ACC 421 Education for Service--tutorialrank.com

1. ACC 421 Final Exam Guide (New) 98% Score For more course tutorials visit www.tutorialrank.com Scroll Down to See Details of the Questions Transactions for Mehta Company for the month of May are presented below. Prepare journal entries for each of these transactions. On July 1, 2014, Crowe Co. pays $15,000 to Zubin Insurance Co. for a 3-year insurance policy. Both companies have fiscal years ending December 31. For Crowe Co., journalize the entry on July 1 and the adjusting entry on December 31.

2. Dresser Company’s weekly payroll, paid on Fridays, totals $8,000. Employees work a 5-day week. Prepare Dresser’s adjusting entry on Wednesday, December 31, and the journal entry to record the $8,000 cash payment on Friday, January 2 Side Kicks has year-end account balances of Sales Revenue $808,900; Interest Revenue $13,500; Cost of Goods Sold $556,200; Administrative Expenses $189,000; Income Tax Expense $35,100; and Dividends $18,900. Prepare the year-end closing entrie To convert cash receipts from customers to revenue on an accrual basis, the following adjustments are made: Cash receipts from customers Subtract beginning A/R Add ending A/R Add beginning Unearned Service Revenue Subtract ending Unearned Service Revenue At the time a company prepays a cost Starr Co. had sales revenue of $540,000 in 2014. Other items recorded during the year were

3. Portman Corporation has retained earnings of $675,000 at January 1, 2014. Net income during 2014 was $1,400,000, and cash dividends declared and paid during 2014 totaled $75,000. Prepare On January 1, 2014, Richards Inc. had cash and common stock of $60,000. At that date, the company had no other asset, liability, or equity balances. On January 2, 2014, it purchased for cash $20,000 of equity securities that it classified as available-for-sale. It received cash dividends of $3,000 during the year on these securities. Harding Corporation has the following accounts included in its December 31, 2014, trial balance: Accounts Receivable $110,000; Inventory $290,000; Allowance for Doubtful Accounts $8,000; Patents $72,000; Prepaid Insurance $9,500; Accounts Payable $77,000; Cash $30,000. Patrick Corporation’s adjusted trial balance contained the following asset accounts at December 31, 2014: Prepaid Rent $12,000; Goodwill $50,000; Franchise Fees Receivable $2,000; Franchises $47,000; Patents $33,000; Trademarks $10,000

4. Hawthorn Corporation’s adjusted trial balance contained the following accounts at December 31, 2014: Retained Earnings $120,000; Common Stock $750,000; Keyser Beverage Company reported the following items in the most recent year. Ames Company reported 2014 net income of $151,000. During 2014, accounts receivable increased by $13,000 and accounts payable increased by $9,500. Depreciation expense was $44,000. Martinez Corporation engaged in the following cash transactions during 2014. Martinez Corporation engaged in the following cash transactions during 2014. A comparative balance sheet for Shabbona Corporation is presented below. Chris Spear invested $15,000 today in a fund that earns 8% compounded annually. (Use the tables below.)

5. Amy Monroe wants to create a fund today that will enable her to withdraw $25,000 per year for 8 years, with the first withdrawal to take place 5 years from today Zach Taylor is settling a $20,000 loan due today by making 6 equal annual payments of $4,727.53. (Use the tables below.) Alan Jackson invests $20,000 at 8% annual interest, leaving the money invested without withdrawing any of the interest for 8 years. At the end of the 8 years, Alan withdraws the accumulated amount of money. Guillen, Inc. began work on a $7,000,000 contract in 2014 to construct an office building. Guillen uses the completed-contract method. At December 31, 2014, the balances in certain accounts were Construction in Process $1,715,000; Accounts Receivable $240,000; and Billings on Construction in Process $1,000,000.

6. Lazaro Inc. sells goods on the installment basis and uses the installment- sales method. Due to a customer default, Lazaro repossessed merchandise that was originally sold for $800, resulting in a gross profit rate of 40%. At the time of repossession, the uncollected balance is $520, and the fair value of the repossessed merchandise is $275 Morlan Corporation is preparing its December 31, 2014, financial statements. Two events that occurred between December 31, 2014, and March 10, 2015, when the statements were issued, are described below. Foley Corporation has seven industry segments with total revenues as follows. Operating profits and losses for the seven industry segments of Foley Corporation are: Heartland Company’s budgeted sales and budgeted cost of goods sold for the coming year are $144,000,000 and $99,000,000, respectively. Short-term interest rates are expected to average 10%. If Heartland can

7. increase inventory turnover from its present level of 9 times a year to a level of 12 times per year. The payout ratio is calculated by dividing Presented below are four segments that have been identified by Haley Productions: At December 31, 2014, Grinkov Corporation had the following account balances. Indicate how these accounts would be reported in Grinkov’s December 31, 2014, balance sheet. The 2013 accounts are collectible in 2015, and the 2014 accounts are collectible in 2016. Brief Exercise 3-1 Brief Exercise 3-3

