ACC 545 ENTIRE COURSE
ACC 545 Week 1 Audit and Business Structure Worksheet
Write a response of no more than 150 words for each the following questions:
Compare a review and an audit. What are the differences? What are the similarities?
What are the primary accounting fields and their associated professional responsibilities?
What are the major forms of business structures? How do they differ?
What are the differences, including timing issues, between cash and accrual basis accounting?
ACC 545 Week 1 Individual Assignment CPA Report
As the CPA for a large organization, you were asked by your manager to provide information to outside CPAs who are examining a subsidiary that has been set up as a corporation. As part of their review, the CPAs have asked you to provide them with the following explanations:
The methodology used to determine deferred taxes
The procedures for reporting accounting changes and error corrections
The rationale behind establishing the subsidiary as a corporation
Prepare your response to the three questions. Before submitting your response, your manager would like to know a little bit more about the request. She has asked you to tell her what your professional responsibilities are as a CPA, and the difference between a review and an audit.
You should provide draft responses to the above questions as well as providing your manager with a summary of your responsibilities in one document (no more than 1,050 words).
ACC 545 Week 2 ABC Company Income statement and Balance Sheet Preparation
Resource: ABC Financial and Supplemental Data Excel® spreadsheets, and footnotes from the Week 2 Learning Team assignment
Calculate the deferred tax asset or liability of an error for the scenario provided.
Calculate inventory calculation average cost, first-in-first-out (FIFO), and last-in-first-out (LIFO). Record the calculated average cost in the financial statement.
Calculate the straight-line depreciation.
Create an income statement using the results calculated above.
Create a balance sheet using the results calculated above. Insert your Learning Team's footnotes into the balance sheet and income statement. Identify in the footnotes the depreciation methods being used for the fixed assets. Also identify the footnotes the methodology used to determine deferred taxes.
ACC 545 Week 2 Learning Team Assignment Los Lobos Ledger Preparation
ACC 545 Week 2 Team Balance Sheet Footnote Preparation Discussion
ACC 545 Week 3 ABC Company Retained Earning and Owners Equity Statement
ACC 545 Week 3 Individual Assignment Jamona Corp. Scenario
Review the following information:
On January 1, 2006, Jamona Corp. purchased 12% bonds, having a maturity value of $300,000, for $322,744.44. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2006, and mature January 1, 2011, with interest receivable December 31 of each year. The company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale. The fair value of the bonds at December 31 of each year is as follows:
2006 – $320,500
2007 – $309,000
2008 – $308,000
2009 – $310,000
2010 – $300,000
The following information is available from Jamona’s inventory records
Units Unit Cost
January 1, 2007 (beginning inventory) 600 $ 8.00
January 5, 2007 1,200 9.00
January 25, 2007 1,300 10.00
February 16, 2007 800 11.00
March 26, 2007 600 12.00
A physical inventory on March 31, 2007, shows 1,600 units on hand. Select any one of the inventory methods (LIFO, FIFO, Average Cost, or others).
On July 6, Jamona Corp. acquired the plant assets of Berry Company, which had discontinued operations. The appraised value of the property is:
Land $ 400,000
Machinery and equipment 800,000
Jamona Corp. gave 12,500 shares of its $100 par value common stock in exchange. The stock had a market value of $168 per share on the date of the purchase of the property.
Jamona Corp. expended the following amounts in cash between July 6 and December 15, the date when it first occupied the building.
Repairs to building $105,000
Construction of bases for machinery to be installed later 135,000
Driveways and parking lots 122,000
Remodeling of office space in building 161,000
Special assessment by city on land 18,000
On December 20, the company paid cash for machinery, $260,000, subject to a 2% cash discount, and freight on machinery of $10,500.
On January 1, 2007, Jamona Corp. signed a five-year non-cancelable lease for a machine. The terms of the lease called for Jamona to make annual payments of $8,668 at the beginning of each year, starting January 1, 2007. The machine has an estimated useful life of six years and a $5,000 un-guaranteed residual value. The machine reverts to the lessor at the end of the lease term. Jamona uses the straight-line method of depreciation for all of its plant assets. Jamona’s incremental borrowing rate is 10%, and the lessor’s implicit rate is unknown.
Prepare journal entries with appropriate supporting detailed schedules for the balance sheet items: investments, inventory, fixed assets, and capital leases.
Prepare appropriate note disclosures.
ACC 545 Week 3 Team Balance Sheet Stockholder’s Section Discussion
ACC 545 Week 4 ABC Company Debt Issuance and Lease Recording
Debt Issuance and Lease Recording
Resource: ABC Company History and ABC Financial Data Excel® spreadsheet, and the Income Statement and Balance Sheet Week 2 Individual assignment
Prepare bond and lease amortization schedules using the values from Week 2.
