ACCT 212 DEVRY ENTIRE COURSE LATEST

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ACCT 212 DEVRY ENTIRE COURSE LATEST

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ACCT 212 DeVry Week 1 Discussion 1

I suspect that most of us can view and appreciate most sports such as baseball, football, and basketball. What if you were to view a Cricket World Cup game? If you didn’t know the rules you probably would not have much fun. The same happens in business if you don’t understand its language – Accounting. What rules impact a business’ Accounting Information System? What types of compliance is required?

ACCT 212 DeVry Week 1 Discussion 2

In this graded discussion, we will be examining the operation of the Accounting Information System (AIS) with the use of problems and exercises from your textbook. The goal is to cover all of the requirements to ensure an opportunity for your successful completion of Course Project. Let’s start with Exercise 1-17A. Read about CoffeeShop Doughnuts and select one of the four requirements to answer.

ACCT 212 DeVry Week 1 Check Point

Question 1

(TCO 1) The type of accounting that makes projections to determine if a company should build a new store is

financial accounting.

business accounting.

managerial accounting.

projection accounting.

Question 2.

(TCO 1) The _____ is elected by the stockholders and is responsible for setting policy and appointing officers.

board of directors

chief executive officer (CEO)

chief financial officer (CFO)

advisory council

Question 3.

(TCO 1) The acronym GAAP stands for

generally acceptable authorized pronouncements.

government authorized accountant principles.

generally accepted accounting principles.

government audited accounting pronouncements.

Question 4.

(TCO 1) The accounting assumption that states that the business, rather than its owners, is the reporting unit is the

entity assumption.

going concern assumption.

stable-monetary-unit assumption.

historical cost assumption.

Question 5.

(TCO 1) Another way to state the accounting equation is

Assets = Liabilities + Paid-in Capital – Common Stock

Assets = Liabilities + Retained Earnings

Assets = Liabilities + Paid-in Capital + Retained Earnings

Assets = Liabilities – Paid-in Capital – Dividends

Question 6.

(TCO 1) The assets of a company

must equal the liabilities of the company.

include property, plant, and equipment and common stock.

represent economic resources that are expected to produce a future benefit.

include merchandise inventory and accounts payable.

Question 7.

(TCO 1) Net income is computed as

revenues – expenses – dividends.

revenues + expenses.

revenues – expenses.

revenues – expenses + dividends.

Question 8.

(TCO 1) A company’s gross profit for the period is reported on the

balance sheet.

income Statement.

statement of cash flows.

statement of retained earnings.

Question 9.

(TCO 1) An investor wishing to assess a company’s overall financial position at the end of the period would probably examine the

statement of cash flows and the income statement.

income Statement only

balance sheet.

statement of retained earnings.

Question 10.

(TCO 1) What is the proper order for the categories of the statement of cash flows?

Financing activities, investing activities, and operating activities

Operating activities, investing activities, and financing activities

Operating activities, financing activities, and investing activities

investing activities, financing activities, and operating activities

ACCT 212 DeVry Week 2 Discussion 1

Last week, we discussed “The Language of Business” and why the accounting information system is important in business. This week, we are going to look at the mechanics of how it all works. It might be a bit easier if we started with an example which would be the Genie Car Wash, Inc. in Chapter 2 of your textbook. Pick a transaction from Genie and let us know how it impacts the accounting equation. Make sure to identify the two accounts impacted. Why is it important to record your selected transaction?

ACCT 212 DeVry Week 2 Discussion 2

In this graded discussion, we will be examining the operation of the Accounting Information System (AIS) with the use of problems and exercises from your textbook. The goal is to cover all of the requirements to ensure an opportunity for your successful completion of the Course Project. As you complete the requirements of Week 2, you should review the Course Project tab in Course Home, as you could start work on the Project. The template for the Course Project is located in Doc Sharing.

Let’s start with Exercise 2-16A. Select one of the nine financial transactions of the medical practice of Bob Morin, P.C. Develop a journal entry with date and explanation. Post it in this discussion and then conduct peer reviews of your classmates. The next requirement is to select one of the five questions (a-e) and post an answer. Do show your computations.