8. Brief Exercise 3-7 Brief Exercise 3-11 Practice Question 41 Multiple Choice Question 56 Brief Exercise 4-1 Brief Exercise 4-10 Brief Exercise 4-11 Brief Exercise 5-1 Brief Exercise 5-6 Brief Exercise 5-10 Brief Exercise 5-12 Brief Exercise 5-13 Brief Exercise 5-14 Brief Exercise 5-16 Exercise 5-16 Brief Exercise 6-1 Brief Exercise 6-14 Brief Exercise 6-17

9. Exercise 6-2 Brief Exercise 18-10 Brief Exercise 18-13 Brief Exercise 24-3 (Essay) Brief Exercise 24-5 Brief Exercise 24-6 Brief Exercise 18-14 Multiple Choice Question 56 Multiple Choice Question 51 ============================================== ACC 421 Final Exam Guide (New) For more course tutorials visit www.tutorialrank.com Number of Questions 30

10. Score atleast 90% easily with our EXCEL SHEET for any values (EVEN IF VALUES CHANGES) of below mentioned Question Exercise 129 Prepare the necessary adjusting journal entries indicated by each item for the year ended December 31, 2017. Exercise 132 1. An income statement. 2. A retained earnings statement. 3. A balance sheet. Brief Exercise 3-2 Splish Repair Shop had the following transactions during the first month of business as a proprietorship. Journalize the transactions Brief Exercise 3-8 Included in Novak Company’s December 31 trial balance is a note receivable of $12,360. The note is a 4-month, 10% note dated October 1. Prepare Novak’s December 31 adjusting entry to record $309 of accrued interest, and the February 1 journal entry to record receipt of $12,772 from the borrower. Brief Exercise 4-3 Kingbird Corporation had net sales of $2,423,900 and interest revenue of $39,100 during 2017. Expenses for 2017 were cost of goods sold $1,464,800, administrative expenses $218,000, selling expenses $283,500, and interest expense $54,200. Kingbird’s tax rate is

11. 30%. The corporation had 103,100 shares of common stock authorized and 72,670 shares issued and outstanding during 2017. Prepare a condensed multiple-step income statement for Kingbird Corporation. Exercise 4-2 Presented below is information related to Windsor Company at December 31, 2017, the end of its first year of operations. (a) Income from operations (b) Net income (c) Comprehensive income (d) Retained earnings balance at December 31, 2017 Brief Exercise 4-7 Sheffield Company has recorded bad debt expense in the past at a rate of 1.5% of accounts receivable, based on an aging analysis. In 2017, Sheffield decides to increase its estimate to 2%. If the new rate had been used in prior years, cumulative bad debt expense would have been $383,900 instead of $298,500. In 2017, bad debt expense will be $132,400 instead of $96,720. If Sheffield’s tax rate is 29%, what amount should it report as the cumulative effect of changing the estimated bad debt rate? Exercise 104 Presented below are changes in the account balances of Wenn Company during the year, except for retained earnings. (a) Compute the net income for the current year.

12. Question 13 The Marin, Inc. sold 10,350 season tickets at $2,040 each. By December 31, 2017, 16 of the 40 home games had been played. What amount should be reported as a current liability at December 31, 2017? Brief Exercise 5-2 Martinez Corporation’s adjusted trial balance contained the following asset accounts at December 31, 2017: Cash $9,750, Land $45,600, Patents $17,100, Accounts Receivable $94,270, Prepaid Insurance $5,640, Inventory $39,400, Allowance for Doubtful Accounts $4,500, and Equity Investments (trading) $11,570.Prepare the current assets section of the balance sheet Brief Exercise 5-8 Included in Sunland Company’s December 31, 2017, trial balance are the following accounts: Accounts Payable $221,400, Pension Liability $380,600, Discount on Bonds Payable $31,100, Unearned Rent Revenue $43,600, Bonds Payable $406,600, Salaries and Wages Payable $29,000, Interest Payable $13,460, and Income Taxes Payable $30,460. Brief Exercise 5-9 Included in Windsor Company’s December 31, 2017, trial balance are the following accounts: Accounts Payable $249,600, Pension Liability $376,400, Discount on Bonds Payable $29,400, Unearned Rent Revenue $47,100, Bonds Payable $409,200, Salaries and Wages Payable $27,100, Interest Payable $13,990, and Income Taxes Payable $36,700. Brief Exercise 5-13 Sarasota Company reported 2017 net income of $152,800. During 2017, accounts receivable increased by $14,580 and accounts payable increased by $9,723. Depreciation expense was $46,700. Brief Exercise 5-14 Compute the net cash provided (used) by investing activities.

