Thursday, 10 January 2013

ACC 564 Complete Course Tutorial - Accounting Information System - 12th Edition

ACC 564
Accounting Information System 12th Edition
Custom Edition for Strayer University by Marshall B. Romney Paul J. Steinbart

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Chapter 1-22 All Solved Includes All Quizzes for ACC 564
Chapter 1
1.1      The value of information is the difference between the benefits realized from using that information and the costs of producing it. Would you, or any organization, ever produce information if its expected costs exceeded its benefits? If so, provide some examples. If not, why not?
1.2      Can the characteristics of useful information listed in Table 1-1 be met simultaneously? Or does achieving one mean sacrificing another?
1.3      You and a few of your classmates decided to become entrepreneurs. You came up with a great idea for a new mobile phone application that you think will make lots of money. Your business plan won second place in a local competition, and you are using the $10,000 prize to support yourselves as you start your company.

a. Identify the key decisions you need to make to be successful entrepreneurs, the information you need to make them, and the business processes you will need to engage in.
b. Your company will need to exchange information with various external parties. Identify the external parties, and specify the information received from and sent to each of them.

1.4 How do an organization’s business processes and lines of business affect the design of its AIS? Give several examples of how differences among organizations are reflected in their AIS.
1.5 Figure 1-4 shows that organizational culture and the design of an AIS influence one another. What does this imply about the degree to which an innovative system developed by one company can be transferred to another company?
1.6 Figure 1-4 shows that developments in IT affect both an organization’s strategy and the design of its AIS. How can a company determine whether it is spending too much, too little, or just enough on IT?
1.7 Apply the value chain concept to S&S. Explain how it would perform the various primary and support activities.
1.8 Information technology enables organizations to easily collect large amounts of information about employees. Discuss the following issues:

To what extent should management monitor employees’ e-mail?

To what extent should management monitor which Web sites employees visit?

c. To what extent should management monitor employee performance by, for example, using software to track keystrokes per hour or some other unit of time? If such information is collected, how should it be used?
d. Should companies use software to electronically “shred” all traces of e-mail?
e. Under what circumstances and to whom is it appropriate for a company to distribute information it collects about the people who visit its Web site?

Problems
1.1      Information technology is continually changing the nature of accounting and the role of accountants. Write a two-page report describing what you think the nature of the accounting function and the accounting information system in a large company will be like in the year 2020.
1.2 Adapted from the CMA Examination
a.    Identify and discuss the basic factors of communication that must be considered in the presentation of the annual report.</para></listitem>
b.    Discuss the communication problems a corporation faces in preparing the annual report that result from the diversity of the users being addressed.
c.     Select two types of information found in an annual report, other than the financial statements and accompanying footnotes, and describe how they are helpful to the users of annual reports.
d.   </inst>Discuss at least two advantages and two disadvantages of stating well-defined corporate strategies in the annual report.</para></listitem>

e.    Evaluate the effectiveness of annual reports in fulfilling the information needs of the following current and potential users: shareholders, c</para></listitem>reditors</para></listitem>, <listitem><para><inst></inst>employees</para></listitem>, c<ustomers, and f</para></listitem>inancial analysts</para></listitem></orderedlist></listitem>
f. Annual reports are public and accessible to anyone, including competitors. Discuss how this affects decisions about what information should be provided in annual reports.
1.3 The use of IT at USAA
a.    Why should USAA collect data on which auto parts are fixed most frequently? What could it do with this data?</para></listitem>
b. Even though USAA offered to waive the deductible, the repair shops still managed to convince 95% of the owners to replace rather than repair their damaged windshields. How could USAA use its AIS to persuade more shop owners to repair rather than replace their windows?</para></listitem>

a. How does the image-processing system at USAA add value to the organization?
b. How do the remote deposit capture and mobile banking system at USAA add value to the organization?
c. Do an Internet search and find out what other advancements USAA has introduced. Write a brief paragraph on each new application or other newsworthy item you find (maximum limit of three applications or items).

1.4 Match the description in the right column with the information characteristic in the left column.

1. Relevant	a. The report was carefully designed so that the data contained on the report became information to the reader
2. Reliable	b. The manager was working one weekend and needed to find some information about production requests for a certain customer. He was able to find the report on the company’s network.
3. Complete	c. The data on a report was checked by two clerks working independently
4. Timely	d. An accounts receivable aging report that included all customer accounts
5. Understandable	e. A report checked by 3 different people for accuracy
6. Verifiable	f. An accounts receivable aging report used in credit granting decisions
7. Accessible	g. An accounts receivable aging report was received before the credit manager had to make a decision whether to extend customer credit

1.5 The Howard Leasing Company

a. What is an accounts receivable aging report?
Why is an accounts receivable aging report needed for an audit?
What is an accounts receivable aging report used for in normal company operations?
What data will you need to prepare the report?
Where will you collect the data you need to prepare the report?
How will you collect the necessary data for the report?
What will the report look like (i.e., how will you organize the data collected to create the information your supervisor needs for the audit)? Prepare an accounts receivable aging report in Excel or another spreadsheet package.
How will you distribute the report? How many copies will you make? Who should receive the copies? What security features will you implement?

