Corporate Governance: Assignment Aid for Students
25. Journalize and post the adjusting entries at January 31.
At Cambridge Company, prepayments are debited to expense when paid, and unearned revenues are credited to revenue when cash is received. During January of the current year, the following transactions occurred.
2
Paid $1,920 for fire insurance protection for the year.
10
Paid $1,700 for supplies.
15
Received $6,100 for services to be performed in the future.
On January 31, it is determined that $2,500 of the services were performed and that there are $650 of supplies on hand.
Instructions
(a) Journalize and post the January transactions. (Use T-accounts.)
(b) Journalize and post the adjusting entries at January 31.
(c) Determine the ending balance in each of the accounts.
26. Question 1: Use Classical Political Economy Theory to explain JB Hi-Fi’s decision to release its...
Question 1: Use Classical Political Economy Theory to explain JB Hi-Fi’s decision to release its profit downgrade in the way it did. Make sure you explain what Institutional Theory is, and support your observations with evidence from the case study.
Answer: Your answer is written here.
References:
Insert your references here, for example:
Deegan, C. M. (2014). Financial Accounting Theory (4 ed.). North Ryde, NSW.: McGraw Hill Education (Australia) Pty Ltd.
Marker’s Comments: The marker will provide feedback here.
Mark (10):
0
Exceeds Expectations
(High Distinction) 85-100%
Exceeds Expectations (Distinction) 75 - 84%
Meets Expectations
(Credit) 65 – 74%
Meets Expectations
(Pass) 50 – 64%
Below Expectations
(Fail) below 50%
Demonstrates a balanced and very high level of detailed knowledge of core concepts by providing a very high level of analysis. Utilises current, appropriate and credible sources.
Demonstrates a balanced and high level of knowledge of core concepts by providing a high level of analysis. Utilises mostly current, appropriate and credible sources.
Demonstrates a good level of knowledge of some of the core concepts by providing some level of analysis. Utilises some current, appropriate and credible sources.
Demonstrates limited knowledge of core concepts by providing a limited level of analysis. Utilises few current, appropriate and credible sources.
Demonstrates little, if any, knowledge of the core concepts with extremely limited, if any, analysis. Utilises little, if any, current, appropriate and credible sources.
Quality of writing at a very high standard. Paragraphs are coherently connected to each other. Correct grammar, spelling and punctuation.
Quality of writing is of a high standard. Paragraphs are mostly well structured. Few grammar, spelling and punctuation mistakes.
Quality of writing is of a good standard. Few grammar, spelling and punctuation mistakes.
Some problems with sentence structure and presentation Frequent grammar, punctuation and spelling mistakes. Use of inappropriate language.
Quality of writing is at a very poor standard so barely understandable. Many spelling mistakes. Little or no evidence of proof reading.
The assessment presents a detailed and focused summary of the ideas presented; drawing clear and well thought-out conclusions.
The assessment presents a fairly detailed and focused summary of the ideas presented; drawing fairly clear and well thought-out conclusions.
The assessment presents a somewhat detailed and focused summary of the ideas presented; providing some evidence of conclusions.
The assessment provides limited detail with no clear summary of the ideas presented; drawing limited conclusions.
The assessment fails to provide any clear evidence of the ideas presented; drawing no clear conclusions.
Question 2: Use the Managerial branch of Stakeholder Theory to explain JB Hi-Fi’s reporting decisions. Make sure you support your observations with evidence from the case study.
Answer: Your answer is written here.
References:
Insert your references here, for example:
Deegan, C. M. (2014). Financial Accounting Theory (4 ed.). North Ryde, NSW.: McGraw Hill Education (Australia) Pty Ltd.
Marker’s Comments: The marker will provide feedback here.
Mark (10):
0
Exceeds Expectations
(High Distinction) 85-100%
Exceeds Expectations (Distinction) 75 - 84%
Meets Expectations
(Credit) 65 – 74%
Meets Expectations
(Pass) 50 – 64%
Below Expectations
(Fail) below 50%
Demonstrates a balanced and very high level of detailed knowledge of core concepts by providing a very high level of analysis. Utilises current, appropriate and credible sources.
Demonstrates a balanced and high level of knowledge of core concepts by providing a high level of analysis. Utilises mostly current, appropriate and credible sources.
Demonstrates a good level of knowledge of some of the core concepts by providing some level of analysis. Utilises some current, appropriate and credible sources.
Demonstrates limited knowledge of core concepts by providing a limited level of analysis. Utilises few current, appropriate and credible sources.
