ACC/206 (Principles of Accounting II) Full Course All Assignments ,DQs and Problems

Product DescriptionACC 206 (Principles of Accounting II) Complete Class All Assignments ,DQs and Problems ACC 206 Week 1 Assignment Chapter 1 ProblemsWhy 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 of activities
    Classify each of the following transactions as arising from an operating (O), investing (I), financing (F), or noncash investing/financing (N) activity.
and so on…
Chapter 1 Exercise 4:
  1. Overview of direct and indirect methods
Evaluate the comments that follow as being True or False. If the comment is false, briefly explain why.
  1. Both the direct and indirect methods will produce the same cash flow from operating activities.
  2. Depreciation expense is added back to net income when the indirect method is used.
  3. 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.
  4. The cash paid to suppliers is normally disclosed on the statement of cash flows when the indirect method of statement preparation is employed.
  5. 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 Exercise 6:
  1. 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.
  1. Determine the cost and accumulated depreciation of the equipment sold during 20X4.
  2. Determine the selling price of the equipment sold.
  3. Show how the sale of equipment would appear on a statement of cash flows prepared by using the indirect method.
 Chapter 1 Problem 3:
  1. Cash flow information: Direct and indirect methods
The comparative year-end balance sheets of Sign Graphics, Inc., revealed the following activity in the company’s current accounts:ACC 206 Week 1 DQ 1 Cash Flow InformationWhat 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? ACC 206 Week 1 DQ 2 Apple’s Cash FlowGo to 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?ACC 206 Week 2 Assignment Chapter 2 and 3 ProblemsChapter Two and Three ProblemsPlease 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:
  1. Jackson Corporation has common stock with a par value of $1 per share.
  2. Royal Corporation has no-par common with a stated value of $5 per share.
  3. French Corporation has no-par common; no stated value has been assigned
  Chapter 2 Exercise 3 
  1. 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.  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.  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
  8. Determine which of these costs are product costs and which are period costs.
  9. For the product costs only, determine those that are easily traced to the finished product and those that are not.
 Chapter 3 Exercise 2
  1. Definitions of manufacturing concepts
    Interstate Manufacturing produces brass fasteners and incurred the following costs for the year just ended:
Materials and supplies used  Chapter 3 Exercise 5
  1. Schedule of cost of goods manufactured, income statement
The following information was taken from the ledger of Jefferson Industries, Inc.:  Chapter 3 Problem 3
3. Manufacturing statements and cost behaviorTampa 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. ACC 206 Week 2 DQ 1 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?
ACC 206 Week 2 DQ 2  Role of Management Accounting Role of Management AccountingReview the roles of management accounting within a company. What is the most important role of management accounting? How is that different than financial accounting?ACC 206 Week 2 Exercise Solution ACC 206 Week 2 Journal Institute of Management Accounting Institute of Management AccountingWhile 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 4 and 5 Problems Chapter 4 and 5 ProblemsPlease 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 Exercise 3
  1. Cost flows and overhead application
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 direct labor 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.