1.6 The use of IT at Tesco
a. What kind of information do you think Tesco gathers?

a. How do you think Tesco has motivated over 12 million customers to sign up for its Clubcard program?
b. What can Tesco accomplish with the Clubcard data it collects? Think in term of strategy and competitive advantage.
c. What are some of the disadvantages to the Clubcard program?
d. Do an Internet search to find out how Tesco is doing in comparison to Wal Mart and other grocers and retailers. Write a few paragraphs explaining your findings.

1.7 Have you ever imagined having one electronic device that does everything you would ever need? Mobile phone makers in Japan have gone beyond the imagining phase. Cell phones in Japan are becoming more versatile than ever. Newer models of cell phones contain a myriad of applications and can do many of the things that a personal computer (PC) can do. PCs are also able to function as phones. A small but growing number of professionals are trading in their laptops for handheld computers. Cell phone manufacturers in the United States and elsewhere are quickly catching up to their Japanese counterparts.

a. What commercial activities can be done with a cell phone? With a cell phone/PC combination device? What do you do when you’re on your cell phone? What do you expect to be doing in five years?

b. How can businesses utilize this technology to attract more customers, sell more products, advertise their products, facilitate the sale of products, and conduct and manage their businesses more efficiently and effectively?
c. What are some problems or drawbacks you can see with using these devices in business?
1.8 Classify each of the following items as belonging in the revenue, expenditure, human resources/payroll, production, or financing cycle.

Purchase raw materials
Pay off mortgage on factory
Hire a new assistant controller
Establish a $10,000 credit limit for a new customer
Pay for raw materials
Disburse payroll checks to factory workers
Record goods received from vendor
Update the allowance for uncollectible accounts
Decide how many units to make next month
Complete picking ticket for customer order
Record factory employee timecards
Sell concert tickets
Draw on line-of-credit
Send new employees to a business ethics course
Pay utility bills
Pay property taxes on office building
Pay federal payroll taxes
Sell DVD player
Collect payment on customer accounts
Obtain a bank loan
Pay sales commissions
Send an order to a vendor
Put purchased goods into the warehouse

Cases
1-1 The Web site for this book contains an adaption of Russell L. Ackoff’s classic article “Management Misinformation Systems” from Management Science. In the article, Ackoff identified five common assumptions about information systems and then explained why he disagreed with them.
Read the five assumptions, contentions, and Ackoff’s explanations. For each of the five assumptions, decide whether you agree or disagree with Ackoff’s contentions. Prepare a report in which you defend your stand and explain your defense.
CHAPTER 2

Overview of Business Processes

2.1 Table 2-1 lists some of the documents used in the revenue, expenditure, and human resources cycle. What kinds of input or output documents or forms would you find in the production (or conversion) cycle?
2.2 With respect to the data processing cycle, explain the phrase “garbage in, garbage out.” How can you prevent this from happening?
2.3 </inst><para>What kinds of documents are most likely to be turnaround documents? Do an internet search to find the answer and to find example turnaround documents.
2.4 The data processing cycle in Figure 2-1 is an example of a basic process found throughout nature. Relate the basic input/process/store/output model to the functions of the human body.
2.5 Some individuals argue that accountants should focus on producing financial statements and leave the design and production of managerial reports to information systems specialists. What are the advantages and disadvantages of following this advice? To what extent should accountants be involved in producing reports that include more than just financial measures of performance? Why?</para></question></general-problem></problemset>
2.1 The chart of accounts must be tailored to an organization’s specific needs. Discuss how the chart of accounts for the following organizations would differ from the one presented for S&S in <link linkend=”ch02table04″ preference=”0″>Table 2-2<xref linkend=”ch02table04″ label=”2-4″/></link>.</para>
2.2 <para>Design a chart of accounts for SDC. Explain how you structured the chart of accounts to meet the company’s needs and operating characteristics. Keep total account code length to a minimum, while still satisfying all of Mace’s desires.</para><source>

2.3 An audit trail enables a person to trace a source document to its ultimate effect on the financial statements or work back from amounts in the financial statements to source documents. Describe in detail the audit trail for the following:</para>
2.4 Your nursery sells various types and sizes of trees, bedding plants, vegetable plants, and shrubs. It also sells fertilizer and potting soil. Design a coding scheme for your nursery.
2.5 Match the following terms with their definitions

TERM	DEFINITION
a. data processing	Contains summary-level data for every asset, liability, equity, revenue, and expense account
b. source documents	2. Items are numbered consecutively to account for all items; missing items cause a gap in the numerical sequence
c. turnaround documents	3. Path of a transaction through a data processing system from point of origin to final output, or backwards from final output to point of origin
d. source data automation	4. List of general ledger account numbers; allows transaction data to be coded, classified, and entered into proper accounts; </para <para>facilitates preparation of financial statements and reports
e. general ledger	5. Contents of a specific field, such as “George” in a name field
f. subsidiary ledger	6. Portion of a data record that contains the data value for a particular attribute, like a cell in a spreadsheet
g. control account	7. Company data sent to an external party and then returned to the system as input
h. coding	8. Used to record infrequent or non-routine transactions
i. sequence code	9. Characteristics of interest that need to be stored
j. block code	10. The steps a company must follow to efficiently and effectively process data about its transactions
k. group code	11. Something about which information is stored
l. mnemonic code	12. Stores cumulative information about an organization; like a ledger in a manual AIS.
m. chart of accounts	13. Contains detailed data for any general ledger account with many individual subaccounts
n. general journal	14. Contains records of individual business transactions that occur during a specific time period
o. specialized journal	15. Updating each transaction as it occurs
p. audit trail	16. Devices that capture transaction data in machine-readable form at the time and place of their origin
q. entity	17. Used to record large numbers of repetitive transactions
r. attribute	18. Set of interrelated, centrally coordinated files
s. field	19. Two or more subgroups of digits are used to code items
t. record	20. Updating done periodically, such as daily
u. data value	21. Systematic assignment of numbers or letters to items to classify and organize them
v. master file	22. Letters and numbers, derived from the item description, are interspersed to identify items; usually easy to memorize
w. transaction file	23. Initial record of a transaction that takes place; usually recorded on preprinted forms or formattted screens
x. database	24. Fields containing data about entity attributes; <keyterm linkend=”ch02kt29″ role=”strong” preference=”1″>like a row in a spreadsheet
y. batch processing	25. Sets of numbers are reserved for specific categories of data
z. online, real-time processing	26. The general ledger account corresponding to a subsidiary ledger, where the sum of all subsidiary ledger entries should equal the amount in the general ledger account

