“Changes in Ownership Interest” Please respond to the following: From the first

“Changes in Ownership
Interest”
Please respond to the following:
From the first e-Activity, determine how the company you
researched would approach the change in ownership interest under
current GAAP and how that approach would differ under proposed
GAAP. Provide specific examples to support your
response.
Analyze the process of accounting for changes in
ownership interest to determine which step in that process is
likely to cause the greatest number of challenges to the greatest
number of companies. Explain your rationale
“Insolvency”
Please respond to the following:
From the e-Activity, deduce the best possible
contractual agreement the companies in question could have used to
avoid formal bankruptcy proceedings. Explain your
rationale.
Analyze the overall process of accounting for
insolvencies and make at least one recommendation for improving
current practices. Provide specific examples of how your
recommendation would be an improvement.

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RPM Music Center had the following petty cash transactions in March of the curre

RPM Music Center had the following petty cash transactions in
March of the current year:
 
March 5   Wrote a $200 check, cashed it, and gave the
proceeds and the petty cashbox to Liz Buck, the petty cashier.
          
6    Paid $14.50 COD shipping charges on merchandise
purchased for resale, terms FOB shipping point. RPM uses the 
perpetual system to account for merchandise inventory.
         
11   Paid $8.75 delivery charges on merchandise sold to a
customer, terms FOB destination.
        
12   Purchased file folders for $12.13 that are immediately
used.
         
14   Reimbursed Will Nelson, the manager, $9.65 for office
supplies purchased and used.
        
18   Purchased printer paper for $22.54 that is immediately
used.
         
27   Paid $47.10 COD shipping charges on merchandise
purchased for resale, terms FOB shipping point.
        
28   Paid postage expenses of $16.
        
30   Reimbursed Nelson $58.80 for business car mileage.
         
31   Cash of $11.53 remained in the fund. Sorted the petty
cash receipts by accounts affected and exchanged them for a check
to reimburse the fund for expenditures. The fund amounts also
increased to $250.
 
Required
1. Prepare the journal entry to establish the
petty cash fund.
 
2. Prepare a petty cash payments report for
March with these categories: delivery expense, mileage expense,
postage expense, merchandise inventory (for transportation-in), and
office supplies expense.
Sort the payments into the appropriate categories and total the
expenses in each category.
 
3. Prepare the journal entries for part 2 to
both (a) reimburse and (b) increase the fund
amount.

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EXERCISE 7-1 Hutton Company uses a sales journal, a purchases journal, a cash re

EXERCISE 7-1
Hutton Company uses a sales journal, a purchases journal, a cash
receipts journal, a cash disbursement journal, and a general
journal. The following transactions occur in the month of
March:
 Mar. 2 Sold merchandise costing $300 to B. Fager for $450
cash, invoice no. 5703.
        5 Purchased $2,300 of
merchandise on credit from Marsh Corp.
        7 Sold merchandise
costing $800 to J. Dryer for $1,150, terms 2_10, n_30, invoice no.
5704.
        8 Borrowed $8,000
cash by signing a note payable to the bank.
       12 Sold merchandise costing
$200 to R. Land for $320, terms n_30, invoice no. 5705.
       16 Received $1,127 cash
from J. Dryer to pay for the purchase of March 7.
       19 Sold used store
equipment for $900 cash to Malone, Inc.
       25 Sold merchandise costing
$350 to T. Burton for $550, terms n_30, invoice no. 5706.
 Prepare headings for a sales journal like the one in
Exhibit 7.5. Journalize the March transactions that
should be recorded in this sales journal.
 
EXERCISE 7-4      
Moeder Co. uses a sales journal, a purchases journal, a cash
receipts journal, a cash disbursements journal, and a general
journal. The following transactions occur in the month of
November.
Nov. 3 Purchased $3,100 of merchandise on credit from Hargrave
Co., terms n_20.
        7 Sold merchandise
costing $840 on credit to J. York for $900, subject to a $18 sales
discount
           if
paid by the end of the month.
        9 Borrowed $2,750
cash by signing a note payable to the bank.
      13 J. Emling, the owner,
contributed $4,000 cash to the company.
      18 Sold merchandise costing $130
to B. Box for $230 cash.
      22 Paid Hargrave Co. $3,100 cash
for the merchandise purchased on November
3.                                                         
                                
      27 Received $882 cash from J.
York in payment of the November 7 purchase.
      30 Paid salaries of $1,600 in
cash.
Prepare headings for a cash receipts journal like the one in
Exhibit 7.7. Journalize the November
transactions that should be recorded in the cash receipts
journal.         
 