Create journal entries for the book debt restructure.
Adjust the balance sheet and income statements, including the bond and lease footnotes.
Submit the amortization schedules, journal entries, and the adjusted Balance Sheet and Income Statement in Microsoft® Excel® spreadsheets.
Remember for this assignment only the bond and lease schedules with the associated journal entires are required. No update of the balance sheet and income statement is required.
ACC 545 Week 4 Individual Assignment Restructuring Debt
Your company is in financial trouble and is in the process of reorganization. Your manager wants to know how you will report on restructuring the debt. Use the following information to help with this assignment.
ACC 545 Week 4 Team Pension Plan Analysis and Discussion
ACC 545 Week 5 ABC Company Direct and Indirect Statements of Cash Flow
Resource: ABC Company History and ABC Financial Data Excel® spreadsheet and Adjusted Balance Sheet and Income Statement from the Week 4 individual assignment
Prepare the Direct and Indirect Statements of Cash Flow using the Adjusted Balance Sheet and Income Statement from the Week 4 Individual Assignment.
Submit the Direct and Indirect Cash Flow Statements in a Microsoft® Excel® spreadsheet.
ACC 545 Week 5 Individual Assignment Lee Corporation Equity Scenario
Review the following information:
Lee Corporation, a U.S. company, began operations on January 1, 2004.
During its first 3 years of operations, Lee reported net income and declared dividends as follows.
Net income Dividends declared
2004 $ 40,000 $ –0–
2005 125,000 50,000
2006 160,000 50,000
The following information relates to 2007:
Income before income tax $240,000
Prior period adjustment: understatement of 2005 depreciation expense (before taxes) $ 25,000
Cumulative decrease in income from change in inventory methods (before taxes) $ 35,000
Dividends declared (of this amount, $25,000 will be paid on January 15, 2008) $100,000
Effective tax rate 40%
ACC 545 Week 5 Team Investments and Marketable Securities Discussion
ACC 545 Week 6 Learning Team Assignment Consolidated Financial Statements
Complete exercise 3-14, parts A, B, and C, on p. 127 of Advanced Accounting (Crain Mechanics/Downey Enterprises).
ACC 545 Week 6 Team Exercise 4-5
EXERCISE 4-5 Eliminating Entries, Non-controlling Interest LO 2
On January 1, 2014, Plate Company purchased a 90% interest in the common stock of Set Company for $650,000, an amount $20,000 in excess of the book value of equity acquired. The excess relates to the understatement of Set Company's land holdings.
Excerpts from the consolidated retained earnings section of the consolidated statements workpaper for the year ended December 31, 2014, follow:
1/1/14 retained earnings
Net income from above
12/31/14 retained earnings to the balance sheet
Set Company's stockholders' equity is composed of common stock and retained earnings only.
- Prepare the eliminating entries required for the preparation of a consolidated statements work paper on December 31, 2014, assuming the use of the cost method.
- Prepare the eliminating entries required for the preparation of a consolidated statements work paper on December 31, 2014, assuming the use of the equity method.
- Determine the total non-controlling interest that will be reported on the consolidated balance sheet on December 31, 2014. How does the non-controlling interest differ between the cost method and the equity method?
ACC 545 Final Exam
1) A company changes from percentage-of-completion to completed-contract, which is the method used for tax purposes. The entry to record this change should include a
2) Which of the following is accounted for as a change in accounting principle?
3) A company changes from straight-line to an accelerated method of calculating depreciation, which will be similar to the method used for tax purposes. The entry to record this change should include a
4) Presenting consolidated financial statements this year when statements of individual companies were presented last year is
5) During 2008, a construction company changed from the completed-contract method to the percentage-of-completion method for accounting purposes but not for tax purposes. The following lists include gross profit figures under both methods for the past 3 years:
6) On January 1, 2005, Baden Co. purchased a machine, which was its only depreciable asset, for $300,000. The machine has a 5-year life, and no salvage value. Sum-of-the-years'-digits depreciation has been used for financial statement reporting and the elective straight-line method for income tax reporting. Effective January 1, 2008, for financial statement reporting, Baden decided to change to the straight-line method for depreciation of the machine. Assume that Baden can justify the change.
7) The deferred tax expense is the
8) A company records an unrealized loss on short-term securities. This might result in what type of difference and in what type of deferred income tax?
9) A company uses the equity method to account for an investment. This would result in what type of difference and in what type of deferred income tax?
10) Nottingham Corporation had accounts receivable of $100,000 on January 1st The only transactions affecting accounts receivable were sales of $900,000 and cash collections of $850,000. What is the accounts receivable turnover?
