Financial accounting custom essay

Complete the following exam by answering the questions and compiling your answers into a word-processing document. When you’re ready to submit your answers, refer to the instructions at the end of your exam booklet. It’s not necessary to type the questions. Type only the solution to the question. Be certain to indicate the proper question number before each of your answers. Remember to show your work if an answer requires a mathematical solution.

Answer each of the following questions. Each answer is worth 4 points.

 

A company has Liabilities of $23,500 and Stockholders’ Equity of $56,500. How much does the company have in Assets?

Beginning Retained Earnings are $65,000; sales are $29,500; expenses are $33,000; and dividends paid are $3,500. How much is the net income or loss for the company?

  1. The account “Salaries Expense” began with a zero balance and then had the following changes: increase of $450, decrease

of $175, increase of $600, and an increase of $350. What is the final balance of the “Salaries Expense” account, and is it a debit or credit?

A $375 purchase of supplies on account was recorded by debiting Supplies for $375 and crediting Cash for $375. What is the journal entry needed to correct this error?

  1. Allied, Inc. bought a two-year insurance policy on August 1 for

$3,600. What is the adjusting journal entry on December 31?

A company started the year with no supplies. During the year they bought $200 worth of supplies on account and later paid $150 of this debt. If there were $40 worth of supplies left at the end of the year, what is the supply expense for the period?

ABC Corporation has received an invoice for $4,500 with terms of 3/15, n/50. If ABC pays the invoice on the seventeenth day, what is the effect on the Cash account and will the Cash account be debited or credited?

 

  1. Bond and Associates has the following account balances listed in alphabetical order: Accumulated Depreciation, $23,000; Accounts Payable, $8,500; Accounts Receivable,

$12,000; Cash, $3,500; Equipment, $44,000; Land, $21,000; Mortgage Payable,

$45,000; Prepaid Insurance, $7,500; Supplies, $2,000; Unearned Revenue, $6,000; Wages Payable, $4,500. How much are Bond and Associates’ current liabilities?

 

  1. Olympic Enterprises has the following inventory data:

Assuming average cost, what is the cost of goods sold for the June 14 sale?

  1. A company has $4,500 in net sales, $3,200 in gross profit, $1,300 in ending inventory, and $1,800 in

beginning inventory. What is the company’s cost of goods sold?

  1. Goods available for sale are $40,000; beginning inventory is $16,000; ending inventory is $20,000; and the cost of goods sold is $50,000. What is the inventory turnover?
  2. Which element of internal control deals with establishing procedures for things such as handling of incoming checks, and which element deals with the oversight of the internal control systems?
  3. What is an audit opinion?
  4. A company has $235,000 in credit sales. The company uses the allowance method to account for uncollectible accounts. The Allowance for Doubtful Accounts now has a $7,250 credit balance. If the company estimates 7% of credit sales will be uncollectible, what is the amount of the journal entry to record estimated uncollectible accounts?

 

  1. Bestway, Inc. had credit sales of $142,000 for the period. The balance in Allowance for Doubtful Accounts is a debit of $643. If Bestway estimates that 2% of credit sales will be uncollectible, what is the required journal entry to record estimated uncollectible accounts?
  2. An asset has a cost of $50,000, with a residual value of $10,000. It has a life of 5 years and was purchased on January 1. Under double-declining-balance, what is the asset’s fourth full year of depreciation expense?
  3. A truck costing $56,000 has accumulated depreciation of $50,000. The truck is sold for $8,500. What is the journal entry for this transaction?
  4. On January 1, Bixby Machine signed a $210,000, 6%, 30-year mortgage that requires semiannual payments of $7,585 on June 30 and December 31 of each year. What is the correct journal entry for recording the second semiannual payment (round interest calculation to the nearest dollar)?
  5. On January 1, $500,000 of 8%, 10-year bonds were sold for $530,000. The bonds require semiannual interest payments on June 30 and December 31. What is the correct entry for recording the June 30 interest payment on the bonds?
  6. Motor Works, Inc. has declared a $20,000 cash dividend to shareholders. The company has 5,000 shares of $15-par, 10% preferred stock and 10,000 shares of $20-par common stock. The preferred stock is non-cumulative. How much will the preferred and common stockholders receive on the date of payment?
  7. Allied Industries, Inc. has 250,000 shares of $7-par common stock outstanding. They have declared a 7% stock dividend. The current market price of the common stock is

$11/share. What is the amount that will be credited to Paid-in Capital in Excess of Par

Common Stock on the date of declaration?

