Академический Документы
Профессиональный Документы
Культура Документы
To Download tutorial Copy and Paste below Link into your Browser
https://www.essayblue.com/downloads/acct-304-intermediate-accounting/?ref=182
week 1
Generally Accepted Accounting Principles (GAAP) are guidelines for companies to follow as
they prepare and issue financial statements.
Lets start by getting an understanding of why the guidelines were developed in the first place?
I dont want to see everybody repeating the same answer. You wouldnt do that if you were in
class and I asked a question.
You need to respond to each of the two separate discussion topics by Wednesday the latest. And,
including Wednesday, you need to respond to each of the 2 discussion threads on 3 different
days. For example, you could come in as late as Wednesday and respond to topic one and two.
Then do the same for both topics on Thursday and Sunday.
They need to be of quality responses. Not I agree with what you said John. or Not Yes, John,
you are correct in saying that..
Prof. Marnell
A sound foundation is necessary for success in any task from building a house to putting on
make-up.
In terms of U.S. Accounting Standards, it is also necessary to have a sound foundation, referred
to as the conceptual framework.
Once students have answered the above thoroughly, lets move on and
Remember, these discussion threads are supposed to be stimulating conversation, a back and
forth discussion among students and teacher.
After the first person responds, he or she can respond to the first item, the next person can add a
point that maybe the previous discussions failed to point out or answer the second item..
I dont want to see everybody repeating the same answer. You wouldnt do that if you were in
class and I asked a question.
You need to respond to each of the two separate discussion topics by Wednesday the latest. And,
including Wednesday, you need to respond to each of the 2 discussion threads on 3 different
days. For example, you could come in as late as Wednesday and respond to topic one and two.
Then do the same for both topics on Thursday and Sunday.
They need to be of quality responses. Not I agree with what you said John. or Not Yes, John,
you are correct in saying that..
Prof. Marnellweek 2
Hello class;
The balance sheet is one of the first financial statements I turn to when reviewing a company.
You can learn a lot about a company by looking at its balance sheet.
The balance sheet is also called the statement of financial position. Why is this? What is the
purpose of the balance sheet?
Hello Class;
Disclosures are required to elaborate on certain items that are presented in summarized form in
the financial statements. There are specific disclosure notes that are required to be present in all
financial statements, while others may be unique to the disclosure needs of a particular company.
Lets start by discussing the three required disclosures. Please pick one and explain what
information is to be included in the note:
Hello Class;
When a company sells a product for cash, it generally recognizes the revenue. However, there are
situations when it is not always clear when a company should recognize the revenue.
1) How do you handle a car dealership that sells a warranty contract to its customers for $650
that will cover the next 5 years?
Hello Class;
You might think of the time value of money to be a topic for Finance class, but accountants
need an understanding of this topic as well.
Hello Class;
Students often refer to an income statement as the statement that shows how much money a
company has made. Money, by definition, is something that is generally accepted as a medium of
exchange or means or payment. Keeping that definition in mind, an income statement is not a
measure of money, but rather it is a measure of net income (or loss) also known as profit (or
loss).
Select a publicly held company like Apple, Microsoft, IBM, Hewlett Packard, Home Depot
(Note: do not select a company already chosen by your classmate). Go to their website and
select Investor Relations and there you will find the companys annual report.
Provide the link to that annual report and based on what you have read about income
statements in this chapter and in the Becker materials,tell us what you have learned about
the company from reviewing its income statement.
Prof. Marnell
Hello Class;
The Statement of Cash Flows has historically given students a lot of heartburn, but it really isnt
that scary. A cash-flow statement, simply stated, reports the uses (where the cash was spent) and
the sources (where the cash came from) of cash during a period. Lets start with a very simplistic
set of facts. I run a CPA firm, and I billed my clients $50K during the month of February. To earn
that $50K, I incurred $20K of wage expense and another $10K of overhead (rent, utilities,
insurance, etc.). So I made $20K profit, right? So I am sitting pretty? Not necessarily. What if I
now tell you that $40K of my billings have yet to be collected? And my E&O insurance carrier
increased my premium and I had to pre-pay $10K of premiums this month.