  1. Compute the total cost of the work in process inventory on January 31.
  1. Compute the cost of jobs completed during January, and present the proper journal entry to reflect job completion.
  Chapter 4 Exercise 7
  1. Overhead application: Working backward
The Towson Manufacturing Corporation applies overhead on the basis of machine hours. The following divisional information is presented for your review:Chapter 4 Problem 2
  1. Computations using a job order system
General Corporation employs a job order cost system. On May 1 the following balances were extracted from the general ledger;
Chapter 5 Exercise 2The treasurer anticipates the following costs for the event, which will be held at the Regency Hotel:Chapter 5 Exercise 3
  1. Break-even and other CVP relationships
Cedars Hospital has average revenue of $180 per patient day. Variable costs are $45 per patient day; fixed costs total $4,320,000 per year.Chapter 5 Problem 6
  1. Direct and absorption costing
The information that follows pertains to Consumer Products for the year ended December 31, 20X6. ACC 206 Week 3 DQ 1 Issues in CostingIssues in CostingDescribe three issues/problems that a company could encounter when trying to determine the actual cost of a good or service to be used in the cost of goods sold. For each of your issues, provide an example of a company or industry where these issues could be present.Guided Response:
Review your peers’ posts and respond to at least two of your classmates.  Describe how job order costing or activity-based costing could resolve the issues your classmates mentioned in their posts. ACC 206 Week 3 DQ 2 CVP and the Airline IndustryCVP and the Airline IndustryWe’ve all experienced (or heard about) the challenges that the airlines have been facing. Read the Zacks Investment Research article, “Airline Industry Stock Outlook – August 2012” Identify three factors that are affecting airline company’s ability to break even. For each of your factors, discuss how these have an impact on the breakeven (contribution margin, fixed costs, variable costs, a combination, etc.), and what happens if these factors increase or decrease. ACC 206 Week 3 Exercise SolutionACC 206 Week 3 Journal Hershey Company Hershey Company Go the Hershey website  to learn how to make Hershey chocolate. Review the process and take a look at some of the videos. Pay particular attention to the process steps of milling and pressing, mixing the ingredients, and refining. In at least one paragraph, describe the costing system that you would recommend Hershey use  to account for its cost of goods sold and why. Include a few product costs you think would be traceable, which costs should be allocated, and how Hershey should account and apply the manufacturing overhead costs.Carefully review the Grading Rubric for the criteria that will be used to evaluate your journal entry. ACC 206 Week 4 Assignment Chapter 6 and 7 Problems Chapter 6 Exercise 2
  1. Schedule of cash collections
    Sugarland Company sells a single product and anticipates opening a new facility in Charlotte on May 1 of the current year. Expected sales during the first three months of activity are: May, $60,000; June, $80,000; and July, $85,000. Thirty percent of all sales are for cash; the remaining 70% are on account. Credit sales have the following collection pattern:
 Chapter 6 Exercise 4
  1. Production and cash-outlay computations
RPR, Inc., anticipates that 120,000 units of product K will be sold during May. Each unit of product K requires four units of raw material A. Actual inventories as of May 1 and budgeted inventories as of May 31 follow. Chapter 6 Exercise 5
  1. Abbreviated cash budget; financing emphasis
An abbreviated cash budget for Big Chuck Enterprises follows. Chapter 6 Problem 3
  1. Comprehensive budgeting
The balance sheet of Watson Company as of December 31, 20X1, follows. Chapter 7 Exercise 3
  1. Variances for direct materials and direct labor
Banner Company manufactures flags of various countries. Each flag has a standard of eight square feet of fabric and three hours of direct labor time. Information about recent production activity follows. Chapter 7 Exercise 5
  1. Overhead variances
Nova Manufacturing applies factory overhead to products on the basis of direct labor hours. At the beginning of the current year, the company’s accountant made the following estimates for the forthcoming period:
  • Estimated variable overhead: $500,000
  • Estimated fixed overhead: $400,000
  • Estimated direct labor hours: 40,000
 It is now 12 months later. Actual total overhead incurred in the manufacture of 7,900 units amounted to $895,100. Actual labor hours totaled 39,800. Assuming a direct labor standard of five hours per finished unit, calculate the following:
  1. Variable overhead efficiency variance
  2. Fixed overhead volume variance
  3. Overhead spending variance
Chapter 7 Problem 1
  1. P26-A1 Basic flexible budgeting (L.O. 2) 
    Centron, Inc., has the following budgeted production costs:
Chapter 7 Problem 5
  1. P26-B3 Straightforward variance analysis (L.O. 5)
Arrow Enterprises uses a standard costing system. The standard cost sheet for product no. 549 follows. ACC 206 Week 4  DQ 1 Issues in Standard Costs and BudgetingIssues in Standard Costs and BudgetingReview the Standard costs: wake up and smell the coffee.article. When evaluating performance, many organizations compare current results with the actual results of previous accounting periods. Is an organization that follows this approach likely to encounter any problems? Explain. ACC 206 Week 4  DQ 2 Flexible budgetsFlexible budgets provide different information than static budgets. Discuss some of these differences. Is a flexible budget always better? Are there times when you’d recommend using a static budget over a flexible budget? ACC 206 Week 4 Exercise Solution ACC 206 Week 5 Assignment Chapter 8 ProblemsChapter 8 Exercise 1:
  1. Basic present value calculations
Calculate the present value of the following cash flows, rounding to the nearest dollar:
