ACC 306 AID The learning interface/acc306aiddotcom

1. ACC 306 AID The learning interface/acc306aiddotcom

2. ACC 306 AID The learning interface ACC 306 Entire Course (Ash Course) FOR MORE CLASSES VISIT www.acc306aid.com ACC 306 Week 1 Assignment E13-21, E13-22, P12-1, P12-7,P12-10, P12-14, P13-6ACC 306 Week 1 DQ 1 Equity MethodACC 306 Week 1 DQ 2 Judgment Case 13-9ACC 306 Week 2 DQ 1 Ethics Case 14-8 Hunt ManufacturingACC 306 Week 2 DQ 2 Ethics Case 15-4ACC 306 Week 3 Assignment E 16-24, E 16-25, E 17-10, E 17-19, P 16-7, P 17-16ACC 306 Week 3 Ethics Case 17-6ACC 306 Week 3 Integrating Case 16-5ACC 306 Week 4 Communication Case 18-10ACC 306 Week 4 Ethics Case 19-7ACC 306 Week 4 Assignment E 18-18, E 18-24, E 19-2, E 19-5, E 19-9, E 19-24, P 18-5ACC 306 Week 5 Analysis Case 20-10ACC 306 Week 5 Ethics Case 20-5ACC 306 Week 5 Ethics Case 21-7ACC 306 Week 5 Assignment E 20-18, P 21-11, P 21-14ACC 306 Week 5 Final Paper (Lease)

3. ACC 306 AID The learning interface ACC 306 Week 1 Assignment E13-21, E13-22, P12-1, P12-7,P12-10, P12-14, P13-6 (Ash Course) FOR MORE CLASSES VISIT www.acc306aid.com ACC 306 Week 1 Assignment E13-21, E13-22, P12-1, P12-7,P12-10, P12-14, P13-6

4. ACC 306 AID The learning interface ACC 306 Week 1 DQ 1 Equity Method (Ash Course) FOR MORE CLASSES VISIT www.acc306aid.com P 12–13 - Miller Properties - Equity method ● LO5 LO6 On January 2, 2011, Miller Properties paid $19 million for 1 million shares of Marlon Company’s 6 million outstanding common shares. Miller’s CEO became a member of Marlon’s board of directors during the first quarter of 2011. The carrying amount of Marlon’s net assets was $66 million. Miller estimated the fair value of those net as- sets to be the same except for a patent valued at $24 million above cost. The remaining amortization period for the patent is 10 years. Marlon reported earnings of $12 million and paid dividends of $6 million during 2011. On December 31, 2011, Marlon’s common stock was trading on the NYSE at $18.50 per share.

5. ACC 306 AID The learning interface ACC 306 Week 1 DQ 2 Judgment Case 13-9 (Ash Course) FOR MORE CLASSES VISIT www.acc306aid.com ACC 306 Week 1 DQ2 Judgment Case 13-9 Judgment Case 13–9 - Valleck Corporation - Loss contingency and full disclosure ● LO5 LO6 In the March 2012 meeting of Valleck Corporation’s board of directors, a question arose as to the way a possible obligation should be disclosed in the forthcoming financial statements for the year ended December 31. A veteran board member brought to the meeting a draft of a disclosure note that had been prepared by the controller’s office for inclusion in the annual report. Here is the note: On May 9, 2011, the United States Environmental Protection Agency (EPA) issued a Notice of Violation (NOV) to Valleck alleging violations of the Clean Air Act. Subsequently, in June 2011,

6. ACC 306 AID The learning interface ACC 306 Week 2 DQ 1 Ethics Case 14-8 Hunt Manufacturing (Ash Course) FOR MORE CLASSES VISIT www.acc306aid.com Ethics Case 14–8 - Hunt Manufacturing - Debt for equity swaps; have your cake and eat it too ● LO5 The cloudy afternoon mirrored the mood of the conference of division managers. Claude Meyer, assistant to the controller for Hunt Manufacturing, wore one of the gloomy faces that were just emerging from the conference room. “Wow, I knew it was bad, but not that bad,” Claude thought to himself. “I don’t look forward to sharing those numbers with shareholders.” The numbers he discussed with himself were fourth quarter losses which more than offset the profits of the first three quarters. Everyone had known for some time that poor sales forecasts and production delays had wreaked havoc on the bottom line, but most were caught off guard by the severity of damage.

