July 1, 2010 Truck No. 3 was traded for a larger one (No. 5), the agreed purchase price of which was $40,000. Ichiro Mfg. Co. paid the automobile dealer $22,000 cash on the transaction. The entry was a debit to Trucks and a credit to Cash, $22,000. The transaction has commercial substance.
Jan. 1, 2011 Truck No. 1 was sold for $3,500 cash; entry debited Cash and credited Trucks, $3,500.
July 1, 2012 A new truck (No. 6) was acquired for $42,000 cash and was charged at that amount to the Trucks account. (Assume truck No. 2 was not retired.)
July 1, 2012 Truck No. 4 was damaged in a wreck to such an extent that it was sold as junk for $700 cash. Ichiro Mfg. Co. received $2,500 from the insurance company. The entry made by the bookkeeper was a debit to Cash, $3,200, and credits to Miscellaneous Income, $700, and Trucks, $2,500. Entries for depreciation had been made at the close of each year as follows: 2010, $21,000; 2011, $22,500; 2012, $25,050; 2013, $30,400.
Instructions
(a) For each of the 4 years, compute separately the increase or decrease in net income arising from the company’s errors in determining or entering depreciation or in recording transactions affecting trucks, ignoring income tax considerations.
(b) Prepare one compound journal entry as of December 31, 2013, for adjustment of the Trucks account to reflect the correct balances as revealed by your schedule, assuming that the books have not been closed for 2013.
11. 1. Which of the following is not a related party as envisaged by IAS 24? (a) A director of the...
1. Which of the following is not a related party as envisaged by IAS 24? (a) A director of the entity. (b) The parent company of the entity. (c) A shareholder of the entity that holds 1% stake in the entity. (d) The son of the chief executive officer of the entity. 2. IAS 24 requires disclosure of compensation of key management personnel. Which of the following would not be considered “compensation” for this purpose? (a) Short-term benefits. (b) Share-based payments. (c) Termination benefits. (d) Reimbursement of out-of-pocket expenses. 3. To enable financial statement users to form a view about the effects of the related party transactions, IAS 24 requires certain disclosures to be made. Which of the following disclosures is not a mandated disclosure under IAS 24? (a) Relationships between parents and subsidiaries irrespective of whether there have been transactions between those related parties. (b) Names of all the “associates” that an entity has dealt with during the year. (c) Name of the entity’s parent and, if different, the ultimate controlling party. (d) If neither the entity’s parent nor its ultimate controlling entity produces financial statements available for public use, then the name of the next most senior parent that does so.
12. William Murray achieved one of his life-long dreams by opening
William Murray achieved one of his life-long dreams by opening his own business, The Caddie Shack Driving Range, on May 1, 2012. He invested $20,000 of his own savings in the business. He paid $6,000 cash to have a small building constructed to house the operations and spent $800 on golf clubs, golf balls, and yardage signs. Murray leased 4 acres of land at a cost of $1,000 per month. (He paid the first month’s rent in cash.) During the first month, advertising costs totaled $750, of which $150 was unpaid at the end of the month. Murray paid his three nephews $400 for retrieving golf balls. He deposited in the company’s bank account all revenues from customers ($4,700). On May 15, Murray withdrew $800 in cash for personal use. On May 31, the company received a utility bill for $100 but did not immediately pay it. On May 31, the balance in the company bank account was $15,100. Murray is feeling pretty good about results for the first month, but his estimate of profitability ranges from a loss of $4,900 to a profit of $1,650.
Accounting
Prepare a balance sheet at May 31, 2012. Murray appropriately records any depreciation expense on a quarterly basis. How could Murray have determined that the business operated at a profit of $1,650? How could Murray conclude that the business operated at a loss of $4,900?
Analysis
Assume Murray has asked you to become a partner in his business. Under the partnership agreement, after paying him $10,000, you would share equally in all future profits. Which of the two income measures above would be more useful in deciding whether to become a partner? Explain.
Principles
What is income according to GAAP? What concepts do the differences in the three income measures for The Caddie Shack Driving Range illustrate?
13. Step 3 of Milestone 1 ACC-201 Step Three: Complete the “September Journal Entries� tab in...
Step 3 of Milestone 1 ACC-201
Step Three: Complete the “September Journal Entries� tab in your workbook using the Step Three data and updated scenario information in the appendix. Note that there was an additional line of products added this month, so you must first complete the “Inventory Valuation� tab in your workbook and then copy the journal entries from the inventory evaluation page into your journal for this month to ensure the impact of merchandising is reflected in your reporting.