  1. A single cash inflow of $12,000 in five years, discounted at a 12% rate of return.
  2. An annual receipt of $16,000 over the next 12 years, discounted at a 12% rate of return.
  3. A single receipt of $15,000 at the end of Year 1 followed by a single receipt of $10,000 at the end of Year 3. The company has a 10% rate of return.
  4. An annual receipt of $8,000 for three years followed by a single receipt of $10,000 at the end of Year 4. The company has a 12% rate of return.
 Chapter 8 Exercise 4:
  1. Cash flow calculations and net present value
On January 2, 20X1, Bruce Greene invested $10,000 in the stock market and purchased 500 shares of Heartland Development, Inc. Heartland paid cash dividends of $2.60 per share in 20X1 and 20X2; the dividend was raised to $3.10 per share in 20X3. On December 31, 20X3, Greene sold his holdings and generated proceeds of $13,000. Greene uses the net-present- value method and desires a 16% return on investments.
  1. Prepare a chronological list of the investment’s cash flows. Note: Greene is entitled to the 20X3 dividend.
  2. Compute the investment’s net present value, rounding calculations to the nearest dollar.
  3. Given the results of part (b), should Greene have acquired the Heartland stock? Briefly explain.
 Chapter 8 exercise 5:
  1. Straightforward net present value and internal rate of return
The City of Bedford is studying a 600-acre site on Route 356 for a new landfill. The startup cost has been calculated as follows:Purchase cost: $450 per acreSite preparation: $175,000 The site can be used for 20 years before it reaches capacity. Bedford, which shares a facility in Bath Township with other municipalities, estimates that the new location will save $40,000 in annual operating costs.
  1. Should the landfill be acquired if Bedford desires an 8% return on its investment? Use the net-present-value method to determine your answer.
 Chapter 8 Problem 1:
  1. Straightforward net-present-value and payback computations
STL Entertainment is considering the acquisition of a sight-seeing boat for summer tours along the Mississippi River. The following information is available:Chapter 8 Problem 4:
  1. Equipment replacement decision
Columbia Enterprises is studying the replacement of some equipment that originally cost $74,000. The equipment is expected to provide six more years of service if $8,700 of major repairs are performed in two years. Annual cash operating costs total $27,200. Columbia can sell the equipment now for $36,000; the estimated residual value in six years is $5,000.New equipment is available that will reduce annual cash operating costs to $21,000. The equipment costs $103,000, has a service life of six years, and has an estimated residual value of $13,000. Company sales will total $430,000 per year with either the existing or the new equipment. Columbia has a minimum desired return of 12% and depreciates all equipment by the straight-line method. Instructions:
  1. By using the net-present-value method, determine whether Columbia should keep its present equipment or acquire the new equipment. Round all calculations to the nearest dollar, and ignore income taxes.
  2. Columbia’s management feels that the time value of money should be considered in all long-term decisions. Briefly discuss the rationale that underlies management’s belief.
ACC 206 Week 5 Final PaperFocus of the Final PaperYou’ve just been hired onto ABC Company as the corporate controller. ABC Company is a manufacturing firm that specializes in making cedar roofing and siding shingles. The company currently has annual sales of around $1.2 million, a 25% increase from the previous year. The company has an aggressive growth target of reaching $3 million annual sales within the next 3 years. The CEO has been trying to find additional products that can leverage the current ABC employee skillset as well as the manufacturing facilities.As the controller of ABC Company, the CEO has come to you with a new opportunity that he’s been working on. The CEO would like to use the some of the shingle scrap materials to build cedar dollhouses. While this new product line would add additional raw materials and be more time-intensive to manufacture than the cedar shingles, this new product line will be able to leverage ABC’s existing manufacturing facilities as well as the current staff. Although this product line will require added expenses, it will provide additional revenue and gross profit to help reach the growth targets. The CEO is relying on you to help decide how this project can be afforded  Provide details about the estimated product costs, what is needed to break even on the project, and what level of return this product is expected to provide.In order to help out the CEO, you need to prepare a six- to eight-page report that will contain the following information (including exhibits, but excluding your references and title page). Refer to the accompanying Excel spreadsheet (available through your online course) for some specific cost and profit information to complete the calculations.Final Paper SpreadsheetI. An overall risk profile of the company based on current economic and industry issues that it may be facing.II. Current company cash flow
