ACCT 461 ENTIRE COURSE
ACCT 461 Case 13-6 Butler Lumber
Acct 461 Week 2 Case 13-6
- How well is Butler Lumber doing?
- What has been the company’s financial strategy? Why does Mr. Butler have to borrow so much money to support this seemingly profitable business? Has he been managing his company’s cash flow wisely?
- Do you agree with Mr. Butler’s estimate that he will need up to $465,000 in 2011. How much will he need to borrow to finance his expected expansion in sales in 2011 (assume sales volume hits $3.6 million)?
- Would you recommend that Mr. Butler proceeds with his expansion plans?
ACCT 461 Case 24-1 Body Glove
1.For what purposes does Body Glove use its budgeting system? Which purposes are emphasized?
2.Trace the steps in the development of the budget at Body Glove. What are the key events that relate to the timing of the steps in the budgeting process?
3.The case says that Body Glove never prepared a budget prior to fiscal year 1991. How can a company like Body Glove function effectively without a budget, or can it?
- What changes to Body Glove’s budgeting and review processes would you recommend, if any?
ACCT 461 Case 4-1 PC Depot
Explanation of Journal Entries
Analyzing The Facts & Prepare Journal Entries to Ledger Accounts
The accounts that need adjusting are Interest on the bank loan, the depreciation on the Furniture and Fixture and the insurance. We need to calculate the interest for the month on the Bank loan. We also need to adjust this month’s depreciation, and finally we need to adjust the insurance expense for this month. This adjustment’s need to be made, so we can deduct the interest, depreciation, and insurance for the month.
Closing Entries & Post to Ledger Accounts
The new ledger accounts that are required for our closing entries are Income Summary and Retained Earnings, we need this entries so we can close Sales, Cost of Sold and all the expenses accounts.
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