7. ACC 306 AID The learning interface ACC 306 Week 2 DQ 2 Ethics Case 15-4 (Ash Course) FOR MORE CLASSES VISIT www.acc306aid.com Ethics Case 15–4 - American Movieplex - Leasehold improvements ● LO3 American Movieplex, a large movie theater chain, leases most of its theater facilities. In conjunction with recent operating leases, the company spent $28 million for seats and carpeting. The question being discussed over break- fast on Wednesday morning was the length of the depreciation period for these leasehold improvements. The com- pany controller, Sarah Keene, was surprised by the suggestion of Larry Person, her new assistant.

8. ACC 306 AID The learning interface ACC 306 Week 3 Assignment E 16-24, E 16-25, E 17-10, E 17-19, P 16-7, P 17-16 (Ash Course) FOR MORE CLASSES VISIT www.acc306aid.com ACC 306 Week 3 Assignment E 16-24, E 16-25, E 17-10, E 17-19, P 16-7, P 17-16

9. ACC 306 AID The learning interface ACC 306 Week 3 Ethics Case 17-6 (Ash Course) FOR MORE CLASSES VISIT www.acc306aid.com Ethics Case 17–6 - VXI International - 401(k) plan contributions ● LO1 You are in your third year as internal auditor with VXI International, manufacturer of parts and supplies for jet air- craft. VXI began a defined contribution pension plan three years ago. The plan is a so-called 401(k) plan (named after the Tax Code section that specifies the conditions for the favorable tax treatment of these plans) that permits voluntary contributions by employees. Employees’ contributions are matched with one dollar of employer contribution for every two dollars of employee contribution. Approximately $500,000 of contributions is deducted from employee paychecks each month for investment in one of three employer-sponsored mutual funds. While performing some preliminary audit tests, you happen to notice that employee contributions to these plans usually do not show up on mutual fund statements for up to two months following the end of pay periods from which the deductions are drawn.

10. ACC 306 AID The learning interface ACC 306 Week 3 Integrating Case 16-5 (Ash Course) FOR MORE CLASSES VISIT www.acc306aid.com Integrating Case 16–5 - Williams-Santana, Inc. - Tax effects of accounting changes and error correction; six situations ● LO1 LO2 LO8 Williams-Santana, Inc. is a manufacturer of high-tech industrial parts that was started in 1997 by two talented engineers with little business training. In 2011, the company was acquired by one of its major customers. As part of an internal audit, the following facts were discovered. The audit occurred during 2011 before any adjusting entries or closing entries were prepared. The income tax rate is 40% for all years. a. A five-year casualty insurance policy was purchased at the beginning of 2009 for $35,000. The full amount was debited to insurance expense at the time.

11. ACC 306 AID The learning interface ACC 306 Week 4 Assignment E 18-18, E 18-24, E 19-2, E 19-5, E 19-9, E 19-24, P 18-5 (Ash Course) FOR MORE CLASSES VISIT www.acc306aid.com ACC 306 Week 4 Assignment E 18-18, E 18-24, E 19-2, E 19-5, E 19-9, E 19-24, P 18-5

12. ACC 306 AID The learning interface ACC 306 Week 4 Communication Case 18-10 (Ash Course) FOR MORE CLASSES VISIT www.acc306aid.com Communication Case 18–10 Should the present two-category distinction between liabilities and equity be retained? Group interaction. ● LO1 The current conceptual distinction between liabilities and equity defines liabilities independently of assets and equity, with equity defined as a residual amount. The present proliferation of financial instruments that combine features of both debt and equity and the difficulty of drawing a distinction have led many to conclude that the present two-category distinction between liabilities and equity should be eliminated. Two opposing viewpoints are: View 1: The distinction should be maintained. View 2: The distinction should be eliminated and financial instruments should instead be reported in accordance with the priority of their claims to enterprise assets. One type of security that often is mentioned in the debate is convertible bonds. Although stock in many ways, such a security also obligates the issuer to transfer assets at a specified price and redemption date. Thus it also has features of debt. In considering this question, focus on conceptual issues regarding the practicable and theoretically appropriate treatment, unconstrained by GAAP.

