Question 1
I am having difficulty with these two problems. Can someone show me how to answer them both? Chapter 23 22. You are auditing general cash for the Pittsburgh Supply Company for the fiscal year ended July 31, 2009. The client has not prepared the July 31 bank reconciliation. After a brief discussion with the owner, you agree to prepare the reconciliation, with assistance from one of the Pittsburgh Supply?s clerks. You obtain the following information: General Ledger Bank Statement Beginning balance 7/1/09 $6,400 $8,378 Deposits $25,474 Cash receipts journal $26,874 Checks cleared ($25,307) Cash disbursements journal ($23,171) July bank service charge ($107) Notes paid directly ($6,400) NSF check ($516) Ending balance $10,103 $1,522 June 30 Bank Reconciliation Information in General Ledger and Bank Statement Balance per bank $8,378 Deposits in transit $600 Outstanding checks $2,578 Balance per books $6,400 Additional information obtained as follows: 1. Checks cleared that were outstanding on June 30 totaled $2,411 2. Checks clearing that were recorded in the July disbursements journal totaled $21,120 3. A check for $1,130 cleared the bank but had not been recorded in the cash disbursements journal. It was for an acquisition of inventory. Pittsburgh Supply uses the periodic-inventory method. 4. A check for $646 was charged to Pittsburgh Supply but had been written on a different company?s bank account. 5. Deposits included $600 from June and $24,874 for July 6. The bank charged Pittsburgh Supply?s account for a nonsufficient check totaling $516. The credit manager concluded that the customer intentionally closed its account and the owner left the city. The check was turned over to a collection agency. 7. A note for $6,000, plus interest, was paid directly to the bank under an agreement signed 4 months ago. The note payable was recorded at $6,000 on Pittsburgh Supply?s books. a. Prepare a bank reconciliation that shows both the unadjusted and adjusted balance per books b. Prepare all adjusting entries c. What audit procedures would you use to verify each item in the bank reconciliation? d. What is the cash balance that should appear on the July 31, 2009, financial statements? 25. You are doing the first-year audit of Sherman School District and have been assigned responsibility for doing a four-column proof of cash for the month of October 2009. You obtain the following information: Balance per books September 30 October 31 $10,725 $5,836 Balance per bank September 30 October 31 $6,915 $8,276 Outstanding checks September 30 October 31 $1,811 $2,615 Cash receipts for October Per bank Per books $28,792 $20,271 Deposits in transit September 30 October 31 $5,621 $996 1. Interest on a bank loan for the month of October, charged by the bank but not recorded, was $596 2. Proceeds on a note of the Jones Company were collected by the bank on October 28 but were not entered in the books: Principal $2,900 Interest 396 $3,296 3. On October 26, a $1,144 check of the Billings Company was charged to Sherman School District?s account by the bank in error 4. Dishonored checks are not recorded on the books unless they permanently fail to clear the bank. The bank treats them as disbursements when they are dishonored in October; $600 was redeposited in October and $735 in November a. Prepare a four-column proof of cash for the month ended October 31. It should show both adjusted and unadjusted cash. b. Prepare all adjusting entries
Question 2
Need help Develop a financing plan to raise capital for a new venture. The 8 to 10 page paper should cover major course concepts. How will the money be used? What is the past performance of the organization that you are either raising funds for or want to acquire? What type of pro forma projections can you use to increase the credibility of your borrowing capacity? Prepare cash flow statements indicating how the borrowed proceeds will be repaid. Focus of the Final Paper Additional questions that should be answered to focus the core of your paper include the following: How much money do you plan on raising? What sources will be available including personal funds, relatives, Small Business Administration, sweat equity, venture capital, angel investors, vendor financing, partnering, and short and long term financing? Can you successfully use guerilla tactics [that is, creating interest by initially offering an asset for sale, and then withdrawing interest and seeking people to raise the bid]? What types of collateral can you use as security for your investment? Describe how you will mitigate against risks including management, technical, marketing, programmatic [can we make it?] and cost risk [can we make it cost effectively?] Writing the Final Paper The Final Paper: Must be eight to ten double-spaced pages in length and formatted according to APA style as outlined in the approved APA style guide. Must include a cover page that includes: - Student?s name - Course name and number - Title of paper - Instructor?s name - Date submitted Must include an introductory paragraph with a succinct thesis statement. Must address the topic of the paper with critical thought. Must conclude with a restatement of the thesis and a conclusion paragraph. Must use APA style as outlined in the approved APA style guide to document all sources. Must include, on the final page, a Reference Page that is completed according to APA style as outlined in the approved APA style guide.
Question 3
Please justify how a firm should make financial decisions with respect to bond prices and interest rates. What approach would you recommend? Why? Please discuss how financial leverage can increase both a firm?s risk and its return. How should a firm gauge worthwhile steps, since both risks and returns may be apparent? What role does financial planning play for a competitive firm? How can a firm utilize leveraging to maintain a high level of competition? What resources should a firm target when planning and adjusting to market and/or industry fluctuations? Please explain why systematic risk is more closely linked to returns than is unsystematic risk. Which differences are most important to keep in mind when working with each type of risk? How does diversification reduce volatility?,I wrote at the end of each question the length. Please let me know of anything else. thank you "Please justify how a firm should make financial decisions with respect to bond prices and interest rates. What approach would you recommend? Why? 1 double spaced page Please discuss how financial leverage can increase both a firm?s risk and its return. How should a firm gauge worthwhile steps, since both risks and returns may be apparent? 1 double spaced page What role does financial planning play for a competitive firm? How can a firm utilize leveraging to maintain a high level of competition? What resources should a firm target when planning and adjusting to market and/or industry fluctuations? 2 double spaced pages Please explain why systematic risk is more closely linked to returns than is unsystematic risk. Which differences are most important to keep in mind when working with each type of risk? How does diversification reduce volatility?" 1 double spaced page,Yes it is. Thank you,Thank you it was great. I forgot one. I only need a page double spaced. How can value?added statements be used to improve financial statement reporting, results, and success? Would i need to redo the process for this one question, if so I would like to answer it.