13. Brief Exercise 5-15 Compute the net cash used (provided) by financing activities. 7. Brief Exercise 6-2 What amount must he invest today if his investment earns 12% compounded annually? What amount must he invest if his investment earns 12% annual interest compounded quarterly? Brief Exercise 6-6 How much must he invest at the end of each year, at 8% interest, to meet his needs? Brief Exercise 6-15 What amount will Pearl receive when it issues the bonds? Exercise 6-12 In which building would you recommend that The Sheridan Inc. locate, assuming a 12% cost of funds? Brief Exercise 18-2 On May 10, 2017, Swifty Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2017. Greig agrees to pay the full contract price of $2,060 on July 15, 2017. The cost of the goods is $1,350. Swifty delivers the product to Greig on June 15, 2017, and receives payment on July 15, 2017. Prepare the journal entries for Swifty related to this contract. Either party may terminate the contract without compensation until one of the parties performs. Brief Exercise 18-8 Presented below are three revenue recognition situations.

14. (a) Groupo sells goods to MTN for $932,000, payment due at delivery. (b) Groupo sells goods on account to Grifols for $753,000, payment due in 30 days. (c) Groupo sells goods to Magnus for $537,000, payment due in two installments, the first installment payable in 18 months and the second payment due 6 months later. The present value of the future payments is $499,700. Brief Exercise 18-10 (a) Prepare the journal entries for Kingbird on March 1, 2017. (b) Prepare the journal entries for Kingbird on December 31, 2017. Brief Exercise 18-13 Prepare Carla’s journal entries to record (a) the sale on July 10, 2017, and (b) $84,200 of returns on October 11, 2017, and on October 31, 2017. Assume that Carla prepares financial statement on October 31, 2017. Question 17 Classify the following items as (1) operating, (2) investing, (3) financing, or (4) significant noncash investing and financing activities, using the direct method. Brief Exercise 23-1 Novak Corporation is preparing its 2017 statement of cash flows, using the indirect method. Presented below is a list of items that may affect the statement. Using the code below, indicate how each item will affect Novak’s 2017 statement of cash flows. Brief Exercise 23-7 Whispering Corporation had January 1 and December 31 balances as follows.

15. Brief Exercise 23-8 In 2017, Martinez Corporation had net cash provided by operating activities of $511,000, net cash used by investing activities of $992,000, and net cash provided by financing activities of $570,000. At January 1, 2017, the cash balance was $330,000. Brief Exercise 23-9 Teal Corporation had the following 2017 income statement. (a) Prepare Teal’s cash flows from operating activities section of the statement of cash flows using the direct method. (b) Prepare Teal’s cash flows from operating activities section of the statement of cash flows using the indirect method. Brief Exercise 24-8 (a) The current ratio of a company is 5:1 and its acid-test ratio is 1:1. If the inventories and prepaid items amount to $530,000, what is the amount of current liabilities? (b) A company had an average inventory last year of $209,000 and its inventory turnover was 6. If sales volume and unit cost remain the same this year as last and inventory turnover is 8 this year, what will average inventory have to be during the current year? (c) A company has current assets of $90,000 (of which $44,000 is inventory and prepaid items) and current liabilities of $44,000. What is the current ratio? What is the acid-test ratio? If the company borrows $14,000 cash from a bank on a 120-day loan, what will its current ratio be? What will the acid-test ratio be? (d) A company has current assets of $628,000 and current liabilities of $255,000. The board of directors declares a cash dividend of $195,000. What is the current ratio after the declaration but before payment? What is the current ratio after the payment of the dividend?

16. Exercise 24-3 Kingbird Company is involved in four separate industries. The following information is available for each of the four industries. (a) Revenue test. (b) Operating profit (loss) test. (c) Identifiable assets test. ============================================== ACC 421 Final Exam Guide For more course tutorials visit www.tutorialrank.com Question 1 Transactions for Mehta Company for the month of May are presented below. May 1 B.D. Mehta invests $3,054 cash in exchange for common stock of Mehta Company, a small welding corporation. 3 Buys equipment on account for $1,547.

17. Question 2 On July 1, 2012, Crowe Co. pays $19,796 to Zubin Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. For Crowe Co. Question 3 Dresser Company's weekly payroll, paid on Fridays, totals $12,000. Employees work a 5-day week. Prepare Dresser's adjusting entry on Wednesday, December 31, and the Question 4 Side Kicks has year-end account balances of Sales $876,990; Interest Revenue $17,650; Cost of Goods Sold $577,500; Operating Expenses $200,240; Income Tax Expense Question 5 Financial information exhibits the characteristic of consistency when: Question 6 What is the relationship between the Securities and Exchange Commission and accounting standard setting in the United States? Question 7 Starr Co. had sales revenue of $609,500 in 2012. Other items recorded during the year were: Cost of goods sold $326,100 Wage expense 125,100 Income tax expense 28,000 Question 8

