Question 1
I need week three exercise assignment 'ACC205' worked from Ashford by the 12th of July. Week Three Exercise Assignment Inventory 1. Specific identification method. Boston Galleries uses the specific identification method for inventory valuation. Inventory information for several oil paintings follows. Painting Cost 1/2 Beginning inventory Woods $11,000 4/19 Purchase Sunset 21,800 6/7 Purchase Earth 31,200 12/16 Purchase Moon 4,000 Woods and Moon were sold during the year for a total of $35,000. Determine the firm?s a. cost of goods sold. b. gross profit. c. ending inventory. 2. Inventory valuation methods: basic computations. The January beginning inven?tory of the White Company consisted of 300 units costing $40 each. During the first quarter, the company purchased two batches of goods: 700 Units at $44 on February 21 and 800 units at $50 on March 28. Sales during the first quarter were 1,400 units at $75 per unit. The White Company uses a periodic inventory system. Using the White Company data, fill in the following chart to compare the results obtained under the FIFO, LIFO, and weighted-average inventory methods. FIFO LIFO Weighted Average Goods available for sale $ $ $ Ending inventory, March 31 Cost of goods sold 3. Perpetual inventory system: journal entries. At the beginning of 20X3, Beehler Company implemented a computerized perpetual inventory system. The first transactions that occurred during 20X3 follow: ? 1/2/20X3 Purchases on account: 500 units @ $4 = $2,000 ? 1/15/20X3 Sales on account: 300 units @ $8.50 = $2,550 ? 1/20/20X3 Purchases on Account: 200 units @ $5 = $1,000 ? 1/25/20X3 Sales on Account: 300 units @ $8.50 = $2,550 The company president examined the computer-generated journal entries for these transactions and was confused by the absence of a Purchases account. a. Duplicate the journal entries that would have appeared on the computer printout under FIFO & LIFO. b. Calculate the balance in the firm?s Inventory account under each method. c. Briefly explain the absence of the Purchases account to the company president. 4. Inventory valuation methods: computations and concepts. Wave Riders Surfboard Company began business on January 1 of the current year. Purchases of surfboards were as follows: 1/3: 100 boards @ $125 3/17: 50 boards @ $130 5/9: 246 boards @ $140 7/3: 400 boards @ $150 10/23: 74 boards @ $160 Wave Riders sold 710 boards at an average price of $250 per board. The company uses a periodic inventory system. Instructions a. Calculate cost of goods sold, ending inventory, and gross profit under each of the following inventory valuation methods: ? First-in, first-out ? Last-in, first-out ? Weighted average b. Which of the three methods would be chosen if management?s goal is to (1) produce an up-to-date inventory valuation on the balance sheet? (2) show the lowest net income for tax purposes? 5. Depreciation methods. Betsy Ross Enterprises purchased a delivery van for $30,000 in January 20X7. The van was estimated to have a service life of 5 years and a resid?ual value of $6,000. The company is planning to drive the van 20,000 miles annually. Compute depreciation expense for 20X8 by using each of the following methods: a. Units-of-output, assuming 17,000 miles were driven during 20X8 b. Straight-line c. Double-declining-balance 6. Depreciation computations. Alpha Alpha Alpha, a college fraternity, purchased a new heavy-duty washing machine on January 1, 20X3. The machine, which cost $1,000, had an estimated residual value of $100 and an estimated service life of 4 years (1,800 washing cycles). Calculate the following: a. The machine?s book value on December 31, 20X5, assuming use of the straight-line depreciation method. b. Depreciation expense for 20X4, assuming use of the units-of-output depreciation method. Actual washing cycles in 20X4 totaled 500. c. Accumulated depreciation on December 31, 20X5, assuming use of the double-declining-balance depreciation method. 