ACCT212 Financial Accounting Course

$72.00

ACCT212 Financial Accounting Course
perform a vertical analysis over all of the asset classes listed on the Balance Sheet (as a proportion of the Total Assets)…

Description

ACCT212 Financial Accounting Course

ACCT212 Financial Accounting Course

A +Discussions Week 1-7 (2 Sets) | Quiz Week 1, 2 3, 4, 6 | Course Project | Midterm Exam | Exxon-Mobil Corporation Assignment Week 7 | Final Exam

Exxon-Mobil Corporation Assignment Week 7 

ACCT212 Exxon-Mobil Corporation Assignment Week 7

Visit the Yahoo web site and click the link to Finance. Enter the letters “XOM” into the Quote Lookup box, and this will display the latest stock price, related stock data, and links to the financial statements for Exxon-Mobil Corporation (“XOM” is the stock symbol for this company). Using the available data, indicate the EPS and P/E ratios. Next, digging deeper into the financials, perform a horizontal analysis spanning the latest three years of data, specifically showing the trends (change over time) for earnings, inventory, the company’s cash position, and also indicate the trend for the gross profit ratio and profit margin ratio. In addition, perform a vertical analysis over all of the asset classes listed on the Balance Sheet (as a proportion of the Total Assets). Summarize all of your findings, and be sure to display all calculations you’ve made in the process. Also provide conclusions regarding your assessment of what your analysis indicates about the current state of Exxon-Mobil.

Preview:

Exxon Mobil is one of the top 10 oil companies in the world, second only to Gazprom (OGZPY), a Russian company, followed by BP plc, a UK company (Investopedia, 2018). However, it ranks first based on market value with $422B, but…

Calculations in Excel included

ACCT212 Financial Accounting Course

Quiz Week 1 

ACCT212 Quiz Week 1

(TCO 1) Accounting

Measures business activities

Processes data into reports and communicates the data to decision makers

Is often called the language of business

All of the above

(TCO 1) Which type of business organization transacts the most business and is the largest in terms of assets, income, and number of employees?

Proprietorship

Partnership

Limited-liability company

Corporation

(TCO 1) The acronym GAAP stands for

Generally acceptable authorized pronouncements

Government authorized accountant principles

Generally accepted accounting principles

Government audited accounting pronouncements

(TCO 1) The stable-monetary-unit assumption

Ensures that accounting records and statements are based on the most reliable data available

Holds that the entity will remain in operation for the foreseeable future

Maintains that each organization or section of an organization stands apart from other organizations and individuals

Enables accountants to ignore the effect of inflation in the accounting records

(TCO 1) Liabilities are

A form of paid-in capital

Future economic benefits to which a company is entitled

Debts payable to outsiders called creditors

The outflow of resources that decrease common stock

(TCO 1) The owners’ equity of any business is its

Revenues minus expenses

Assets minus liabilities

Assets plus liabilities

Paid-in capital plus assets

(TCO 1) When total expenses exceed total revenues, the result is

A net profit

A net loss

A dividend

Retained earnings

(TCO 1) The correct data flow from one financial statement to the next is

Statement of retained earnings, income statement, balance sheet, statement of cash flows

Balance sheet, statement of retained earnings, income statement, statement of cash flows

Statement of retained earnings, income statement, statement of cash flows, balance sheet

Income statement, statement of retained earnings, balance sheet, statement of cash flows

(TCO 1) Which statement(s) summarizes the revenues, gains, expenses, and losses of an entity?

Balance sheet

Statement of cash flows and income statement

Statement of retained earnings and statement of operations

Income statement

(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

ACCT212 Financial Accounting Course

Quiz Week 2 

ACCT212 Quiz Week 2

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

Increased expenses

Increased revenues

Increased liabilities

Increased equity

(TCO 2) Which of the following transactions will increase one asset and decrease another asset?

The purchase of office supplies on account

The performance of services on account

The purchase of equipment for cash

The performance of services for cash

(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

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

Increase side

Decrease side

Debit side

Credit side

(TCO 2) An important rule of debits and credits is

Credits increase a liability account

Debits decrease an asset account

Revenues are increased by a debit

Expenses are increased by a credit

(TCO 2) Accounting transactions are initially recorded in the

T-account

Ledger

Journal

Financial statements

(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

(TCO 3) The revenue principle governs two things:

When to record revenue and where to record this revenue

Where to record revenue and the amount of revenue to record

When to record revenue and the amount of revenue to record

When to record revenue and in which journal to record the revenue

(TCO 3) Revenues and expenses affect stockholders’ equity; therefore, net income is then transferred to

the income statement

retained earnings

the balance sheet

None of the above

(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 expense account, and credit the dividends account

ACCT212 Financial Accounting Course

Quiz Week 3 

ACCT212 Quiz Week 3

(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.