18. Portman Corporation has retained earnings of $688,540 at January 1, 2012. Net income during 2012 was $1,749,750, and cash dividends declared and paid during 2012 totaled Question 9 On January 1, 2012, Richards Inc. had cash and common stock of $63,640. At that date the company had no other asset, liability or equity balances. On January 2, 2012, it purchased for cash $24,740 of equity securities that it classified as available-for-sale. It received cash dividends of $3,300 net of tax during the year on these securities. In Question 10 Armstrong Corporation reported the following for 2012: net sales $1,249,000; cost of goods sold $757,900; selling and administrative expenses $325,400; and an unrealized Question 11 Guillen, Inc. began work on a $7,017,700 contract in 2012 to construct an office building. Guillen uses the completed-contract method. At December 31, 2012, the Question 12 Lazaro, Inc. sells goods on the installment basis and uses the installment-sales method. Due to a customer default, Lazaro repossessed merchandise that was originally sold for Question 13 Harding Corporation has the following accounts included in its December 31, 2012, trial balance: Accounts Receivable $110,240; Inventories $296,950; Allowance for Doubtful

19. Question 14 Patrick Corporation's adjusted trial balance contained the following asset accounts at December 31, 2012: Prepaid Rent $16,220; Goodwill $59,100; Franchise Fees Receivable Question 15 Hawthorn Corporation's adjusted trial balance contained the following accounts at December 31, 2012: Retained Earnings $126,760; Common Stock $700,260; Bonds Question 16 Keyser Beverage Company reported the following items in the most recent year. Net income $45,190 Dividends paid 5,770 Increase in accounts receivable 10,140 Question 17 Linden Corporation is preparing its December 31, 2012, financial statements. Two events thatoccurred between December 31, 2012, and March 10, 2013, when the Question 18 Roder Corporation has seven industry segments with total revenues as follows. Penley $1,827 Cheng $609 Konami 2,088 Takuhi 522 KSC 696 Molina 2,175 Red Moon Question 19

20. Operating profits and losses for the seven industry segments of Roder Corporation are: Penley $234 Cheng $(54) Question 20 Which of the following events will appear in the cash flows from financing activities section of the statement of cash flows? Question 21 Heartland Company's budgeted sales and budgeted cost of goods sold for the coming year are $146,550,000 and $35,397,000 respectively. Short-term interest rates are expected to average 10%. Question 22 The financial statement which summarizes operating, investing, and financing activities of an entity for a period of time is the: Question 23 Ames Company reported 2012 net income of $159,290. During 2012, accounts receivable increased by $15,630 and accounts payable increased by $9,930. Question 24 Martinez Corporation engaged in the following cash transactions during 2012. Sale of land and building $191,970 Purchase of treasury stock 45,020

21. Question 25 Martinez Corporation engaged in the following cash transactions during 2012. Sale of land and building $184,990 Purchase of treasury stock 42,320 Purchase of land 46,050 Question 26 A comparative balance sheet for Orozco Corporation is presented below. Question 27 Chris Spear invested $11,999 today in a fund that earns 12% compounded annually. To what amount will the investment grow in 3 years? To what amount would the Question 28 Amy Monroe wants to create a fund today that will enable her to withdraw $30,910 per year for 8 years, with the first withdrawal to take place 4 years from today. If the fund Question 29 Zach Taylor is settling a $26,000 loan due today by making 6 equal annual payments of $6025.15. Question 30

22. Lyle O 'Keefe invests $30,000 at 8% annual interest, leaving the money invested without withdrawing any of the interest for 8 years. At the end of the 8 years, Lyle withdrew the ============================================== ACC 421 Week 1 US GAAP Versus IFRS For more course tutorials visit www.tutorialrank.com Write a 1,050- to 1,400-word paper that addresses the following scenario and questions: Your aunt recently received the annual report for a company in which she has invested. The report notes that the statements have been prepared in accordance with “generally accepted accounting principles.” She has also heard that certain terms have special meanings in accounting relative to everyday use. She would like you to explain the meaning of terms she has come across related to accounting. Go to the FASB website and access the FASB Concepts Statements and use the IASB website to respond to the following items. (Provide paragraph citations.) When you have accessed the documents, you can use the search tool in your Internet browser.