13. ACC 306 AID The learning interface ACC 306 Week 4 Ethics Case 19-7 (Ash Course) FOR MORE CLASSES VISIT www.acc306aid.com Ethics Case 19–7 International Network Solutions ● LO6 International Network Solutions provides products and services related to remote access networking. The company has grown rapidly during its first 10 years of operations. As its segment of the industry has begun to mature, though, the fast growth of previous years has begun to slow. In fact, this year revenues and profits are roughly the same as last year. One morning, nine weeks before the close of the fiscal year, Rob Mashburn, CFO, and Jessica Lane, controller, were sharing coffee and ideas in Lane’s office. Lane: About the Board meeting Thursday. You may be right. This may be the time to suggest a share buyback program.

14. ACC 306 AID The learning interface ACC 306 Week 5 Analysis Case 20-10 (Ash Course) FOR MORE CLASSES VISIT www.acc306aid.com Analysis Case 20–10 - DRS Corporation - Various changes ● LO1 through LO4 DRS Corporation changed the way it depreciates its computers from the sum-of-the-year’s-digits method to the straight-line method beginning January 1, 2011. DRS also changed its estimated residual value used in computing depreciation for its office building. At the end of 2011, DRS changed the specific subsidiaries constituting the group of companies for which its consolidated financial statements are prepared. Required: 1. For each accounting change DRS undertook, indicate the type of change and how DRS should report the change. Be specific. 2. Why should companies disclose changes in accounting principles?

15. ACC 306 AID The learning interface ACC 306 Week 5 Assignment E 20-18, P 21-11, P 21-14 (Ash Course) FOR MORE CLASSES VISIT www.acc306aid.com ACC 306 Week 5 Assignment E 20-18, P 21-11, P 21-14

16. ACC 306 AID The learning interface ACC 306 Week 5 Ethics Case 20-5 (Ash Course) FOR MORE CLASSES VISIT www.acc306aid.com Ethics Case 20–5 Softening the blow ● LO1 LO2 LO3 Late one Thursday afternoon, Joy Martin, a veteran audit manager with a regional CPA firm, was reviewing documents for a long-time client of the firm, AMT Transport. The year-end audit was scheduled to begin Monday. For three months, the economy had been in a down cycle and the transportation industry was particularly hard hit. As a result, Joy expected AMT’s financial results would not be pleasant news to shareholders. However, what Joy saw in the preliminary statements made her sigh aloud. Results were much worse than she feared. “Larry (the company president) already is in the doghouse with shareholders,” Joy thought to herself. “When they see these numbers, they’ll hang him out to dry.”

17. ACC 306 AID The learning interface ACC 306 Week 5 Ethics Case 21-7 (Ash Course) FOR MORE CLASSES VISIT www.acc306aid.com Ethics Case 21–7 - Ben Naegle - Where’s the cash? ● LO1 LO3 After graduating near the top of his class, Ben Naegle was hired by the local office of a Big 4 CPA firm in his hometown. Two years later, impressed with his technical skills and experience, Park Electronics, a large regional consumer electronics chain, hired Ben as assistant controller. This was last week. Now Ben’s initial excitement has turned to distress. The cause of Ben’s distress is the set of financial statements he’s stared at for the last four hours. For some time prior to his recruitment, he had been aware of the long trend of moderate profitability of his new employer. The reports on his desk confirm the slight, but steady, improvements in net income in recent years. The trend he was just now becoming aware of, though, was the decline in cash flows from operations. Ben had sketched out the following comparison ($ in millions): Profits? Yes. Increasing profits? Yes. The cause of his distress? The ominous trend in cash flow which is con sistently lower than net income.

18. ACC 306 AID The learning interface ACC 306 Week 5 Final Paper (Lease) (Ash Course) FOR MORE CLASSES VISIT www.acc306aid.com ACC 306 Week 5 Final Paper (Lease)

19. ACC 306 AID The learning interface