3. c) My cash-flow statement?
Prof. Marnell
Cash (graded)
Hello Class;
Cash is listed first on the balance sheet because it is the asset most readily available to pay off
debt or use in operations. Cash is also one of the assets that most often grows legs and walks
away. Therefore, it is important that any business protect its cash; it does so through Internal
Control Procedures.
Receivables (graded)
Hello Class;
When a business extends credit to its customers, we call this Accounts Receivable. Often a
business will grant its customers a discount.
1. b) how does the journal entry to record the sale change when there
is a discount granted?
InventoriesLCM (graded)
Hello Class;
Is this a conservative or an aggressive approach? What does GAAP say about LCM?
Hello Class;
It is discovered in 2013 that ending inventory from 2011 is understated.
What accounts will be affected by this understatement, and how will they be affected?
This is a situation that really happens. Start with the 2011 inventory being understated, and track
the changes through the inventory account to 2013.
Hello Class;
Merchandise Inventory is assets held for sale in the ordinary course of business of wholesale and
retail companies. Manufacturing inventories are raw materials or WIP (Work In Process) that
will be used or consumed in the production of finished goods to be sold.
iscussion topic #1
2. what further information you found in the footnote disclosures about the
inventory method and Impairment of Inventory, if any.
Hello Class;
We read about the Perpetual and the Periodic Inventory System. Regardless of which system is
used, under both, we need to assign dollar amounts to the Ending Inventory and Cost of Goods
Sold so that we can trace how costs flow through the system.
quizesQuestion 1. Question : (TCO 1) Which of the following has the authority to set
accounting standards in the United States?
FASB
IRS
SEC
AICPA
:1
:1
5 of 5
Question 3. Question : (TCO 3) Mary Parker Co. invested $15,000 in ABC Corporation and
received capital stock in exchange. Mary Parker Co.s journal entry to record this transaction
would include a:
debit to investments.
debit to expense.
:2
5 of 5
Question 4. Question : (TCO 3) The adjusting entry required to record accrued expenses
includes:
a credit to cash.
a debit to an asset.
a credit to an asset.
a credit to liability.
:2
5 of 5
salaries payable.
depreciation expense.
supplies expense.
:2
5 of 5
:2
5 of 5
:3
5 of 5
Question 8. Question : (TCO 5) The distinction between operating and non-operating income
relates to:
continuity of income.
reliability of measurements.
:4
5 of 5
Question 9. Question : (TCO 5) A voluntary change in accounting principle is accounted for by:
:4
5 of 5
Question 10. Question : (TCO 5) Cash flows from investing activities do not include:
:4
5 of 5
Question 11. Question : (TCO 5) The Maytag Corporations income statement includes income
from continuing operations, a loss from discontinued operations, and extraordinary items.
Earnings per share information would be provided for:
income from continuing operations, loss from discontinued operations, and net income only.
income from continuing operations, loss from discontinued operations, extraordinary items, and
net income.
:4
5 of 5
Question 12. Question : (TCO 5) In a statement of cash flows prepared under International
Financial Reporting Standards, each of the following items is typically classified as a financing
cash flow except:
interest paid.
dividends paid.
dividends received.
:4
5 of 5
Question 13. Question : (TCO 4) Which is a shareholders equity account in the balance sheet?
Accumulated depreciation
Paid-in capital
Dividends payable
Marketable securities
:3
5 of 5
Question 14. Question : (TCO 4) Which of the following groups is not among the external
users for whom financial statements are prepared?
Customers
Suppliers
Employees
All of the above are external users of financial statements.
