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ACC 206 Entire Course Material Follow the link below to purchase http://www.homeworkarena.com/acc-206-entire-course-material Visit Website: http://www.homeworkarena.com/ Please contact us for more Tutorial & Help (climaxbegin@gmail.com) ACC 206 Week 1 Assignment Chapter One Problems Why are noncash transactions, such as the exchange of common stock a building, included on a statement of cash flows? How are these noncash transactions disclosed? Chapter 1 Exercise 1: 1. Classification Classify each of the following transactions as arising from an operating (O), investing (I), financing (F), or noncash investing/financing (N) activity. a. ________ Received $80,000 from the sale of land. b. ________ Received $3,200 from cash sales. c. ________ Paid a $5,000 dividend. d. ________ Purchased $8,800 of merchandise for cash. e. ________ Received $100,000 from the issuance of common stock. f. ________ Paid $1,200 of interest on a note payable. g. ________ Acquired a new laser printer by paying $650. h. ________ Acquired a $400,000 building by signing a $400,000 mortgage note. Chapter 1 4. Overview of direct Evaluate the comments that follow as being True or False. If the comment is false, briefly explain why. a. Both the direct and indirect methods will produce the same cash flow from operating activities. b. Depreciation expense is added back to net income when the indirect method is used. c. One of the advantages of using the direct method rather than the indirect method is that larger cash flows from financing activities will be reported. d. The cash paid to suppliers is normally disclosed on the statement of cash flows when the indirect method of statement preparation is employed. e. The dollar change in the Merchandise Inventory account appears on the statement of cash flows only when the direct method of statement preparation is used. Chapter 1 6. Equipment transaction and cash flow reporting New equipment purchased during 20×4 totaled $280,000. The 20×4 income statement disclosed equipment depreciation expense of $41,000 and a $9,000 loss on the sale of equipment. of activities Exercise 4: and indirect methods Exercise 6:
a. Determine the cost and accumulated depreciation of the equipment sold during 20X4. b. Determine the selling price of the equipment sold. c. Show how the sale of equipment would appear on a statement of cash flows prepared by using the indirect method. Chapter 1 Problem 3: 3. Cash flow information: The comparative year-end balance sheets of Sign Graphics, Inc., revealed the following activity in the company’s current accounts: Related Tutorials ACC 206 Week 1 DQ1 Cash Flows Information What information does the cash flow statement provide that you cannot see in the other financial statements (income statement, balance sheet, owner’s equity)? What elements of the cash flow statement do you think are most important for company management to monitor and why? Is this different for investors? Guided Response: Review your peers’ postings. Respond to at least two of classmates, letting them know whether you agree with the use of the cash flow statement and why. Additionally, share elements of the cash flow statement that you see as being the greatest interest to investors (as opposed to internal management) and why. ACC 206 Week 1 DQ2 Apple’s Cash Flow Go to http://finance.yahoo.com. Enter in “AAPL” and click on the “get quote” button, and it will bring up information on Apple. On the left hand side you’ll see a section on Financials. Within that section, click on the cash flow. Review the cash flow statement for Apple. How would you summarize Apple’s cash flow position and what does this statement tell you about where the money is coming from and where it’s going? What would you suggest Apple’s do to improve its cash position and why? Guided Response: Analyze several of your peers’ postings. Do you agree with the posting? Let at least two of your peers know what you would add. ACC 206 Week 2 Assignment Chapter Two and Three Problems Please complete the following 7 exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is acceptable). Save the document, and submit it in the appropriate week using the Assignment Submission button. Chapter 2 Exercise 1 1. Issuance of stock Prepare journal entries to record the issuance of 100,000 shares of common stock at $20 per share for each of the following independent cases: a. Jackson Corporation has common stock with a par value of $1 per share. b. Royal Corporation has no-par common with a stated value of $5 per share. c. French Corporation has no-par common; no stated value has been assigned Direct and indirect methods
Chapter 2 Exercise 3 3. Analysis of stockholders’ equity Star Corporation issued both common and preferred stock during 20X6. The stockholders’ equity sections of the company’s balance sheets at the end of 20X6 and 20X5 follow. 20X6 Preferred stock, $100 par value, 10% Common stock, $10 par value 20X5 $580,000 $500,000 2,350,000 1,750,000 Paid-in capital in excess of par value Preferred Common Retained earnings Total stockholders’ equity a. Compute the number of preferred shares that were issued during 20X6. b. Calculate the average issue price of the common stock sold in 20X6. c. By what amount did the company’s paid-in capital increase during 20X6? d. Did Star’s total legal capital increase or decrease during 20X6? By what amount? Chapter 2 Problem 1 1. Bond computations: Straight-line amortization Southlake Corporation issued $900,000 of 8% bonds on March 1, 20X1. The bonds pay interest on March 1 and September 1 and mature in 10 years. Assume the independent cases that follow. Case A—The bonds are issued at 100. Case B—The bonds are issued at 96. Case C—The bonds are issued at 105. Southlake uses the straight-line method of amortization. Instructions: Complete the following table: 24,000 4,620,000 8,470,000 — 3,600,000 6,920,000 $16,044,000 $12,770,000 Case A _______ _______ Case B _______ _______ Case C _______ _______ 1. 2. Cash inflow on the issuance date Total cash outflow through maturity