23. oExplain how “materiality” is defined by both FASB and IASB. oThe concepts statements provide several examples in which specific quantitative materiality guidelines are provided to firms. Identity at least two of these examples. Do you think the materiality guidelines should be quantified? Why or why not? oThe concepts statements discuss the concept of “articulation” between financial statement elements. Briefly summarize the meaning of this term and how it relates to an entity’s financial statements. Click the Assignment Files tab to submit your assignment. ============================================== ACC 421 Week 1 WileyPlus Assignment Ex 2-4, Ex 2-6, Ex 3-5, Ex 3-9, Ex 3-13 With Excel File For more course tutorials visit www.tutorialrank.com This Tutorial contains Excel File which can be used to solve for any values

24. • Exercise 2-4 • Exercise 2-6 • Exercise 3-5 • Exercise 3-9 • Exercise 3-13 (Part Level Submission) Question 1 Identify the appropriate qualitative characteristic(s) to be used given the information provided below. (a) Qualitative characteristic being employed when companies in the same industry are using the same accounting principles. (b) Quality of information that confirms users’ earlier expectations. (c) Imperative for providing comparisons of a company from period to period.

25. (d) Ignores the economic consequences of a standard or rule. (e) Requires a high degree of consensus among individuals on a given measurement. (f) Predictive value is an ingredient of this fundamental quality of information. (g) Four qualitative characteristics that are related to both relevance and faithful representation. (h) An item is not recorded because its effect on income would not change a decision.

26. (i) Neutrality is an ingredient of this fundamental quality of accounting information. (j) Two fundamental qualities that make accounting information useful for decision-making purposes. (k) Issuance of interim reports is an example of what enhancing quality of relevance? Question 2 Identify the accounting assumption, principle, or constraint that describes each situation. Do not use an answer more than once. (a) Allocates expenses to revenues in the proper period. (b) Indicates that fair value changes subsequent to purchase are not recorded in the accounts. (Do not use revenue recognition principle.)

27. (c) Ensures that all relevant financial information is reported. (d) Rationale why plant assets are not reported at liquidation value. (Do not use historical cost principle.) (e) Indicates that personal and business record keeping should be separately maintained. (f) Separates financial information into time periods for reporting purposes. (g) Assumes that the dollar is the “measuring stick” used to report on financial performance.

28. Question 3 The ledger of Flint Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. Debit Credit Prepaid Insurance $3,912 Supplies 2,576 Equipment 23,910 Accumulated Depreciation-Equipment $8,799 Notes Payable 19,490 Unearned Rent Revenue 4,650 Rent Revenue 64,390 Interest Expense –0– Salaries and Wages Expense 15,370 An analysis of the accounts shows the following. 1. The equipment depreciates $243 per month.

29. 2. One-third of the unearned rent was earned as revenue during the quarter. 3. Interest of $510 is accrued on the notes payable. 4. Supplies on hand total $703. 5. Insurance expires at the rate of $326 per month. Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expenses Question 4 Selected accounts of Pharoah Company are shown below. From an analysis of the T-accounts, reconstruct the October transaction entries From an analysis of the T-accounts, reconstruct the adjusting journal entries that were made on October 31, 2017.

30. Question 5 The adjusted trial balance of Shamrock Company shows the following data pertaining to sales at the end of its fiscal year, October 31, 2017: Sales Revenue $808,400, Delivery Expense $11,930, Sales Returns and Allowances $22,790, and Sales Discounts $12,350 Prepare the revenues section of the income statement. Prepare separate closing entries for (1) sales and (2) the contra accounts to sales. ============================================== ACC 421 Week 2 DQs For more course tutorials visit www.tutorialrank.com

31. 1. What are different criteria for recognizing revenue? 2. What are the different revenue recognition methods? Why are there so many revenue recognition methods? 3. Why are the methods subjective, and what are the implications on income statement quality? 4. What are the differences between regular and irregular items on an income statement? 5. What are the requirements for items to qualify as irregular? What are some examples of irregular items? ============================================== ACC 421 Week 2 Individual BE 4-2, BE 4-3, BE 4-10, Ex 4-5, Ex 18-3, Ex 18-7, Ex 18-12 For more course tutorials visit www.tutorialrank.com This Tutorial contains Excel File which can be used to solve for any values

32. Complete the following assignments in WileyPLUS: • Brief Exercise 4-2 • Brief Exercise 4-3 • Brief Exercise 4-10 • Exercise 4-5 • Exercise 18-3 • Exercise 18-7 (Part Level Submission) • Exercise 18-12 Brief Exercise 4-2 Brisky Corporation had net sales of $2,400,000 and interest revenue of $31,000 during 2014. Expenses for 2014 were cost of goods sold $1,450,000; administrative expenses $212,000; selling expenses $280,000; and interest expense $45,000. Brisky’s tax rate is 30%. The corporation had 100,000 shares of common stock authorized and 70,000 shares issued and outstanding during 2014. Prepare a single-step income statement for the year ended December 31, 2014. (Round earnings per share to 2 decimal places, e.g. 1.48.) Brief Exercise 4-3