2.6 For each of the following scenarios identify which data processing method (batch or online, real-time) would be the most appropriate.
2.7 <para>After viewing the Web sites, and based on your reading of the chapter, write a 2 page paper that describes how an ERP can connect and integrate the revenue, expenditure, human resources/payroll, and financing cycles of a business.

2.8 Which of the following actions update a master file and which would be stored as a record in a transaction file?

Update customer address change
Update unit pricing information
Record daily sales
Record payroll checks
Change employee pay rates
Record production run variances
Record Sales Commissions
Change employee office location
Update accounts payable balance
Change customer credit limit
Change vendor payment discount terms
Record purchases

2.9 You were hired to assist Ashton Fleming in designing an accounting system for S&S. Ashton has developed a list of the journals, ledgers, reports, and documents that he thinks S&S needs (see <link linkend=”ch02table06″ preference=”1″>Table 2-6<xref linkend=”ch02table06″ label=”2-8″/></link>). He asks you to complete the following tasks:</para>
a. Specify what data you think should be collected on each of the following four documents:
b. Design a report to manage inventory.</para></listitem>

Design a report to assist in managing credit sales and cash collections.
Visit a local office supply store and identify what types of journals, ledgers, and blank forms for various documents (sales invoices, purchase orders, etc.) are available. Describe how easily they could be adapted to meet S&S’s needs.

2.1 Bar Harbor Blueberry Farm
Data from Case

Date	Supplier Invoice	Supplier Name	Supplier Address	Amount
March 7	AJ34	Bud’s Soil Prep, Inc.	PO Box 34	$2,067.85
March 11	14568	Osto Farmers Supply	45 Main	$ 67.50
March 14	893V	Whalers Fertilizer, Inc.	Route 34	$5,000.00
March 21	14699	Osto Farmers Supply	45 Main	$3,450.37
March 21	10102	IFM Package Wholesale	587 Longview	$4,005.00
March 24	10145	IFM Package Wholesale	587 Longview	$ 267.88

CHAPTER 3
SYSTEMS DEVELOPMENT AND DOCUMENTATION TECHNIQUES
3.1 Identify the DFD elements in the following narrative: A customer purchases a few items from a local grocery store. Jill, a salesclerk, enters the transaction in the cash register and takes the customer’s money. At closing, Jill gives both the cash and the register tape to her manager.
3.2 Do you agree with the following statement: “Any one of the systems documentation procedures can be used to adequately document a given system”? Explain.
3.3 Compare the guidelines for preparing flowcharts and DFDs. What general design principles and limitations are common to both documentation techniques?
3.4 Your classmate asks you to explain flowcharting conventions using real-world examples. Draw each of the major flowchart symbols from memory, placing them into one of four categories: input/output, processing, storage, and flow and miscellaneous. For each symbol, suggest several uses.
3.1 Prepare flowcharting segments for each of the following operations:

a. processing transactions stored on magnetic tape to update a master file stored on magnetic tape

b. processing transactions stored on magnetic tape to update a database stored on a magnetic disk

c. converting source documents to magnetic tape using a computer-based optical character reader (OCR)

d. processing OCR documents online to update a database on magnetic disk

e. reading data from a magnetic disk into the computer to be printed on a report
f. using a computer or terminal to </inst>key data from source documents to a file stored on a magnetic disk
g. manually sorting and filing invoices numerically
h. using a terminal to enter source document data and send it to a </inst>remote location where an online processing system records it in a database stored on magnetic disk

i. a scheduled automatic backup of an internal hard drive to an external hard drive

j. using a terminal to </inst>query customer sales data maintained on a magnetic disk
k. enter employee hours recorded on time cards in the payroll transaction file maintained on disk and update wage data maintained on the payroll master file
l. use a terminal to </inst>access a price list maintained on disk to complete a purchase order. An electronic copy of the purchase order is sent to the vendor and a backup copy is printed and filed by vendor name
m. update an airline reservation on a Web-based airline reservation system from a home computer
3.2 Happy Valley Utility Company

a. Draw a system flowchart of the billing operations, commencing with the computer preparation of the meter reading forms and ending with the mailing of customer bills.

b. Draw a system flowchart depicting customer payments processing, starting with the mail room operations and ending with the two printed reports.
3.3 <para>Prepare a system flowchart of the process described.</para></problem>
3.4 Prepare a document flowchart to reflect how ANGIC Insurance Company processes its casualty claims.
3.5

a. Prepare a document flowchart that indicates the interaction and use of these documents among all departments at Beccan Company’s central facility. It should provide adequate internal control over the receipt, issuance, replenishment, and payment of tires and supplies. You may assume that there is a sufficient number of document copies to ensure that the perpetual inventory system has the necessary basic internal controls.</para><source>
b. Use the instructor proUsing the flowcharting conventions discussed in Focus 3.2, critique the instructor provided CMA solution. List all the ways the CMA solution violates those flowcharting guidelines.