Demonstrates little, if any, knowledge of the core concepts with extremely limited, if any, analysis. Utilises little, if any, current, appropriate and credible sources.
Quality of writing at a very high standard. Paragraphs are coherently connected to each other. Correct grammar, spelling and punctuation.
Quality of writing is of a high standard. Paragraphs are mostly well structured. Few grammar, spelling and punctuation mistakes.
Quality of writing is of a good standard. Few grammar, spelling and punctuation mistakes.
Some problems with sentence structure and presentation Frequent grammar, punctuation and spelling mistakes. Use of inappropriate language.
Quality of writing is at a very poor standard so barely understandable. Many spelling mistakes. Little or no evidence of proof reading.
The assessment presents a detailed and focused summary of the ideas presented; drawing clear and well thought-out conclusions.
The assessment presents a fairly detailed and focused summary of the ideas presented; drawing fairly clear and well thought-out conclusions.
The assessment presents a somewhat detailed and focused summary of the ideas presented; providing some evidence of conclusions.
The assessment provides limited detail with no clear summary of the ideas presented; drawing limited conclusions.
The assessment fails to provide any clear evidence of the ideas presented; drawing no clear conclusions.
Question 3: To what extent do current share prices anticipate future earnings announcements? Use the case study to support your answer.
Answer: Your answer is written here.
References:
Insert your references here, for example:
Deegan, C. M. (2014). Financial Accounting Theory (4 ed.). North Ryde, NSW.: McGraw Hill Education (Australia) Pty Ltd.
Marker’s Comments: The marker will provide feedback here.
Mark (10):
0
Exceeds Expectations
(High Distinction) 85-100%
Exceeds Expectations (Distinction) 75 - 84%
Meets Expectations
(Credit) 65 – 74%
Meets Expectations
(Pass) 50 – 64%
Below Expectations
(Fail) below 50%
Demonstrates a balanced and very high level of detailed knowledge of core concepts by providing a very high level of analysis. Utilises current, appropriate and credible sources.
Demonstrates a balanced and high level of knowledge of core concepts by providing a high level of analysis. Utilises mostly current, appropriate and credible sources.
Demonstrates a good level of knowledge of some of the core concepts by providing some level of analysis. Utilises some current, appropriate and credible sources.
Demonstrates limited knowledge of core concepts by providing a limited level of analysis. Utilises few current, appropriate and credible sources.
Demonstrates little, if any, knowledge of the core concepts with extremely limited, if any, analysis. Utilises little, if any, current, appropriate and credible sources.
Quality of writing at a very high standard. Paragraphs are coherently connected to each other. Correct grammar, spelling and punctuation.
Quality of writing is of a high standard. Paragraphs are mostly well structured. Few grammar, spelling and punctuation mistakes.
Quality of writing is of a good standard. Few grammar, spelling and punctuation mistakes.
Some problems with sentence structure and presentation Frequent grammar, punctuation and spelling mistakes. Use of inappropriate language.
Quality of writing is at a very poor standard so barely understandable. Many spelling mistakes. Little or no evidence of proof reading.
The assessment presents a detailed and focused summary of the ideas presented; drawing clear and well thought-out conclusions.
The assessment presents a fairly detailed and focused summary of the ideas presented; drawing fairly clear and well thought-out conclusions.
The assessment presents a somewhat detailed and focused summary of the ideas presented; providing some evidence of conclusions.
The assessment provides limited detail with no clear summary of the ideas presented; drawing limited conclusions.
The assessment fails to provide any clear evidence of the ideas presented; drawing no clear conclusions.
Question 4: Show how the Brunswik Lens Model might be used to explain an investor's decision about whether to buy or sell shares in JB Hi-Fi following their downgrade “announcement”.
Answer: Your answer is written here.
References:
Insert your references here, for example:
Deegan, C. M. (2014). Financial Accounting Theory (4 ed.). North Ryde, NSW.: McGraw Hill Education (Australia) Pty Ltd.
Marker’s Comments: The marker will provide feedback here.
Mark (10):
0
Exceeds Expectations
(High Distinction) 85-100%
Exceeds Expectations (Distinction) 75 - 84%
Meets Expectations
(Credit) 65 – 74%
Meets Expectations
(Pass) 50 – 64%
Below Expectations
(Fail) below 50%
Demonstrates a balanced and very high level of detailed knowledge of core concepts by providing a very high level of analysis. Utilises current, appropriate and credible sources.
Demonstrates a balanced and high level of knowledge of core concepts by providing a high level of analysis. Utilises mostly current, appropriate and credible sources.
