Problem 1. The May 31, 2012, balance per bank statement for Upton Company was $7,200. The cash balance per books was $9,500. Outstanding checks amounted to $800, and deposits in transit were $2,400. The bank statement contained an NSF check for $500, a service charge for $25, and a debit memo for direct payment of the telephone bill of $175. Required: 1) Prepare a bank reconciliation to determine the true cash balance at May 31, 2012.

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Problem 1. The May 31, 2012, balance per bank statement for Upton Company was $7,200. The cash balance per books was $9,500. Outstanding checks amounted to $800, and deposits in transit were $2,400. The bank statement contained an NSF check for $500, a service charge for $25, and a debit memo for direct payment of the telephone bill of $175.

Required:

1) Prepare a bank reconciliation to determine the true cash balance at May 31, 2012.

Problem 2. Scott Company is a merchandising business that was started in 2012. Scott uses the perpetual inventory system. It experienced the following events during 2012.

1. Acquired $25,000 cash by issuing common stock
2. Purchased inventory on account that cost $14,000, terms 2/10, n/30
3. Sold inventory that had cost $8,400 for $15,000 cash
4. Paid for the merchandise referred to in event 2, within the discount period

Required:

1) Record the events in the financial statements model below; include column totals.
2) Prepare an income statement for 2012.
3) What is the amount of total assets at the end of 2012?

Problem 1. At the beginning of 2010, Gonzales Company’s accounting records had the general ledger accounts and balances shown in the table below. During 2010, the following transactions occurred: 1. received $80,000 cash for providing services to customers 2. paid rent expense, $10,000 3. purchased land for $9,000 cash 4. paid $5,000 on note payable 5. paid operating expenses, $52,000 6. paid cash dividend, $6,000 Required: 1) Record the transactions in the appropriate general ledger accounts.

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Problem 1. At the beginning of 2010, Gonzales Company’s accounting records had the general ledger accounts and balances shown in the table below. During 2010, the following transactions occurred:
1. received $80,000 cash for providing services to customers
2. paid rent expense, $10,000
3. purchased land for $9,000 cash
4. paid $5,000 on note payable
5. paid operating expenses, $52,000
6. paid cash dividend, $6,000

Required:
1) Record the transactions in the appropriate general ledger accounts. Record the amounts of revenue, expense, and dividends in the Retained Earnings column, providing appropriate titles for these accounts in the last column of the table.

2) What is the amount of total assets as of December 31, 2010?

3) What is the amount of total stockholders’ equity as of December 31, 2010?

Problem 2. Given are the amounts of assets, liabilities, owner’s equity, revenues, and expenses of AQUA Inc. at 12/31/10. The beginning amount of Retained Earnings at 1/1/10 was $20,000, and during the year Dividends of $60,000 were taken out by the owners of Aqua Inc. Prepare the yearend Balance Sheet and Income Statement for AQUA LLP at the end of the year.

(Include Correct Headings)

Accounts Payable $59,000 Land $78,000

Accounts Receivable 15,000 Unearned Revenue 45,000

Advertising Expense 13,000 Utilities Expense 5,000

Building 160,000 Rent Expense 13,000

Cash 140,000 Operating Expenses 23,000

Supplies 10,000 Common Stock 240,000

Salary payable 2,000 Accumulated Depreciation 10,000

Prepaid Insurance Expense 20,000 Service Revenue 170,000

Interest Expense 9,000 Retained Earnings ?

Identify a real-life outsourcing decision that has been made. Identify the specific reasons for the outsourcing.

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Identify a real-life outsourcing decision that has been made. Identify the specific reasons for the outsourcing. If information is available, discuss the results of the outsourcing decision (jobs lost, cost savings, etc.). Cite sources as deemed necessary.

Identify the costs and benefits to a company of gathering, reporting, and disclosing non-financial information (ex.: Balanced Scorecard, Corporate Social Responsibility Reporting, Sustainability Reporting, etc.).

Discuss the advantages and disadvantages of different types of financing: Issuing bonds Borrowing from Bank Equity financing

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Discuss the advantages and disadvantages of different types of financing:

Issuing bonds
Borrowing from Bank
Equity financing

Discuss the efficient Market Hypothesis. Do you believe financial statement analysis can be performed in a way that provides significant advantage to an investor?

Why is the accuracy of cost allocation so important? Cite real-life examples of either successes or failures in cost allocation.

US GAAP follows the Historical Cost Concept in valuing the cost of Long-Term Assets. Explain this principle and how it compares to the standards used in the reporting of Long-Term Assets under International Financial Reporting Standards (IFRS). If there is a convergence of standards, which method do you believe should be used and why?

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US GAAP follows the Historical Cost Concept in valuing the cost of Long-Term Assets. Explain this principle and how it compares to the standards used in the reporting of Long-Term Assets under International Financial Reporting Standards (IFRS). If there is a convergence of standards, which method do you believe should be used and why?

Summarize the events of a recent accounting scandal. Identify how the illegal/unethical act was detected and the punishments that resulted (fines, prison terms, etc.). Consider what could have been done to detect this act earlier and what could have been done to prevent this from happening in the first place. Select a different example than those listed on previous posts.

Review the provisions of the Sarbanes-Oxley Act which was created in 2002 to address the accounting scandals in the late 90s early 00s (Enron, WorldCom, etc.). Identify the provisions that you feel made the biggest impact.

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Review the provisions of the Sarbanes-Oxley Act which was created in 2002 to address the accounting scandals in the late 90s early 00s (Enron, WorldCom, etc.). Identify the provisions that you feel made the biggest impact. What other provisions could have been included in the Act to strengthen the Responsible Stewardship and Integrity of the accounting profession? And conversely, what existing provisions in the Act do you believe (if any) are unnecessary or over-regulate the profession?