(TCO 5) Misty Company reported the following before-tax items during the current year:
Mistys effective tax rate is 40% and there were 1,000 shares of common stock outstanding.
Question 2. Question : (TCO 4) Listed below are account balances (in $millions) taken from the
records of Symphony Stores. All of these are permanent accounts, except the last two that have
yet to be closed. The installment receivables are current. Symphony uses a perpetual inventory
system.
What would Symphony report as total assets? Hint: Dont forget to deduct the contra assets.
(TCO 4) Explain how managements discussion and analysis of its operations and liquidity may
be helpful to investors.
Question 2. Question : (TCO 2) What are the key provisions of the Public Company
Accounting Reform and Investor Protection (Sarbanes-Oxley) Act of 2002?
Question 3. Question : (TCO 5) Give an example of a non-cash financing and investing activity
and explain when and how it would be reported in the financial statements.
Question 2. Question :
timeliness.
materiality.
comparability.
verifiability.
Comments:
Question 3. Question :
(TCO 3) Hughes Aircraft sold a four-passenger airplane for $380,000, receiving a $50,000 down
payment and a 12% note for the balance. The journal entry to record this sale would include a
credit to cash.
Comments:
Question 4. Question :
(TCO 3) When a tenant makes an end-of-period adjusting entry credit to the prepaid rent account
Comments:
Question 5. Question :
interest expense.
wages payable.
prepaid rent.
unearned revenues.
Question 1. Question :
bank drafts.
Question 2. Question :
Accumulated depreciation
Paid-in capital
Dividends payable
Marketable securities
Points Received: 4 of 4
Comments:
Question 3. Question :
(TCO 4) Janson Corporation Co.s trial balance included the following account balances at
December 31, 2011:
Investments consist of treasury bills that were purchased in November and mature in January.
Prepaid insurance is for the next 2 years. What amount should be included in the current asset
section of Jansons December 31, 2011 balance sheet?
$88.000
$85,000
$55,000
$135,000
Question 4. Question :
(TCO 4) Which of the following would be disclosed in the summary of significant accounting
policies disclosure note?
Option A
Option B
Option C
Option D
Question 5. Question :
(TCO 4) Below is the partial balance sheet ($ in thousands) for Paisano Seafood Inc.
1.98.
1.58.
1.17.
0.66.
quiz 3
continuity of income.
reliability of measurements.
Points Received: 4 of 4
Comments:
Question 2. Question :
(TCO 5) Major Co. reported a 2011 income of $300,000 from continuing operations before
income taxes and a before-tax extraordinary loss of $80,000. All income is subject to a 30% tax
rate. In the 2011 income statement, Major Co. would show the following line-item amounts for
income tax expense and net income.
Instructor Explanation:
Points Received: 4 of 4
Comments:
Question 3. Question :
(TCO 5) The financial statement presentation of a change in depreciation method is most similar
to that of reporting
ion of errors.
extraordinary items.
Points Received: 4 of 4
Comments:
Question 4. Question :
Points Received: 4 of 4
Comments:
Question 5. Question :
Rowdys would report net cash inflows (outflows) from financing activities in the amount of
$1,100.
$(1,100).
$820.
$900.
Instructor Explanation:
Points Received: 4 of 4
Comments:
an order is received.
production is completed.
payment is received.
Question 2. Question :
(TCO 5) On December 15, 2011, Rigsby Sales Co. sold a tract of land that cost $3,600,000 for
$4,500,000. Rigsby appropriately uses the installment sale method of accounting for this
transaction. Terms called for a down payment of $500,000 with the balance in two equal, annual
installments, payable on December 15, 2012 and December 15, 2013. Ignore interest charges.
Rigsby has a December 31 year-end. In 2011, Rigsby would recognize the realized gross profit
of
$500,000.
$0.
$900,000.
$100,000.
Question 3. Question :
Carol wants to invest money in a 6% CD account that compounds semiannually. Carol would
like the account to have a balance of $50,000 5 years from now. How much must Carol deposit
to accomplish her goal?