7. Depreciation computations: change in estimate. Aussie Imports purchased a specialized piece of machinery for $50,000 on January 1, 20X3. At the time of acquisition, the machine was estimated to have a service life of 5 years (25,000 operating hours) and a residual value of $5,000. During the 5 years of operations (20X3 - 20X7), the machine was used for 5,100, 4,800, 3,200, 6,000, and 5,900 hours, respectively. Instructions a. Compute depreciation for 20X3 - 20X7 by using the following methods: straight line, units of output, and double-declining-balance. b. On January 1, 20X5, management shortened the remaining service life of the machine to 20 months. Assuming use of the straight-line method, compute the company?s depreciation expense for 20X5. c. Briefly describe what you would have done differently in part (a) if Aussie Imports had paid $47,800 for the machinery rather than $50,000. In addition, assume that the company incurred $800 of freight charges $1,400 for machine setup and testing, and $300 for insurance during the first year of use. Due July: 12, 2013
Question 2
1. Woody Corp. had taxable income of $8,000 in the current year. The amount of MACRS depreciation was $3,000 while the amount of depreciation reported in the income statement was $1,000. Assuming no other differences between tax and accounting income, Woody's pretax accounting income was A. $5,000. B. $11,000. C. $6,000. D. $10,000. 2.JL Health Services reported a net loss-AOCI in last year's balance sheet. This year, the company revised its estimate of future salary levels causing its PBO estimate to decline by $24. Also, the $48 million actual return on plan assets was less than the $54 million expected return. As a result, A. the net pension liability will decrease by $24 million. B. the net pension liability will increase by $18 million. C. the statement of comprehensive income will report a $6 million gain and a $24 million loss. D. accumulated other comprehensive income will increase by $18 million. 3. In 2009, Winn, Inc., issued $1 par value common stock for $35 per share. No other common stock transactions occurred until July 31, 2011, when Winn acquired some of the issued shares for $30 per share and retired them. Which of the following statements correctly states an effect of this acquisition and retirement? A. Retained earnings is increased. B. 2011 net income is increased. C. 2011 net income is decreased. D. Additional paid-in capital is decreased. 4. Roberto Corporation was organized on January 1, 2011. The firm was authorized to issue 100,000 shares of $5 par common stock. During 2011, Roberto had the following transactions relating to shareholders' equity: Issued 10,000 shares of common stock at $7 per share. Issued 20,000 shares of common stock at $8 per share. Reported a net income of $100,000. Paid dividends of $50,000. Purchased 3,000 shares of treasury stock at $10 (part of the 20,000 shares issued at $8). What is total shareholders' equity at the end of 2011? A. $200,000 B. $270,000 C. $250,000 D. $300,000 6.At the end of the current year, Newsmax Inc. has $400,000 of subscriptions received in advance included in its balance sheet. A footnote reveals that the entire $400,000 will be earned in the next year. In the absence of other temporary differences, in the balance sheet one would also expect to find a A. Noncurrent deferred tax asset B. Current deferred tax liability C. Current deferred tax asset D. Noncurrent deferred tax liability 7. Giada Foods reported $940 million in income before income taxes for 2011, its first year of operations. Tax depreciation exceeded depreciation for financial reporting purposes by $100 million. The company also had non-tax-deductible expenses of $80 million relating to permanent differences. The income tax rate for 2011 was 35%, but the enacted rate for years after 2011 is 40%. The balance in the deferred tax liability in the December 31, 2011, balance sheet is A. $40 million. B. $56 million. C. $16 million. D. $35 million. 9. Montgomery & Co., a well established law firm, provided 500 hours of its time to Fink Corporation in exchange for 1,000 shares of Fink's $5 par common stock. Mitchell's usual billing rate is $700 per hour, and Fink's stock has a book value of $250 per share. By what amount will Fink's Paid-in capital - excess of par increase for this transaction? A. $345,000 B. $300,000 C. $295,000 D. $350,000 10. At the beginning of 2009, Emily Corporation issued 10,000 shares of $100 par, 5%, cumulative, preferred stock for $110 per share. No dividends have been paid to preferred shareholders. What amount of dividends will a shareholder owning 100 shares receive in 2011 if Emily pays $1,000,000 in dividends? A. $500 B. $10,000 C. $1,650 D. $1,500 11. Lucid Company declared a property dividend of 20,000 shares of $1 par Polk Company common stock. The Polk stock was purchased for $5 per share. Market value was $10 per share on the declaration date and $11 per share on the distribution date. What is the amount of the dividend? A. $100,000. B. $220,000. C. $200,000. D. $300,000. 