(TCO 5) Fraud is the ultimate unethical act in business because

the perpetrators usually do so for their own short-term economic gain at the expense of others.

fraud is illegal

fraud violates the rights of many for the temporary betterment of a few.

All of the above

(TCO 5) Internal controls are designed to accomplish five objectives: comply with legal requirements, promote operational efficiency, safeguard assets, encourage employees to follow company policy, and

Prevent embezzlement.

Prevent collusion.

Ensure accurate, reliable external audits.

Ensure accurate, reliable accounting records.

(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.

(TCO 5) The information system component of internal control

Ensures that every system that processes accounting data should have the ability to capture transactions as they occur.

Monitors controls.

Offers hints of where fraud or errors could occur.

Ensures that the IT department has adequate control procedures in place to ensure that no one can hack into the company’s database.

(TCO 5) _____ rearranges messages by a mathematical formula making the message impossible to read by someone who does not know the code.

Encryption

Firewall

Security wall

Access device

(TCO 5) Deposits that have been recorded on the book, but have not yet been recorded by the bank are

Nonsufficient funds deposits.

Outstanding deposits.

Deposits in transit.

Electronic funds deposits.

(TCO 5) When a company receives cash by mail

All incoming mail containing cash receipts should be opened by the accounting department.

The mailroom sends all customer checks to the internal audit department.

The remittance advice goes to the accounting department for preparation of the journal entries.

The bank deposit is prepared by the mail room.

(TCO 5) Another name for short-term investments is

Equity investments.

Marketable securities.

Market investments.

Available-for-sale securities.

(TCO 5) A business offers credit terms of 1/15, n/30. These terms indicate that

The total amount of the invoice must be paid within 15 days.

A discount of 1% can be taken if the invoice is paid within 15 days.

The buyer can take a 1% discount if the bill is paid within 15 or 30 days.

No discount is offered for early payment.

ACCT212 Financial Accounting Course

Quiz Week 4 

ACCT212 Quiz Week 4

(TCO 4) For a merchandising company

The balance sheet reports the cost of the inventory that was on hand at the beginning of the period.

The income statement reports the cost of the inventory sold during the period.

Ending inventory can be an asset or an expense.

Inventory is generally not a significant factor in their operations.

(TCO 4) Two accounts that would appear on the financial statements of a merchandising company that are not needed by a service company are

Cost of goods sold and depreciation.

Cost of goods sold and net income.

Cost of goods sold and inventory.

Inventory and depreciation.

(TCO 4) A periodic inventory system

Is used for inexpensive goods.

Is not expensive to maintain.

Does not keep a running record of inventory on hand.

Is all of the above.

(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.

(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

(TCO 4) To determine the average cost per unit

The beginning inventory is divided by the number of units available.

The cost of goods available is divided by the number of units sold.

The purchases for the period are divided by the number of units available.

The cost of goods available is divided by the number of units available.

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

Average-cost

FIFO

LIFO

Specific-identification

(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

(TCO 4) When applying the lower-of-cost-or-market rule, market value generally refers to

FIFO cost using the periodic method.

LIFO cost using the periodic method.

Current sales price of the inventory.

Current replacement cost of the inventory.

(TCO 4) The gross profit rate is calculated as

Cost of goods sold divided by net sales revenue.

Net sales revenue minus gross profit on sales.

Net sales revenue minus cost of goods sold.

Gross profit divided by net sales revenue.

ACCT212 Financial Accounting Course

Quiz Week 6 

ACCT212 Quiz Week 6

(TCO 7) Stockholders of a corporation directly elect the

Board of directors.

President of the corporation.

Chief financial officer of the corporation

Chairperson of the board.

(TCO 7) Which one of the following is not a stockholder’s right of ownership in a corporation?

To vote and elect the board of directors

To receive a proportionate share of the assets upon liquidation

To maintain one’s proportional share of ownership in the corporation

To declare dividends

(TCO 7) The difference between the issue price of the stock and the par value of the stock is

Market value.

Par value.

Additional paid-in capital.

Preferred stock.

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

Treasury stock.

Authorized stock.

Issued stock.

Outstanding stock.

(TCO 7) The effect of the declaration of a cash dividend is a(n)

Increase to liabilities and a decrease to stockholders’ equity.

Increase to liabilities and a decrease to assets.

Increase to assets and a decrease to liabilities.

Increase to stockholders’ equity and a decrease to assets.

(TCO 7) Book value per share of common stock is computed by dividing

Total paid-in capital by the number of common shares of stock issued.

Total paid-in capital by the number of common shares of stock outstanding.

Total stockholders’ equity by the number of common shares of stock issued.

Total stockholders’ equity by the number of common shares of stock outstanding.

(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.

(TCO 1) The statement of cash flows will not report

The number of checks not written at the end of the period.

How cash was used in the current period.

Changes in the cash balance for the current period.

The sources of cash in the current period.

(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

(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.