3.6
a. Prepare a context diagram and level 0 DFD to document the payroll processing system at No-Wear Products.
b. Prepare a document flowchart to document the payroll processing system at No-Wear Products.
3.7

a. Prepare a context diagram and a level 0 DFD to document accounts payable processing at S&S.

b. Prepare a document flowchart to document accounts payable processing at S&S.
3.8
a. Develop a context diagram and a level 0 DFD of the acquisition/payment system at Oriental Trading.
b. Prepare a document flowchart to document the acquisition/payment system at Oriental Trading.
3.9
a. Develop a context diagram and a level 0 DFD for the cash receipts system at S&S.</para></listitem>

b. Prepare a document flowchart to document the cash receipts system at S&S.

3.10 <para>Draw a context diagram and at least two levels of DFDs for the preceding
3.11

a. Prepare a context diagram and at least two levels of DFDs for this operation.
b. Prepare a document flowchart to document this operation.

3.12 You recognize weaknesses in the existing system and believe a document flowchart would be beneficial in evaluating this client’s internal control in preparing for your examination of the financial statements.</para>

a. Complete the flowchart given in <link linkend=”ch03fig12″ preference=”1″>Figure 3-12<xref linkend=”ch03fig12″ label=”3-12″/></link>, for sales and cash receipts of Charting, Inc., by labeling the appropriate symbols and indicating information flows. Adapted from the 1969 CPA Exam

b. Using the guidelines for preparing flowcharts in <link linkend=”ch03sb02″ preference=”0″>Focus 3-2<xref linkend=”ch03sb02″ label=”3-2″/></link> and the flowcharting symbols shown in <link linkend=”ch03fig08″ preference=”0″>Figure 3-8<xref linkend=”ch03fig08″ label=”3-8″/></link>, critique the flowchart shown in <link linkend=”ch03fig12″ preference=”0″>Figure 3-12<xref linkend=”ch03fig12″ label=”3-12″/></link>. List the ways the flowchart violates the guidelines or uses improper symbols.

3.13 Bottom Manufacturing Corporation Charge Sales System
a. List the procedures or the internal documents that are labeled letters <emphasis>c</emphasis> to <emphasis>r</emphasis> in the flowchart of Bottom Manufacturing Corporation’s charge sales system. Organize your answer as follows (Note that the explanations of the letters <emphasis>a</emphasis> and <emphasis>b</emphasis> in the flowchart are entered as examples):
</para></listitem>

<informaltable id=”informaltable2″ frame=”none” float=”0″ type=”untbl1″><tgroup cols=”2″ colsep=”0″ rowsep=”0″ align=”left”><colspec colnum=”1″ colname=”c01″ colwidth=”500″/><colspec colnum=”2″ colname=”c02″ colwidth=”500″/><thead><row><entry valign=”top”><para>Flowchart Symbol Letter</para></entry>	<entry valign=”top”><para>Procedures or Internal Document</para></entry></row></thead>
<tbody><row><entry valign=”top”><para>a</para></entry>	<entry valign=”top”><para>Prepare six-part sales order.</para></entry></row>
<row><entry valign=”top”><para>b</para></entry>	<entry valign=”top”><para>File by order number.</para></entry></row></tbody></tgroup></informaltable>

b. Using the guidelines for preparing flowcharts in <link linkend=”ch03sb02″ preference=”0″>Focus 3-2<xref linkend=”ch03sb02″ label=”3-2″/></link> and the flowcharting symbols shown in <link linkend=”ch03fig08″ preference=”0″>Figure 3-8<xref linkend=”ch03fig08″ label=”3-8″/></link>, critique the flowchart shown in <link linkend=”ch03fig13″ preference=”0″>Figure 3-13<xref linkend=”ch03fig13″ label=”3-13″/></link>. List the ways the flowchart violates the guidelines or uses improper symbols.
3.14

a. Prepare and file a tax return with the tax owed to the Internal Revenue Service.

b. A customer pays an invoice with a check. Accounts receivable is updated to reflect the payment. The check is recorded and deposited into the bank.
c. A customer places an online order to purchase merchandise. The order is approved, filled, and sent to the customer with an invoice.
d. An inventory request is received by the purchasing department. The purchasing
e. A vendor invoice is received, reviewed, and compared against the appropriate purchase order, then paid and filed.</para></listitem>
f. A bill of lading for ordered inventory is received from a vendor, recorded, checked against the appropriate purchase order, and filed.
3 .15 <para>Prepare a program flowchart to help Melanie program this process.</para></problem>

3.16

1. Statements are prepared and sent to customers from data contained in the accounts receivable data store. 2. A customer sends a sales invoice to the accounts payable process. 3. A check is manually prepared from data on a vendor invoice. 4. The cash receipt process updates the cash receipts data store. 5. A sales invoice is manually prepared and sent to a customer. 6. A report is prepared from data stored on magnetic tape. 7. Billing data are entered online and used to update the sales order file and the customer master file. 8. Data from a cancelled invoice are used to update the cash disbursements ledger. 9. A sales order is prepared manually. Copy 1 is sent to the warehouse and copy 2 is filed. 10. An accounts receivable aging report is prepared from the accounts receivable master file and the cash receipts master file, both stored on disk. 11. An error listing and batch total are compared and filed.

