Navigate Accounting Modules with Premier Assignment Help

Published: 11 months ago

Navigate Accounting Modules with Premier Assignment Help

26. Which of the following is not an element of the fraud triangle?

Which of the following is not an element of the fraud triangle?

(a) Rationalization.

(b) Financial pressure.

(c) Segregation of duties.

(d) Opportunity.

27. The creative chief executive of a corporation who is personally responsible for numerous inventions

The creative chief executive of a corporation who is personally responsible for numerous inventions and innovations is not reported as an asset on the corporation’s balance sheet. The accounting principle/guideline that prevents the corporation for reporting this person as an asset is

28. List four government services and the benefits they provide to you and your family.

1. List four government services and the benefits they provide to you and your family. Try to put a monetary value on these benefits by thinking about what you would be willing to give up to receive them if they were not available.

2. Make a rough estimate of how much you and your family pay in taxes each year. Compare this estimate with the value of services received from the government. Do you think government provides you with benefits that are worth what you give up in taxes?

29. true or false1.like the journal,the ledger provides each account name its running balance.2.the gene

true or false1.like the journal,the ledger provides each account name its running balance.2.the general journal can only answer the details of a particular transaction while the ledger can answer the summary of transactions related to the given account.3.a compounded journal entry means two or more single entries combined into one journal entry.4.declarations of stock dividends or stock splits are recorded as single or compounded entries in the general journal.5.adjusting entries are the reverse of all adjusting entries at the beginning of the period.6.reversing entries are the reverse of all adjusting entries at the beginning of the period.7.an investment of a noncash asset to the business shall be valued at historical cost.8 .an asset is expensed if already used in business.9.a liability can be paid with another form of liability10.a debit note issued by the bank to the depositor is taken by the depositor in his book as a debit in cash.11.a credit note issued by the business to its customer is taken in the books of the issuer as debit to accounts receivable.12.there is loss on notes discounting if the interest income is greater than the amount of discount on notes.13.the statement of financial position contains the final results of SCI14.the recording of transactions is done first in the ledger , and then in the journal.15. an expense will reduce the owner’s capital.16.withdrawal of owner’s capital will debit the cash account.17.a debit balance in the posting of an account means that there is an open asset account.18. the posting on the PR column means that the value was already posted to the appropriate ledger account.19.posting reference is needed from audit trail purpose.20.the accounts reflected in the trial balance are open accounts that can be used as data to prepare financial statements.21. the current ratio reveals the availability of the company to survive over a long-period of time.22. non-interest bearing note is a note that does not have cost of money at all.23. if asset is acquired through borrowings, the interest shall be treated as part of the acquisition cost of the asset.24. an input VAT is a current asset.

30. Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2016. The ac- counting...

Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2016. The ac- counting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter. During May, Kelly Consulting entered into the following transactions:

May 3. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees,  $4,500.

5.     Received cash from clients on account, $2,450.

9.  Paid cash for a newspaper advertisement,  $225.

13.  Paid Office Station Co. for part of the debt incurred on April 5, $640.

15.     Recorded services provided on account for the period May 1–15, $9,180.

16.     Paid part-time receptionist for two weeks’ salary including the amount owed on April 30, $750.

17.     Recorded cash from cash clients for fees earned during the period May 1–16,

$8,360.

Record the following transactions on Page 6 of the    journal:

20.     Purchased supplies on account, $735.

21.     Recorded services provided on account for the period May 16–20, $4,820.

25.  Recorded cash from cash clients for fees earned for the period May 17–23, $7,900.

27.     Received cash from clients on account, $9,520.

28.     Paid part-time receptionist for two weeks’ salary, $750.

30.     Paid telephone bill for May, $260.

31.     Paid electricity bill for May, $810.

31.  Recorded cash from cash clients for fees earned for the period May 26–31, $3,300.

31.  Recorded services provided on account for the remainder of May, $2,650.

31.   Paid dividends, $10,500.

Instructions

1.     The chart of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closing trial balance as of April 30, 2016, is shown in Exhibit 17. For each account in the post-closing trial balance, enter the balance in the appropriate Balance column of a four-column account. Date the balances May 1, 2016, and place a check mark (¸) in the Posting Reference column. Journalize each of the May transactions in a two- column journal starting on Page 5 of the journal and using Kelly Consulting’s chart of accounts. (Do not insert the account numbers in the journal at this time.)

2.     Post the journal to a ledger of four-column accounts.

3.     Prepare an unadjusted trial balance.

4.     At the end of May, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6).

a.    Insurance expired during May is $275.

b.   Supplies on hand on May 31 are $715.

c.    Depreciation of office equipment for May is $330.

d.   Accrued receptionist salary on May 31 is $325.

e.    Rent expired during May is $1,600.

f.    Unearned fees on May 31 are $3,210.

5.     (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet.

6.     Journalize and post the adjusting entries. Record the adjusting entries on Page 7 of the journal.

7.     Prepare an adjusted trial balance.

8.     Prepare an income statement, a retained earnings statement, and a balance sheet.

9.     Prepare and post the closing entries. Record the closing entries on Page 8 of the journal. (Income Summary is account #34 in the chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry.