This course has two course projects due. The first, Course Project 1, reinforces the basic principles of accounting and application of the accounting information system. It is completed in two parts. The second, Course Project 2, is an opportunity to show the ability to analyze financial statements to arrive at conclusions based upon the analysis.

ACCT212 Financial Accounting Course

Course Project 1 Part A Week 3 

ACCT212 Course Project 1 Part A

Course Project #1 consists of two parts, A and B, respectively.  There are 10 Requirements for you to complete in this exercise, Part A has 1-3 and Part B has 4-10.  Part A is due at the end of Week 3. Part B is due at the end of Week 5.  See Syllabus/”Due Dates for Assignments & Exams” for due date information. All of the information you need to complete Course Project #1 is located in this Workbook.
• There are 8 worksheets in the workbook you will need to complete for Parts A & B.
• A list of October transactions
• A Chart of Accounts reference sheet
• A Grading Rubric to help explain what is expected.
• Each worksheet has the Check Figures embedded as a comment. Scenario: You’ve just secured a new client in your accounting practice, the Rawls Repair Corporation, (RRC) a brand new small business specializing in bicycle repair.  The owner, Rob Rawls, is a terrific cyclist and bike repair specialist, but definitely not an accountant.  Your job is to help Rob put his affairs in order.  Luckily Rob has only been in operation for a month and things have not gotten too out of hand yet!  Rob has to submit his financial statements to his investors and doesn’t know where to begin.  It’s your job to go through the complete Accounting cycle to prepare the financial statements for the RRC.
REQUIREMENT #1: Prepare journal entries to record the October transactions in the General Journal below.  Remember that Debits must equal Credits – All of your Journal Entries should balance.
General Journal
DateDescription (Account Name)Debit Credit
1-OctCash12,000
          Common Stock12,000
1-OctPrepaid Insurance1,200
          Cash1,200
1-OctStore Rent Expense1,040
          Cash1,040 

ACCT212 Financial Accounting Course

REQUIREMENT #2: Post the October journal entries to the following T-Accounts and compute ending balances.
Cash (111)Bicycle Repair Revenue (411)
12,0001,2002,6721,362
1,3621,0401,310
1,3106002,6722,672
154

ACCT212 Financial Accounting Course

REQUIREMENT #3: Prepare a trial balance for October in the space below.
Rawls Repair Corporation
Trial Balance
October 31
AccountBalance
 Title Debit  Credit
Cash10,678
Prepaid Insurance1,200
Repair Supplies390

REQUIREMENT #4……

Course Project 1 Part B Week 5 

ACCT212 Course Project 1 Part B

Scenario: You’ve just secured a new client in your accounting practice, the Rawls Repair Corporation, (RRC) a brand new small business specializing in bicycle repair…

DateDescription (Account Name) Debit  Credit
Oct. 31stInsurance Expense            100
              Prepaid Insurance             100

Course Project 1 Part A-B Week 3 & 5 

ACCT 212 Course Project

Course Project #1 consists of two parts, A and B, respectively.  There are 10 Requirements for you to complete in this exercise, Part A has 1-3 and Part B has 4-10.  Part A is due at the end of Week 3. Part B is due at the end of Week 5.  See Syllabus/”Due Dates for Assignments & Exams” for due date information. All of the information you need to complete Course Project #1 is located in this Workbook.
• There are 8 worksheets in the workbook you will need to complete for Parts A & B.
• A list of October transactions
• A Chart of Accounts reference sheet
• A Grading Rubric to help explain what is expected.
• Each worksheet has the Check Figures embedded as a comment.
ACCT212 Financial Accounting Course
You’ve just secured a new client in your accounting practice, the Rawls Repair Corporation, (RRC) a brand new small business specializing in bicycle repair.  The owner, Rob Rawls, is a terrific cyclist and bike repair specialist, but definitely not an accountant.  Your job is to help Rob put his affairs in order.  Luckily Rob has only been in operation for a month and things have not gotten too out of hand yet!  Rob has to submit his financial statements to his investors and doesn’t know where to begin.  It’s your job to go through the complete Accounting cycle to prepare the financial statements for the RRC.

For Part A:

  • Complete Requirements 1-3 on the Journal Entries, General Ledger, and Trial Balance worksheets.
  • Type your work directly into the worksheets.
  • Save your workbook as “CourseProject1A_ ACCT212_YourLastName”.
  • Submit the workbook to the DropBox under “Course Project 1-Part A” by the end of Week 3.

 For Part B:

  • Using feedback from your instructor and Part A, complete Requirements 4-10.
  • Type your work directly into the worksheets.
  • Save your workbook as “CourseProject1B_ACCT212_YourLastName”.
  • Submit the workbook to the DropBox under “Course Project 1-Part B” by the end of Week 5.