ACCT 212 DeVry Week 2 Check Point

(TCO 2) A company received cash in exchange for issuing stock. This transaction increased assets and

increased expenses.

increased revenues.

increased liabilities.

increased equity.

Question 2. Question :

(TCO 2) A company performed services for a customer for cash. This transaction increased assets and

decreased equity.

increased liabilities.

increased expenses.

increased revenues.

Question 3. Question :

(TCO 2) A company performs services for a client on account. When the company receives the cash from the customer 1 month later

a revenue account is increased.

a liability account is decreased.

an asset account is increased.

an expense account is decreased.

Question 4. Question :

(TCO 2) The left side of a T-account is always the

increase side.

decrease side.

debit side.

credit side.

Question 5. Question :

(TCO 2) An account is increased by a debit and has a debit balance. This account is

an expense account.

a liability account.

an asset account.

both an expense account and an asset account.

Question 6. Question :

(TCO 2) When journalizing and posting transactions in the books

the rules of debit and credit are followed to increase or decrease each account.

the credit side of the transaction is entered on the left margin.

it is not necessary to use both the journal and the ledger.

debits in the journal can be posted as credits in the ledger.

Question 7. Question :

(TCO 3) Under accrual accounting, revenue is recorded

when the cash is collected, regardless of when the services are performed.

when the services are performed, regardless of when the cash is received.

either when the cash is received or the sale is made.

only if the cash is received at the same time the services are performed.

Question 8. Question :

(TCO 3) The event that triggers revenue recognition for the sale of goods is the

date a contract is signed.

date cash is received.

transfer of control of the goods to the purchaser.

completion of the services.

Question 9. Question :

(TCO 3) The balance sheet reports

assets, liabilities and stockholders’ equity.

the changes in retained earnings.

assets, liabilities, revenues and expenses.

revenues and expenses.

Question 10. Question :

(TCO 3) To close the books of a company, you should

debit each revenue account, credit each expense account, and debit the dividends account.

credit each revenue account, debit each expense account, and debit the dividends account.

debit each revenue account, credit each expense account, and credit the dividends account.

debit each revenue account, debit each expenses

ACCT 212 DeVry Week 3 Discussion 1

Unfortunately, a quick scan of the business news will normally result in reports of unethical business behavior. To prove this point, let’s start with a review of the news for stories about fraud and other unethical behavior in business. You can use the University Library to start your search. Once you have located an article share it with the class by developing a summary of the important information. Make sure that you give credit to your source.

ACCT 212 DeVry Week 3 Discussion 2

Discussion 2 Go to Course Home and review the Course Project tab. Then download the Course Project template from Doc Sharing. In this graded discussion, we will be examining the operation of the Accounting Information System (AIS) with the use of problems and exercises from your textbook. The goal is to cover all of the requirements to ensure an opportunity for your successful completion of the Course Project.

Let’s start with a review of the first three requirements of the Course Project. Explain why it is important to analyze each financial transaction of a business and to report it in the Accounting Information System. Suggestion: Revisit and review the Lecture tab in Weeks 1 and 2.

ACCT 212  DeVry Week 3 Course Project 1 Part A Rawls Repair Corporation

ACCT 212 DeVry Week 3 Check Point

(TCO 5) The two most common types of fraud impacting financial statements are

fraudulent financial reporting and e-commerce fraud.

misappropriation of assets and embezzlement.

fraudulent financial reporting and misappropriation of assets.

cooking the books and fraudulent financial reporting.

Question 2. Question :

(TCO 5) Which of the following is a true statement regarding fraud?

Fraud is committed when an error is made.

Fraud does not occur in not-for-profit organizations.

The expansion of e-commerce has caused fraud to decrease.

Most businesses surveyed had experienced fraud.

Question 3. Question :

(TCO 5) The primary way that fraud is prevented and detected is through a proper system of

checks and balances.

management directives.

internal control.

internal and external audits.

Question 4. Question :

(TCO 5) A fidelity bond is a(n)

employment contract for a specified period of time.

insurance policy that reimburses a company for employee theft.

contract prohibiting former employees from working for a competitor.

promise by a company to safeguard customers’ personal information.