3-1 <para>You are the systems analyst for the Wee Willie Williams Widget Works (also known as Dub 5, which is a shortened version of 5 Ws). Dub 5 produces computer keyboard components. It has been producing keyboards for more than 20 years and has recently signed an exclusive 10-year contract to provide the keyboards for all Dell personal computers. As the systems analyst, you have been assigned the task of developing a level 0 DFD for Dub 5’s order processing system. You have finished gathering all the information you need to develop the first-pass DFD and now want to complete the diagram.</para>

CHAPTER 4
RELATIONAL DATABASES
4.1 Contrast the logical and the physical view of data and discuss why separate views are necessary in database applications. Describe which perspective is most useful for each of the following employees: a programmer, a manager, and an internal auditor. How will understanding logical data structures assist you when designing and using database systems?</para></question><question id=”ch04ques02″ label=”4.2″>
4.2 The relational data model represents data as being stored in tables. Spreadsheets are another tool that accountants use to employ a tabular representation of data. What are some similarities and differences in the way these tools use tables? How might an accountant’s familiarity with the tabular representation of spreadsheets facilitate or hinder learning how to use a relational DBMS?
4.3 Some people believe database technology may eliminate the need for double-entry accounting. This creates three possibilities: (1) the double-entry model will be abandoned; (2) the double-entry model will not be used directly, but an external-level schema based on the double-entry model will be defined for accountants’ use; or (3) the double-entry model will be retained in database systems. Which alternative do you think is most likely to occur? Why?
4.4 Relational DBMS query languages provide easy access to information about the organization’s activities. Does this mean that online, real-time processing should be used for all transactions? Does an organization need real-time financial reports? Why or why not?</para></question></general-problem></problemset>

4.5 Why is it so important to have good data?
4.6 What is a data dictionary, what does it contain, and how is it used?

4.7 Compare and contrast the file-oriented approach and the database approach. Explain the main advantages of database systems.

4.1
a. Identify three potential users and design a subschema for each. Justify your design by explaining why each user needs access to the subschema data elements.
b. Use Microsoft Access or some other relational database product to create the schema tables. Specify the primary key(s), foreign key(s), and other data for each table. Test your model by entering sample data in each table.

4.2 Most DBMS packages contain data definition, data manipulation, and data query languages. For each of the following, indicate which language would be used and why.

A database administrator defines the logical structure of the database

b.        The controller requests a cost accounting report containing a list of all employees being paid for more than 10 hours overtime in a given week.
c.         A programmer develops a program to update the fixed-assets records stored in the database.
d.        The human resources manager requests a report noting all employees who are retiring within five years.
e.        The inventory serial number field is extended in the inventory records to allow for recognition of additional inventory items with serial numbers containing more than 10 digits.
f.         A user develops a program to print out all purchases made during the past two weeks.
g.        An additional field is added to the fixed-asset records to record the estimated salvage value of each asset.
4.3          Ashton wants to store the following data about S&S’s purchases of inventory:

a. Design a set of relational tables to store this data. Do all of the data items need to be stored in a table? If not, which ones do not need to be stored and why do they not need to be stored?
b. Identify the primary key for each table.
c. Identify the foreign keys needed in the tables to implement referential integrity.

d. Implement your tables using any relational database product to which you have access.
e. Test your specification by entering sample data in each table.
f. Create a few queries to retrieve or analyze the data you stored.

4.4 Retrieve the S&S In-Chapter Database (in Microsoft Access format) from the text’s Web site (or create the tables in <link linkend=”ch04table05″ preference=”0″>Table 4-5<xref linkend=”ch04table05″ label=”4-5″/></link> in a relational DBMS product). Write queries to answer the following questions. <emphasis>Note</emphasis>: For some questions, you may have to create two queries—one to calculate an invoice total and the second to answer the question asked.

a. How many different kinds of inventory items does S&S sell?

b. How many sales were made during October?

c.      What were total sales in October?

d.      What was the average amount of a sales transaction?
e.        Which salesperson made the largest sale?
f.         How many units of each product were sold?
g. Which product was sold most frequently?</para></listitem></orderedlist></problem>

4.5
Enter the tables in <link linkend=”ch04table15″ preference=”1″>Table 4-15<xref linkend=”ch04table15″ label=”4-15″/></link> into a relational DBMS package. Write queries to answer the following questions. <emphasis>Note</emphasis>: For some questions, you may have to create two queries—one to calculate a total and the second to answer the question asked.<inlinemediaobject role=”titleicon” id=”ch04dg03″ type=”dg01″><imageobject><imagedata/></imageobject><textobject/></inlinemediaobject></para>

a. Which customers (show their names) made purchases from Martinez?

b. Who has the largest credit limit?

c.         How many sales were made in October?
d.       What were the item numbers, price, and quantity of each item sold on invoice number 103?
e.           How much did each salesperson sell?

f. How many customers live in Arizona?
g. How much credit does each customer still have available?
h. How much of each item was sold? (Include the description of each item in your answer.)