Course Project 2 Week 7 

ACCT212 Top Managers Ohare Products

ACCT 212 Course Project 2Top Managers of OHare Products
Learning Objectives : Preparing common-size statements; analyzing
profitability; making comparisons with the industry
P13-50A Top managers of O’Hare Products, Inc., have asked for your help in comparing the company’s profit performance and financial position with the average for the industry. The accountant has given you the company’s income statement and balance sheet and also the following data for the industry.  The problem is that O’Hare is in dollars and the Industry Average is in percentages.  To complete the analysis you will need to convert O’Hare’s dollar amounts to percentages.

ACCT212 Financial Accounting Course

 

Requirement 1
1.Prepare a common-size income statement and balance sheet for O’Hare Products. The first column of each statement should present O’Hare Products’ common-size statement, and the second column should show the industry averages.
2.For the profitability analysis, compare O’Hare Products’ (a) ratio of gross profit to net sales, (b) ratio of operating income to net sales, and (c) ratio of net income to net sales with the industry averages. Is O’Hare Products’ profit performance better or worse than the average for the industry?
3.For the analysis of financial position, compute O’Hare Products’ (a) ratios of current assets and current liabilities to total assets and (b) ratio of stockholders’ equity to total assets. Compare these ratios with the industry averages. Is O’Hare Products’ financial position better or worse than the average for the industry?

ACCT 212 Financial Accounting

Requirement #2
Profitability analysis:

Requirement #3

Ratios

O’Hare Products, Inc.
Common-Size Income Statement Compared to Industry Average
Year Ended December 31, 2012
O’Hare ProductsIndustry Average
Net sales……………………………………………………100.0%   100.0%
Cost of goods sold………………………………………..69.0%       57.3
Gross profit…………………………….…………………..31.0%       42.7

ACCT212 Financial Accounting Course

Midterm Exam 

ACCT 212 Midterm Exam

(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) (Points : 20)

(TCO 1) The Accounting Equation is used to develop the organizations financial reports. (1) Describe what assets value would be if Liabilities are $12,000 and Owners’ Equity is $50,000 by showing the Accounting Equation (10 points) and (2) provide an example of two asset accounts that could contain the value.  (10 points) (Points : 20)

(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) (Points : 20)

(TCO 1) The financial statements present a company to the public in financial terms. (1) Which financial statement should be prepared first and why (10 points) and (2) explain what information this financial statement provides.  (10 points) (Points : 20)

(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 International Financial Reporting Standards (IFRS) are (10 points) and (2) provide an example of its application. (10 points) (Points : 20)

(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 Stable-Monetary-Unit Assumption is (10 points) and (2) provide an example of its application.  (10 points) (Points : 20)

(TCO 2) Transaction analysis results in the development of a journal entry. A building is purchased for $535,000. (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) (Points : 20)

(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) (Points : 20)

(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 seven internal control procedures (10 points) and (2) provide examples of how your two selected internal control procedures will meet the goal of safeguarding assets and promoting ethical business practices. (15 points) (Points : 25)

(TCO 5) E-commerce creates its own risks and therefore special internal controls. (1) Identify and explain one pitfall and one security measure for an online business (10 points) and (2) provide examples of how your selected security measure will strengthen internal control. (15 points) (Points : 25)

(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)
Prepare a bank reconciliation using B & B’s Restaurant Supply Inc.’s information for August 31.
A NSF check from Johnny Jones for $3,164.
Two deposits made on August 31 were not on the bank statement, totaling $2,897.
The bank collected an EFT payment for Rent for $2,600.
August 31 balance in Cash was $2,005.
The owner had written check #1598 for $500 and recorded this check as $5,000.
The balance on the bank statement as of August 31 was $5,316.
Bank service charge of $28 was shown on the bank statement.
Checks #1572, 1606, 1116, and 1242 for $419, $126, $650, and $1,105, respectively, were not shown on the bank statement, even though the company had sent the checks.(Points : 25)

ACCT212 Financial Accounting Course

Course Discussions Week 1-7 All Students Posts – 773 Pages 

ACCT212 Course Discussions Week 1-7

Week 1 All Students Posts – 82 Pages

ACCT212 Course Discussions Week 1

Financial Statements – 42 Pages 

ACCT212 Financial Statements Discussions

Students are encouraged to use online collaboration tools to create a submission 2-4 minutes in length, explaining either an article on the financial statement discussion topic, or assignment work you have done in relation to the discussion topic. Discuss the financial statements of a company of your choice, what they mean in to the company and its shareholders, and how the financial statements relate to each other.

The importance of knowing the basic accounting knowledge is to know how much profit the company will be receiving and how much goes to the shareholders. It helps keep track of where the money is going when ordering materials, paying bills, paying employees, and paying off other necessities to make sure you are not losing money. It helps the employer see where they are wasting money and fix it, so that they do not continue to lose more money…

Course Project – 40 Pages 

ACCT212 Course Project Discussions Week 1

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.

