Question;Wk;1 DQ;DQ 1 Accounting and the Business Environment;Accounting and the Business Environment. From Chapter 1, Ethical Issue 1-1;page 59. Complete all parts of the case and respond to at least two of your;classmates? postings.;Ethical Issue 1-1 The board of;directors of Xiaping Trading Company is meeting to discuss the past year's;results before releasing financial statements to the bank. The discussion;includes this exchange;Wai;Lee, company owner: ?This has not been a good year! Revenue is down and expenses;are way up. If we are not careful, we will report a loss for the third year in;a row. I can temporarily transfer some land that I own into the company's name;and that will beef up our balance sheet. Brent, can you shave $500,000 from;expenses? Then we can probably get the bank loan that we need.?;Brent;Ray, company chief accountant: ?Wai Lee, you are asking too much. Generally;accepted accounting principles are designed to keep this sort of thing from;happening.?;Requirements;1. What is the fundamental ethical issue in this;situation?;2. How do the two suggestions of the company owner;differ?;DQ 2Recording Business;Transactions;Recording Business Transactions. Define the terms ?debit? and ?credit?. Explain;how debits and credits affect the following: assets, liabilities, owner?s;capital account, revenues and expenses. Respond to at least two of your;classmates? postings;Week2;The Adjusting Process;From Chapter 3, Ethical Issue 3-1.Complete all parts of the case and respond to;at least two of your classmates? postings.;Ethical Issue 3-1;The;net income of Steinbach & Sons, a department store, decreased sharply;during 2014. Mort Steinbach, manager of the store, anticipates the need for a;bank loan in 2015. Late in 2014, Steinbach instructs the store's accountant to;record a $2,000 sale of furniture to the Steinbach family, even though the;goods will not be shipped from the manufacturer until January 2015. Steinbach;also tells the accountantnot;to make the following December 31, 2014, adjusting entries;Salaries;owed to employees $900;Prepaid;insurance that has expired 400;Requirements;1. Compute the overall;effects of these transactions on the store's reported income for 2014.;2.;Why;is Steinbach taking this action? Is his action ethical? Give your reason;identifying the parties helped and the parties harmed by Steinbach's action.;(Challenge);3.;As;a personal friend, what advice would you give the accountant? (Challenge);Completing the Accounting CycleExplain the purpose of adjusting;entries.;How is net income affected if adjusting entries are;not made?;Describe the four closing entries;and explain their purpose.;Week;3;DQ 1 Merchandising Operations;From Chapter 5, Ethical Issue 5-1. Complete all parts of the case and respond;to at least two of your classmates? postings.;Dobbs;Wholesale Antiques makes all sales under terms of FOB shipping point. The;company usually ships inventory to customers approximately one week after;receiving the order. For orders received late in December, Kathy Dobbs, the;owner, decides when to ship the goods. If profits are already at an acceptable;level, Dobbs delays shipment until January. If profits for the current year are;lagging behind expectations, Dobbs ships the goods during December.;Requirements;1. Under Dobbs? FOB;policy, when should the company record a sale?;2. Do you approve or;disapprove of Dobbs? manner of deciding when to ship goods to customers and;record the sales revenue? If you approve, give your reason. If you disapprove;identify a better way to decide when to ship goods.;DQ;2 Merchandise Inventory;Merchandise Inventory.;Describe the inventory valuation methods FIFO and LIFO.;Which items are included in;ending inventory under each method?;Wk 4 DQ;DQ 1 Internal Control and Cash;From Chapter 7, Fraud Case 7-1. Complete all parts of the case and respond to;at least two of your classmates? postings.;Levon;Helm was a kind of one-man mortgage broker. He would drive around Tennessee;looking for homes that had second mortgages, and if the criteria were;favorable, he would offer to buy the second mortgage for ?cash on the;barrelhead.? Helm bought low and sold high, making sizable profits. Being a;small operation, he employed one person, Cindy Patterson, who did all his;bookkeeping. Patterson was an old family friend, and he trusted her so;implicitly that he never checked up on the ledgers or the bank reconciliations.;At some point, Patterson started ?borrowing? from the business and concealing her;transactions by booking phony expenses. She intended to pay it back someday;but she got used to the extra cash and couldn?t stop. By the time the scam was;discovered, she had drained the company of funds that it owed to many of its;investors. The company went bankrupt, Patterson did some jail time, and Helm;lost everything.;Requirements;1. What was the key;control weakness in this case?;2.;Many small businesses cannot afford to hire enough;people for adequate separation of duties. What can they do to compensate for;this?;DQ 2 Receivables;Discuss the allowance method and the direct write-off method of accounting for;bad debts. When is the expense for uncollected accounts receivable recognized;under each method?;WK;5 DQ;DQ 1 Plant Assets and Intangibles;From Chapter 9, Fraud Case 9-1. Complete all parts of the case and respond to;at least two of your classmates? postings.;Jim;Reed manages a fleet of utility trucks for a rural county government. He's been;in his job 30 years, and he knows where the angles are. He makes sure that when;new trucks are purchased, the salvage value is set as low as possible. Then;when they become fully depreciated, they are sold off by the county at salvage;value. Jim makes sure his buddies in the construction business are first in line;for the bargain sales, and they make sure he gets a little something back.;Recently, a new county commissioner was elected with vows to cut expenses for;the taxpayers. Unlike other commissioners, this man has a business degree, and;he is coming to visit Jim tomorrow.;Requirements;1. When a business sells;a fully depreciated asset for its salvage value, is a gain or loss recognized?;2. How do businesses;determine what salvage values to use for their various assets?;3. How would an;organization prevent the kind of fraud depicted here?;DQ 2 Current Liabilities and Payroll;There are two types of current liabilities that must be estimated. Describe;them and explain why they must be estimated. How are the financial statements;affected if they are not estimated?
Paper#41902 | Written in 18-Jul-2015Price : $42