Question 5. Question :

(TCO 5) Hints of where fraud, mistakes, or financial harm can occur in a company is called

the control environment.

risk assessment.

control procedures.

the tone at the top.

Question 6. Question :

(TCO 5) E-commerce pitfalls include all of the following except

stolen credit card numbers.

phishing expedition.

encryption reporting.

Trojan horses.

Question 7. Question :

(TCO 5) When preparing a bank reconciliation, which of the following items should be added to the book balance?

EFT receipts

Deposits in transit

Collection items

Both EFT receipts and collection items

Question 8. Question :

(TCO 5) Which of the following is an accurate statement regarding cash receipts over the counter?

The point-of-sale terminal electronically transmits a record of the sale to the store’s main computer.

Employees should take the deposit to the bank.

The cashier should reconcile the electronic record of the sales per the terminal to the record of cash received.

Point-of-sale terminals cannot assist in inventory control.

Question 9. Question :

(TCO 5) Which of the following is an incorrect statement regarding short-term investments?

Short-term investments are also called marketable securities.

Short-term investments are easily convertible to cash.

Short-term investments must be held for less than three months.

Short-term investments allow a company to invest cash and earn a return.

Question 10. Question :

(TCO 5) If a buyer takes advantage of a sales discount, the journal entry recorded by the seller will include a(n)

debit to cash and a credit to sales discount.

debit to cash and a debit to sales discount.

debit to cash and debit to accounts receivable.

debit to cash and debit to sales returns and allowances.

ACCT 212 DeVry Week 4 Discussion 1

A review of the balance sheet of a retailer, such as Wal-Mart, will disclose that in current assets the majority investment is in inventory. With manufacturers, such as Ford, the inventory is spread between three different categories. Let’s start our discussion with some basic inventory questions. How is inventory valued? Which inventory valuation method is most popular and why? What impact on the financial reports can the selection of an inventory valuation method have?

ACCT 212 DeVry Week 4 Discussion 2

Go to Course Home and review the Course Project tab. Continue to use the Course Project template from Doc Sharing. In this graded discussion, we will be examining the operation of the Accounting Information System (AIS) with the use of problems and exercises from your textbook. The goal is to cover all of the requirements to ensure an opportunity for your successful completion of the Course Project.

Let’s start with Exercise 3-22A and practice developing journal entries to make adjustments. Select one of the six transactions and develop the adjusting journal entry. If you are using an example found in the textbook do mention the page number.

ACCT 212 DeVry Week 4 Checkpoint

Question :

(TCO 4) The cost of the inventory that the business has sold to customers is called

inventory.

cost of goods sold.

purchases.

gross profit.

Question 2. Question :

(TCO 4) The cost of inventory that is still on hand and has not been sold to customers is called

cost of goods sold, an expense that appears on the balance sheet.

inventory, a current asset that appears on the income statement.

inventory, a current asset that appears on the balance sheet.

purchases, an expense that appears on the income statement.

Question 3. Question :

(TCO 4) The inventory system that uses computer software to keep a running record of inventory on hand is the

cost of goods sold inventory system.

periodic inventory system.

perpetual inventory system.

hybrid inventory system.

Question 4. Question :

(TCO 4) The cost of inventory is the

purchase price.

sum of all the costs incurred to bring the inventory to its intended use.

sum of all the costs incurred to bring the inventory to its intended use, plus any discounts and allowances.

sum of all the costs incurred to bring the inventory to its intended use, less any discounts and allowances.

Question 5. Question :

(TCO 4) ABC Auto Sales sells new Lexus vehicles. ABC will most likely use the _____ method to cost its ending inventory.

first-in, first-out

last-in, first-out

specific-unit-cost

weighted-average

Question 6. Question :

(TCO 4) To determine cost of goods sold under the FIFO method

the first costs into inventory are the first costs assigned to cost of goods sold.

the last costs into inventory are the first costs assigned to cost of goods sold.

the average cost of the inventory must be determined.

the company must first determine the specific units sold.