The accounting equation, also known as the balance sheet equation, is written as Assets = Liabilities + Equity and underpins the balance sheet’s foundation. The accounting equation is the foundation of double entry accounting, and displays that all assets are either financed by borrowing money or paying with the money of the company’s shareholders. The balance sheet is a complex display of this equation, showing that the total assets of a company are equal to the total of liabilities and shareholder equity, or said differently, all uses of capital (assets) are equal to all sources capital (debt: liabilities and equity: shareholders’ equity)…

ACCT212 Financial Accounting Course

Week 2 All Students Posts – 120 Pages 

ACCT212 Course Discussions Week 2

Accounting System – 58 Pages 

ACCT212 Accounting System Discussions

Students are encouraged to use online collaboration tools to create a submission 2-4 minutes in length, explaining research you have done on the different types of accrual entries and what they mean. Please provide an example that covers the type of entry represented, what it means and why it is being used.

Transaction Analysis is the process of reconciling the differences made to each side of the equation with each financial transaction occurs. Below are some sample transactions to get a better understanding of how the analysis and equation work.

The accounting equation for a brand new company will look like this:

Assets = Liabilities + Owner’s Equity

$0             $0                $0

Transaction 1: The owner deposits $5000 in the checking account to begin operations

Assets = Liabilities + Owner’s Equity

+$5000    $0              + $5000

The asset “Cash” is increased by $5000 and the Owner’s Equity is increased $5000. The business owes the owner $5000.

Transaction 2: The business purchases a computer, on credit, for $2500.

Assets = Liabilities + Owner’s Equity

+$2500   +$2500         $

The asset “Computers” is increased by $2500 and the liability is also increased $2500 because the business now owns the store $2500.

Transaction 3: The business purchases office supplies using $550 cash.

Assets = Liabilities + Owner’s Equity

+$550
-$550

The asset “Office Supplies” is increased $550 and the asset “Cash” is decreased $550.

Transaction 4: A business purchases a building for $100,000 with a $25,000 cash down-payment and a loan for the $75,000 outstanding.

Assets = Liabilities + Owner’s Equity

+$100,000  +75,000    -$25,000

More than two accounts are affected by this transaction. The asset “Building” increases by $100,000, the asset “Cash” decreases by $25,000, and the liability “Bank Loan” increases by $75,000. The net result is that both sides of the equation increase by…

Course Project – 62 Pages 

ACCT212 Course Project Discussions Week 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 Overview in Course Home, as you could start work on the Project. The template for the Course Project is located in the Files section.

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.

The business paid cash expenses: employee salaries 1300.00, Office Rent 700.00, utilities 500.00

How much of the business assets does Morin really own? $44,100

$39,000(cash invested) + $5,100(Retained earnings) = $44,100

August 15-31Salaries Expense1,300
Rent Expense700
Utilities500
Cash            2,500

Week 3 All Students Posts – 112 Pages 

ACCT212 Course Discussions Week 3

Compliance and the Sarbanes-Oxley (SOX) Act – 62 Pages

Compliance and the Sarbanes-Oxley Act

In the context of the world of business, explain what we mean by the term “compliance.” Relating to this, is anyone familiar with the Sarbanes-Oxley (SOX) legislation enacted by Congress in 2002? What was contained in this legislation and what prompted it? Can you provide a specific example of one of the major points of this legislation? Why was it enacted? Separately, does the term “compliance” apply to any other areas of business besides the SOX legislation?

The Sarbanes-Oxley Act of 2002 (SOX) is an act passed by U.S. Congress on July 30, 2002 to protect investors from the possibility of fraudulent accounting activities by corporations. The Sarbanes-Oxley Act of 2002, also known as the Corporate Responsibility Act of 2002, mandated strict reforms to improve financial disclosures from corporations and prevent accounting fraud.
The Act was responsible for sweeping reforms in the following four areas:
-Corporate Responsibility
-Increased Criminal Punishment
-Accounting Regulation
-New Protections
Section 302 of the Sarbanes-Oxley Act of 2002 is a mandate that requires senior management to certify the accuracy of the reported financial statement. The main purpose of SOX is to protect shareholders from fraudulent representations in corporate financial statements. Investors need to know that the financial information they rely on is truthful, and that an independent third party has verified its accuracy…

ACCT212 Financial Accounting Course

Course Project – 50 Pages 

ACCT212 Course Project Discussions Week 3

Go to Course Home and review the Course Project Overview. Then download the Course Project template from Files. 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 Lessons in Weeks 1 and 2.

It is important to analyze each transaction because of the accounting equation.  It should be one of the first thing someone in a business do to make sure that assets= equity + liabilities stay in balance.  Knowing what transactions have taken place and getting them recorded correct can tell you a lot about how the transactions do affect the bottom line on a business…

Week 4 All Students Posts – 107 Pages 

ACCT212 Course Discussions Week 4

Inventory Management – 63 Pages 

ACCT212 Inventory Management Discussions

Students are encouraged to use online collaboration tools to create a submission 2-4 minutes in length, discussing the three primary methods of assessing ending inventory value, what each method represents and how the method chosen can affect cost of goods sold and gross margin.