EXERCISE 7-7
Redmon Company uses a sales journal, a purchases journal, a cash
receipts journal, a cash disbursements
journal, and a general journal. The following transactions occur
in the month of June.
 
June 1 Purchased $8,100 of merchandise on credit from Vick,
Inc., terms n_30.
         8 Sold
merchandise costing $900 on credit to R. Panke for $1,500 subject
to a $30 sales discount

            
if paid by the end of the month.
       14 Purchased $240 of store
supplies from Poe Company on credit, terms n_30.
       17 Purchased $260 of office
supplies on credit from Rehmer Company, terms n_30.
       24 Sold merchandise costing
$400 to L. Barnett for $630 cash.
       28 Purchased store supplies
from Piburn’s for $90 cash.
       29 Paid Vick, Inc., $8,100
cash for the merchandise purchased on June 1.
 
Prepare headings for a purchases journal like the one in Exhibit
7.9. Journalize the June transactions
that should be recorded in the purchases
journal.          
 
EXERCISE 7-10
Politte Supply uses a sales journal, a purchases journal, a cash
receipts journal, a cash disbursements
journal, and a general journal. The following transactions occur
in the month of April.
 
Apr. 3 Purchased merchandise for $2,750 on credit from Scott,
Inc., terms 2_10, n_30.
       9 Issued check no. 210 to
Kidman Corp. to buy store supplies for $450.
     12 Sold merchandise costing $400 on
credit to C. Myers for $670, terms n_30.
     17 Issued check no. 211 for $1,500 to
pay off a note payable to City Bank.
     20 Purchased merchandise for $3,500 on
credit from LeBron, terms 2_10, n_30.
     29 Issued check no. 212 to LeBron to
pay the amount due for the purchase of April 20, less
          the
discount.
     30 Paid salary of $1,700 to B. Decker
by issuing check no. 213.
     31 Issued check no. 214 to Scott, Inc.,
to pay the amount due for the purchase of April 3.
 
Prepare headings for a cash disbursements journal like the one
in Exhibit 7.11. Journalize the April transactions that should be
recorded in the cash disbursements journal.      
                 
                 
 

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Prepare a 700- to 1,050-word paper in which you explain the nature and functions

Prepare a 700- to 1,050-word paper in which you
explain the nature and functions of auditing.
Relate your explanation to the audit functions
in your organization, or an organization with which you are
familiar.
Address the following in your paper:
 

Describe the elements of the Generally Accepted Auditing
Standards (GAAS).
Describe how these standards apply to financial, operational,
and compliance audits.
Explain the effect that the Sarbanes-Oxley Act of 2002, and the
Public Company Accounting Oversight Board (PCAOB), will have on
audits of publicly traded companies.
Discuss the additional requirements that are placed on auditors
from this act and the actions of the PCAOB.

 
Format your paper consistent with APA
guidelines.

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Requirement 1.    Journalize the transactions on the books of Thelma’s Amusemen

Requirement

1.    Journalize the transactions on the books of
Thelma’s Amusements.
 Thelma’s Amusements completed the following transactions
during November 2012:
  Nov  1 Purchased supplies for cash,
$700.

 Nov   4 Purchased inventory on credit terms of
3/10, n/eom, $9,600.

       8  Returned half the
inventory purchased on November 4. It was not the inventory
ordered.

      10  Sold goods for cash,
$1,200 (cost, $700).

      13  Sold inventory on
credit terms of 2/15, n/45, $9,900 (cost, $5,300).

      14  Paid the amount owed
on account from November 4, less the return (November 8) and the
discount.

      17  Received defective
inventory as a sales return from the November 13 sale, $600.
Thelma’s cost of the inventory received was $450.

      18  Purchased inventory of
$4,100 on account. Payment terms were 2/10, net 30.

      26  Paid the net amount
owed for the November 18 purchase.

      28  Received cash in full
settlement of the account from the customer who purchased inventory
on November 13, less the return and the discount.