10.     Prepare a post-closing trial balance.

31. Last year, Stevita Inc. shipped 3,000,000 kilograms of goods to customers at a cost of $2,400,000...

Last year, Stevita Inc. shipped 3,000,000 kilograms of goods to customers at a cost of $2,400,000. If an individual customer orders 20,000 kilograms and produces $400,000 of revenue (total revenue is $40 million), the amount of shipping cost assigned to the customer using activity-based costing would be

32. Karen Kay, a portfolio manager at Collins Asset Management, is using the capital asset pricing model

1. Karen Kay, a portfolio manager at Collins Asset Management, is using the capital asset pricing model for making recommendations to her clients. Her research department has developed the information shown in the following exhibit. (LO 7-2)

1. 
   
   
   
   1. Calculate expected return and alpha for each stock.
   
   
   2. Identify and justify which stock would be more appropriate for an investor who wants to:
      
      
      
      1. Add this stock to a well-diversified equity portfolio.
      
      
      2. Hold this stock as a single-stock portfolio.
      
      
      
      
   
   
   
   

33. Cash discount decisions The credit terms for each of three suppliers are shown in the following...

Cash discount decisions The credit terms for each of three suppliers are shown in the following table.

a. Determine the approximate cost of giving up the cash discount from each supplier.

b. Assuming that the firm needs short-term financing, indicate whether it would be better to give up the cash discount or take the discount and borrow from a bank at 15% annual interest. Evaluate each supplier separatelyusing your findings in part a.

c. What impact, if any, would the fact that the firm could stretch its accounts payable (net period only) by 20 days from supplier Z have on your answer in part b relative to this supplier?

34. Learning Objective 4.3 Questions 1) Which of the following situations involves a deferral? A)...

Learning Objective 4.3 Questions

1) Which of the following situations involves a deferral?

A) Recording accrued interest

B) Recording accrued wages

C) Recording revenue earned but not yet received

D) Recording revenue earned that was collected in advance

E) None of the above are deferrals.

2) The adjustment for revenue received in advance, which has been earned in the current period, involves a

A) debit to unearned revenue.

B) debit to accrued revenue.

C) credit to accrued revenue.

D) debit to cash.

E) credit to cash.

3) The adjustment for revenue received in advance that has now been earned involves a debit to

A) Cash and a credit to Prepaid Revenue.

B) Unearned Revenue and a credit to Revenue.

C) Prepaid Revenue and a credit to Unearned Revenue.

D) Revenue and a credit to Unearned Revenue.

E) Prepaid Revenue and a credit to Cash.

4) What effect does the earning of revenue previously collected have on the basic accounting equation? Assume Unearned Revenue had been increased when the cash was collected in advance.

A) Increase in assets, decrease in liabilities

B) Decrease in assets, decrease in liabilities

C) Decrease in liabilities, increase in stockholders' equity

D) Decrease in assets, decrease in stockholders' equity

E) Increase in assets, increase in stockholders' equity

5) Scrumptious Donuts sold $2,000 worth of gift certificates in December. As of December 31, $500 worth of the $2,000 gift certificates had been redeemed. All gift certificates sold use the Deferred Revenue account. The balance in the Deferred Revenue account as of December 31 is

A) $2,000

B) $2,500

C) $500

D) $1,500

E) not enough information to answer

6) The adjusting entry to record $675 of earned revenue received in advance would include a debit to Unearned Revenue.

7) Circle Knitting, Inc. recorded $4,000 of unearned revenue being earned and the collection of $1,500 cash for services previously accrued. The impact of these two entries on total revenue is an increase of $5,500.

8) Module Accounting Services receives $8,000 cash for service revenue to be earned in the future. The company credits Service Revenue upon receipt of the cash.

9) Auto Detailing, Inc. had the following transactions on August 1:

a. The company sold $2,100 of inventory costing $1,400. The customer will not be billed until September. As of August 31, no entries have been made with respect to the inventory that has been sold or the sale.

b. The company received a $2,000 payment from a customer for services to be performed during August and September. On August 1, the entire $2,000 was placed in the Unearned Revenue account. As of August 31, 40% of the work had been completed.

c. The company paid $7,200 for 4 months' rent in advance. The entire amount was placed into Prepaid Rent.

d. The company sold equipment costing $2,400 for $5,400 to a customer in return for a 3-month note. The sale was properly recorded on August 1. Auto Detailing, Inc. is charging 12% interest on the note. The customer will pay the note and all interest after 3 months.

Prepare the appropriate journal entries for Auto Detailing, Inc. as of August 31, for each of the above transactions.

10) Chordall Authors Company circulates a monthly magazine, charging $36 to subscribers for a month subscription. Subscribers are required to forward the entire $36 yearly subscription fee before Chordall Authors Company will furnish the subscriber with the magazine. Chordall Authors Company sold 300 magazine subscriptions in the month of March, while the balance in the Unearned Subscription Revenue account was $20,000 on March 1, 2009. After the necessary adjusting entry for March, the balance in the Unearned Subscription Revenue account was $25,200.