Which customers still have more than $1,000 in available credit?

j. For which items are there at least 100 units on hand?

4.6 The BusyB Company wants to store data about employee skills. Each employee may possess one or more specific skills and several employees may have the same skill. Include the following facts in the database:

date hired
date of birth
date skill acquired
employee name
employee number
pay rate </pa

a. Design a set of relational tables to store these data.<inlinemediaobject role=”titleicon” id=”ch04dg04″ type=”dg01″><imageobject><imagedata/></imageobject><textobject/></inlinemediaobject></para></listitem>

<listitem><para><inst>b. </inst>Identify the primary key for each table, and identify any needed foreign keys.</para></listitem>
<listitem><para><inst>c. </inst>Implement your schema using any relational DBMS. Specify primary and foreign keys, and enforce referential integrity. Demonstrate the soundness of your design by entering sample data in each table.</para></listitem></orderedlist></problem>

4.7 You want to extend the schema shown in <link linkend=”ch04table16″ preference=”0″>Table 4-16<xref linkend=”ch04table16″ label=”4-16″/></link> to include information about customer payments. Some customers make installment payments on each invoice. Others write a check to pay for several different invoices. </para>

<listitem><para><inst>a. </inst>Modify the set of tables in <link linkend=”ch04table16″ preference=”1″>Table 4-16<xref linkend=”ch04table16″ label=”4-16″/></link> to store this additional data.<inlinemediaobject role=”titleicon” id=”ch04dg05″ type=”dg01″><imageobject><imagedata/></imageobject><textobject/></inlinemediaobject></para></listitem>
<listitem><para><inst>b. </inst>Identify the primary key for each new table you create.</para></listitem>

<listitem><para><inst>c. </inst>Implement your schema using any relational DBMS package. Indicate which attributes are primary and foreign keys, and enter sample data in each table you create.
</para></listitem></orderedlist></problem

4.8 Create relational tables that solve the update, insert, and delete anomalies in <link linkend=”ch04table17″ preference=”1″>Table 4-17.
4.9 Create relational tables that solve the update, insert, and delete anomalies in <link linkend=”ch04table18″ preference=”1″>Table 4-18.
4.10 From the database created in the comprehensive problem, perform queries based on the tables and query grid shown in <link linkend=”ch04table19″ preference=”1″>Table 4-19<xref linkend=”ch04table19″ label=”4-19″/></link>.

a. Which borrowers use Advent Appraisers?

b. What is the average amount borrowed from National Mortgage?
c. List all of the property appraisers.

d. List all of the lenders.
List the lenders that lent more than $100,000.

f. Which borrower requested the largest mortgage?
g. Which borrower requested the smallest mortgage?
4.1 As in all areas of information technology, DBMSs are constantly changing and improving. Research how businesses are using DBMSs, and write a report of your findings. Address the following issues:

1. Which popular DBMS products are based on the relational data model?
2. Which DBMS products are based on a logical model other than the relational data model?
3. What are the relative strengths and weaknesses of the different types (relational versus other logical models) of DBMSs

CHAPTER 5

COMPUTER FRAUD
5.1 Do you agree that the most effective way to obtain adequate system security is to rely on the integrity of company employees? Why or why not? Does this seem ironic? What should a company do to ensure the integrity of its employees?
5.2 You are the president of a multinational company where an executive confessed to kiting $100,000. What is kiting and what can your company do to prevent it? How would you respond to the confession? What issues must you consider before pressing charges?
5.3 Discuss the following statement by Roswell Steffen, a convicted embezzler: “For every foolproof system, there is a method for beating it.” Do you believe a completely secure computer system is possible? Explain. If internal controls are less than 100% effective, why should they be employed at all?
5.4 Revlon hired Logisticon to install a real-time invoice and inventory processing system. Seven months later, when the system crashed, Revlon blamed the Logisticon programming bugs they discovered and withheld payment on the contract. Logisticon contended that the software was fine and that it was the hardware that was faulty. When Revlon again refused payment, Logisticon repossessed the software using a telephone dial-in feature to disable the software and render the system unusable. After a three-day standoff, Logisticon reactivated the system. Revlon sued Logisticon, charging them with trespassing, breach of contract, and misappropriation of trade secrets (Revlon passwords). Logisticon countersued for breach of contract. The companies settled out of court.

Would Logisticon’s actions be classified as sabotage or repossession? Why? Would you find the company guilty of committing a computer crime? Be prepared to defend your position to the class.
5.5     Because improved computer security measures sometimes create a new set of problems—user antagonism, sluggish response time, and hampered performance—some people believe the most effective computer security is educating users about good moral conduct. Richard Stallman, a computer activist, believes software licensing is antisocial because it prohibits the growth of technology by keeping information away from the neighbors. He believes high school and college students should have unlimited access to computers without security measures so that they can learn constructive and civilized behavior. He states that a protected system is a puzzle and, because it is human nature to solve puzzles, eliminating computer security so that there is no temptation to break in would reduce hacking.

