Acc 305

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ACC 305 Entire Course

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ACC 305 Entire Course Intermediate Accounting I ACC 305 Week 1 Assignment Week One Exercises ACC 305 Week 1 DQ 1 FASB and Ethics ACC 305 Week 1 DQ 2 Cash versus Accrual & Financial Disclosures ACC 305 Week 2 Assignment Integrating Case ACC 305 Week 2 Assignment Week Two Exercises ACC 305 Week 2 DQ 1 Earnings Management ACC 305 Week 2 DQ 2 Revenue Recognition


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Assignment Receivables & Bank Reconciliation DQ 1 Present Value of Annuities DQ 2 Internal Control Assignment Week Four Exercises DQ 1 LIFO vs. FIFO DQ 2 Overstatement of Ending Inventory Assignment Operational Assets & Depletion DQ 1 Research and Development DQ 2 Depreciation Methods Final Paper

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ACC 305 Week 1 Assignments E 3-18, E 3-20, J Case 3-5 (Ash Course) ACC 305 Week 1 Assignments E 3-18, E 3-20, J Case 3-5 (Ash Course)

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ACC 305 Week 1 DQ 1 FASB and Ethics (Ash Course) ACC 305 Week 1 DQ 1 FASB and Ethics (Ash Course) The purpose of this case is to introduce you to the information available on the website of the Financial Accounting Standards Board (FASB). Required: Access the FASB home page on the Internet. The web address is www.fasb.org. Answer the following questions. 1. Describe the mission of the FASB. 2. Who are the current Board members? Briefly describe their backgrounds. 3. How are topics added to the FASB’s technical agenda?

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ACC 305 Week 1 DQ 2 Cash versus Accrual and Financial Disclosures (Ash Course) ACC 305 Week 1 DQ 2 Cash versus Accrual and Financial Disclosures (Ash Course) Judgment Case 2-1 (page 109) You have recently been hired by Davis & Company, a small public accounting firm. One of the firm’s partners, Alice Davis, has asked you to deal with a disgruntled client, Mr. Sean Pitt, owner of the city’s largest hardware store. Mr. Pitt is applying to a local bank for a substantial loan to remodel his


store. The bank requires accrual based financial statements but Mr. Pitt has always kept the company’s records on a cash basis. He does not see the purpose of accrual based statements. His most recent outburst went something like this: “After all, I collect cash from customers, pay my bills in cash, and I am going to pay the bank loan with cash. And, I already show my building and equipment as assets and depreciate them. I just don’t understand the problem.” Required: 1. Explain the difference between a cash basis and an accrual basis measure of performance. 2. Why, in most cases, does accrual basis net income provide a better measure of performance than net operating cash flow? 3. Explain the purpose of adjusting entries as they relate to the difference between cash and accrual accounting.

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ACC 305 Week 2 DQ 1 Earnings Management Case 4-3 (Ash Course) ACC 305 Week 2 DQ 1 Earnings Management Case 4-3 (Ash Course) Companies often are under pressure to meet or beat Wall Street earnings projections in order to increase stock prices and also to increase the value of stock options. Some resort to earnings management practices to artificially create desired results. Required: Is earnings management always intended to produce higher income? Explain.

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ACC 305 Week 2 DQ 2 Revenue Recognition Case 5-2 (Ash Course) ACC 305 Week 2 DQ 2 Revenue Recognition Case 5-2 (Ash Course) Revenue earned by a business enterprise is recognized for accounting purposes at different times, according to the circumstances. In some situations revenue is recognized approximately as it is earned in the economic sense. In other situations revenue is recognized at point of delivery. Required: 1. Explain and justify why revenue often is recognized as earned at point of delivery. 2. Explain in what situations it would be useful to recognize revenue as the productive activity takes place. 3. At what times, other than those included in (1) and (2) above, may it be appropriate to recognize revenue?

