DEVRY ACCT 504 Midterm Exam (4 Sets)

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1. Question : (TCOs A and E) Your friend, Ellen, has hired you to evaluate the following internal control procedures.

Explain to your friend whether each of the numbered items below is an internal control strength or weakness. You must also state which internal control procedure relates to each of the internal controls.

For the weaknesses, you also need to state a recommendation for improvement.

(1) The cashier counts the total receipts and reconciles the receipts with the cash register total.

(2) Electronic documents are password-protected.

(3) The accountant is completely independent of the sales department.

(4) Invoices are not numbered.

(5) Large purchase orders must be approved by a manager.

TCOs A and E) Your friend, Ellen, has hired you to evaluate the following internal control procedures.

Explain to your friend whether each of the numbered items below is an internal control strength or weakness. You must also state which internal control procedure relates to each of the internal controls.

For the weaknesses, you also need to state a recommendation for improvement.

(1) The cashier counts the total receipts and reconciles the receipts with the cash register total.

(2) Electronic documents are password-protected.

(3) The accountant is completely independent of the sales department.

(4) Invoices are not numbered.

(5) Large purchase orders must be approved by a manager. (Points : 30)

Set 2

1: Invoices are pre-numbered.

2: The controller approves of the purchases and makes the payment since he or she is familiar with the purchases.

3: The office manager is in charge of the petty cash fund.

4: Blank checks are stored in the safe.

5: At the end of the day, the total receipts are counted by the cashier on duty and reconciled to the cash register total. (Points : 30)

Set 3

Invoices are pre-numbered.

The controller approves of the purchases and makes the payment since he

or she is familiar with the purchases.

The office manager is in charge of the petty cash fund.

Blank checks are stored in the safe.

At the end of the day, the total receipts are counted by the cashier on duty

and reconciled to the cash register total

Set 4

Question 14. Question : (TCO D)  Your friend Dean has hired you to evaluate the following internal control procedures.

a: Explain to your friend whether each of the numbered items below is an internal control strength or weakness. You must also state which principle relates to each of the internal controls.

b: For the weaknesses, you also need to state a recommendation for improvement.

DEVRY ACCT 504 Week 3 Case Study 1 Flower Landscaping Corporation

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The Entire Case Study is due Sunday at Midnight Mountain time at the end of Week 3.
This Case Study is worth 100 points or 10% of your final course grade.
This Case Study relates to TCO's D and E and Chapters 3 and 4.
MAKE SURE TO COMPLETE ALL REQUIREMENTS WHICH ARE LISTED BELOW.
There are 10 Sheets in the Workbook including this one.
All of the Information you need for the Project is located in this Workbook.
Requirements

Requirement 1 - Prepare the Journal Entries in the General Journal

Requirement 2 - Post Journal Entries to the General Ledger

Requirement 3 - Prepare a Trial Balance

Requirement 4 - Prepare the Adjusting Entries

Requirement 5 - Post Adjusting Entries to the General Ledger

Requirement 6 - Prepare an Adjusted Trial Balance

Requirement 7 - Prepare the Financial Statements

Requirement 8 - Prepare the Closing Entries

Requirement 9 - Post Closing Entries to the General Ledger

Requirement 10 - Prepare the Post Closing Trial Balance

Sheet in Workbook

Journal Entries
General Ledger
Trial Balance
Adjusting Entries
General Ledger
Adjusted TB
Financial Statements
Closing Entries
General Ledger
Post Closing TB

Hint for success: review the Week 2 Lecture prior to starting this project.
There are also hints contained within certain cells on some of the worksheet tabs.
You can hover over the red pointer at the top right-hand corner of the cell to read the hint.
Hints are provided for the following balances:

1) The debits for the journal entries on the Journal Entries tab

2) The credits for the journal entries on the Journal Entries tab

3) The cash balance on the General Ledger tab

4) The debits for the trial balance on the Trial Balance tab

5) The credits for the trial balance on the Trial Balance tab

6) The debits for the adjusted trial balance on the Adjusted Trial Balance tab

7) The credits for the adjusted trial balance on the Adjusted Trial Balance ta

DEVRYACCT 504 Final Exam Guide NEW (2 Sets, NEW 2017)