<para>Do you agree that software licensing is antisocial? Is ethical teaching the solution to computer security problems? Would the removal of computer security measures reduce the incidence of computer fraud? Why or why not?
5.1 You were asked to investigate extremely high, unexplained merchandise shortages at a department store chain. Classify each of the five situations as a fraudulent act, an indicator of fraud, or an event unrelated to the investigation. Justify your answers.
a.        The receiving department supervisor owns and operates a boutique carrying many of the same labels as the chain store. The general manager is unaware of the ownership interest.
b.        The receiving supervisor signs receiving reports showing that the total quantity shipped by a supplier was received and then diverts 5% to 10% of each shipment to the boutique.
c.         The store is unaware of the short shipments because the receiving report accompanying the merchandise to the sales areas shows that everything was received.
d.        Accounts Payable paid vendors for the total quantity shown on the receiving report.
e.        Based on the receiving department supervisor’s instructions, quantities on the receiving reports were not counted by sales personnel.
5.2      A client heard through its hot line that John, the purchases journal clerk, periodically enters fictitious acquisitions. After John creates a fictitious purchase, he notifies Alice, the accounts payable ledger clerk, so she can enter them in her ledger. When the payables are processed, the payment is mailed to the nonexistent supplier’s address, a post office box rented by John. John deposits the check in an account he opened in the nonexistent supplier’s name.
a.        Define fraud, fraud deterrence, fraud detection, and fraud investigation.

a. List four personal (as opposed to organizational) fraud symptoms, or red-flags, that indicate the possibility of fraud.</para></listitem> Do not confine your answer to this example.

b. List two procedures you could follow to uncover John’s fraudulent behavior.

5.3 The computer frauds that are publicly revealed represent only the tip of the iceberg. Although many people perceive that the major threat to computer security is external, the more dangerous threats come from insiders. Management must recognize these problems and develop and enforce security programs to deal with the many types of computer fraud.
Explain how each of the following six types of fraud is committed. Using the format provided, also identify a different method of protection for each and describe how it works
5.4 Environmental, institutional, or individual pressures and opportune situations, which are present to some degree in all companies, motivate individuals and companies to engage in fraudulent financial reporting. Fraud prevention and detection require that pressures and opportunities be identified and evaluated in terms of the risks they pose to a company. Adapted from the CMA Examination.

a. Identify two company pressures that would increase the likelihood of fraudulent financial reporting.
b. Identify three corporate opportunities that make fraud easier to commit and detection less likely.

c. For each of the following, identify the external environmental factors that should be considered in assessing the risk of fraudulent financial reporting

· The company’s industry

· The company’s business environment

· The company’s legal and regulatory environment

d. What can top management do to reduce the possibility of fraudulent financial reporting?

5.5 For each of the following independent cases of employee fraud, recommend how to prevent similar problems in the future.

a. Due to abnormal inventory shrinkage in the audiovisual department at a retail chain store, internal auditors conducted an in-depth audit of the department. They learned that a customer frequently bought large numbers of small electronic components from a certain cashier. The auditors discovered that they had colluded to steal electronic components by not recording the sale of items the customer took from the store.

b. During an unannounced audit, auditors discovered a payroll fraud when they distributed paychecks instead of department supervisors. When the auditors investigated an unclaimed paycheck, they discovered that the employee quit four months previously after arguing with the supervisor. The supervisor continued to turn in a time card for the employee and pocketed his check.

c. Auditors discovered an accounts payable clerk who made copies of supporting documents and used them to support duplicate supplier payments. The clerk deposited the duplicate checks in a bank account she had opened using a name similar to the supplier’s.</para></listitem></orderedlist><source>

5.6 An auditor found that Rent-A-Wreck management does not always comply with its stated policy that sealed bids be used to sell obsolete cars. Records indicated that several vehicles with recent major repairs were sold at negotiated prices. Management vigorously assured the auditor that performing limited repairs and negotiating with knowledgeable buyers resulted in better sales prices than the sealed-bid procedures. Further investigation revealed that the vehicles were sold to employees at prices well below market value. Three managers and five other employees pleaded guilty to criminal charges and made restitution.
a.        List the fraud symptoms that should have aroused the auditor’s suspicion.
b.        What audit procedures would show that fraud had in fact occurred.
5.7 A bank auditor met with the senior operations manager to discuss a customer’s complaint that an auto loan payment was not credited on time. The customer said the payment was made on May 5, its due date, at a teller’s window using a check drawn on an account in the bank. On May 10, when the customer called for a loan pay-off balance so he could sell the car, he learned that the payment had not been credited to the loan. On May 12, the customer went to the bank to inquire about the payment and meet with the manager. The manager said the payment had been made on May 11. The customer was satisfied because no late charge would have been assessed until May 15. The manager asked whether the auditor was comfortable with this situation.

The auditor located the customer’s paid check and found that it had cleared on May 5.   The auditor traced the item back through the computer records and found that the teller had processed the check as being cashed. The auditor traced the payment through the entry records of May 11 and found that the payment had been made with cash instead of a check.

What type of embezzlement scheme does this appear to be, and how does that scheme operate?

5.8 AICPA adapted
a.      Prepare a schedule showing how much the cashier embezzled.

a. Describe how the cashier attempted to hide the theft.

5.9 An accountant with the Atlanta Olympic Games was charged with embezzling over $60,000 to purchase a Mercedes-Benz and to invest in a certificate of deposit. Police alleged that he created fictitious invoices from two companies that had contracts with the Olympic Committee: International Protection Consulting and Languages Services. He then wrote checks to pay the fictitious invoices and deposited them into a bank account he had opened under the name of one of the companies. When he was apprehended, he cooperated with police to the extent of telling them of the bogus bank account and the purchase of the Mercedes-Benz and the CD. The accountant was a recent honors graduate from a respected university who, supervisors stated, was a very trusted and loyal employee.

a. How does the accountant fit the profile of a fraudster?