$35,069
$43,131
$37,205
$35,000
Comments:
Question 4. Question :
(TCO 6) Sondra deposits $2,000 in an IRA account on April 15, 2011. Assume the account will
earn 3% annually. If she repeats this for the next 9 years, how much will she have on deposit on
April 14, 2020?
$20,600
$20,928
$23,616
$24,715
Question 5. Question :
(TCO 6) Jose wants to cash in his winning lottery ticket. He can either receive five, $5,000
annual payments starting today, or he can receive a lump-sum payment now based on a 3%
annual interest rate. What is the present value of the installments if he opts for the lump sum
payment?
$22,899
$21,565
$23,000
foreign currency.
money orders.
restricted cash.
undeposited customer checks.
Question 2. Question :
(TCO 7) On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000
with credit term 2/10, n/30. Flores uses the gross method of accounting for cash discounts. What
is the correct entry for Flores on November 17, assuming the correct payment was received on
that date?
Option a
Option b
Option c
Option d
Question 3. Question :
(TCO 7) Which of the following does not change the balance in accounts receivable?
Write-offs
Question 4. Question :
(TCO 7) Brockton Carpet Cleaning prepares a bank reconciliation at the end of every month. At
the end of July, the balance in the general ledger checking account was $2,750, and the bank
balance on the bank statement was $2,980. Outstanding checks totaled $680, and deposits in
transit were $400. The bank statement revealed that a check written for $120 was incorrectly
recorded by Brockton as a $220 disbursement. The bank statement listed service charges and
NSF check charges totaling $150. The corrected cash balance is
$2,270.
$2,550.
$2,470.
$2,700.
Question 5. Question :
(TCO 7) Calistoga Produce estimates bad debt expense at % of credit sales. The company
reported accounts receivable and allowance for uncollectible accounts of $471,000 and $1,650,
respectively, at December 31, 2010. During 2011, Calistogas credit sales and collections were
$315,000 and $319,000, respectively, and $1,720 in accounts receivable were written off.
Calistogas adjusted allowance for uncollectible accounts at December 31, 2011 is
$1,575.
$1,505.
$1,650.
$1,720.
quiz 7
greater than net realizable value reduced by an allowance for normal profit margin.
(TCO 8) Montana Co. has determined its year-end inventory on a FIFO basis to be $600,000.
Information pertaining to that inventory is as follows:
$600,000
$520,000
$590,000
$510,000
Question 3. Question :
(TCO 8) Howards Supply Co. suffered a fire loss on April 20, 2011. The companys last
physical inventory was taken on January 30, 2011, at which time the inventory totaled $220,000.
Sales from January 30 to April 20 were $600,000, and purchases during that time were $450,000.
Howards consistently reports a 30% gross profit. The estimated inventory loss is
$490,000.
$238,000.
$250,000.
Question 4. Question :
(TCO 8) When computing the cost-to-retail percentage for the conventional retail method,
included in the denominator are
Question 5. Question :
(TCO 8) Retrospective treatment of prior years financial statements is required when there is a
change from
1. Who are the firms auditors? Do they provide a clean opinion on the financial
statements?
2. Have there been any subsequent events, errors and irregularities, illegal acts,
or related-party transactions that have a material effect on the financial
statements?
3. Describe the trend in total assets and total liabilities for the years presented.
4. What are the companys three largest assets for the most recent year
presented?
5. What are the companys three largest liabilities for the most recent year
presented?
6. What types of stock does the company have? How many outstanding shares
are there for each type of stock for the most recent year presented?
8. Does the income statement contain any separately reported items, including
discontinued operations or extraordinary items, in any year presented? If it
does, describe the event that caused the item. (Hint: There should be a
related footnote.)
10.Does the company have other comprehensive income? If yes, what is the
nature of the transaction(s)?