  1. Accounts receivable amounts to $215,000 for the beginning of the year and $245,000 for the end of the year. Income reported on the income statement for the year is $300,000. How much is the cash flow from operating activities on the cash flow statement using the indirect method?
  2. Operating expenses other than depreciation for the year were $400,000. Accrued expenses increased by $35,000. What are the cash payments for operating expenses reported on the cash flow statement using the direct method?
  3. Red Line, Inc. has a cash balance of $80,000, short-term investments of $20,000, net receivables of $60,000, and inventory of $450,000. Current liabilities total $200,000. What is Red Line’s quick ratio?
  4. River City, Inc. reported the following for 2014:

Net sales

$220,000

 

Net income

$37,000

Market price per share of common stock

$28.75

Dividends

$4,100

Average number of shares of common stock outstanding

10,000

 

What are the earnings per share for River City, Inc. (to the nearest cent)?

Is this question part of your assignment?

Place order

Managing Finance custom essay

 

The Genesis Energy operations management team was excited to understand the various options for securing financing to fund the rapid growth plans. The team was surprised by the cost associated with using funds supplied by others after accounting for risk of investments in its small but profitable company. Sensible Essentials explained how the cost of external financing can be calculated.

Using the readings for the module, Argosy University online library resources, the Internet, and the sources you identified in Module 3, do the following:

  • Explain with examples how the cost of capital is determined.
  • Calculate the differences in cost and risk. Explain why the costs and risks of external financing are important for the organization to understand.
  • Explain why rapid growth plans are important to a small company. Would there be a more efficient way to fund a growing company? Why or why not? Justify your answer.

Is this question part of your assignment?

Place order

Financial statements custom essay

Kay Magill Company had the following adjusted trial balance.

Instructions

  1. Prepare closing entries at June 30, 2015.
  2. Prepare a post-closing trial balance.

Keenan Company has an inexperienced accountant. During the first 2 weeks on the job, the accountant made the following errors in journalizing transactions. All entries were posted as made.

    1. A payment on account of $840 to a creditor was debited to Accounts Payable $480 and credited to Cash $480.
    2. The purchase of supplies on account for $560 was debited to Equipment $56 and credited to Accounts Payable $56.
    3. A $500 cash dividend was debited to Salaries and Wages Expense $500 and credited to Cash $500.

Instructions

Prepare the correcting entries.

On June 10, Tuzun Company purchased $8,000 of merchandise from Epps Company, FOB shipping point, terms 2/10, n/30. Tuzun pays the freight costs of $400 on June 11. Damaged goods totaling $300 are returned to Epps for credit on June 12. The fair value of these goods is $70. On June 19, Tuzun pays Epps Company in full, less the purchase discount. Both companies use a perpetual inventory system.

Instructions

  1. Prepare separate entries for each transaction on the books of Tuzun Company.
  2. Prepare separate entries for each transaction for Epps Company. The merchandise purchased by Tuzun on June 10 had cost Epps $4,800.

Juan Morales Company had the following account balances at year-end: Cost of Goods Sold $60,000, Inventory $15,000, Operating Expenses $29,000, Sales Revenue $115,000, Sales Discounts $1,200, and Sales Returns and Allowances $1,700. A physical count of inventory determines that merchandise inventory on hand is $13,900.

Instructions

 

  1. Prepare the adjusting entry necessary as a result of the physical count.
  2. Prepare closing entries.

Tri-State Bank and Trust is considering giving Josef Company a loan. Before doing so, management decides that further discussions with Josef’s accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of $297,000. Discussions with the accountant reveal the following.

 

  1. Josef sold goods costing $38,000 to Sorci Company, FOB shipping point, on December 28. The goods are not expected to arrive at Sorci until January 12. The goods were not included in the physical inventory because they were not in the warehouse.
  2. The physical count of the inventory did not include goods costing $95,000 that were shipped to Josef FOB destination on December 27 and were still in transit at year-end.
  3. Josef received goods costing $22,000 on January 2. The goods were shipped FOB shipping point on December 26 by Solita Co. The goods were not included in the physical count.
  4. Josef sold goods costing $35,000 to Natali Co., FOB destination, on December 30. The goods were received at Natali on January 8. They were not included in Josef’s physical inventory.
  5. Josef received goods costing $44,000 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $297,000.

Instructions

Determine the correct inventory amount on December 31.

E6-6. Kaleta Company reports the following for the month of June.

Instructions

  1. Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO and (2) LIFO.
  2. Which costing method gives the higher ending inventory? Why?
  3. Which method results in the higher cost of goods sold? Why?

Problems

The completed financial statement columns of the worksheet for Fleming Company are shown on below.

Instructions

  1. Prepare an income statement, a retained earnings statement, and a classified balance sheet.
  2. Prepare the closing entries.
  3. Post the closing entries and underline and balance the accounts. (Use T-accounts.) Income Summary is account No. 350.
  4. Prepare a post-closing trial balance.