12.Beagle Corporation has 20,000 shares of $10 par common stock outstanding and 10,000 shares of $100 par, 6% cumulative, nonparticipating preferred stock outstanding. Dividends haven?t been paid for the past two years. This year, a $300,000 dividend will be paid. What are the dividends per share payable to preferred and common, respectively? A. $18; $6 B. $12; $0 C. $6; $6 D. $6; $12 13. Louie Company has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PBO report from the actuary. The following information was included in the report: ending PBO, $110,000; benefits paid to retirees, $10,000; interest cost, $8,000. The discount rate applied by the actuary was 8%. What was the service cost for the year? A. $2,000 B. $18,000 C. $12,000 D. $92,000 14. The changes in account balances for Allen Inc. for 2011 are as follows: Assets $225,000 debit Common stock 125,000 credit Liabilities 80,000 credit Paid-in capital--excess of par 15,000 credit Assuming the only changes in retained earnings in 2011 were for net income and a $25,000 dividend, what was net income for 2011? A. $15,000 B. $5,000 C. $20,000 D. $30,000 15. Alamo, Inc., had $300 million in taxable income for the current year. Alamo also had a decrease in deferred tax assets of $30 million and an increase in deferred tax liabilities of $60 million. The company is subject to a tax rate of 40%. The total income tax expense for the year was A. $150 million. B. $180 million. C. $ 390 million. D. $210 million. 16. For the current year ($ in millions), Centipede Corp. had $80 in pretax accounting income. This included bad debt expense of $6 based on the allowance method, and $20 in depreciation expense. Two million in receivables were written off as uncollectible, and MACRS depreciation amounted to $35. In the absence of other temporary or permanent differences, what was Centipede's income tax payable currently, assuming a tax rate of 40%? A. 29.2 million B. 27.6 million C. 25.2 million D. 19.6 million 17. The EPBO for a particular employee on January 1, 2011, was $150,000. The APBO at the beginning of the year was $30,000. The appropriate discount rate for this postretirement plan is 5%. The employee is expected to serve the company for a total of twenty-five years, with five of those years already served as of January 1, 2011. What is the APBO at December 31, 2011? A. $42,800. B. $30,000. C. $31,500. D. $37,800. 18. In 2010, HD had reported a deferred tax asset of $90 million with no valuation allowance. At December 31, 2011, the account balances of HD Services showed a deferred tax asset of $120 million before assessing the need for a valuation allowance and income taxes payable of $80 million. HD determined that it was more likely than not that 30% of the deferred tax asset ultimately would not be realized. HD made no estimated tax payments during 2011. What amount should HD report as income tax expense in its 2011 income statement? A. $86 million B. $50 million C. $80 million D. $116 million 20. A reconciliation of pretax financial statement income to taxable income is shown below for Fieval Industries for the year ended December 31, 2011, its first year of operations. The income tax rate is 40%. Pretax accounting income (income statement) $300,000 Interest revenue on municipal securities (15,000) Warranty expense in excess of deductible amount 25,000 Depreciation in excess of financial statement amount (70,000) Taxable income (tax return) $240,000 What amount(s) should Fieval report related to deferred income taxes in its 2011 balance sheet? A. Current asset of $4,000 and noncurrent liability of $28,000 B. Noncurrent liability of $18,000 C. Current asset of $10,000 and noncurrent liability of $28,000 D. Noncurrent liability of $24,000,Thank you very much for your assistance.
