Category: Accounting

August 20th, 2017 Accounting Comments Off on Bargain Shoe Store

Bargain Shoe Store

Resources: Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Commission (SEC)

Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products.

Scenario: Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $24,000 in fixed costs to the $270,000 in fixed costs currently spent. In addition, Mary is proposing a 5% price decrease ($40 to $38) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $24 per pair of shoes. Management is impressed with Mary’s ideas but concerned about the effects these changes will have on the break-even point and the margin of safety.

Complete the following:

  • Compute the current break-even point in units, and compare it to the break-even point in units if Mary’s ideas are used.
  • Compute the margin of safety ratio for current operations and after Mary’s changes are introduced (Round to nearest full percent).
  • Prepare a CVP (Cost-Volume-Profit) income statement for current operations and after Mary’s changes are introduced.

Prepare a 700-word informal memo to management addressing Mary’s suggested changes.

  • Explain whether Mary’s changes should be adopted. Why or why not? Analyze the above information (three bullet points above) and use this information to support your suggestion.

Show your work in Excel®.

Complete calculations/computations using Excel®.

Format your assignment consistent with APA guidelines.

August 20th, 2017 Accounting Comments Off on The REA Approach

The REA Approach

There are differences between a REA diagram and an ER diagram. In a 1-2 page paper, describe at least 3 differences and 3 similarities between the two diagrams.

Your paper should include the following:

  • An explanation of what each acronym stands for and why
  • Effects (of both REA and ER diagrams) on company’s financial statements
  • Implications of using one diagram over the other and vice versa

Must completed in APA format and include references.

Must be 1-2 pages

August 20th, 2017 Accounting Comments Off on Expense Recognition

Expense Recognition

You are the newly hired accountant for The Gift Shop. The owner has just received the December 31, 2008 bank statement and has asked you to prepare the monthly bank reconciliation.

  • Write the procedure documentation for the monthly bank reconciliation process in a professional manner.
    • It will be the desktop guide used by others in the event of your absence to prepare the financial statements for The Gift Shop.
    • It may be in the form of a memorandum or as a numbered listing of items, depending on your individual preference.
  • Prepare the monthly bank reconciliation for The Gift Shop based on the information provided.

Additional information needed for bank reconciliation preparation follows:

  • Cash per the unadjusted trial balance is $12,675.
  • Cash balance per the bank statement is $12,780.
  • Check #115 has not cleared the bank. It was written for $645.
  • A deposit of $1,000 cleared the bank but was not recorded in the general ledger.
  • A check for $250 was found in the owner’s desk drawer.
  • A deposit of $1,250 was taken to the bank after 2 p.m. on December 31, 2008 and was not posted by the bank until January 1, 2009.
  • Errors were noted in the following checks:
    • Check #121 was recorded for $325 but cleared the bank as $320.
    • Check #125 was recorded for $585 but cleared the bank as $600.
    • Bank service charge reported on the bank statement $30.00

Must be done in 2-4 pages

August 20th, 2017 Accounting Comments Off on Intermediate Accounting Discussion Question

Intermediate Accounting Discussion Question

  • From link below, briefly discuss the type of contingencies that Coca Cola is involved in and the accounting treatment of such contingencies. Give your opinion on whether the notes to the financial statements disclose the necessary information on the contingencies for interested parties to make an investing decision. Based on the information disclosed, decide whether you would you invest in Coca Cola. Justify your rationale.
  • Suppose management is involved in a situation where the outcome of the situation is contingent upon certain events to occur; however, management is unsure of the generally accepted accounting principles for reporting contingencies. You are the senior accountant, and management has tasked you with preparing a report on contingencies. Distinguish between a gain contingency and a loss contingency, and highlight the accounting treatment for each type of contingency. Also, recommend two (2) improvements to the reporting requirements on loss contingencies to FASB.
August 20th, 2017 Accounting Comments Off on Business Expenditures and Deductions

Business Expenditures and Deductions

Jane’s Air Conditioning Service decided that this year was the year to “take over” the air conditioning business in her town. Beginning in January, she started advertising her business (even though there was snow on the ground), bought a supply of Freon, updated her vehicles and bought new uniforms for her service technicians who were making house calls.

Jane comes to you to determine how to optimize her deductions in order to reduce her tax liability. What advice would you give her as to the expenditures above (assuming they all took place in the same year)? Be sure to also explain what may (or may not) be capitalized and/or deducted.

August 20th, 2017 Accounting Comments Off on Should the U.S. Convert to a Zero Personal Income Tax?

Should the U.S. Convert to a Zero Personal Income Tax?