Latona Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Latona showed Cash of $5,000 and Common Stock of $5,000.

May      1  Purchased merchandise on account from Gray’s Wholesale Supply $4,200, terms 2/10, n/30.

2  Sold merchandise on account $2,100, terms 1/10, n/30. The cost of the merchandise sold was $1,300.

5 Received credit from Gray’s Wholesale Supply for merchandise returned $300.

9  Received collections in full, less discounts, from customers billed on sales of $2,100 on May 2.

10 Paid Gray’s Wholesale Supply in full, less discount.

11 Purchased supplies for cash $400.

12 Purchased merchandise for cash $1,400.

15  Received refund for poor quality merchandise from supplier on cash purchase $150.

17  Purchased merchandise from Amland Distributors $1,300, FOB shipping point, terms 2/10, n/30.

19 Paid freight on May 17 purchase $130.

24 Sold merchandise for cash $3,200. The merchandise sold had a cost of $2,000.

25  Purchased merchandise from Horvath, Inc. $620, FOB destination, terms 2/10, n/30.

27 Paid Amland Distributors in full, less discount.

29  Made refunds to cash customers for defective merchandise $70. The returned merchandise had a fair value of $30.

31  Sold merchandise on account $1,000 terms n/30. The cost of the merchandise sold was $560.

Latona Hardware’s chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 126 Supplies, No. 201 Accounts Payable, No. 311 Common Stock, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold.

Instructions

  1. Journalize the transactions using a perpetual inventory system.
  2. Enter the beginning cash and common stock balances and post the transactions. (Use J1 for the journal reference.)
  3. Prepare an income statement through gross profit for the month of May 2015.
    P6-3A.Ziad Company had a beginning inventory on January 1 of 150 units of Product 4-18-15 at a cost of $20 per unit. During the year, the following purchases were made.

Mar. 15 400 units at $23            Sept. 4 350 units at $26

July  20 250 units at $24            Dec.  2 100 units at $29

1,000 units were sold. Ziad Company uses a periodic inventory system.

Instructions

  1. Determine the cost of goods available for sale.
  2. Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods.
  3. Which cost flow method results in (1) the highest inventory amount for the balance sheet, and (2) the highest cost of goods sold for the income statement?

 

Is this question part of your assignment?

Place order

Healthcare Finance custom essay

Financial management in healthcare setting is critical to the success and well being of healthcare organization. There are very important elements of financial planning that every healthcare organization must follow.

What are the four recognized elements of financial management? Which do you think is most important and why?

The Affordable Care Act (ACA) has made a huge impact on healthcare delivery system and especially in regard to financial management of healthcare organizations and delivery of high quality healthcare services.

The timeline for the Affordable Care Act continues until 2015. Locate 3–4 updates on the timeline that are related to healthcare finance. Discuss these changes or initiatives. Your discussion should include what is changing and your thoughts on how this will impact healthcare finance now and in the future.

U.S. Department of Health & Human Services. (2011). Timeline of the Affordable Care Act.

Retrieved from http://www.healthcare.gov/law/timeline/index.html

Is this question part of your assignment?

Place order

Short-Term Financial Management custom essay

Please read the relevant parts of your textbook, which refer to cash flow and financial planning.

To avoid any uncertainty regarding his business’ financing needs at the time when such needs may arise, Cyrus Brown wants to develop a cash budget for his latest venture: Cyrus Brown Manufacturing (CBM). He has estimated the following sales forecast for CBM over the next 9 months:

March $100,000
April $275,000
May $320,000
June $450,000
July $700,000
August $700,000
September $825,000
October $500,000
November $115,000

He has also gathered the following collection estimates regarding the forecast sales:

Payment collection within the month of sale = 25%
Payment collection the month following sales = 55%
Payment collection the second month following sales = 20%

Payments for direct manufacturing costs like raw materials and labor are made during the month that follows the one in which such costs have been incurred. These costs are estimated as follows:

March $187,500
April $206,250
May $375,000
June $337,500
July $431,250
August $640,000
September $395,000
October $425,000

Additional financial information is as follows:

Administrative salaries will approximately amount to $35,000 a month.
Lease payments around $15,000 a month.
Depreciation charges, $15,000 a month.
A one-time new plant investment in the amount of $95,000 is expected to be incurred and paid in June.
Income tax payments estimated to be around $55,000 will be due in both June and September.
And finally, miscellaneous costs are estimated to be around $10,000 a month.
Cash on hand on March 1 will be around $50,000, and a minimum cash balance of $50,000 shall be on hand at all times.

To receive full credit on this assignment, please show all work, including formulas and calculations used to arrive at the financial values.