Required:

1. Prepare the appropriate journal entry for Chordall Authors Company as of March 31.

2. How would net income be affected for the month ending March 31 if Chordall Authors Company did not record the above entry?

35. Welk Company produces a single product. Last year, the company had 16,000 units in its beginning...

Welk Company produces a single product. Last year, the company had 16,000 units in its beginning inventory. During the year, the company"s variable production costs were  $6 per unit and its fixed manufacturing overhead costs were $4 per unit. The company"s net operating income for the year was $24,000 higher under absorption  costing than it was under variable costing. Given these facts, the number of units in the ending inventory must have been:

A) 22,000 units

B) 10,000 units

C) 6,000 units

D) 4,000 units

36. Comprehensive Problem 5, financial and managerial accounting

COMPREHENSIVE PROBLEM 5The Gilster Company

The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Falls, Minnesota, uses a job order costing system for its batch production processes. The St. Falls plant has two departments through which most jobs pass. Plantwide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human resources, is budgeted at $250,000. During the past year, actual plantwide overhead was $240,000. Each department's overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from the St. Falls plant for the past year are as follows:

For the coming year, the accountants at St. Falls are in the process of helping the sales force create bids for several jobs. Projected data pertaining only to job no. 110 are as follows:

Instructions

1. Assume the St. Falls plant uses a single plantwide overhead rate to assign all overhead (plantwide and department) costs to jobs. Use expected total direct labor hours to compute the overhead rate. What is the expected cost per unit produced for job no. 110?


2. Recalculate the projected manufacturing costs for job no. 110 using three separate rates: one rate for plantwide overhead and two separate department overhead rates, all based on machine-hours.


3. The sales policy at St. Falls dictates that job bids be calculated by adding 40 percent to total manufacturing costs. What would be the bid for job no. 110 using (1) the overhead rate from parta and (2) the overhead rate from part b? Explain why the bids differ. Which of the overhead allocation methods would you recommend and why?

Page 952

1. Using the allocation rates in part b, compute the under- or overapplied overhead for the St. Falls plant for the year. Explain the impact on net income of assigning the under-or overapplied overhead to cost of goods sold rather than prorating the amount between inventories and cost of goods sold.


2. A St. Falls subcontractor has offered to produce the parts for job no. 110 for a price of $12 per unit. Assume the St. Falls sales force has already committed to the bid price based on the calculations in part b. Should St. Falls buy the $12 per unit part from the subcontractor or continue to make the parts for job no. 110 itself?


3. Would your response to part e change if the St. Falls plant could use the facilities necessary to produce parts for job no. 110 for another job that could earn an incremental profit of $20,000?


4. If the subcontractor mentioned in part e is located in Mexico, what additional international environmental issues, other than price, will Gilster and St. Falls management need to evaluate?


5. If Gilster Company management decides to undertake a target costing approach to pricing its jobs, what types of changes will it need to make for such an approach to be successful?

37. MOUNTAIN VILLAGE CLINIC Cash Budgeting 1. a. Based on the monthly cash budget, what...

MOUNTAIN VILLAGE CLINIC Cash Budgeting 1. a. Based on the monthly cash budget, what is the maximum loan requirement for January? Based on the daily cash budget, what is the maximum loan requirement for January? Why are the numbers different? b. The monthly cash budget assumes that all cash flows occur on the same day each month. Suppose the clinic's outflows tend to cluster at the beginning of the month, while collections tend to be heaviest towards the end of each month. How would this affect the validity of the monthly budget? 2. Patient volume at the clinic is highly seasonal because the vast majority of the business occurs during the ski season, which generally runs from December through March. Should seasonal variations be incorporated into the clinic’s target cash balance? In other words, should the balance be higher during months when cash needs are greater? 3. The monthly cash budget does not provide for interest paid on loans or interest earned on cash surpluses. a. Modify the monthly portion of the model to include these cash flows for February to June. Assume that interest earned (paid) occurs in the month following the end-of-month cash surplus (loan requirement.) The IF function In Excel could be helpful. b. What is the new maximum loan requirement and in what month? Do these cash flows have a significant impact on estimated borrowing requirements? 4. Dr Cook is a great believer in scenario analysis and considers the cash budget produced by Doug to be “best case.” a. Construct a “worst case” cash budget and identify the maximum loan requirement. b. What implications does the worst case cash budget have for the credit line sought from First Bank? 5. Dr Cook believes that the surge in patient volume over the forecast period is bound to result in some cash surpluses and what the clinic should do with them. In which types of securities should the clinic invest cash surpluses? Describe the desired maturity, the expected returns, and the risks that would be involved. 6. Before recommending how large a credit line to seek from First Bank: a. What additional information about the business would you want to have and why would you want it? b. What additional information about the banking would you want to have and why would you want it? 7. Based on all of your analyses, how large a credit line would you recommend that the clinic seek from First Bank? 8. In your opinion, what are three key learning points from this case?