11) If a petty cash fund is established in the amount of $250, and contains $150 in cash and $95 in receipts for disbursements when it is replenished, the journal entry to record replenishment should include credits to which of the following accounts?
12) If the month-end bank statement shows a balance of $36,000, outstanding checks are $12,000, a deposit of $4,000 was in transit at month end, and a check for $500 was erroneously charged by the bank against the account, what is the correct balance in the bank account at month end?
13) If a short-term obligation is excluded from current liabilities because of refinancing, the footnote to the financial statements describing this event should include all of the following information EXCEPT:
14) Stock dividends distributable should be classified on the
15) Which of the following items is a current liability?
16) A company borrows $10,000 and signs a 90-day nontrade note payable. In preparing a statement of cash flows (indirect method), this event would be reflected as
17) An increase in inventory balance would be reported in a statement of cash flows using the indirect method (reconciliation method) as
18) The primary purpose of the statement of cash flows is to provide information
19) Eller Co. received merchandise on consignment. As of January 31, Eller included the goods in inventory, but did not record the transaction. What would be the effect of this on its financial statements for January 31?
20) Cross Co. accepted delivery of merchandise that it purchased on account. As of December 31, Cross had recorded the transaction, but did not include the merchandise in its inventory. What would be the effect of this on its financial statements for December 31?
21) The failure to record a purchase of merchandise on account even though the goods are properly included in the physical inventory results in
22) Fences and parking lots are reported on the balance sheet as
23) Which of these is not a major characteristic of a plant asset?
24) The debit for a sales tax properly levied and paid on the purchase of machinery preferably would be a charge to
25) On November 1, 2007, Little Company purchased 600 of the $1,000 face value, 9% bonds of Player, Incorporated, for $632,000, which includes accrued interest of $9,000. The bonds, which mature on January 1, 2012, pay interest semiannually on March 1 and September 1. Assuming that Little uses the straight-line method of amortization and that the bonds are appropriately classified as available-for-sale, what would the net carrying value of the bonds be shown as on Little's December 31, 2007, balance sheet?
26) On October 1, 2007, Lyman Co. purchased to hold to maturity, 200 of the $1,000 face value, 9% bonds for $208,000. An additional $6,000 was paid for accrued interest. Interest is paid semiannually on December 1 and June 1 and the bonds mature on December 1, 2011. Lyman uses straight-line amortization. Ignoring income taxes, what was the amount reported in Lyman's 2007 income statement from this investment?
27) On October 1, 2007, Porter Co. purchased to hold to maturity 1,000 of the $1,000 face value, 9% bonds for $990,000 which includes $15,000 accrued interest. The bonds, which mature on February 1, 2016, pay interest semiannually on February 1 and August 1. Porter uses the straight-line method of amortization. The bonds should be reported in the December 31, 2007 balance sheet at a carrying what value?
28) Although only certain leases are currently accounted for as a sale or purchase, there is theoretic justification for considering all leases to be sales or purchases. The principal reason that supports this idea is that
29) An essential element of a lease conveyance is that the
30) Which of the following is a correct statement of one of the capitalization criteria?
31) Discount on notes payable is charged to interest expense
32) The generally accepted method of accounting for gains or losses from the early extinguishment of debt treats any gain or loss as
33) A corporation borrowed money from a bank to build a building. The long-term note signed by the corporation is secured by a mortgage that pledges title to the building as security for the loan. The corporation is to pay the bank $80,000 each year for 10 years to repay the loan. Which of the following relationships can you expect to apply to the situation?
34) Benton Company issues $10,000,000 of 10-year, 9% bonds on March 1, 2007, at 97 plus accrued interest. The bonds are dated January 1, 2007, and pay interest on June 30 and December 31. What is the total cash received on the issue date?
35) Limeway Company issues $5,000,000, 6%, 5-year bonds dated January 1, 2007, on January 1, 2007. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 5%. What are the proceeds from the bond issue?
36) A company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2007. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,145. Using effective-interest amortization, how much interest expense will be recognized in 2007?
37) Which of the following is not a characteristic of a defined-contribution pension plan?
38) In accounting for a defined-benefit pension plan
39) The interest on the projected benefit obligation component of pension expense
40) Windsor Company has outstanding both common stock and nonparticipating, noncumulative preferred stock. The liquidation value of the preferred is equal to its par value. The book value per share of the common stock is unaffected by
41) Dividends are not paid on
42) Assume common stock is the only class of stock outstanding in the B-Bar-B Corporation. Total stockholders' equity divided by the number of common stock shares outstanding is called
43) Preparation of consolidated financial statements when a parent-subsidiary relationship exists is an example of the
44) In presenting segment information, which of the following items must be reconciled to the entity's consolidated financial statements?
45) Presenting consolidated financial statements this year when statements of individual companies were presented last year is
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