      29  Purchased inventory
for cash, $12,000, plus freight charges of $200.

 
 

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Morganton Company makes one product and it provided the following information to

Morganton Company makes one product and it provided the
following information to help prepare the master budget for its
first four months of operation:
a. The budgeted selling price per unit is $70. Budgeted unit
sales for June, July, August, and September are 8,400, 10,000,
12,000, and 13,000 unites, respectively. All sales are on
credit.
b. 40% of credit sales are collected in the month of the sale
and 60% in the following month.
c. The ending finished goods inventory equals 20% of the
following month’s unit sales.
d. The ending raw materials inventory equals 10% of the
following month’s raw materials production needs. Each unit of
finished goods requires 5 pounds of raw materials. The raw
materials cost $2.00 per pound.
e. 30% of raw materials purchases are paid for in the month of
purchase and 70% in the following month.
f. The direct labor wage is $15 per hour. Each unit of finished
goods requires two direct labor-hours.
g. The variable selling and administrative expense per unit sold
is $1.80. The fixed selling and administrative expense per month is
$60,000.
 
REQUIRED!
1. What are the budgeted sales for July?
2. What are the expected cash collections for July?
3. What is the accounts receivable balance at the end of
July?
4. According to the production budget, how many units should be
produced in July?
5. If 61,000 pounds of raw materials are needed to meet
production in August, how many pounds of raw materials should be
purchased in July?
6. What is the estimated cost of raw materials purchases for
July?
7. If the cost of raw materials purchases in June is $88.880,
what are the estimated cash disbursements for raw materials
purchases in July?
8. What is the estimated accounts payable balance at the end of
July?
9. What is the estimated raw materials inventory balance at the
end of July?
10. What is the total estimated direct labor cost for July
assuming the direct labor workforce is adjusted to match the hours
required to produce the forecasted number of units produced?
11. If the company always used an estimated predetermined
plantwide overhead rate of $10 per direct labor-hour, what is the
estimated unit product cost?
12. What is the estimated finished goods inventory balance at
the end of July?
13. What is the estimated cost of goods sold and gross margin
for July?
14. What is the estimated total selling and administrative
expense for July?
15. What is the estimated net operating income for July?

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1. The first general standard of generally accepted auditing standards which sta

1. The first general standard of generally accepted
auditing standards which states, in part, that the examination is
to be performed by a person or persons having adequate technical
training, requires that an auditor have:
2. The first standard of field work recognizes that
early appointment of the independent auditor has many advantages to
the auditor and the client. Which of the following advantages is
least likely to occur as a result of early appointment of the
auditor?
3. Due professional care requires
4. Auditing standards differ from auditing procedures in
that procedures relate to
5. One element of the personnel management quality
control standard is
professional development. The primary reason why a CPA
firm establishes policies
and procedures for professional development of staff
accountants is to
 
These are just few questions from the exam.  Please
see the attached file for details

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Discussion Board Unit 1 – Unit 4 with References   Unit 1: Introduction to Manag

Discussion Board Unit 1 – Unit 4 with References
 
Unit 1: Introduction to Managerial Accounting
Consider the following scenario:
You are a senior level manager in a large company:
List and explain the types of accounting information that are
important to you and your staff
when making decisions.
Explain how your managerial accountant uses technology to develop
and communicate this
information throughout your large company.
 
Unit 2: Cost Management
Activity-based costing differs from traditional costing systems
in a number of ways. In activity-basedcosting, non-manufacturing as
well as manufacturing costs may be assigned to products. And, some
manufacturing costs may be excluded from product costs.

1. Discuss other differences between activity-based costing and the
traditional costing systems.
2. Discuss the reasons that activity-based costing may be resisted
by top management.
3. Discuss why activity rates are important 3. to management.
4. In your opinion, why activity-based costing approach is probably
unacceptable for external financialreports.