3. Total borrowing cost over the life of the bond _______ _______ _______ issue 4. Interest expense for the year ended December 31, 20X1 Amortization for the year ended December 31, 20X1 Unamortized premium as of December 31, 20X1 Unamortized discount as of December 31, 20X1 Bond carrying value as of December 31, 20X1 Chapter 3 Exercise 1 1. Product costs and period costs The costs that follow were extracted from the accounting records of several different manufacturers: 1. Weekly wages of an equipment maintenance worker 2. Marketing costs of a soft drink bottler 3. Cost of sheet metal in a Honda automobile 4. Cost of president’s subscription to Fortune magazine 5. Monthly operating costs of pollution control equipment used in a steel mill 6. Weekly wages of a seamstress employed by a jeans maker 7. Cost of compact discs (CDs) for newly recorded releases of Rush, Billy Joel, and Bryan Adams a. Determine which of these costs are product costs and which are period costs. b. For the product costs only, determine those that are easily traced to the finished product and those that are not. Chapter 3 Exercise 2 2. Definitions of Interstate Manufacturing produces brass fasteners and incurred the following costs for the year just ended: Materials and supplies used Brass $75,000 Repair parts 16,000 Machine lubricants 9,000 Wages and salaries Machine operators 128,000 Production supervisors 64,000 Maintenance personnel 41,000 Other factory overhead Variable 35,000 Fixed 46,000 Sales commissions 20,000 Compute: a. Total direct materials consumed b. Total direct labor c. Total prime cost d. Total conversion cost _______ _______ _______ 5. _______ _______ _______ 6. _______ _______ _______ 7. _______ _______ _______ 8. _______ _______ _______ manufacturing concepts
Chapter 3 Exercise 5 5. Schedule of cost of goods manufactured, income statement The following information was taken from the ledger of Jefferson Industries, Inc.: Direct labor $85,000 Administrative expenses Selling expenses 34,000 Work in. process Sales 300,000 Jan. 1 Finished goods Dec. 31 Jan. 1 115,000 Direct material purchases Dec. 31 131,000 Depreciation: factory Raw (direct) materials on hand Indirect materials used Jan. 1 31,000 Indirect labor Dec. 31 40,000 Factory taxes Factory utilities Prepare the following: a. A schedule of cost of goods manufactured for the year ended December 31. b. An income statement for the year ended December 31. Chapter 3 3. Manufacturing statements and cost behavior Tampa Foundry began operations during the current year, manufacturing various products for industrial use. One such product is light-gauge aluminum, which the company sells for $36 per roll. Cost information for the year just ended follows. Per Unit Variable Cost Fixed Cost Direct materials $4.50 Direct labor 6.5 Factory overhead 9 Selling — Administrative — 135,000 Production and sales totaled 20,000 rolls and 17,000 rolls, respectively There is no work in process. Tampa carries its finished goods inventory at the average unit cost of production. Instructions: a. Determine the cost of the finished goods inventory of light-gauge aluminum. b. Prepare an income statement for the current year ended December 31 c. On the basis of the information presented: 1. Does it appear that the company pays commissions to its sales staff? Explain. $59,000 29,000 21,000 88,000 18,000 10,000 24,000 8,000 11,000 Problem 3 $ — — 50,000 70,000
2. What is the likely effect on the $4.50 unit cost of direct materials if next year’s production increases? Why? ACC 206 Week 2 DQ1 Stock Features 1. What is callable preferred stock? Why do corporations issue such stock? Given the different features that are associated with stock (callable, cumulative, preferred, etc.), what type of stock would you want to buy personally and why? Guided Response : Review your peers’ posts. Respond to at least two of your classmates, letting them know if you agree with their type of desired stock and whether your answer would change (and why) based on: a. Different b. State of the company (if the company is in a growth phase versus a mature state). ACC 206 Week 2 DQ2 Role of Management Accounting Review the roles of management accounting within a company. What is the most important role of management accounting? How is that different than financial accounting? Guided Response: Review your peer’s responses. Respond to at least two of your peers, adding at least two additional areas that management accountants focus on that the author didn’t include ACC 206 Week 2 Journal Institute of Management Accounting While there are many instances of overlap between financial accounting and management accounting, each group’s primary focus is different. Review the Institute of Management Accounting’s (IMA) website, specifically the “About IMA” and the “Resources and Publications” sections of the website. Are you surprised by the topics that management accountants are focusing on? Why or why not? What interests you more, financial accounting or management accounting? Carefully review the Grading Rubric for the criteria that will be used to evaluate your journal entry. ACC 206 Week 3 Assignment Chapter Four and Five Problems Please complete the following 7 exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is acceptable). Save the document, and submit it in the appropriate week using the Assignment Submission button. Chapter 4 3. Cost flows and Cleveland Metals uses a job cost system and applies factory overhead to production at a predetermined rate of 180% of direct labor cost. Data pertaining to recent operations follow. Job no. 636 was the only job in process on January 1 of the current year. The Work in Process account contained a $24,600 balance on this date. Jobs no. 637, 638, and 639 were started during January. Total direct material requisitions and directlabor incurred during January amounted to $89,200 and $114,500, respectively. The only job that remained in process on January 31 was job no. 638, with costs of $15,000 for direct materials and $20,000 for direct labor. economic conditions Exercise overhead 3 application
a. Compute the total cost of the work in process inventory on January 31. b. Compute the cost of jobs completed during January, and present the proper journal entry to reflect job completion. Chapter 4 7. Overhead application: The Towson Manufacturing Corporation applies overhead on the basis of machine hours. The following divisional information is presented for your review: Exercise Working 7 backward