  1. You need to complete a cash flow statement for the company using the direct method.
    b. Once you’ve completed the cash flow statement, answer the following questions:
  2. What does this statement of cash flow tell you about the sources and uses of the company?
    ii. Is there anything ABC Company can do to improve the cash flow?
    iii. Can this project be financed with current cash flow from the company? Why or why not?
    iv. If the company needs additional financing beyond what ABC Company can provide internally (either now or sometime throughout the life of the project), how would you suggest the company obtain the additional financing, equity or corporate debt, and why?
III. Product cost: ABC Company believes that it has an additional 5,000 machine hours available in the current facility before it would need to expand. ABC Company uses machine hours to allocate the fixed factory overhead, and units sold to allocate the fixed sales expenses. ABC Company expects that it will take twice as long to produce the expansion product as it currently takes to produce its existing product.
  1. What is the product cost for the expansion product?
    b. By adding this new expansion product, it helps to absorb the fixed factory and sales expenses. How much cheaper does this expansion make the existing product?
    c. Assuming ABC Company wants a 40% gross margin for the new product, what selling price should it set for the expansion product?
    d. Assuming the same sales mix of these two products, what are the contribution margins and break-even points by product?
  2. Potential investments to accelerate profit: ABC company has the option to purchase additional equipment that will cost about $42,000, and this new equipment will produce the following savings in factory overhead costs over the next five years:Year 1, $15,000
    Year 2, $13,000
    Year 3, $10,000
    Year 4, $10,000
    Year 5, $6,000ABC Company uses the net-present-value method to analyze investments and desires a minimum rate of return of 12% on the equipment.
  3. What is the net present value of the proposed investment ignore income taxes and depreciation?
    b. Assuming a 5-year straight-line depreciation, how will this impact the factory’s fixed costs for each of the 5 years (and the implied product costs)? What about cash flow?
    c. Considering the cash flow impact of the equipment as well as the time-value of money, would you recommend that ABC Company purchases the equipment? Why or why not?
  4. Conclusion:
  5. What are the major risk factors that you see in this project?
    b. As the controller and a management accountant, what is your responsibility to this project?
    c. What do you recommend the CEO do?
    Writing the Final Paper1.    Must be six to eight double-spaced pages in length, and formatted according to APA style as outlined in the Ashford Writing Center.
    2.    Must include a title page with the following:
  6.  Title of paper
    b.    Student’s name
    c.    Course name and number
    d.    Instructor’s name
    e.    Date submitted
  7.  Must begin with an introductory paragraph that has a succinct thesis statement.
    4.    Must address the topic of the paper with critical thought.
    5.    Must end with a conclusion that reaffirms your thesis.
    6.    Must document all sources in APA style, as outlined in the Ashford Writing Center.
    7.    Must include a separate reference page, formatted according to APA style as outlined in the Ashford Writing Center.Carefully review the  Grading Rubric for the criteria that will be used to evaluate your assignment.
 ACC 206 Week 5 DQ 1 Long-term Decision MakingLong-term Decision MakingList a few of the issues and considerations businesses should have when it comes to the selection of long-term investments and how those issues impact the various financial statements.
 ACC 206 Week 5 DQ 2 Responsibilities in Management AccountingResponsibilities in Management AccountingReview the rights and responsibilities of Certified Management Accountants: are some of the ethical responsibilities and obligations that management accountants have within an organization? Provide some examples. Are these responsibilities different than the obligations for financial accountants?
Powered by