Question 7. Question :

(TCO 4) Under the _____ method, ending inventory is based on the costs of the most recent purchases.

average-cost

FIFO

LIFO

specific-identification

Question 8. Question :

(TCO 4) The _____ principle states that the financial statements of a business must report enough information for outsiders to make knowledgeable decisions about the business.

Consistency

historical cost

disclosure

conservatism

Question 9. Question :

(TCO 4) The lower-of-cost-or-market rule requires a company to report inventories at the lower of

historical cost or current sales price.

historical cost or current replacement cost.

current replacement cost or sales invoice price.

FIFO cost or LIFO cost.

Question 10. Question :

(TCO 4) The inventory turnover ratio

is determined by dividing cost of goods sold by net sales.

shows how many times the company sold its average level of inventory.

should be high for a company that sells high-priced inventory items.

will be lower for companies that have many low-priced items in their inventory

ACCT 212 DeVry Week 4 Midterm Exam

  1. Question : (TCO 1) The Accounting Equation is used to develop the organization’s financial reports. (1) Describe what owners’ equity values would be if Assets are $100,000 and Liabilities are $27,000 by showing the Accounting Equation (10 points) and (2) provide an explanation of what accounts could be found in owners’ equity. (10 points)

Question 2. Question : (TCO 1) The financial statements present a company to the public in financial terms. (1) Which financial statement identifies where cash was generated and where it was spent during the year (10 points), and (2) identify the three major parts of this statement. (10 points)

Question 3. Question : (TCO 1) The accounting profession follows a set of guidelines for measurement and disclosure of financial information called the Generally Accepted Accounting Principles (GAAP). (1) Explain what the Going-concern Assumption is (10 points) and (2) provide an example of its application. (10 points)

Question 4. Question : (TCO 2) Transaction analysis results in the development of a journal entry. Supplies are purchased on account agreeing to pay $500 within 30 days. (1) Name the accounts impacted and how to use the format account name/debit or credit/dollar amount (10 points), and (2) explain how the Accounting Equation is impacted. (10 points)

Question 5. Question : (TCO 3) Adjusting Entries are required at the end of the period to ensure that accrual accounting principles are applied. The building that houses the business is depreciated at an annual rate of $14,000. Develop the adjusting entry for year end. (1) Name the accounts impacted and how to use the format account name/debit or credit/dollar amount (10 points), and (2) explain how the Accounting Equation is impacted. (10 points)

  1. Question : (TCO 5) Internal Controls are required to safeguard assets and to ensure ethical business practices. (1) Identify and explain the reason for any two of the five components of internal control (10 points) and (2) provide examples of how your two selected components of internal control will meet the goal of safeguarding assets and promoting ethical business practices. (15 points)

Question 2. Question : (TCO 5) The bank account as a control device helps to protect cash. One of the requirements is to conduct periodic bank statement reconciliations. Using the following data, complete the bank statement reconciliation. (Use the format shown on page 251 of your textbook.) (25 points)

Use the information below to prepare the bank reconciliation for Collier Cleaners for the month of September.

  • ????????The bank statement indicated bank service charges of $63.
  • ????????Outstanding checks as of September 30 amounted to $1,405.
  • ????????Deposits in transit as of September 30 amounted to $2,769.
  • ????????The ending balance per the September bank statement is $40,753.
  • ????????Collier Cleaners bookkeeper mistakenly recorded a $1,610 cash disbursement as $1,160 for Office Supplies on check #2402.
  • ????????The bank mistakenly recorded a deposit of $2,800 as $280 on February 17.
  • ????????The bank made an EFT payment on behalf of the company for Insurance for $3,200.
  • ????????Bank collected rent of $3,000 and a note, for $16,450, including interest of $450.
  • ????????The ending cash balance per the books for September before any adjustments was 28,900.

ACCT 212 DeVry Week 5 Discussion 1

In the spotlight about FedEx Corporation, you get a feel for the amount of investment in assets and the resulting liabilities that are required to operate a competitive corporation. Even small businesses require plant, property, and equipment to compete and normally rely on some form of debt to finance themselves. Let’s start up a company that sells auto parts, like Napa or Auto Zone. What assets would we require? How might we finance them?