In this post, you’ll discuss the three primary methods of assessing ending inventory value, and what each method means to the business.

Inventory Management focuses on the processing of inventory as it is moved through purchasing and selling inventory in a business, please see this Cost of Goods Sold video that focuses on this process. Remember the Cost of goods sold or as we accountants say COGS for short, are the costs incurred to ready the product or service for a customer or client! 

There are 3 primary methods that businesses use to calculate the cost of production through COGS and Ending Inventory on hand…In this post, you’ll discuss the three primary methods of assessing ending inventory value, and what each method means to the business…

Course Project – 46 Pages 

ACCT212 Course Project Discussions Week 4

Go to Course Home and review the Course Project Overview. Continue to use the Course Project template from the Files section. 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.

Remember this is a journal entry and in a journal entry there are 2 accounts being changed and affected at the same time, with every transaction there is a DR. Debit and a CR. Credit account moved in value.

So, when we read the business transaction aloud, think of what type of primary account, from within the accounting equation that is being moved or changed in value first, then focus on the sub accounts to place within your journal entry…

ACCT212 Financial Accounting Course

Week 5 All Students Posts – 132 Pages 

ACCT212 Course Discussions Week 5

Non-Current Assets and Related Liabilities – 69 Pages 

Non Current Assets and Related Liabilities

Students are encouraged to use online collaboration tools to create a submission 2-4 minutes in length, discussing your research into the relevance of the company’s Fixed Assets (PP&E) to their core business, and how Fixed Assets (PP&E) help the company in its business.

In this post, you’ll provide researched, APA sourced citations on how companies report their Fixed Assets (PP&E), and you’ll discuss what this information means to the business.

The points given below are substantial, so far as the difference between assets and liabilities is concerned:

  1. In accounting context, assets are the property or estate which can be transformed into cash in the future, whereas liabilities are the debt which is to be settled in the future.
  2. Assets refer to the financial resources, which provide future economic benefit. Conversely, liabilities are those financial obligations, which requires being paid off in the near future.
  3. Assets are depreciable objects, i.e. every year a certain percentage or amount is deducted as depreciation. As against this, liabilities are non-depreciable.
  4. In the balance sheet, assets are shown on the right side, while liabilities are placed at the left. Further, the total of assets and total of liabilities should tally.
  5. Assets are classified as current and non-current assets. On the other hand, Liabilities are classified as current and non-current liabilities.
  6. Examples of assets – Trade Receivables, Building, Inventory, Patent, Furniture, etc., and Example of liabilities- Trade Payable, Debentures, Bank Loan, Overdraft, etc.

PP&E plays a key part in the financial planning and analysis Links to an external site of a company’s operations and future expenditures, especially with regards to capital expenditures. Property, Plant, and Equipment (PP&E) is a non-current, tangible capital asset is for business and used to generate revenues and profits.

Formula: Net PP&E = Gross PP&E + Capital Expenditures – Accumulated Depreciation

For example: In May 2017, Factory Corp. owned PP&E machinery with a gross value of $5,000,000. Accumulated depreciation for the same machinery was at $2,100,000. Due to the wear and tear of the machinery, the company decided to purchase another $1,000,000 in new equipment. For this period, the depreciation expense for all old and new equipment is $150,000.

The PP&E account is often denoted as net of accumulated depreciation. This means that if a company does not purchase additional new equipment (therefore, its capital expenditures are zero), then Net PP&E should slowly decrease in value every year due to depreciation to an external site.  This can be better determined by a depreciation schedule.  PP&E is a tangible fixed-asset account item and is generally very illiquid. A company can sell its equipment, but not as easily as it can sell its or investments such as bonds or stock shares. The value of PP&E between companies will vary with the operations. For example, a construction company will generally have a significantly higher property, plant, and equipment balance than an accounting firm does…

Course Project – 63 Pages 

ACCT212 Course Project Course Project Week 5

Go to Course Home and review the Course Project Overview. Continue to use the Course Project template from the Files section. 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.

The income summary account is a transitional account into which all income statement revenue and expense accounts are transferred at the end of an accounting period. The net amount transferred into the income summary account equals the net profit or loss that the business incurred during the period. Thus, shifting revenue out of the income statement means debiting the revenue account for the total amount of revenue recorded in the period, and crediting the income summary account. Likewise, shifting expenses out of the income statement requires you to credit all of the expense accounts for the total amount of expenses recorded in the period, and debit the income summary account. This is the first step you would take in using the income summary account.