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Question 1.1. (TCO D) Please describe the purpose of the Income Statement and the interrelationship between the income statement and the other major financial statements that we covered in this class. In your answer, please also address which financial statements should be created before the Income Statement, if any, and which financial statements need to be completed after the Income Statement, if any. (Points : 25)
 
 Question 1—Set 2
1.  Please describe the purpose of the Balance Sheet and the interrelationship between the balance sheet and the other major financial statements that we covered in this class. In your answer, please also address which financial statements should be created before the Balance Sheet, if any, and which financial statements need to be completed after the Balance Sheet, if any
 
 
Question 2.2. (TCO E) Your friend, Lisa, plans to open a nail salon. Lisa states that she does not have time to develop and implement a system of internal controls.
(a) Explain to Lisa the components of internal control. (10 points)
(b) Explain to Lisa at least 5 internal control procedures she must establish to protect herself against fraud. You should state specific internal control procedures from the textbook, and relate your answer to her nail salon business. (15 points) (Points : 25)
Q-2-Set 2
2. Your friend, John, plans to open a parking garage business. John states that he does not have time to develop and implement a system of internal controls.
(a) Explain to John the objectives of a system of internal control. 
(b) Explain to John at least 5 internal control procedures that he must establish to protect himself against fraud. You should state specific internal control procedures from the textbook and relate your answer to his parking garage business. 
solution

DEVRY ACCT 504 Week 7 Course Project JCP Kohls

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ACCT 504 Week 7 Course Project JCP Kohls

DEVRY ACCT 504 Week 5 Homework (E7-15A, E7-19A, E8-20A, E9-23A, E9-29A) NEW

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E 7-15A

Potvin Self Storage purchased land, paying $175,000 cash as a down payment and signing a $185,000 note payable for the balance. Potvin also had to pay delinquent property tax of $5,500, title insurance costing $3,000, and $2,000 to level the land and remove an unwanted building. The company paid

$55,000 to add soil for the foundation and then constructed an office building at a cost of

$1100,000. It also paid $47,000 for a fence around the property, $16,000 for the company sign near the property entrance, and $10,000 for lighting of the grounds. Requirement

1. What is the capitalized cost of each of Potvin's land, land improvements, and building?

2. cost of land improvement

3. Cost of building

E 7-19A

Tasteful's Pizza bought a used Toyota delivery van on January 2, 2014, for $18,000. The van was expected to remain in service for four years left parenthesis (41,750 miles). At the end of its useful life, Tasteful's officials estimated that the van's residual value would be $1,300. The van traveled

13,000 miles the first year, 11,250 miles the second year, 10,250 miles the third year, and 7,250 miles in the fourth year.

Requirements

1. Prepare a schedule of depreciation expense per year for the van under the three depreciation methods.

2. Which method best tracks the wear and tear on the van?

3. Which method would Tasteful's prefer to use for income tax purposes? Explain in detail why

Tasteful's prefers this method.

Prepare a schedule of depreciation expense per year for the van under the three depreciation methods

Requirement 2. Which method best tracks the wear and tear on the van?

The  units-of-production method tracks the wear and tear on the van most closely.

Requirement 3. Which method would Tasteful's prefer to use for income tax purposes? Explain in detail why Tasteful's prefers this method. For income tax purposes, Tasteful's

would prefer the double-declining-balance method because it provides the

most depreciation, and thus, the  largest tax deductions in the early life of the asset.

E8-20A

Corp. purchased 10, $1,000, 77%

bonds of Power Source Corporation when the market rate of interest was 12%. Interest is paid semiannually on the bonds, and the bonds will mature in ten years. Using the PV function in

Excel Superscript ®Excel®, compute the price Haygood paid (the present value) on the bond investment. (Assume that all payments of interest and principal occur at the end of the period. Round your answer to the nearest cent.)