ACCT 212 DeVry Week 5 Discussion 2

Go to Course Home and review the Course Project tab. Continue to use the Course Project template from Doc Sharing. In this graded discussion, we will be examining the operation of the Accounting Information System (AIS) with the use of problems and exercises from your textbook. The goal is to cover all of the requirements to ensure an opportunity for your successful completion of the Course Project. Let’s start with Exercise 3-30A. For the Anderson Production Company, select one adjusting and one closing entry requirement. Develop the journal entry for review by your peers. Make sure to reference any page numbers of examples you are using. Hint: Revisit the Week 2 Lecture.

ACCT 212 DeVry Week 5 Course Project 1 Part B Rawls Repair Corporation

ACCT 212 DeVry Week 5 Checkpoint

Question :

(TCO 6) An asset with no physical form, but that has special rights to current and expected future benefits is a(n)

intangible asset.

natural resource.

plant asset.

fixed asset.

Question 2. Question :

(TCO 6) The process of depreciating an asset over its useful life is an application of the _____ principle.

full disclosure

revenue recognition

historical cost

matching

Question 3. Question :

(TCO 6) All of the following are classified as natural resources and are depleted except for

land.

timber.

minerals.

oil.

Question 4. Question :

(TCO 6) When an investor owns between 20% and 50% of the outstanding stock of another company, the _____ method is used to account for stock investments.

market value

equity

consolidated

historical cost.

Question 5. Question :

(TCO 6) Which of the following is not necessary to know in computing the future value of an annuity?

Amount of the initial payment

Interest rate

Length of time between investment and payment

Year the payments begin

Question 6. Question :

(TCO 6) All of the following are reported as current liabilities except

bonds payable.

sales tax payable.

accounts payable.

unearned revenues.

Question 7. Question :

(TCO 6) Failure to record an accrued liability causes a company to

overstate income.

overstate assets.

understate liabilities.

understate owners’ equity.

Question 8. Question :

(TCO 6) If the market interest rate is greater than the stated interest rate, bonds will sell

at face value.

at a discount. at a premium.

at market value.

Question 9. Question :

(TCO 6) Bonds that mature at a single specified future date are called

term bonds.

coupon bonds.

serial bonds.

debentures.

Question 10. Question :

(TCO 6) The financing option that has the lowest risk to a company is financing by

retained earnings.

issuing stock.

issuing bonds payable.

issuing notes payable.

ACCT 212 DeVry Week 6 Discussion 1

When forming a company, the options are sole proprietor, partnership, and corporation. Most choose corporation. Why is the corporate form seen to be best? What rights do the stockholders have?

ACCT 212 DeVry Week 6 Discussion 2

Let’s start with gaining an understanding of the Statement of Cash Flows. From Exercise 12-17A, select one of the journal entries and explain how the accounts in the journal entry impact the statement of cash flows.

Acct 212 DeVry Week 6 Checkpoint

Question 1:

(TCO 7) The authority structure of a corporation would show the

board of directors delegating to the stockholders.

president delegating to the board of directors.

chief financial officer delegating to the board of directors.

stockholders delegating to the board of directors.

Question 2. Question :

(TCO 7) The basic unit of ownership for a corporation is

dividends.

stock.

retained earnings.

capital.

Question 3. Question :

(TCO 7) The price that the stockholder pays to acquire stock from the corporation is the

Par price.

Authorized price.

Offering price.

issue price.

Question 4. Question :

(TCO 7) Stock that a corporation purchases from shareholders is called

treasury stock.

authorized stock.

issued stock.

outstanding stock.

Question 5. Question :

(TCO 7) The authority to declare a dividend lies with the

CFO.

Shareholders.

SEC.

Board of Directors.

Question 6. Question :

(TCO 7) If stock is issued for an asset other than cash, the asset should be recorded on the books of the corporation at

fair market value.

cost.

par value of the stock.

zero.

Question 7. Question : (TCO 1) The main purpose of the statement of cash flows is to

provide information about the cash receipts and cash payments during a period.

provide information about the investing and financing activities during a period.

prove that revenues exceed expenses if there is a net income.

assist banking relationships.