In a recent news article located at http://www.nbcnews.com/business/economy/heres-where-your-federal-income-tax-dollars-go-f654971, NBC News reported that the U.S. Government spends $3.6 trillion per year to fund Social Security, Medicare, homeland defense and safety, education, transportation, and the interest on debt obligations. In spite of the services and benefits that the government provides, many taxpayers dread paying income taxes but consider them a necessary evil. Consequently, there is much debate about the inequities contained within the tax code, due to tax shelters and tax credits provided to some taxpayers which thereby increase the tax burden on others.
Using the Internet or Strayer Library, research one (1) country that has a zero income tax rate.
Write a four to five (4-5) page paper in which you:
Analyze the way in which the one (1) country that you have researched provides services and benefits to its citizens without collecting personal income taxes.
For the country that you have chosen, determine whether or not the U.S. could adopt their taxation model without reducing its total amount of revenue generated by collecting personal income taxes from individuals and business. Justify your response.
Suggest at least two (2) advantages and two (2) disadvantages of the U.S. adopting a zero income tax model. Provide a rationale for your response.
Create a proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model. In your response, provide specific recommendations concerning the following:
The proposed tax base.
Whether or not tax payers at certain income levels should be exempt from taxation.
The primary way in which the IRS would calculate the tax rate in order to ensure that the same level of tax revenue would still be collected.
The primary way in which your plan will achieve equity.
Speculate on the primary way in which the federal government could make up any shortfalls if it does not collect its targeted revenue from personal income taxes, and ascertain the most significant way in which the U.S. Department of the Treasury, through the IRS, can still adhere to its fiscal and monetary policies. Justify your response.
Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other Websites do not quality as academic resources.
Your assignment must follow these formatting requirements:
Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
Examine the types of taxes imposed at the federal, state, and local levels; the federal tax formula; and the rules for arriving at personal and dependency exemptions.
Analyze the concepts of gross income and distinguish between the economic, accounting, and tax concepts of gross income and strategies to minimize gross income, maximize deductions, and minimize disallowance of deductions
Use technology and information resources to research issues in federal taxation.
Write clearly and concisely about federal taxation using proper writing mechanics.

August 20th, 2017 Accounting Comments Off on Bank Reconciliation

Bank Reconciliation

Purpose of Assignment
Reconciling bank accounts is a good way to help maintain internal controls over cash. With time lags and posting errors it is easy for cash transactions to be omitted, recorded in a different accounting period, or reflect incorrect amounts. This assignment with give you practical experience in reconciling the cash balance as noted on the company books to the bank’s records.
Assignment Steps
Resources: Financial Accounting: Tools for Business Decision Making
Scenario: Daisey Company is a very profitable small business. It has not, however given much consideration to internal control. For example, in an attempt to keep clerical and office expenses to a minimum, the company has combined the jobs of cashier and book-keeper. As a result, Bret Turrin handles all cash receipts, keeps the accounting records, and prepares the monthly bank reconciliations.
The balance per the bank statement on October 31, 2017, was $18,380. Outstanding checks were No. 62 for $140.75, No. 183 for $180, No. 284 for $253.25, No. 862 for $190.71, No. 863 for $226.80, and No. 864 for $165.28. Included with the statement was a credit memorandum of $185 indicating the collection of a note receivable for Daisey Company by the bank on October 25.
This memorandum has not been recorded by Daisey.
The company’s ledger showed one Cash account with a balance of $21,877.72. The balance included undepositied cash on hand. Because of the lack of internal controls, Bret took for personal use all of the undeposited receipts in excess of $3,795.51. He then prepared the following bank reconciliation in an effort to conceal his theft of cash:
Cash balance per books, October 31 $21,877.72
Add: Outstanding checks
No. 862 $190.71
No. 863 226.80
No. 864 165.28 482.79
22,360.51
Less: Undeposited receipts 3,795.51
Unadjusted balance per bank, October 31 18,565.00
Less: Bank credit memorandum 185.00
Cash balance per bank statement, October 31 $18,380.00
Prepare a 1,050-word bank reconciliation report (hint: deduct the amount of the theft from the adjusted balance per books) including the following:
Indicate the three ways that Bret attempted to conceal the theft and the dollar amount involved in each method.
What principles of internal control were violated in this case?

August 20th, 2017 Accounting Comments Off on Careers in Accounting

Careers in Accounting

Accounting is the study of how businesses track their income and assets over time. Accountants engage in a wide variety of activities in addition to preparing financial statements and recording business transactions. These activities include computing costs and efficiency gains from new technologies, participating in strategies for mergers and acquisitions, quality management, developing and using information systems to track financial performance, tax strategy, and health care benefits management.

Use the Internet or the Strayer Online database to research career options within the accounting field and accounting job postings in your local area to respond to the questions in the assignment.

Write a one to two (1-2) page paper in which you:

  1. Describe at least two (2) career options someone with an accounting education can pursue. Be sure to reference sources such as the Bureau of Labor Statistics and the American Institute of Certified Public Accountants.
  2. Describe one (1) researched accounting position, and explain the essential skills that would make a candidate successful in the position. Articulate the primary manner in which the researched accounting positions could add value to the company seeking candidates.
  3. Use at least two (2) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.
  4. Format your assignment according to the following formatting requirements:
    • Typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
    • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page is not included in the required page length.

Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using the following rubric.

August 20th, 2017 Accounting Comments Off on International Financial Reporting Standards

International Financial Reporting Standards

Primary Task Response: Within the Discussion Board area, write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas:

With the move toward a common set of global accounting standards, the International Accounting Standards Board (IASB) has created the International Financial Reporting Standards (IFRS) to meet this goal.

  • Research the IASB, and discuss its structure.
  • Provide a brief history for this organization.
  • Compare and contrast the differences between principles- and rules-based approaches when setting accounting standards.
  • Share what you feel are 2 barriers and 2 benefits that could be encountered with the move toward a single set of accounting standards.
August 20th, 2017 Accounting Comments Off on BUACC2603 – Corporate Accounting

BUACC2603 – Corporate Accounting

Required:

a. Why is measurement in the context of accounting so important?

b. Why has measurement become such a controversial accounting issues in recent times?

c. Explain the arguments for and against using fair value as a measurement base.

d. Identify factors that may influence the choice of measurement approach. Discuss how the measurement approach adopted impacts on the quality of accounting information produced.

Provide reasons to support your position on the above.

Additional information
Assignments must not exceed the word counts indicated.