E9-23A

Assume that Jasper Electronics completed these selected transactions during March 2014:

a. Sales of $2,100,000 are subject to estimated warranty cost of 2%. The estimated warranty payable at the beginning of the year was $34,000, and warranty payments for the year totaled $57,000.

b. On March 1, Jasper Electronics signed a 45,000 note payable that requires annual payments of $9,000 plus 4% interest on the unpaid balance each March 2.

c. Music For You, Inc., a chain of music stores, ordered $135,000 worth of CD players. With its order, Music For Yo

DEVRY ACCT 504 Week 6 Homework (E10-19A, E10-25A, E12-16A, E12-20A) NEW

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E10-19A

Army Navy Sporting Goods is authorized to issue 10,000 shares of common stock. During a two-month period, Army Navy completed these stock-issuance transactions:

Apr 23 Issued 3,000 shares of $1.00 par common stock for cash of $13.00 per share.

May 12 Received inventory with a market value of $20,000 and equipment with market

value of $39,000 for 3,600 shares of the $1.00 par common stock.Requirements

1. Journalize the transactions.

2. Prepare the stockholders' equity section of

Army Navy Sporting Goods' balance sheet for the transactions given in this exercise. Retained Earnings has a balance of

$45,000.

E10-25A (similar to)  Question Help

Ontario Manufacturing, Inc., reported the following at December 31, 2014 and December 31, 2015:

Stockholders' Equity

Preferred stock, cumulative, $1.00 par, 12%, 45,000 shares issued

$45,000

Common stock, $0.60 par, 9,070,000 shares issued

5,442,000

Ontario Manufacturing has paid all preferred dividends through 2011

Requirement

1. Compute the total amounts of dividends to both preferred and common stockholders for

2014 and 2015 if total dividends are $30,000 in 2014 and $45,000 in 2015.

Begin with 2014. Compute the total amounts of dividends to both preferred and common stockholders for

2014 if total dividends are $30,000.

E12-16A

Donnahoo Investments specializes in low-risk government bonds.

Identify each of Donnahoo's transactions as operating (O), investing (I), financing (F), noncash investing and financing (NIF), or a transaction that is not reported on the statement of cash flows (N). Indicate whether each item increases (+) or decreases

a. Cash sale of land

b. Issuance of long-term note payable in exchange for cash

c. Depreciation of equipment

d. Purchase of treasury stock

e. Issuance of common stock for cash

f. Increase in accounts payable

g. Net income

h. Payment of cash dividend

i. Decrease in accrued liabilities

j. Loss on sale of land

k. Acquisition of building by issuance of notes payable

l. Payment of long-term debt

m. Acquisition of building by issuance of common stock

n. Decrease in accounts receivable

o. Decrease in inventory

p. Increase in prepaid expenses

E12-20A

The income statement and additional data of Newton Travel Products, Inc., follow:

Requirements

1. Prepare

Newton Travel Products's statement of cash flows for the year ended December 31,

2014, using the indirect method.

2. Evaluate Noel' cash flows for the year. In your evaluation, mention all three categories of

cash flows and give the reason for your evaluation.

Requirement 1. Prepare Newton's statement of cash flows for the year ended December 31,

2014, using the indirect method.

Start by completing the cash flows from operating activities. Then complete each section of the statement of cash flows, including the noncash investing and financing activities. (

Newton Travel Products, Inc.

Income Statement

Year Ended December 31, 2014

Requirement 2. Evaluate

Newton's cash flows for the year. In your evaluation, mention all three categories of cash flows and give the reason for your evaluation. Newton's .

DEVRY ACCT 504 Week 3 Quiz NEW

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Q -1

Other comprehensive income

A.

includes extraordinary gains and losses.

B.

affects earnings per share.

C.

includes unrealized gains and losses on available-for-sale investments.

D.

has no effect on income tax.

Q-2

Use the following data of

TortoiseTortoise

Sales, Inc.:

Unit     Total    Units

Units   Cost     Cost     Sold

Beginning inventory   16        $3        $48

Purchase on Apr 25     25        6          150

Purchase on Nov 16    11        8          88

Sales    40        ?          ?