If the resulting balance in the income summary account is a profit (which is a credit balance), then debit the income summary account for the amount of the profit and credit the retained earnings account to shift the profit into retained earnings. If the resulting balance in the income summary account is a loss then the credit income summary account for the amount of the loss and debit the retained earnings account to shift the loss into the retained earnings. This is the second step you would take in using the income summary account and this should result in that account balancing to a zero…

ACCT212 Financial Accounting Course

Week 6 All Students Posts – 120 Pages 

ACCT212 Course Discussions Week 6

Stockholders’ Equity – 56 Pages 

ACCT212 Stockholders Equity Discussions

Students are encouraged to use online collaboration tools to create a submission 2-4 minutes in length, discussing your research into your selected company’s financial statement equity section, and explain why you believe that company has these various types of stock.

In this post, you’ll research public companies financial statements and provide APA sourced citations on what companies have for their financial statement equity sections in terms of types of stock, i.e. does the company have only common stock and/or preferred stock and/or treasury stock.

Because of the cost principle (and other accounting principles), assets are generally reported on the balance sheet at cost (or lower) amounts. As a result, it would be incorrect to assume that the total amount of stockholders’ equity is equal to the current value, or worth, of the corporation. Because of legal requirements, the stockholders’ equity section of a corporation’s balance sheet is more expensive than the owner’s equity section of a sole proprietorship balance sheet. (For example, state laws require that corporations keep separate in their records the amounts received through investors from the amounts earned through business activity.) State laws may also require that the par value be reported in a separate account...

ACCT212 Financial Accounting Course

Statement of Cash Flows – 64 Pages 

ACCT212 Statement Cash Flows Discussions

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.

cash flow statement typically breaks out a company’s cash. sources and uses for the period into three categories: cash flow from operating activities, cash flow from investing activities, and cash flow from financing activities. It is important to note that cash flow is not the same as net income, which includes transactions that did not involve actual transfers of money (depreciation is common example of a noncash expense that is included in net income calculations but not in cash flow calculations).

Cash flow from operating activities are generally calculated according to the following formula:

Cash Flows from Operations = Net income + Noncash Expenses + Changes in Working Capital

The statement of cash flows is one of the financial statements issued by a business, and describes the cash flows into and out of the organization. Its particular focus is on the types of activities that create and use cash, which are operations, investments, and financing.

Cash flows in the statement are divided into the following three areas:

  • Operating activities. These constitute the revenue-generating activities of a business. Examples of operating activities are cash received and disbursed for product sales, royalties, commissions, fines, lawsuits, supplier and lender invoices, and payroll.
  • Investing activities. These constitute payments made to acquire long-term assets, as well as cash received from their sale. Examples of investing activities are the purchase of fixed assets and the purchase or sale of securities issued by other entities.
  • Financing activities. These constitute activities that will alter the equity or borrowings of a business. Examples are the sale of company shares, the repurchase of shares, and dividend payments.

There are two ways in which to present the statement of cash flows, which are the direct method and indirect method.

The direct method requires an organization to present cash flow information that is directly associated with the items triggering cash flows, such as:

  • Cash collected from customers
  • Interest and dividends received
  • Cash paid to employees
  • Cash paid to suppliers
  • Interest paid
  • Income taxes paid

Under the indirect approach, the statement begins with the net income or loss reported on the company’s income statement, and then makes a series of adjustments to this figure to arrive at the amount of net cash provided by operating activities. These adjustments typically include the following:

  • Depreciation and amortization
  • Provision for losses on accounts receivable
  • Gain or loss on sale of assets
  • Change in receivables
  • Change in inventory
  • Change in payables

ACCT212 Financial Accounting Course

Week 7 All Students Posts – 100 Pages

ACCT212 Course Discussions Week 7

Financial Statement Analysis – 53 Pages 

ACCT212 Financial Statement Analysis

Select any one public company that interests you, look up its stock symbol on the Internet, and enter this symbol into the Quote Lookup box under the Finance link at Yahoo. Using the data available, calculate the Current Ratio and Quick Ratio for this company. Is there a difference between these two measures for this specific organization? Why or why not? If there is a difference, explain what exactly is causing it.

The formula for Quick Ratio:

Quick Ratio  =Cash + Short-Term Investment + Accounts Receivable                                 Total Current Liabilities

Under the Balance Sheet/Asset, we get the totals from the following:  Cash & Equivalents 53,528.00 + Marketable Securities (cash & equivalents – Market securities) 601.00 + Accounts Receivable 12,439.00 = 66,568

Under Equity & Liabilities/Total current Liabilities = 27,050.00

66,568 / 27,050 = 2.5 Quick Ratio

Formula for Current Ratio:

Current Ratio =Total Current Assets          Total Current Liabilities

Under the Balance Sheet/Asset, we get the totals from the following:  Current Assets = 70,994.00.