The controller of Chicago Company is in charge of installing a new
costing system that includes the allocation of indirect
manufacturing costs to the producing departments. After studying
the situation, he found there were three cost drivers that could be
used to assign the indirect costs, each with its own merits. After
computing the allocations for the departments on a sample month, he
found that each cost driver favored (that is, assigned less costs
to) a different department. Machine hours favored Department X,
direct manufacturing labor hours favored Department Y, and number
of processing steps performed favored Department Z.
1. What additional factors must the controller consider before
deciding on an allocation base for the indirect manufacturing cost
assignment to the departments?
Unit 3: Activity-Based Costing & Process Costing
Consider the following scenario:
Your CFO, in her initial work, needs to decide whether to set up a
job order costing system or a process type costing system. She has
asked you to make a recommendation based on the following
information. You plan to meet with her in the morning. Write 4–6
paragraphs in response to the following, and provide support for
your recommendation:

1. Compare and contrast job order costing to process costing
methods.
2. What kind of system works best in what kinds of
companies?
3. What kind of system makes sense for your company, given that you
plan to start with only one
version of your product but at some point in the future may offer a
variety of options?
 
Unit 4: Financial Analysis: Planning & Budgeting
Students should review the following statements and write 3–4
paragraphs that provide support for your answers:
1. Managers should base pricing decisions on both cost and
market factors. In addition, they must also consider legal issues.
Describe the influence that the law has on pricing decisions.
2. It is impossible to use Discounted Cash Flow methods for
evaluating investments in research and development. There are no
cost savings to measure, and we don’t even know what products might
come out of our R&D activities.” This is a quote from an
R&D manager who was asked to justify investment in a major
research project based on its expected net present value. How would
you respond to this statement? Do you agree or disagree?
Explain.
 
Unit 5: Responsibility Centers & Financial Controls
Consider the following scenario:
The organization that you work for has been thinking about
implementing one of the following performance measures:
Balanced Scorecard
Economic Value Added
It has asked you to prepare a summary and make a recommendation
as to what performance measure should be used. Use the library, the
Internet, and other resources, to research these topics and provide
support for your recommendation.

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COMPREHENSIVE PROBLEM Modern Weapons, Inc. (Comprehensive time value of money) M

COMPREHENSIVE PROBLEM
Modern Weapons, Inc. (Comprehensive time value of
money) Mr. Rambo, President of Modern Weapons, Inc., was
pleased to hear that he had three offers from major defense
companies for his latest missile firing automatic ejector. He will
use a discount rate of 12 percent to evaluate each offer.
 

Offer I

$500,000 now plus $120,000 from the end of years 6 through 15.
Also if the product goes over $50 million in cumulative sales by
the end of year 15, he will receive an additional $1,500,000. Rambo
thought there was a 75 percent probability this would happen.

Offer II

Twenty-five percent of the buyer’s gross margin for the next
four years. The buyer in this case is Air Defense, Inc. (ADI). Its
gross margin is 65 percent. Sales for year 1 are projected to be $1
million and then grow by 40 percent per year. This amount is paid
today and is not discounted.

Offer III

A trust fund would be set up for the next nine years. At the end
of that period, Rambo would receive the proceeds (and discount them
back to the present at
12 percent). The trust fund called for semiannual payments for the
next nine years of $80,000 (a total of $160,000 per year). The
payments would start immediately. Since the payments are coming at
the beginning of each period instead of the end, this is an annuity
due. To look up the future value of the annuity due in the tables,
add 1 to n (18 + 1) and subtract 1 from the value in the table.
Assume the annual interest rate on this annuity is 12 percent
annually (6 percent semiannually). Determine the present value of
the trust fund’s final value.
Required: Find the present value of each of the three offers and
then indicate which one has the highest present value.

 

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Level versus seasonal production (LO1) Bambino Sporting Goods makes baseball glo

Level versus seasonal production (LO1) Bambino
Sporting Goods makes baseball gloves that are very popular in the
spring and early summer season. Units sold are anticipated as
follows:
 
March 3,000
April 7,000
May 11,000
June 9,000
30,000
 
If seasonal production is used, it is assumed that inventory
will directly match sales for each month and there will be no
inventory buildup.
The production manager thinks the above assumption is too
optimistic and decides to go with level production to avoid being
out of merchandise. He will produce the 30,000 units over 4 months
at a level of 7,500 per month.
 
a. What is the ending
inventory at the end of each month? Compare the unit sales to the
units produced and keep a running total.
b. If the inventory costs $20
per unit and will be financed at the bank at a cost of 6 percent,
what is the monthly financing cost and the total for the four
months? (Use .5% as the monthly rate.)

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