33. Marigold Corporation had net sales of $2,401,300 and interest revenue of $36,200 during 2017. Expenses for 2017 were cost of goods sold $1,460,400, administrative expenses $214,900, selling expenses $287,300, and interest expense $50,800. Marigold’s tax rate is 30%. The corporation had 103,300 shares of common stock authorized and 73,710 shares issued and outstanding during 2017. Prepare a condensed multiple-step income statement for Marigold Corporation. Exercise 4-10 Cheyenne Corporation has retained earnings of $715,700 at January 1, 2017. Net income during 2017 was $1,567,700 and cash dividends declared and paid during 2017 totaled $83,500. Prepare a retained earnings statement for the year ended December 31,2017. Assume an error was discovered and costing $88,840 (net of tax) was charged to maintenance and repairs expense in 2014 Exercise 18-3 Exercise 18-3 On May 1, 2017, Monty Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo Landscaping Co. The contract requires Kickapoo to pay the contract price of $890 in advance on May 15, 2017. Kickapoo pays Monty on May 15, 2017, and Monty delivers the mower (with cost of $532) on May 31, 2017. Exercise 18-7

34. 1. Blossom Biotech enters into a licensing agreement with Pang Pharmaceutical for a drug under development. Blossom will receive a payment of $7,900,000 if the drug receives regulatory approval. Based on prior experience in the drug-approval process, Blossom determines it is 70% likely that the drug will gain approval and a 30% chance of denial. (a) Determine the transaction price of the arrangement for Blair Biotech (b) Assuming that regulatory approval was granted on December 20, 2017, and that Blossom received the payment from Pang on January 15, 2018, prepare the journal entries for Blossom. The license meets the criteria for point-in-time revenue recognition. ============================================== ACC 421 Week 2 Individual Revenue Recognition standards (2 PPT) For more course tutorials visit www.tutorialrank.com

35. This Tutorial contains 2 Presentation Create a 7- to 12-slide presentation. Describe the new Revenue Recognition standards. Project the impact of these new standards on financial reporting. Click the Assignment Files tab to submit your assignment. ============================================== ACC 421 Week 2 Team Coca-Cola PepsiCo Comparative Analysis Cases p. 72 and 145 For more course tutorials visit www.tutorialrank.com Complete, as a team, the Coca-Cola/PepsiCo Comparative Analysis Cases on p. 72 and 145. Your responses should be approximately one to two sentences for each segment (a-d, a-c). Compile all team member’s input.

36. Click the Assignment Files tab to submit your assignment. (a) What are the primary lines of business of these two companies as shown in their notes to the financial statements? (b) Which company has the dominant position in beverage sales? (c) How are inventories for these two companies valued? What cost allocation method is used to report inventory? How does their accounting for inventories affect comparability between the two companies? (d) What accounting policy changes do the companies discuss? Comparative Analysis Case P.145 (a) Which company had the greater percentage increase in total assets from 2013 to 2014? (b) Using the Selected Financial Data section of these two companies, determine their 5-year average growth rates related to net sales and income from continuing operations. (c) Which company had more depreciation and amortization expense for 2014? Provide a rationale as to why there is a difference in these amounts between the two companies. ============================================== ACC 421 Week 3 Assignment CA 4-2, Problem 18-3, Problem 18-2

37. For more course tutorials visit www.tutorialrank.com Complete the following individually and discuss your individual answers as a team: CA 4-2, p. 190 Problem 18-3, p. 1043 Problem 18-2, p. 1047 After discussing your answers, compile each into a team response. Click the Assignment Files tab to submit your assignment. CA4-2 GROUPWORK (Earnings Management) Bobek Inc. has recently reported steadily increasing income. The company reported income of $20,000 in 2014, $25,000 in 2015, and $30,000 in 2016. A number of market analysts have recommended that investors buy the stock because they expect the steady growth in income to continue. Bobek is approaching the end of its fiscal year in 2017, and it again appears to be a good year. However, it has not yet recorded (a) What is earnings management?

38. (b) Assume income before warranty expense is $43,000 for both 2017 and 2018 and that total warranty expense over the 2-year period is $10,000. What is the effect of the proposed accounting in 2017? In 2018? (c) What is the appropriate accounting in this situation? P18-2 (LO2,3,4) (Allocate Transaction Price, Modification of Contract) Refer to the Tablet Bundle A revenue arrangement in P18-1. In response to competitive pressure for Internet access for Tablet Bundle A, after 2 years of the 3-year contract, Tablet Tailors offers a modified contract and extension incentive. The extended contract services are similar to those provided in the first 2 years of the contract. (a) Prepare the journal entries when the contract is signed on January 2, 2019, for the 40 extended contracts. Assume the modification does not result in a separate performance obligation. (b) Prepare the journal entries on December 31, 2019, for the 40 extended contracts (the first year of the revised 3-year contract). P18-3 (LO2,3,4) (Allocate Transaction Price, Discounts, Time Value) Grill Master Company sells total outdoor grilling solutions, providing gas and charcoal grills, accessories, and installation services for custom patio grilling stations. (a) Grill Master offers contract GM205, which is comprised of a free- standing gas grill for small patio use plus installation to a customer's gas line for a total price $800. On a standalone basis, the grill sells for $700 (cost $425), and Grill Master estimates that the standalone selling price of the installation service (based on cost-plus estimation) is $150 (b) The State of Kentucky is planning major renovations in its parks during 2017 and enters into a contract with Grill Master to purchase 400