Under Equity & Liabilities/Total Current Liabilities = 27,050.00

70,994.00/27,050.00 = 2.6 Current Ratio

In this case, they’re not much of a difference between current ratio & quick ratio. The current ratio measures the ability to pay current liabilities with current assets…

Analysis Exercises – 47 Pages 

ACCT212 Analysis Exercises Discussions

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?

Common-size income statements can be prepared in two ways: Vertical Analysis and Horizontal Analysis.  Under vertical common-size analysis, each item of income statement is expressed as a percentage of total revenue for the period. This analysis is conducted to analyze how much a certain item has consumed from or contributed to total revenue. Under the Horizontal Analysis each item is expressed a percentage of similar corresponding item from base period. This analysis help us determine the change in each item over a period of time.

1 Vertical common-size income statement

Preparing vertical common-size income statements is pretty straight-forward. Consider the following example income statement:

Pak Accountants Inc.
Income Statement as at _________
Sales850,000
Cost of Sales(730,000)
Gross profit120,000
Administrative expenses(35,000)
Distribution expenses(12,000)
Operating profit73,000
Interest expense(11,000)
Profit before tax62,000
Tax(9,000)
Profit after tax53,000

Take each item and divide it over sales amount and multiply it to 100 to get the percentage. For example, dividing cost of sales over sales will give us 0.8588 [730,000 / 850,000]. Multiplying 0.8588 with 100 gives us 85.88%.

Remember the figures mentioned in brackets mean they are subtracted. This adds to the understanding of user as they can clearly see what figures are being deducted. Personally I like to keep the brackets with percentages as well so that users can understand these figures pertain to expenses or anything causing the profits/revenue to reduce.

Following shows the income statement with workings and percentages calculated:

Pak Accountants Inc.
Income Statement as at _________
$Working%
Sales850,000850,000/850,000100 %
Cost of Sales(730,000)(730,000)/850,000(85.88) %
Gross profit120,000120,000/850,00014.12 %
Administrative expenses(35,000)(35,000)/850,000(4.12) %
Distribution expenses(12,000)(12,000)/850,000(1.41) %
Operating profit73,00073,000/850,0008.59 %
Interest expense(11,000)(11,000)/850,000(1.29) %
Profit before tax62,00062,000/850,0007.29 %
Tax(9,000)(9,000)/850,000(1.06) %
Profit after tax53,00053,000/850,0006.24 %

ACCT212 Financial Accounting Course

Final Exam 

ACCT 212 Final Exam

(TCO 3) At the end of the period it is necessary to close all temporary accounts. (1) Explain why this process is required (15 points) and (2) provide an example of the closing of an expense account, Supplies Expense in the form of a journal entry. (10 points) (Points : 25)

(TCO 3) At the end of the period it is necessary to close all temporary accounts. (1) Explain why this process is required (15 points) and (2) provide an example of the closing of an expense account, Salary Expense in the form of a journal entry. (10 points) (Points: 25)

(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 (15 points) and (2) provide an example of the application of the debit/credit rules in the development of the trial balance. (10 points) (Points : 25)

(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 the debit/credit rules are used when developing journal entries (15 points) and (2) provide an example of the application of the debit/credit rules in the form of a journal entry. (10 points)(Points : 25)

(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 (15 points) and (2) provide an example of how this control could be implemented. (10 points) (Points : 25)

(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) (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 4) Inventory valuation methods determine the cost of goods sold and the inventory balance. (1) Explain how the Average Cost method is applied (15 points) and (2) provide an example of the application of this method. (10 points) (Points : 25)

(TCO 4) Inventory valuation methods determine the cost of goods sold and the inventory balance. (1) Explain how the First in First out (FIFO) method is applied (10 points) and (2) provide an example of the impact that this method of inventory valuation will have on Gross Profit. (15 points) (Points : 25)

ACCT212 Financial Accounting Course

(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            ……..

Thomas         01/15/01                160              14.00             2,240.00

Cindy            01/18/01                150              15.00            ………..

Sales

Customer      Date shipped    Quantity      Sel. Price                Amount

Norilene        01/16/01         200                  25.00                   ………

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

Sales

Cost of Sales
Gross Profit (Points : 25)

(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                  ……..
Accounts receivable             ……..
Delivery expense                 ……..
Retained earnings                ……..
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. (Points : 25)

(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. (15 points) (Points : 25)

(TCO 1) To evaluate the financial operation and health of a business ratio analysis is used. (1) Provide the formula for the Current Ratio and explain how it is computed (15 points) and (2) provide an example of how this ratio can be used in decision-making in business. (10 points) (Points : 25)

(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:
a. Straight-line method.
b. Double-declining balance method.
c. Units of Production method.
(For units-of-production and double-declining balance, round to the nearest two decimals after each step of the calculation.)
2. Which method best tracks the wear and tear on the van?
3. Which method would BagODonuts prefer to use for income tax purposes?  Explain in detail why BagODonuts prefers this method. (Points : 25)

(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)

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ACCT212 Financial Accounting Course

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