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ACC 305 Week 2 Problem E4-16 Bluebonnet Bakers (Ash Course) ACC 305 Week 2 Problem E4-16 Bluebonnet Bakers (Ash Course)

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ACC 305 Week 2 Problem E4-19 Wainwright Corporation (Ash Course) ACC 305 Week 2 Problem E4-19 Wainwright Corporation (Ash Course)

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ACC 305 Week 2 Problem E4-22 Tiger Enterprises (Ash Course) ACC 305 Week 2 Problem E4-22 Tiger Enterprises (Ash Course)

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ACC 305 Week 2 Problem E5-10 Project Contracts (Ash Course) ACC 305 Week 2 Problem E5-10 Project Contracts (Ash Course)

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ACC 305 Week 2 Problem E5-3 Installment sales (Ash Course) ACC 305 Week 2 Problem E5-3 Installment sales (Ash Course)

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ACC 305 Week 2 Problem Integrating Case 5-23 (Ash Course) ACC 305 Week 2 Problem Integrating Case 5-23 (Ash Course)

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ACC 305 Week 2 Problem Judgment Case 4-9 (Ash Course) ACC 305 Week 2 Problem Judgment Case 4-9 (Ash Course)

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ACC 305 Week 3 Communication Case 6-3 (Ash Course) ACC 305 Week 3 Communication Case 6-3 (Ash Course) Communication Case 6-3 on page 334 Harvey Alexander, an all-league professional football player, has just declared free agency. Two teams, the San Francisco 49ers and the Dallas Cowboys, have made Harvey the following offers to obtain his services:


49ers: $1 million signing bonus payable immediately and an annual salary of $1.5 million for the five-year term of the contract. Cowboys: $2.5 million signing bonus payable immediately and an annual salary of $1 million for the five-year term of the contract. With both contracts, the annual salary will be paid in one lump sum at the end of the football season. Required: You have been hired as a consultant to Harvey’s agent, Phil Marks, to evaluate the two contracts. Write a short letter to Phil with your recommendation including the method you used to reach your conclusion. Assume that Harvey has no preference between the two teams and that the decision will be based entirely on monetary considerations. Also assume that Harvey can invest his money and earn an 8% annual return.

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ACC 305 Week 3 Judgment Case 7-5 (Ash Course) ACC 305 Week 3 Judgment Case 7-5 (Ash Course) Judgment Case 7-5 on page 391 For each of the following independent situations, indicate the apparent internal control weaknesses and suggest alternative procedures to eliminate the weaknesses. 1. John Smith is the petty cash custodian. John approves all requests for payment out of the $200 fund, which is replenished at the end of each month. At the end of each month, John submits a list of all accounts and amounts to be charged and a check is written to him for the total amount. John is the only person ever to tally the fund. 2. All of the company’s cash disbursements are made by check. Each check must be supported by an approved voucher, which is in turn supported by the appropriate invoice and, for purchases, a receiving document. The vouchers are approved by Dean Leiser, the chief accountant, after reviewing the supporting documentation. Betty Hanson prepares the checks for Leiser’s signature. Leiser also maintains the company’s check register (the cash disbursements journal) and reconciles the bank account at the end of each month. 3. Fran Jones opens the company’s mail and makes a listing of all checks and cash received from customers. A copy of the list is sent to Jerry McDonald who maintains the general ledger accounts. Fran prepares and makes the daily deposit at the bank. Fran also maintains the subsidiary ledger for accounts receivable, which is used to generate monthly statements to customers.

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ACC 305 Week 3 P7-10, P7-14 (Ash Course) ACC 305 Week 3 P7-10, P7-14 (Ash Course)

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ACC 305 Week 3 P7-14 El Gato Painting Company (Ash Course) ACC 305 Week 3 P7-14 El Gato Painting Company (Ash Course)

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ACC 305 Week 4 Assignment E8-13, E8-14, E8-18, P8-5, E9-19, E9-21, P9-1 (Ash Course) ACC 305 Week 4 Assignment E8-13, E8-14, E8-18, P8-5, E9-19, E9-21, P9-1 (Ash Course)

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ACC 305 Week 4 Communication Case 8-4 (Ash Course) ACC 305 Week 4 Communication Case 8-4 (Ash Course) Communication Case 8-4 on page 442 You have just been hired as a consultant to Tangier Industries, a newly formed company. The company president, John Meeks, is seeking your advice as to the appropriate inventory method Tangier should use to value its inventory and cost of goods sold. Mr. Meeks has narrowed the choice to LIFO and FIFO. He has heard that LIFO might be better for tax purposes, but FIFO has certain advantages for financial reporting to investors and creditors. You have been told that the company will be profitable in its first year and for the foreseeable future. Required: Prepare a report for the president describing the factors that should be considered by Tangier in choosing between LIFO and FIFO.