Tortoise

Sales' average cost of ending inventory is

An auditor report by independent accountants

A.

gives investors assurance that the company's stock is a safe investment.

B.

is ultimately the responsibility of the management of the client company.

C.

ensures that the financial statements are error-free.

D.

gives investors assurance that the company's financial statements conform to GAAP.

Use the following data of

SeasideSeaside

Sales, Inc.:

Unit     Total    Units

Units   Cost     Cost     Sold

Beginning inventory   18        $4        $72

Purchase on Apr 25     43        7          301

Purchase on Nov 16    19        10        190

Sales    45        ?          ?

SeasideSeaside

Sales' LIFO cost of ending inventory would be

Use the following data of

SeaspraySeaspray

Sales, Inc.:

Unit     Total    Units

Units   Cost     Cost     Sold

Beginning inventory   24        $7        $168

Purchase on Apr 25     30        8          240

Purchase on Nov 16    14        9          126

Sales    50        ?          ?

SeaspraySeaspray

Sales uses a FIFO inventory system. Cost of goods sold for the period is

The quality of earnings suggests that

A.

stockholders want the corporation to earn enough income to be able to pay its debts.

B.

income from continuing operations is a more relevant predictor of future performance than income from one-time transactions.

C.

net income is the best measure of the results of operations.

D.

continuing operations and one-time transactions are of equal importance.

Deferred Tax Liability is usually

Type of Account         Reported on the

A.

Long-term       Income statement

B.

Short-term       Statement of stockholders' equity

C.

Short-term       Income statement

D.

Long-term       Balance sheet

Which statement is true?

A.

Discontinued operations are a separate category on the income statement.

B.

Extraordinary items are combined with continuing operations on the income statement.

C.

Extraordinary items are part of discontinued operations.

Hazard Company had anan $18,000 beginning inventory and aa $25,000 ending inventory. Net sales ere

$153,000; purchases, $76,000; purchase returns and allowances, $3,000; and freight in, $9,000. Cost of goods sold for the period is $75,000.What is Hazard gross profit percentage (rounded to the nearest percentage)?

DEVRY ACCT 504 Week 6 Case Study 3 - Cash Budgeting LBJ Company

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The cash budget was covered during Week 4 when we covered TCO D and you read Chapter 7. There is also a practice case study to work on. Your Professor will provide the solution to the practice case study at the end of Week 5. This case study should be uploaded by 11:59PM Mountain time of the Sunday ending Week 6 to the Week 6 Assignment Dropbox. You are encouraged to use the Excel template file provided in Doc Sharing.

The LBJ Company has budgeted sales revenues as follows:

April May June

Credit sales $94,000 $89,500 $75,000

Cash sales 48,000 75,000 57,000

Total sales $142,000 $164,500 $132,000

Past experience indicates that 30% of the credit sales will be collected in the month of sale and the remaining 70% will be collected in the following month.

Purchases of inventory are all on credit and 40% is paid in the month of purchase and 60% in the month following purchase. Budgeted inventory purchases are $195,000 in April, $135,000 in May, and $63,000 in June.

Other budgeted cash receipts: (a) sale of plant assets for $33,000 in May, and (b) sale of new common stock for $50,000 in June. Other budgeted cash disbursements: (a) operating expenses of $15,000 each month, (b) selling and administrative expenses of $10,150 each month, (c) purchase of equipment for $19,000 cash in June, and (d) dividends of $20,000 will be paid in June.

The company has a cash balance of $20,000 at the beginning of May and wishes to maintain a minimum cash balance of $20,000 at the end of each month. An open line of credit is available at the bank and carries an annual interest rate of 10%. Assume that all borrowing is done on the first day of the month in which financing is needed and that all repayments are made on the last day of the month in which excess cash is available. Also assume that there is no outstanding financing as of May 1.

Requirements:

1. Use this information to prepare a Cash Budget for the months of May and June, using the template provided in Doc Sharing.