Demonstrates a good level of knowledge of some of the core concepts by providing some level of analysis. Utilises some current, appropriate and credible sources.
Demonstrates limited knowledge of core concepts by providing a limited level of analysis. Utilises few current, appropriate and credible sources.
Demonstrates little, if any, knowledge of the core concepts with extremely limited, if any, analysis. Utilises little, if any, current, appropriate and credible sources.
Quality of writing at a very high standard. Paragraphs are coherently connected to each other. Correct grammar, spelling and punctuation.
Quality of writing is of a high standard. Paragraphs are mostly well structured. Few grammar, spelling and punctuation mistakes.
Quality of writing is of a good standard. Few grammar, spelling and punctuation mistakes.
Some problems with sentence structure and presentation Frequent grammar, punctuation and spelling mistakes. Use of inappropriate language.
Quality of writing is at a very poor standard so barely understandable. Many spelling mistakes. Little or no evidence of proof reading.
The assessment presents a detailed and focused summary of the ideas presented; drawing clear and well thought-out conclusions.
The assessment presents a fairly detailed and focused summary of the ideas presented; drawing fairly clear and well thought-out conclusions.
The assessment presents a somewhat detailed and focused summary of the ideas presented; providing some evidence of conclusions.
The assessment provides limited detail with no clear summary of the ideas presented; drawing limited conclusions.
The assessment fails to provide any clear evidence of the ideas presented; drawing no clear conclusions.
Question 5: Some academics have criticised the accounting profession for acting to legitimise the capitalist system (supposedly by supporting the “haves” against the “have nots”. Indicate whether the case study supports the critical view of accounting, or whether it doesn’t. Use the case study to support your answer.
Answer: Your answer is written here.
References:
Insert your references here, for example:
Deegan, C. M. (2014). Financial Accounting Theory (4 ed.). North Ryde, NSW.: McGraw Hill Education (Australia) Pty Ltd.
Marker’s Comments: The marker will provide feedback here.
Mark (10):
0
Exceeds Expectations
(High Distinction) 85-100%
Exceeds Expectations (Distinction) 75 - 84%
Meets Expectations
(Credit) 65 – 74%
Meets Expectations
(Pass) 50 – 64%
Below Expectations
(Fail) below 50%
Demonstrates a balanced and very high level of detailed knowledge of core concepts by providing a very high level of analysis. Utilises current, appropriate and credible sources.
Demonstrates a balanced and high level of knowledge of core concepts by providing a high level of analysis. Utilises mostly current, appropriate and credible sources.
Demonstrates a good level of knowledge of some of the core concepts by providing some level of analysis. Utilises some current, appropriate and credible sources.
Demonstrates limited knowledge of core concepts by providing a limited level of analysis. Utilises few current, appropriate and credible sources.
Demonstrates little, if any, knowledge of the core concepts with extremely limited, if any, analysis. Utilises little, if any, current, appropriate and credible sources.
Quality of writing at a very high standard. Paragraphs are coherently connected to each other. Correct grammar, spelling and punctuation.
Quality of writing is of a high standard. Paragraphs are mostly well structured. Few grammar, spelling and punctuation mistakes.
Quality of writing is of a good standard. Few grammar, spelling and punctuation mistakes.
Some problems with sentence structure and presentation Frequent grammar, punctuation and spelling mistakes. Use of inappropriate language.
Quality of writing is at a very poor standard so barely understandable. Many spelling mistakes. Little or no evidence of proof reading.
The assessment presents a detailed and focused summary of the ideas presented; drawing clear and well thought-out conclusions.
The assessment presents a fairly detailed and focused summary of the ideas presented; drawing fairly clear and well thought-out conclusions.
The assessment presents a somewhat detailed and focused summary of the ideas presented; providing some evidence of conclusions.
The assessment provides limited detail with no clear summary of the ideas presented; drawing limited conclusions.
The assessment fails to provide any clear evidence of the ideas presented; drawing no clear conclusions.