39. durable, easy maintenance, standard charcoal grills during 2017. The grills are priced at $200 each (with a cost of $160 each), and Grill Master provides a 6% volume discount if Kentucky purchases at least 300 grills during 2017 (d) On October 1, 2017, Grill Master sold one of its super deluxe combination gas/charcoal grills to a local builder. The builder plans to install it in one of its “Parade of Homes” houses. Grill Master accepted a 3-year, zero-interest-bearing note with face amount of $5,324 ============================================== ACC 421 Week 3 Individual BE 5-1, Ex 5-3, Ex 5-9, Pr 5- 2, BE 2-1, BE 24-8, Pr 24-3 (With Excel File) For more course tutorials visit www.tutorialrank.com This Tutorial contains Excel File which can be used to solve for any values Exercise 5-1:

40. Pronghom corporation has the following accounts included in its December 31, 2017, trial balance: Accounts receivable $110,600, Inventory $293,500, Allowance for Doubtful Accounts $9,450, Patents $72,500, prepaid insurance $9,590, Accounts payable $81,200 and cash $30,200. Prepare the current assets section of the balance sheet. Exercise 5-3: For Fielder Enterprises, indicate how each of the following usually should be classified. If an item should appear in a note to the financial statements, select “note to Financial Statement” to indicate this fact. If an item need to be reported on the balance sheet, select “Balance Sheet” and if an item need not be reported at all, select “Not to be Reported” Exercise 5-9 (Part Level Submission) The current assests and current liabilities sections of the balance sheet of Cheyenne company appear as follows. a) calculate following adjusted balances. Problem 5-2 Presented below are a number of balance sheet items for waterway, Inc., for the current year, 2017. Brief Exercise 24-1 (Essay)

41. An annual report of Crestwood Industries states, “The company subsidiaries have long-term leases expiring on various dates after December 31,2017. Amounts payables under such commitments, without reduction for related rental income, are expected to average approximately $5,711,000 annually for the next 3 years. Related rental income from certain subleases to others is estimated to average $3,094,000 annually for the next 3 years”. What information is provided by this note? Brief Exercise 24-8 Answer each of the questions in the following unrelated situations a) The current ratio of a company is 5:1 and its acid-test ratio is 1:1. If the inventories and prepaid items amount to $485,500, what is the amount of current liabilities? b) A company had an average inventory last year of $196,000 and its inventory turnover was 5. If sales volume and unit cost remain the same this year as last inventory turnover is 8 this year, what will average inventory have to be during the current year? c) A company has a current assest of $89,000 (of which $42,000 is inventory and prepaid items) and current liabilities of $42,000. What is the current ratio? What is the acid-test ratio? If the company borrows $14,000 cash from bank on a 120 day loan, what will its current ratio be? What will the acid test ratio be? d) A company has a current assest of $570,000 and current liabilities of $250,000. The board of directors declares a cash dividend of $196,000.What is the current ratio? what is the current ratio after the

42. declaration but before payment? What is the current ratio after payment of the dividend? Problem 24-3 (Essay) Bradbum Corporation was Formed 5 years age through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was one of the organizers of Bradburn and is its current president. The company has been successful, but it currently is experiencing a shortage of funds. On june 10, 2018, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $35,000 notes, which are due on June 30,2018, and September 30,2018. Another notes of $6,000 is due on March 31,2019, but he expects no difficulty in paying this note on its due date. Brown explained that Bradburn’s. The commercial loan officer of Topeka National Bank requested the following reports for last 2 fiscal years. Identify and explain what other financial reports and/or financial analysis might be helpful to the commercial loan officer of Topeka National Bank in evaluating Daniel Brown’s request for a time extension on Bradburn’s notes. Assume that the percentage changes experienced in fiscal year 2018 as compared with fiscal year 2017 for sales and cost of goods sold will be repeated in each of the next 2 years. Is Bradburn’s desire to finance the plant expansion from internally generated funds realistic? Discuss.

43. Should Topeka National Bank grant the extension on Bradburn’s notes considering Daniel Brown’s statement about financing the plant expansion through internally generated funds? Discuss ============================================== ACC 421 Week 3 Individual BE 24-1 (Essay) (with Excel File) For more course tutorials visit www.tutorialrank.com This Tutorial contains Excel File which can be used to solve for any values Brief Exercise 24-1 (Essay) An annual report of Crestwood Industries states, “The company subsidiaries have long-term leases expiring on various dates after December 31,2017. Amounts payables under such commitments, without reduction for related rental income, are expected to average approximately $5,711,000 annually for the next 3 years. Related rental income from certain subleases to others is estimated to average $3,094,000 annually for the next 3 years”.