Question 4
Problem 8-1B Racerback Company negotiates a lump-sum purchase of several assets from a contractor who is relocating. The purchase is completed on January 1, 2011, at a total cash price of $1,610,000 for a building, land, land improvements, and six trucks. The estimated market values of the assets are building, $784,800; land, $540,640; land improvements, $226,720; and six trucks, $191,840. The company's fiscal year ends on December 31. *1) Prepare a table to allocate the lump-sum purchase price tot he seperate assets purchased (round percents to the nearest 1%). Prepare the journal entry to record the purchase. 2) Compute the depreciation expense for year 2011 on the building using the straight-line method, assuming a 12-year life and a $100,500 salvage value. 3) Compute the depreciation expense for year 2011 on the land improvements assuming a 10-year life and double-declining-balance depreciation. Problem 8-5B On January 2, Gannon Co. purchases and installs a new machine costing $312,000 with a five-year life and an estimated $28,000 salvage value. Management estimates the machine will produce 1,136,000 units of product during its life. Actual production of units is as follows: year 1, 245,600; year 2, 230,400; year 3, 227,000; year 4, 232,600; and year 5, 211,200. The total number of units produced by the end of year 5 exceeds the original estimate-this difference was not predicted. (The machine must not be depreciated below its estimated slavage value.) * Prepare a table witht eh following column headings and compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. Year Straight-Line Units-Of-Production Double-Declining-Balance
Question 5
" You may either enter your answers directly on this exam or if you choose to work some or all of the problems using Excel, you may send an excel attachment with your answers as some of you have been doing with your homework. 1. (20 points) Management of the Krausse Savings and Loan Association is in the process of evaluating the purchase of a new check sorting machine. The model under review will cost $70,000 and will require installation costs of $10,000. Similar machines have a ten-year life, and management has estimated that this sorter will have a residual value of $10,000 at the end of its life. Annual cost savings to be generated by the sorter will average $14,000 over the ten-year period. Management's minimum desired rate of return is 12 percent. Present value multipliers: 8 Percent 12 Percent 14 Percent Present value of $1 at end of ten years .463 .322 .270 Present value of $1 received in each of the next ten years 6.710 5.650 5.216 a. Using before-tax information and the net present value method to evaluate this capital investment, determine whether the company should purchase the check sorting machine. Support your answer. b. If management had decided on a minimum desired before-tax rate of return of 14 percent, should the check sorting machine be purchased? Show all computations to support your answer. 2. (30 points) Lispell Co. manufactures in-line skates that sell for $128 a pair. The company is currently operating at capacity, 2,000 pairs. A special order from a foreign distributor for 400 pairs of skates at $120 a pair has just been received. In order to accept this order, Lispell Co. would have to give up 400 pairs of its regular sales. However, there would be no sales commission incurred on the order. Shown below are the current costs of operation: Direct materials $48 Direct labor 12 Variable overhead 4 Fixed overhead 5 ($10,000 2,000 pairs) Variable selling and administrative 8 (sales commissions) Fixed selling and administrative 4 ($8,000 2,000 pairs) a. What costs are relevant to this decision? b. Provide an incremental analysis to be used in determining whether or not the order should be accepted. c. Are there any qualitative considerations that need to be addressed? Explain. 3. (30 points)Projected cost information for a new product to be produced by Kolier Manufacturing is as follows: Expected variable unit costs: Direct materials $10.90 Direct labor 7.18 Overhead 1.92 Selling costs 4.00 Annual fixed costs: Taxes on property used $ 8,870 Depreciation on building and equipment 18,920 Advertising 38,840 Other 2,070 The product is to be sold for $49. a. Compute the number of units that must be sold to earn a profit of $80,000. b. Compute the number of units that must be sold if advertising costs rise by $12,000 and a targeted profit of $120,000 is to be obtained. c. Use the original information and sales of 10,000 units to compute the new selling price that the company must use to obtain a profit of $200,000. d. The most in annual sales that could be projected is 20,000 units. Determine the added amount that e. could be spent on fixed advertising costs if the highest possible selling price that management believes can be charged is $50 and if there is a targeted profit of $225,000. 5. ( 20 points)James International is in the construction business. In 2010, it is expected that 30 percent of a month's sales will be received in cash, with the balance being received the following month. Of the purchases, 50 percent are paid the following month, 40 percent are paid in two months, and the remaining 10 percent are paid during the month of purchase. The sales force receives $1,500 a month base pay plus a 4 percent commission. Labor expenses are expected to be $4,000 a month. Other operating expenses are expected to run about $4,500 a month, including $500 for depreciation. The ending cash balance for 2009 was $18,000. Sales Purchases 2009?Actual November $100,000 $60,000 December 150,000 70,000 2010?Budgeted January 50,000 80,000 February 80,000 60,000 March 60,000 70,000 a. Prepare a cash budget and determine the projected ending cash balances for the first three months of 2010. b. Determine the months that the company would either borrow or invest cash.,thank you michael