Question 3
Question 1 On January 1, 2009, Clintwood Corporation issued a $50,000, ten-year, 6% bond payable (interest payable semi annually on June 30 and December 31). For the three assumptions below, complete the following schedule assuming the accounting year ends December 31, and straight-line amortization is used: D. Provide the June 30 and December 31, 2009 journal entries to record interest expense and the payment of interest. Question 2 Matthew is considering several possible investment alternatives: Option A: Matthew could receive $8,000 today. Option B: Matthew could receive $2,500 at the end of each of the next four years. Option C: Matthew could receive $12,000 five years from now. Required: 1. Calculate the net present value for each option assuming that Matthew can earn 7 percent on any investment funds. 2. Which option results in the greatest financial benefit to Matthew? 3. If Matthew earns 10 percent, will that change your answer to # 2 above? Please explain. Question 3 RecordingTransactions Affecting Stockholders' Equity GeraldCompany was granted a charter that authorized the following capital stock: Commonstock: 100,000 shares, par value per share is $40. Preferredstock: 8 percent, par $5, 20,000 shares. Duringthe first year, 2009, the following selected transactions occurred in the order given: a. Sold30,000 shares of the common stock at $40 cash per share and 5,000 shares of the preferred stockat $26 cash per share. b. Issued2,000 shares of preferred stock when the stock was selling at $32. c. Repurchased 3,000 shares of the common stock sold earlier; paid cash, $38 per share. Required: Provide the journal entries necessary for each transaction Prepare the stockholder?s equity section of the balance sheet at December 31, 2009. Question 4 McPherson Construction Supply Company is developing its annual financial statements at December31, 201l. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Additional Data: a. Bought equipment for cash, $21,000. b. Paid $6,000 on the long-term note payable. c. Issued new shares of stock for $16,000 cash. d. Dividends of $ 10,000 were declared and paid in cash e. Other expenses included depreciation, $5,000; wages, $20,000; taxes, $6,000; other $6,800. f. Accounts payable includes only inventory purchases made on credit. Because there are no liability account relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1- Prepare the statement of cash flows using the indirect methods for the year ended December 31, 2011. 2- Evaluate statement of cash flows
Question 4
Coca-Cola (KO) is the world's largest producer of soft-drink concentrates, syrups, and juices. Its soft-drink brands include Coke, Diet Coke, Cherry Coke, Sprite, Tab, Nestea, and Barq's. The firm sells about 59% of its concentrates and syrups to company-owned and independent bottlers in the United States and abroad, who distribute them to end users. Coca-Cola also makes fruit juices sold under names like Minute Maid. Follow the Two-Stage DDM method presented in class in order to answer the following question. You MUST show all of your calculation in the question below is order to receive credit for any numerical answers. All six questions are worth 16 points each (6 x 16 = 96 points + 3 free point for turning in A2). Two-Stage Dividend Discount Model (DDM) Q1. The first step in using the Two-Stage DDM is to estimate a first-stage growth rate in dividends (g1) and the period that you expect the g1 level of growth to persist. One way to estimate g1 is to base your estimate on the most recent historic growth in dividends over the past five (5) years. You can use most recent 5-year growth rate in dividends as your estimate for g1 OR you may revise it based on any other information you feel is relevant (new products, increased competition, etc.). LIST your estimate for g1, the period (number of years) you expect it to persist and EXPLAIN your reasoning. An important learning point here is that any estimate of future growth will generally NEVER equal the actual growth that results after time passes. All financial valuation estimates are subject to forecast error, which is also referred to as estimation risk. Q2. The second step is to estimate a required return on equity, Re, for use in the Two-Stage DDM. While not absolutely necessary, most analysts assume that Re remains constant in stage 1 and stage 2. Two often used methods for estimating Re is use 1) the CAPM and 2) by adding a 3-5% equity risk premium to the YTM on bond that has at least 20 years to maturity. If KO does not have a 20 year bond outstanding, then add 3-5% to the YTM on a 20 year corporate bond with the same bond rating (i.e. A, AA, or AAA). You must find the YTM on a KO 20-year bond or the YTM on a comparable corporate 20-year bond. Realize that a risky 20-year corporate bond must have a YTM that is greater than a risk-free 20-year Treasury bond. Again, keep in mind that Re estimates are nothing more than estimates and subject to forecast error. LIST your estimates for Re then select the estimate that YOU believe is the most appropriate for use in the DDM and EXPLAIN your reasoning. Websites for bond information: FINRA Bond Market Data www.finra.org/marketdata Yahoo Finance: http://finance.yahoo.com/bonds Q3. The third step is to estimate a second stage (also called the stable stage) growth rate in dividends, g2, for use in the Two-Stage DDM. Your estimate for g2 should not be greater than the expected future growth in the overall economy (expected growth in GDP). Why? LIST your estimate for g2 and EXPLAIN your reasoning. Q4. LIST KO?s current dividend (dividend just paid) and use this value as D(0) in the Two-Stage DDM. Q5. SHOW your calculations and LIST your value (price per share) estimate for KO using the Two-Stage DDM. Q6. Perform Sensitivity Analysis (SA) on your estimated price per share in by varying both your expected growth rates and discount rates by +/- 2.0 percent in .5 percent increments while holding one of the two parameters (growth or discount rate) constant. DISCUSS your results. That is, describe in words how your value estimates change as you change your growth and discount rate estimates.