Is this question part of your assignment?

Place order

Long-Term Financial Management custom essay

A manufacturing company is thinking of launching a new product. The company expects to sell $950,000 of the new product in the first year and $1,500,000 each year thereafter. Direct costs including labor and materials will be 45% of sales. Indirect incremental costs are estimated at $95,000 a year. The project requires a new plant that will cost a total of $1,500,000, which will be a depreciated straight line over the next 5 years. The new line will also require an additional net investment in inventory and receivables in the amount of $200,000.

Assume there is no need for additional investment in building the land for the project. The firm’s marginal tax rate is 35%, and its cost of capital is 10%.

To receive full credit on this assignment, please show all work, including formulae and calculations used to arrive at financial values.

Assignment Guidelines

Using the information in the assignment description:
Prepare a statement showing the incremental cash flows for this project over an 8-year period.
Calculate the payback period (P/B) and the net present value (NPV) for the project.
Answer the following questions based on your P/B and NPV calculations:
Do you think the project should be accepted? Why?
Assume the company has a P/B (payback) policy of not accepting projects with life of over 3 years.
If the project required additional investment in land and building, how would this affect your decision? Explain.

Your submitted assignment (130 points) must include the following:

A double-spaced Word document of 2–3 pages that contains your calculation values, your complete calculations, any formulae that you used, and your answers to the two questions listed in the assignment guidelines.
You must include your explanation of how you used Excel for your calculations if applicable.

Is this question part of your assignment?

Place order

Financial Statement Analysis custom essay

Select one (1) of the following publicly traded health care organizations: Universal Health Services (NYSE: UHS) or Health Management Associates (NYSE: HMA).

Suppose you are a newly appointed CFO of your chosen health care organization. One of your first tasks is to conduct an internal financial analysis of the organization. Conduct a brief financial analysis and review of the chosen company’s financial statements for at least three (3) consecutive years. After conducting the analysis, interpret the data contained within the statements.

Write a three to four (3-4) page paper in which you:

  1. Based on your review of the financial statements, suggest a key insight about the financial health of the company. Speculate on the likely reaction to the financial statements from various stakeholder groups (employee, investors, shareholders). Provide support for your rationale.
  2. Identify the current industry trend that has the most significant impact on your chosen organization’s financial performance. Indicate the trend’s impact on the financial performance of the organization. As the CFO, suggest at least one (1) way that you might minimize the impact of the trend on the organization.
  3. As the CFO, suggest one (1) key strategy that you might use in order to improve the financial performance of the organization. Recommend an approach to implement the suggested strategy. Provide support for your recommendation.
  4. Use at least four (4) quality academic resources. Note: Wikipedia and other Websites do not qualify as academic resources.

Is this question part of your assignment?

Place order

US Debt custom essay

Financial Debt. Go to the US Debt Clock – www.debtclockorg to see the dizzying array of real-time estimates of debt. This website was created by an individual who wanted to alert people to the amount of debt in the US. On the upper right hand side, you will see an icon that reads “Debt Clock Time Machine”. Click on the icon and go back in time to the year 2000. Compare the figures from 2000 to those of today’s date for the following:

 

US GDP

Credit Card Debt

Personal debt per citizen

US population

US National debt

Debt per citizen

Unemployment figures

 

Discuss the differences. Which number revealed the greater difference? Why?

 

Must be complete by Friday, Jan 29 @ 8 p.m.

 

NOTE: Internet web address change frequently. If you don’t find the exact sites listed, you may need to access the organization’s home page and search from there or use a search engine suche as Google or Bing.

Is this question part of your assignment?

Place order

Comparison in finances custom essay

Application Report 1: Prepare a 2-3 page report, double spaced using proper APA writing style, that compares the finances of Ford Motor Company (stock symbol: F) to the finances of General Motors (stock symbol: GM).  Why has Ford been so successful, and why has GM been lagging ?  Based on your comparative analysis, which senior management team is more effective and efficient in running the respective corporations over the last three years?

Is this question part of your assignment?

Place order

Google Analysis Case Study custom essay

Access the financial statements and related disclosure notes of Google Inc. from its website at investor.google.com. In Google’s balance sheet, deferred income taxes in 2010 are reported as both a current asset ($259 million) and a noncurrent asset ($265 million) but none among liabilities.

Required:
1) Explain why deferred income taxes can be reported as both an asset and a liability. Is that the case for Google in 2010?

2) Note 15 in the disclosure notes indicates that deferred tax assets are $1,221 million in 2010 and deferred tax liabilities are $405 million. How can that be explained in light of the two amounts reported in the balance sheet?

3) Does Google feel the need to record a valuation allowance for its deferred tax assets?

Is this question part of your assignment?

Place order