11.Does the company use the indirect or direct method of the cash-flow
statement?
12.What is the trend in cash from operations for the years presented?
13.What are the two largest items included in cash from investing activities?
Please see grading rubric for guidelines. Please submit the completed project by Sunday at the
end of Week 6.
Submit your Course Project to the Dropbox located on the silver tab at the top of this page. For
instructions on how to use the Dropbox, read these
midterm
FASB
IRS
SEC
AICPA
:1
:1
5 of 5
Question 3. Question : (TCO 3) Mary Parker Co. invested $15,000 in ABC Corporation and
received capital stock in exchange. Mary Parker Co.s journal entry to record this transaction
would include a:
debit to investments.
debit to expense.
:2
5 of 5
Question 4. Question : (TCO 3) The adjusting entry required to record accrued expenses
includes:
a credit to cash.
a debit to an asset.
a credit to an asset.
a credit to liability.
:2
5 of 5
salaries payable.
depreciation expense.
supplies expense.
:2
5 of 5
:2
5 of 5
:3
5 of 5
Question 8. Question : (TCO 5) The distinction between operating and non-operating income
relates to:
continuity of income.
reliability of measurements.
:4
5 of 5
Question 9. Question : (TCO 5) A voluntary change in accounting principle is accounted for by:
:4
5 of 5
Question 10. Question : (TCO 5) Cash flows from investing activities do not include:
:4
5 of 5
Question 11. Question : (TCO 5) The Maytag Corporations income statement includes income
from continuing operations, a loss from discontinued operations, and extraordinary items.
Earnings per share information would be provided for:
income from continuing operations, loss from discontinued operations, and net income only.
income from continuing operations, loss from discontinued operations, extraordinary items, and
net income.
:4
5 of 5
Question 12. Question : (TCO 5) In a statement of cash flows prepared under International
Financial Reporting Standards, each of the following items is typically classified as a financing
cash flow except:
interest paid.
dividends paid.
dividends received.
:4
5 of 5
Question 13. Question : (TCO 4) Which is a shareholders equity account in the balance sheet?
Accumulated depreciation
Paid-in capital
Dividends payable
Marketable securities
:3
5 of 5
Question 14. Question : (TCO 4) Which of the following groups is not among the external users
for whom financial statements are prepared?
Customers
Suppliers
Employees
(TCO 5) Misty Company reported the following before-tax items during the current year:
Mistys effective tax rate is 40% and there were 1,000 shares of common stock outstanding.
Question 2. Question : (TCO 4) Listed below are account balances (in $millions) taken from the
records of Symphony Stores. All of these are permanent accounts, except the last two that have
yet to be closed. The installment receivables are current. Symphony uses a perpetual inventory
system.
What would Symphony report as total assets? Hint: Dont forget to deduct the contra assets.
(TCO 4) Explain how managements discussion and analysis of its operations and liquidity may
be helpful to investors.
Question 2. Question : (TCO 2) What are the key provisions of the Public Company Accounting
Reform and Investor Protection (Sarbanes-Oxley) Act of 2002?
Question 3. Question : (TCO 5) Give an example of a non-cash financing and investing activity
and explain when and how it would be reported in the financial statements.
final
acct304 final exam
Question 1.1. (TCO 1) The SEC issues accounting standards in the form of (Points : 6)
Question 2.2. (TCO 1) When a registrant company submits its annual filing to the SEC, it uses
(Points : 6)
Form 10-A.
Form 10-K.
Form 10-Q.
Form S-1.
predictive value.
verifiability.
completeness.
neutrality.
timeliness.
materiality.
comparability.
verifiability.
debiting revenue.
crediting assets.
crediting liabilities.
debiting assets.
customers are unable to pay the full amount due when goods are delivered.
Question 7.7. (TCO 4) An asset that is not expected to be converted to cash or consumed within
1 year or the operating cycle is (Points : 6)
goodwill.
accounts receivable.
inventory.
supplies.