Question 5
The purpose of our project is to design and implement a paperless office for a Certified Public Accounting (CPA) firm. This project is for Keller MIS535 Course Project Table of Contents (10-15 pages, 200 points, due week 6) Cover Page Table of Contents 1. Abstract 2. Brief Company background 3. Discussion of business problem(s) 4. High level solution 5. Benefits of solving the problem 6. Business/technical approach 7. Business process changes 8. Technology or business practices used to augment the solution 9. Conclusions and overall recommendations 10. High-level implementation plan 11. Summary of project References Appendices Grading Rubrics Back to Top ?Week 2: Submission of the Course Project Proposal (graded) ?Week 6: Course Project Grading Rubrics (The Proposal is worth 65 points and the Course Project is worth 200 points) Category Proposal Points Course Project Points Description Documentation and Formatting 10 25 A quality paper will include a title page, abstract, proper citations using APA style, and a bibliography. Presentation 7 15 A thorough presentation on week 2 and week 7 Organization and Cohesiveness 13 35 A quality paper will include an introduction based upon a well formed thesis statement. The logical order of the content will be derived from the thesis statement. The content will be properly subdivided into sections derived from the outline. In a quality paper, the conclusion will summarize the previously presented content, and will complement the thesis statement from the introduction. Editing 10 20 A quality paper will be free of any spelling, punctuation, or grammatical errors. Sentences and paragraphs will be clear, concise, and factually correct. Content 25 105 A quality paper will have significant scope and depth of research to support any statements. Strategic implications will be explained and supported. Relevant illustrations or examples are encouraged. A quality paper will employ use of sound reasoning and logic to reinforce conclusions. Total 65 200 A quality paper will meet or exceed all of the above requirements. All sections in the table of contents must be in the project to earn full credit. Course Project Technical Areas Back to Top The Course Project?s focus is on the use of technology to solve specific business problems. While the list of technologies that you can choose for your Course Project is vast, the following are some current technical topics that you could consider in solving your business problem. 1.Cloud computing, either cloud storage, and/or cloud applications 2.User involvement in IT projects 3.Mobile devices including phones and tablets 4.B2C and/or B2B and other types of e-commerce 5.Databases required for your project 6.Infrastructure and networking (at a non-technical level) 7.Business and process reengineering to streamline a business, followed by several new business technologies to support the new business model 8.The implementation of a secure business (website, software development, administration) 9.Development of an e-commerce website for a brick and mortar business 10.IS Management (examples: Outsourcing, ASP's, ERP, CRM, SCM, Website Development, Linux) 11.Corporate Applications (examples: Information Security, EIS, Expert Systems, Artificial Intelligence, DSS, Groupware, Intranets/Extranets) 12.Telecommunications and Networks (Examples: Gigabit and higher networks, SAN's, Video Conferencing, VoIP, Wireless networking) 13.IS Acquisitions (Examples: Cost Justification Methodology, Total Cost of Ownership, Systems Development Life Cycle, Prototyping, Weighted Criteria Analysis) 14.Miscellaneous (Examples: Computer Ethics, Virtual Reality, Multimedia, Telecommuting, Data Security, International Issues, Computer Based Learning) 15.End User Software/Applications (Examples: Database, Operating System, Office Suite, Project Management)