27. Askland Clinic uses client-visits as its measure of activity. During October, the c
Askland Clinic uses client-visits as its measure of activity. During October, the clinic budgeted for 3,100 client-visits, but its actual level of activity was 3,130 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for October:
Data used in budgeting:
Actual results for October:
The activity variance for personnel expenses in October would be closest to:
28. Almost Over the Line? The accounting firm of Glofry and Tammar (G&T) has been asked to arrange...
Almost Over the Line? The accounting firm of Glofry and Tammar (G&T) has been asked to arrange for a $2 million loan for Tang Enterprises by its client Ted Hoover at Hoover Company. Hoover Company is involved in a number of different business operations and has a net worth of $20 million. A senior partner at G&T instructed Henry Morgan, a G&T accountant, to make sure that the loan was secured by collateral. Tang forwarded ownership shares from a foreign company as collateral for the loan. Upon investigation, it was determined that these shares were worthless. Tang Enterprises then sent prime bank guarantees that—had a fair value of $5 million. Upon the receipt of the guarantees, Glofry and Tammar arranged for the transfer of the money to Tang. A month after the money had been transferred to Tang, Ted Hoover asked G&T for a letter to certify the authenticity of the bank guarantees so that they could be sold. What should the accounting firm of Glofry and Tammar do under these circumstances?
29. The Trial Balance of XYZ Ltd.
The Trial Balance of XYZ Ltd. for the year ending 31st March, XXXX , as under:-
Trial Balance of XYZ Ltd. as on 31st March, .XXXX
PARTICULERS
Rs.
Share Capital: 5,000 Equity Shares of Rs. 100 each
5,00,000
4L
6% Debenture secured on the mortgage of fixed assets
1,00,000
4L
Provisions for Taxation for the assessment year 2001-02, 2002-03
1,00,000
4L
Sundry Creditors
52,000
4L
Discount on issue of Debentures
4,000
4L
Profit & Loss A/c (Credit Balance)
10,000
4L
Gross Profit
5,00,000
2C
Dividend Received on Investment ( Gross Rs. 10,000)
7,000
2C
Director’s Fees
1,00,000
2D
Interest on Debentures
5,000
2D
Income Tax deducted on Interest on Debentures
1,500
2D
Audit Fee (including Rs. 1,000 for Tax Representation)
5,000
2D
Miscellaneous Trade Expenses
1,10,000
2D
Advance against Construction of Buildings
50,000
4A
Building (Cost Rs. 4,00,000)
3,00,000
4A
Furniture (Cost Rs.1,00,000)
5,000
4A
Moter Vehicles
30,000
4A
Equity Share of other Companies (Market Value Rs. 2,20,000)
2,00,000
4A
5,000 10% Preference Shares of Rs. 10 each of other companies (Rs. 6 paid up)
30,000
4A
Stock in Trade (at cost)
2,00,000
4A
Sundry Debtors (Consider for Unsecured Goods)
1,40,000
4A
Cash at Bank
57,500
4A
Preliminary Expenses
30,000
4A
You are required to prepare a Profit & Loss Account for the year ending 31st March, XXXX and the Balance Sheet on that date after taken into Account following adjustments:
1. The method of valuation of Closing Stock has been charged & this resulted in reduction of the value of the closing stock to Rs. 1,90,000. This has not been adjusted.
2. Closing Stock also includes goods worth Rs. 20,000, which cannot be marketed.
3. Provide Depreciation at @10% on the original cost of all fixed assets.
4. Moter Vehicles account represents two old vehicles standing in the books at Rs. 5,000 each (original cost Rs. 15,000 each) & a new vehicle purchased on 1st January, XXXX for Rs. 20,000. One of the old vehicles was sold for Rs. 4,000 & amount was credited to Sales Account.
5. The Company has contracted for the construction of a building at Rs. 1,50,000 which is still incomplete.
6. Provide Rs. 1,00,000 towards taxation liability for the current year.
7. Sundry Creditors include Rs. 2,000, which had already been paid.
8. Dividend is proposed for the year at 20%.
9. Debtors outstanding for more than six months: Rs. 40,000. .
10. Cash Balance includes a Cheque for Rs. 10,000 returned by the banker for want of balance in the account.
30. The budget director of Royal Furniture Company requests estimates of sales, production, and other...
The budget director of Royal Furniture Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for February 2016 is summarized as follows:
a. Estimated sales of King and Prince chairs for February by sales territory:
31. What is the nature of the authoritative guidance for advertising costs for entertainment companies?
What is the nature of the authoritative guidance for advertising costs for entertainment companies?
32. (Comprehensive Income Disclosure) Assume the same information as E17-9 and that Steffi Graf Inc....
(Comprehensive Income Disclosure) Assume the same information as E17-9 and that Steffi Graf Inc. reports net income in 2013 of $120,000 and in 2014 of $140,000. Total holding gains (including any realized holding gain or loss) total $40,000.
Instructions
(a) Prepare a statement of comprehensive income for 2013 starting with net income.
(b) Prepare a statement of comprehensive income for 2014 starting with net income.