Question 8.8. (TCO 4) Which of the following is never a current liability account? (Points : 6)
Accrued payroll
Dividends payable
Prepaid rent
continuity of income.
reliability of measurements.
Question 10.10. (TCO 5) On May 1, Foxtrot Co. agreed to sell the assets of its Footwear
Division to Albanese Inc. for $80 million. The sale was completed on December 31, 2012. The
following additional facts pertain to the transaction:
The Footwear Division qualifies as a component of the entity, according to GAAP, regarding
discontinued operations.
The book value of Footwears assets totaled $48 million on the date of the sale.
(Points : 6)
income (loss) on its total operations for the year without separation.
purchase of investments.
purchase of equipment.
Question 12.12. (TCO 5) The FASBs stated preference for reporting operating cash flows is the
(Points : 6)
indirect method.
direct method.
Question 13.13. (TCO 5) Merchandise sold FOB shipping point indicates that (Points : 6)
the buyer holds title after the merchandise leaves the sellers location.
the sale is not consummated until the merchandise reaches the point to which it is being shipped.
Question 14.14. (TCO 5) Todd Sweeney is an artist who sells his work under consignment. (He
displays his work in local barbershops, and customers buy the work there.) Sweeney recently
transferred a painting to a local barbershop. After Sweeney has transferred a painting to a
barbershop, the painting (Points : 6)
Question 15.15. (TCO 6) Reba wishes to know how much money would be in her savings
account if she deposits a given sum in an account and leaves it there at 6% interest for 5 years.
She should use a table for the (Points : 6)
Question 16.16. (TCO 6) Loan A has the same original principal, interest rate, and payment
amount as Loan B. However, Loan A is structured as an annuity due, while Loan B is structured
as an ordinary annuity. The maturity date of Loan A will be (Points : 6)
Question 18.18. (TCO 7) Oswego Clay Pipe Company sold $46,000 of pipe to Southeast Water
District #45 on April 12 of the current year with terms 1/15, n/60. Oswego uses the gross method
of accounting for cash discounts. What entry would Oswego make on April 23, assuming the
customer made the correct payment on that date?
(Points : 6)
Option a
Option b
Option c
Option d
Question 19.19. (TCO 8) In a periodic inventory system, the cost of purchases is debited to
(Points : 6)
purchases.
inventory.
accounts payable.
Question 20.20. (TCO 8) During periods when costs are rising and inventory quantities are
stable, cost of goods sold will be (Points : 6)
Question 22.22. (TCO 8) In calculating the cost-to-retail percentage for the retail method, the
retail column will not include (Points : 6)
purchases.
purchase returns.
abnormal shortages.
freight-in.
Question 1. 1. (TCO 8) Fulbright Corp. uses the periodic inventory system. During its first year
of operation, Fulbright made the following purchases (listed in chronological order of
acquisition):
40 units at $100
70 units at $80
Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year. What is the
ending inventory using the average cost method (rounded)? (Points : 15)
Question 2. 2. (TCO 5) Describe what is meant by unearned revenues, and give two examples.
(Points : 28)
Question 3. 3. (TCO 7) Briefly compare and contrast the two allowance estimation approaches to
estimating bad debt expense. In your answer, indicate which approach, if either, is superior and
explain your reasoning. (Points : 25)
1. (TCO 8) Briefly explain when there would be a tax benefit from electing LIFO
rather than FIFO. (Points : 25)
Question 2. 2. (TCO 4) You are the independent accountant assigned to the audit of Neophyte
Company. The companys accountant, a graduate of Rival State University, has prepared
financial statements that contained the following questionable items:
2. Current liabilities include $50,000 for long-term debt that comes due in 3
months. The company has received a suitable firm commitment to refinance
the debt for 5 years and intends to do so.
Please discuss how the above items should be correctly classified and accounted for. (Points : 25)