44. What information is provided by this note? ============================================== ACC 421 Week 3 Individual BE 24-8 (with Excel File) For more course tutorials visit www.tutorialrank.com This Tutorial contains Excel File which can be used to solve for any values Brief Exercise 24-8 Answer each of the questions in the following unrelated situations a) The current ratio of a company is 5:1 and its acid-test ratio is 1:1. If the inventories and prepaid items amount to $485,500, what is the amount of current liabilities? b) A company had an average inventory last year of $196,000 and its inventory turnover was 5. If sales volume and unit cost remain the same

45. this year as last inventory turnover is 8 this year, what will average inventory have to be during the current year? c) A company has a current assest of $89,000 (of which $42,000 is inventory and prepaid items) and current liabilities of $42,000. What is the current ratio? What is the acid-test ratio? If the company borrows $14,000 cash from bank on a 120 day loan, what will its current ratio be? What will the acid test ratio be? d) A company has a current assest of $570,000 and current liabilities of $250,000. The board of directors declares a cash dividend of $196,000.What is the current ratio? what is the current ratio after the declaration but before payment? What is the current ratio after payment of the dividend? ============================================== ACC 421 Week 3 Individual Brief Exercise 5-1 (with Excel File) For more course tutorials visit www.tutorialrank.com This Tutorial contains Excel File which can be used to solve for any values

46. Exercise 5-1: Pronghom corporation has the following accounts included in its December 31, 2017, trial balance: Accounts receivable $110,600, Inventory $293,500, Allowance for Doubtful Accounts $9,450, Patents $72,500, prepaid insurance $9,590, Accounts payable $81,200 and cash $30,200. Prepare the current assets section of the balance sheet. ============================================== ACC 421 Week 3 Individual Exercise 5-3 For more course tutorials visit www.tutorialrank.com Exercise 5-3: For Fielder Enterprises, indicate how each of the following usually should be classified. If an item should appear in a note to the financial statements, select “note to Financial Statement” to indicate this fact. If an item need to be reported on the balance sheet, select “Balance Sheet” and if an item need not be reported at all, select “Not to be Reported”

47. ============================================== ACC 421 Week 3 Individual Exercise 5-9 (with Excel File) For more course tutorials visit www.tutorialrank.com This Tutorial contains Excel File which can be used to solve for any values Exercise 5-9 (Part Level Submission) The current assests and current liabilities sections of the balance sheet of Cheyenne company appear as follows. a) calculate following adjusted balances. ==============================================

48. ACC 421 Week 3 Individual Problem 5-2 (with Excel File) For more course tutorials visit www.tutorialrank.com This Tutorial contains Excel File which can be used to solve for any values Problem 5-2 Presented below are a number of balance sheet items for waterway, Inc., for the current year, 2017. ============================================== ACC 421 Week 3 Individual Problem 24-3 (Essay) For more course tutorials visit www.tutorialrank.com

49. Problem 24-3 (Essay) Bradbum Corporation was Formed 5 years age through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was one of the organizers of Bradburn and is its current president. The company has been successful, but it currently is experiencing a shortage of funds. On june 10, 2018, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $35,000 notes, which are due on June 30,2018, and September 30,2018. Another notes of $6,000 is due on March 31,2019, but he expects no difficulty in paying this note on its due date. Brown explained that Bradburn’s. The commercial loan officer of Topeka National Bank requested the following reports for last 2 fiscal years. Identify and explain what other financial reports and/or financial analysis might be helpful to the commercial loan officer of Topeka National Bank in evaluating Daniel Brown’s request for a time extension on Bradburn’s notes. Assume that the percentage changes experienced in fiscal year 2018 as compared with fiscal year 2017 for sales and cost of goods sold will be repeated in each of the next 2 years. Is Bradburn’s desire to finance the plant expansion from internally generated funds realistic? Discuss. Should Topeka National Bank grant the extension on Bradburn’s notes considering Daniel Brown’s statement about financing the plant expansion through internally generated funds? Discuss ==============================================

50. ACC 421 Week 3 Team Assignment Comparative Analysis Case (Coca Cola/Pepsi Co) For more course tutorials visit www.tutorialrank.com Complete the following deliverables as a team: The Coca-Cola/PepsiCo Comparative Analysis Case on p. 192. Your responses should be approximately one to two sentences for each segment (a-c). (a) What type of income format(s) is used by these two companies? Identify any differences in income statement format between these two companies. (b) What are the gross profits, operating profits, net incomes, and net incomes attributable to non-controlling interests for these two companies over the 3-year period 2012-2014? Which company has had better financial results over this period of time? (c) What income statement format do these two companies use to report comprehensive income? ==============================================