Question 8. Question : (TCO 1) The best gauge of a company’s ability to produce ample cash to continue as a going concern is net cash provided by

operating activities.

investing activities.

financing activities.

analytical activities

Question 9. Question : (TCO 1) Which of the three types of activities reported on the statement of cash flows is the most critical?

Investing activities

Operating activities

Financing activities

Investing and financing activities

Question 10. Question : (TCO 1) Usually, the most important category on the statement of cash flows is cash flows from

operating activities.

investing activities.

financing activities.

noncash activities.

ACCT 212 DeVry Week 7 Discussion 1

If you were to get a physical from your doctor and he or she only took your blood pressure prior to stating that you are in good health, would you be concerned? If you have noticed in your readings, starting in Chapter 3, there has been explanation of the methods by which you could determine the financial health of a company. Name one and explain how it is computed. Which financial statement(s) does the input come from? Most importantly, what does it tell you about the financial performance or health?

ACCT 212 DeVry Week 7 Discussion 2

Let’s start with Exercise 13-19A by preparing a common-size income statement for the McMahon Music Co. Do this in Excel. Do not post your spreadsheet in the discussion, but rather, place a screenshot of it. How did you format the cells? Any suggestions on where to obtain assistance with building the spreadsheet?

ACCT 212 DeVry Week 7 Course Project 2 McDonough Products

ACCT 212 DeVry Week 7 Checkpoint

Question 1:

(TCO 1) The primary focus of horizontal analysis is

Percentage changes in comparative financial statements.

the balance sheet only.

the changes in individual financial statement amounts as a percentage of some related total.

the change in key financial statement ratios over a certain time frame.

Question 2. Question :

(TCO 1) Horizontal analysis of financial statements is an

analysis tool.

analysis theory

analysis principle.

analysis requirement.

Question 3. Question :

(TCO 1) A vertical analysis is primarily concerned with

the dollar amount of the change in various financial statement amounts from year to year.

individual financial statement items expressed as a percentage of a base (which represents 100%).

percentage changes in the balances shown in comparative financial statements.

the change in key financial statement ratios over a specified period of time.

Question 4. Question :

(TCO 1) Common-size analysis is also known as

trend analysis.

ratio analysis.

vertical analysis.

matrix analysis.

Question 5. Question : (TCO 1) On a common-size balance sheet each item is expressed as a percentage of

current assets.

operating income.

total assets.

net income.

Question 6. Question :

(TCO 1) Benchmarking financial statements represents a form of

horizontal analysis.

vertical analysis.

gross profit analysis.

trend analysis.

Question 7. Question :

(TCO 1) On a statement of cash flows of a struggling company, net income would ordinarily be

less than depreciation expense.

more than depreciation expense.

greater than cash provided by operating activities.

more than cash provided by operating activities.

Question 8. Question :

(TCO 1) On a statement of cash flows, an increase or decrease in inventory is considered

an operating activity.

an investing activity.

a financing activity.

an investing or financing activity.

Question 9. Question : (TCO 1) The ratio that measures the number of times that operating income can cover interest expense is the

leverage.

rate of return on total assets.

debt ratio.

Times-interest-earned ratio.

Question 10. Question :

(TCO 1) If economic value added (EVA) is negative

Stockholders’ wealth has decreased.

Stockholders’ wealth has increased.

Stockholders’ wealth has stayed the same.

Stockholders’ earnings per share have increased.

ACCT 212 DeVry Week 8 Final Exam 100% Correct Answers

(TCO 1) To evaluate the financial operation and health of a business ratio analysis is used. (1) Provide the formula for the Acid-test (or Quick) Ratio and explain how it is computed (10 points) and (2) provide an example of how this ratio can be used in decision-making in business.

(TCO 3) At the end of the period it is necessary to close all temporary accounts. (1) Explain why this process is required (10 points) and (2) provide an example of the closing of an expense account, Supplies Expense in the form of a journal entry

(TCO 2) As required to complete Course Project 1, one must follow the cycle that includes 10 steps to complete the accounting cycle. (1) Explain how to construct an Unadjusted Trial Balance (10 points) and (2) provide an example of the application of the debit/credit rules in the development of the trial balance.