2. What are the three sections of a Cash Budget, and what is included in each section?

3. Why is a Cash Budget so vital to a company?

4. What are the five basic principles of cash management that a company can follow in order to improve its chances of having adequate cash?

DEVRY ACCT 504 Week 5 Case Study 2 Internal Control LJB Company

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Case Study 2 - Internal Control- Due by Sunday of week 5
LJB Company, a local distributor, has asked your accounting firm to evaluate their system of internal controls because they are planning to go public in the future. The President wants to be aware of any new regulations required of his company if they go public so he met with a colleague of yours at a local restaurant. The President of the company explained the current system of internal controls to your colleague. Your colleague has since been promoted to a tax position so she has passed on the information below so you can generate recommendations for the partner at your accounting firm to share with the President of LJB Company.
Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees. They have one accountant who serves as Treasurer and Controller which streamlines many of their processes. In this dual role, he purchases all of the supplies and pays for these purchases. He also receives the checks and completes the monthly bank reconciliation. The accountant is so busy that the company handles petty cash a bit differently. All employees have access to the petty cash in a desk drawer and are asked to only place a note if they use any of the cash.
The accountant has recently started using pre-numbered invoices and wants to buy an indelible ink machine to print their checks. The President is waiting to hear from you if this is a necessary purchase before authorizing.
On payday, the checks are picked up by the accountant and left in his office for pick-up. Before he leaves for the weekend, he will move the checks into a safe in his office.
The President is still quite embarrassed because he had to fire one of his employees for viewing pornography on a company computer. He later found out this individual was a convicted felon who served time for molesting children. The company had a hard time getting the employee to admit it was him because the company does not assign individual passwords. The President expressed his frustration because both he and the accountant both interview and approve all of the new hires.
Required:
Based on the above information, prepare a Word document to address the following:
Inform the President of any new internal control requirements if the company decides to go public. (7 points) Advise the President of what the company is doing right (they are doing some things well) and also recommend to the President whether or not they should buy the indelible ink machine. When you advise the President, please be sure to reference the applicable internal control principle that applies. (13 points) Advise the President of what the company is doing wrong (they are definitely doing some things poorly). Please be sure to include the internal control principle that is being violated along with a recommendation for improvement. (20 points)
You must prepare a formal report for the partner to distribute to the President so no abbreviations or short-hand answers. You also must cite your references. At a minimum, your textbook should be cited.
Below is a grading rubric for this assignment.
Category
Points
Description
Understanding
10
Demonstrate a strong grasp of the problem at hand. Demonstrate understanding of how the course concepts apply to the problem.
Analysis
30
Apply original thought to solving the business problem. Apply concepts from the course material correctly toward solving the business problem.
Execution
10
Write your answer clearly and succinctly using strong organization and proper grammar. Use citations correctly.
Total
50
A quality paper will meet or exceed all of the above requirements.
Best Practices
The following are best practices in preparing this paper.
Cover Page: Include whom you prepared the paper for, who prepared it, and the date. Table of Contents: List the main ideas and sections of the paper and the pages where they are located. Illustrations should be included separately. Introduction: Use a header on your paper. This will indicate that you are introducing the paper.

The purpose of an introduction or opening is to introduce the subject and why the subject is important; preview the main ideas and the order in which they will be covered; and establish the tone of the document.
Include in the introduction a reason for the audience to read the paper. Also include an overview of what you will cover and the importance of the material. (This should include or introduce the questions you are asked to answer in each assignment.)
Body of the Report: Use a header with the name of the case study. An example is, "The Development of Hotel X: A World Class Resort." Proceed to break out the main ideas: State the main ideas, the major points of each idea, and provide evidence. Show some type of division, such as separate, labeled sections; separate groups of paragraphs; or headers. Include the information you found during your research and investigation. Summary and Conclusion: Summarizing is similar to paraphrasing but presents the gist of the material in fewer words than the original. An effective summary identifies the main ideas and the major support points from the body of the report; minor details are left out. Summarize the benefits of the ideas and how they effect the subject. Work Cited: Use the citation format specified in the Syllabus.