INVENTORY VALUATION DATA
Peyton Approved | |||
General Journal Entries | |||
Sep-18 | |||
Date | Accounts | Debit | Credit |
USE THIS ONE FOR THE SEPTEMBER ENTRIES Date Purchases Sales Ending Inventory Dr 60.00 Cr 10 6.00 60.00 10 6.0060.00 7-Sep 15-Sep 20-Sep 7-Sep Merchandise Inventory (10 x $6) Cash Purchased inventory 60.00 6.00 48.00 2 6.00$ 12.00 20 6.10 $122.00 2 6.00$ 12.00 20 6.10$ 122.00 $134.00 15-Sep Cash (8 x $8.50) 68.00 Merchandise Sales 68.00 Record sale of inventory 24-Sep 2 $ 6.0012.00 16 6.10 97.60 $109.60 15-Sep Cost of Goods Sold (8 X$6) 48.00 46.10 24.40 Merchandise Inventory Recorded thecost of goods sold 48.00 30-Sep 25 6.05 $151.25 46.10 24.40 25 $ 6.05$151.25 $175.65 $175.65 20-Sep Merchandise Inventory (20 x $6.10 ) 122.00 Cash 122.00 29 29 $333.25 26 $157.60 24-Sep Cash (18 x 8.50) 153.00 Merchandise Sales 153.00 Record sale of inventory 24-Sep Cost of Goods Sold (2 x $6)+(16 x $6.10) 109.60 Merchandise Inventory 109.60 Recorded thecost of goods sold 30-Sep Merchandise Inventory (25 x $6.05) 151.25 Cash
14. 31. Bank overdrafts, if material, should be a.reported as a deduction from the current asset...
31. Bank overdrafts, if material, should be
a.reported as a deduction from the current asset section.
b.reported as a deduction from cash.
c.netted against cash and a net cash amount reported.
d.reported as a current liability.
32. Deposits held as compensating balances
a.usually do not earn interest.
b.if legally restricted and held against short-term credit may be included as cash.
c.if legally restricted and held against long-term credit may be included among current assets.
d.none of these.
33. The category "trade receivables" includes
a.advances to officers and employees.
b.income tax refunds receivable.
c.claims against insurance companies for casualties sustained.
d.none of these.
34. Which of the following should be recorded in Accounts Receivable?
a.Receivables from officers
b.Receivables from subsidiaries
c.Dividends receivable
d.None of these
35. What is the preferable presentation of accounts receivable from officers, employees, or affiliated companies on a balance sheet?
a.As offsets to capital.
b.By means of footnotes only.
c.As assets but separately from other receivables.
d.As trade notes and accounts receivable if they otherwise qualify as current assets.
36. When a customer purchases merchandise inventory from a business organization, she may be given a discount which is designed to induce prompt payment. Such a discount is called a(n)
a.trade discount.
b.nominal discount.
c.enhancement discount.
d.cash discount.
37. Trade discounts are
a.not recorded in the accounts; rather they are a means of computing a price.
b.used to avoid frequent changes in catalogues.
c.used to quote different prices for different quantities purchased.
d.all of the above.
38. If a company employs the gross method of recording accounts receivable from customers, then sales discounts taken should be reported as
a.a deduction from sales in the income statement.
b.an item of "other expense" in the income statement.
c.a deduction from accounts receivable in determining the net realizable value of accounts receivable.
d.sales discounts forfeited in the cost of goods sold section of the income statement.
39. Why do companies provide trade discounts?
a. To avoid frequent changes in catalogs.
b. To induce prompt payment.
c. To easily alter prices for different customers.
d. Both a. and c.
40. The accounting for cash discounts and trade discounts are
a. the same.
b. always recorded net.
c. not the same.
d. tied to the timing of cash collections on the account.
15. When sales are not uniform in an accounting period, the ratio that should be used is 1.time ratio
When sales are not uniform in an accounting period, the ratio that should be used is
1.time ratio
2.sales ratio
3.weighted sales ratio
4.adjusted time ratio
16. 73) Which type of decision is calculating gross pay for hourly workers? A) structured B)...
73)
Which type of decision is calculating gross pay for hourly workers?
A)
structured
B)
unstructured
C)
semistructured
D)
none of the above
74)
The decision to approve a capital budget is an example of a(n) ________
decision.
A)
semistructured
B)
unstructured
C)
structured
D)
undocumented
75) The decisions involved in creating and
producing a corporate intranet can be classified as ________ decisions.
A)
procedural
B)
unstructured
C)
structured
D)
semistructured
76)
Checking store inventory is an example of a(n) ________ decision.
A)
semistructured
B)
unstructured
C)
structured
D)
none of the above
77)
Simon’s description of decision making consists of which four stages?
A)
planning, financing, implementation, and maintenance.
B)
planning, design, implementation, and maintenance.
C)
intelligence, design, choice, and implementation.
D)
intelligence, design, financing, and implementation.
78)
Which phase of decision making finds or recognizes a problem, need, or
opportunity?
A)
design
B)
intelligence
C)
choice
D)
implementation
79) The five classical functions
of managers are planning, organizing, deciding, controlling, and
A)
coordinating.
B)
leading.
C)
managing.
D)
negotiating.
80)
In contrast to the classical model of management, behavioural models see the
actual behaviour of managers as being more
A)
systematic.
B)
informal.
C)
reflective.
D)
well organized.
81)
Behavioural models of managers find that, from observation,
managers
A)
perform often fewer than 100 activities a day.
B)
operate best with standardized, predictable, printed
information.
C)
createa formalized, hierarchic structure of contacts to provide
filtered information.
D)
typically work in a fragmented manner, with only 10 percent of
activities exceeding an hour in duration.
82)
Mintzberg’s classification of managerial roles outlines which three main
categories?
A)
interpersonal, informational, and decisional
B)
symbolic, decisional, and interpersonal
C)
symbolic, interpersonal, and technical
D)
technical, interpersonal, and informational