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ACC 305 Week 4 Ethics Case 9 to 11 (Ash Course) ACC 305 Week 4 Ethics Case 9 to 11 (Ash Course) Danville Bottlers is a wholesale beverage company. Danville uses the FIFO inventory method to determine the cost of its ending inventory. Ending inventory quantities are determined by a physical count. For the fiscal year- end June 30,


2011, ending inventory was originally determined to be $3,265,000. However, on July 17, 2011, John Howard, the company’s controller, discovered an error in the ending inventory count. He determined that the correct ending inventory amount should be $2,600,000. Danville is a privately owned corporation with significant financing provided by a local bank. The bank requires annual audited financial statements as a condition of the loan. By July 17, the auditors had completed their review of the financial statements which are scheduled to be issued on July 25. They did not discover the inventory error. John’s first reaction was to communicate his finding to the auditors and to revise the financial statements before they are issued. However, he knows that his and his fellow workers’ profit-sharing plans are based on annual pretax earnings and that if he revises the statements, everyone’s profit-sharing bonus will be significantly reduced. Required: 1. Why will bonuses be negatively affected? What is the effect on pretax earnings? 2. If the error is not corrected in the current year and is discovered by the auditors during the following year’s audit, how will it be reported in the company’s financial statements? 3. Discuss the ethical dilemma John Howard faces.

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ACC 305 Week 5 Ethics Case 10 to 12 (Ash Course) ACC 305 Week 5 Ethics Case 10 to 12 (Ash Course) Ethics Case 10-12 on page 553 - Mayer Biotechnical, Inc - Research and development ? LO8 Mayer Biotechnical, Inc., develops, manufactures, and sells pharmaceuticals. Significant research and development (R&D) expenditures are made for the development of new drugs and the improvement of existing drugs. During 2011, $220 million was spent on R&D. Of this amount, $30 million was spent on the purchase of equipment to be used in a research project involving the development of a new antibiotic. The controller, Alice Cooper, is considering capitalizing the equipment and depreciating it over the five-year useful life of the equipment at $6 million per year, even though the equipment likely will be used on only one project. The company president has asked Alice to make every effort to increase 2011 earnings because in 2012 the company will be seeking significant new financing from both debt and equity sources. “I guess we might use the equipment in other projects later,” Alice wondered to herself. Required: 1. Assuming that the equipment was purchased at the beginning of 2011, by how much would Alice’s treatment of the equipment increase before tax earnings as opposed to expensing the equipment cost? 2. Discuss the ethical dilemma Alice faces in determining the treatment of the $30 million equipment purchase.

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ACC 305 Week 5 Final Paper (FASB) (Ash Course) ACC 305 Week 5 Final Paper (FASB) (Ash Course) Submit a seven to ten page paper on one of the major topics listed below. The paper should incorporate at least three other appropriately documented and


related articles drawn from the University’s Library. (Note: you may advance your own topic, but it must be approved by your instructor.) Explain the role of the FASB in monitoring and controlling business reporting and accounting practices in the modern organization. In what ways do FASB rules limit business practices and reporting financial information? How do such rules and regulations protect the business and public stakeholder communities? To whom is the FASB accountable and who appoints members to FASB? Explain how external stakeholders use financial information such as company income statements and balance sheets to make decisions about the company in such cases as advancing credit or offering leasing vehicles. Discuss how common financial ratios and investment analysis is used to conduct due diligence by external parties and how factors such as accounts receivables, accounts payables, earnings returns, returns on inventory, etc. are applied to evaluate a firm’s financial and business health. Discuss depreciation as a tool for managing and evaluating the life and utility of assets of the firm. What are the methods and under what conditions would each method be used and applied? Does a firm’s tax planning influence the decision? How do external stakeholders assess the validity of depreciation schemes?

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ACC 305 Week 5 P11-5, P11-7 (Ash Course) ACC 305 Week 5 P11-5, P11-7 (Ash Course)

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ACC 305 Week 5 Problem E11-5, E11-10 (Ash Course) ACC 305 Week 5 Problem E11-5, E11-10 (Ash Course)

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ACC 455 Week 2 DQ 3 ACC 455 Week 2 DQ 3 What are the requirements for the following deductions: U.S. production activity deduction, dividend received deduction, and net operating loss? Discuss any recent legislative changes.

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