(TCO 5) Internal Control Procedures are required to safeguard company assets and to ensure ethical operation of the business. (1) Explain how limited access can satisfy the purpose of internal control (10 points) and (2) provide an example of how this control could be implemented.

(TCO 4) Inventory valuation methods determine the cost of goods sold and the inventory balance. (1) Explain how the Last in First out (LIFO) method is applied (10 points) and (2) provide an example of the impact that this method of inventory valuation will have on Gross Profit.

(TCO 6) BagODonuts Company bought a used delivery truck on January 1, 2010, for $19,200. The van was expected to remain in service 4 years (30,000 miles).  BagODonuts’ accountant estimated that the truck’s residual value would be $2,400 at the end of its useful life.  The truck traveled 8,000 miles the first year, 8,500 miles the second year, 5,500 miles the third year, and 8,000 miles in the fourth year.

  1. Calculate depreciation expense for the truck for each year (2010-2013) using the:
  2. Straight-line method.
  3. Double-declining balance method.
  4. Units of Production method.

(For units-of-production and double-declining balance, round to the nearest two decimals after each step of the calculation.)

  1. Which method best tracks the wear and tear on the van?
  2. Which method would BagODonuts prefer to use for income tax purposes?  Explain in detail why BagODonuts prefers this method.

(TCO 7) ABC Inc. was incorporated on 1/15/12. Their corporate charter authorized the following capital stock:

Preferred Stock: 7%, par value $100 per share, 100,000 shares.

Common Stock: $1 par value, 500,000 shares.

The following transactions occurred during the year:

1/19/12 – Issued 100,000 shares of common stock for $17 cash per share.

1/31/12 – Issued 3,000 shares of preferred stock for $115 cash per share.

11/1/12 – Repurchased 30,000 shares of common stock for $22 cash per share.

12/1/12 – Declared and paid a total dividend of $95,000.

Required:

  1. Prepare the journal entry for each transaction listed above.
  2. In your own words, explain the main differences between common and preferred stock.

(Points : 25)

(TCO 5) Fraud is an intentional misrepresentation of facts, made for the purpose of persuading another party to act in a way that causes injury or damage to that party.  In our readings and discussions we have seen several examples of fraud in business.  Using that experience (1) provide an example of a common fraudulent practice in business with an explanation of how the practice works and (2) name and describe each of the elements of the Fraud Triangle.

(TCO 5) Internal Control Procedures are in place to protect the assets of every business as mentioned in the textbook and our discussions.  Of the seven internal control procedures, list five of these controls and describe how each procedure is implemented. (5 points each with 2 points for listing and 3 points for a description)

(TCO 2) Below are the accounts of Super Pool Service, Inc. The accounts have normal balances on June 30, 2012. The accounts are listed in no particular order.

Account                                   Balance

Common stock                       $5,100

Accounts payable                   $4,400

Service revenue                     $17,100

Land                                        $28,800

Note payable                           $9,500

Cash                                        $5,200

Dividends                                $6,100

Utilities expense                      $2,100

Accounts receivable               $10,600

Delivery expense                    $700

Retained earnings                   $25,600

Salary expense                       $8,200

Prepare the company’s trial balance as of June 30, 2012, listing accounts in proper sequence, as illustrated in the chapter. For example, Accounts Receivable comes before Land. List the expense with the largest balance first, the expense with the next largest balance second, and so on.

(TCO4) Linda’s Lampshades started business on Jan. 1, 2001. They had the following inventory transactions:

Journals – Jan. 2001

Purchases

Supplier         Date Received         Quantity        Unit Cost       Amount

Donna           01/10/01                110              12.00            1320.00

Thomas         01/15/01                160              14.00             2240.00

Cindy            01/18/01                150              15.00            2250.00

Sales

Customer      Date shipped    Quantity      Sel. Price                Amount

Norilene        01/16/01         200                  25.00                   5000.00

  1. Calculate the ending inventory, using the perpetual inventory method:
  2. Using FIFO
  3. Using LIFO
  4. Using Average Cost
  5. Prepare the following statement

Using

FIFO    LIFO        Average Cost

Sales

Cost of Sales

Gross Profit

(Points : 25)