How does he not fit the profile?

b. What fraud scheme did he use to perpetrate his fraud?
c. What controls could have prevented his fraud?
d. What controls could have detected his fraud?

5.10 Lexsteel, a manufacturer of steel furniture, has facilities throughout the United States. Problems with the accounts payable system have prompted Lexsteel’s external auditor to recommend a detailed study to determine the company’s exposure to fraud and to identify ways to improve internal control. Lexsteel’s controller assigned the study to Dolores Smith. She interviewed Accounts Payable employees and created the flowchart of the current system shown in Figure 5-3.

Lexsteel’s purchasing, production control, accounts payable, and cash disbursements functions are centralized at corporate headquarters. The company mainframe at corporate headquarters is linked to the computers at each branch location by leased telephone lines.

The mainframe generates production orders and the bills of material needed for the production runs. From the bills of material, purchase orders for raw materials are generated and e-mailed to vendors. Each purchase order tells the vendor which manufacturing plant to ship the materials to. When the raw materials arrive, the manufacturing plants produce the items on the production orders received from corporate headquarters.

The manufacturing plant checks the goods received for quality, counts them, reconciles the count to the packing slip, and e-mails the receiving data to Accounts Payable. If raw material deliveries fall behind production, each branch manager can send emergency purchase orders directly to vendors. Emergency order data and verification of materials received are e-mailed to Accounts Payable. Since the company employs a computerized perpetual inventory system, periodic physical counts of raw materials are not performed.

Vendor invoices are e-mailed to headquarters and entered by Accounts Payable when received. This often occurs before the branch offices transmit the receiving data. Payments are due 10 days after the company receives the invoices. Using information on the invoice, Data Entry calculates the final day the invoice can be paid, and it is entered as the payment due date.

Once a week, invoices due the following week are printed in chronological entry order on a payment listing, and the corresponding checks are drawn. The checks and payment listing are sent to the treasurer’s office for signature and mailing to the payee. The check number is printed by the computer, displayed on the check and the payment listing, and validated as the checks are signed. After the checks are mailed, the payment listing is returned to Accounts Payable for filing. When there is insufficient cash to pay all the invoices, the treasurer retains certain checks and the payment listing until all checks can be paid. When the remaining checks are mailed, the listing is then returned to Accounts Payable. Often, weekly check mailings include a few checks from the previous week, but rarely are there more than two weekly listings involved.

When Accounts Payable receives the payment listing from the treasurer’s office, the expenses are distributed, coded, and posted to the appropriate cost center accounts. Accounts Payable processes weekly summary performance reports for each cost center and branch location. Adapted from the CMA Examination

1. Discuss three ways Lexsteel is exposed to fraud and recommend improvements to correct these weaknesses.

2. Describe three ways management information could be distorted and recommend improvements to correct these weaknesses.

3. Identify and explain three strengths in Lexsteel’s procedures

5.11 The Association of Certified Fraud Examiners periodically prepares an article called “What Is Your Fraud IQ?” It consists of 10 or more multiple choice questions dealing with various aspects of fraud. The answers, as well as an explanation of each answer, are provided at the end of the article. Visit the Journal of Accountancy site (http://www.journalofaccountancy.com) and search for the articles. Read and answer the questions in three of these articles, and then check your answers.
5.12 Explore the Anti-Fraud and Forensic Accounting portion of the AICPA Web site (http://www.aicpa.org/INTERESTAREAS/FORENSICANDVALUATION/RESOURCES/Pages/default.aspx), and write a two-page report on the three most interesting things you found on the site.
5.1 1. How does Miller fit the profile of the average fraud perpetrator?

2. Explain the three elements of the opportunity triangle (commit, conceal, convert) and discuss how Miller accomplished each when embezzling funds from Associated Communications. What specific concealment techniques did Miller use?

3. What pressures motivated Miller to embezzle? How did Miller rationalize his actions?

4. Miller had a framed T-shirt in his office that said, “He who dies with the most toys wins.” What does this tell you about Miller? What lifestyle red flags could have tipped off the company to the possibility of fraud?

Why do companies hesitate to prosecute white-collar criminals?

What could the victimized companies have done to prevent Miller’s embezzlement?

5.2

1. Figure 5-4 shows the employees and external parties that deal with Heirloom. Explain how Heirloom could defraud the bank and how each internal and external party except the bank could defraud Heirloom.
2. What risk factor, unusual item, or abnormality would alert you to each fraud?
3. What control weaknesses make each frau

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ACC 557 Week 1 Assignment

E1-2 (a) The following are users of financial statements.
______Customers ______Securities and Exchange Commission
______Internal Revenue Service ______Store manager
______Labor unions ______Suppliers
______Marketing manager ______Vice-president of finance
______Production supervisor

Instructions
Identify the users as being either external users or internal users.

(b) The following questions could be asked by an internal user or an external user.
______Can we afford to give our employees a pay raise?
______Did the company earn a satisfactory income?
______Do we need to borrow in the near future?
______How does the company’s profitability compare to other companies?
______What does it cost us to manufacture each unit produced?
______Which product should we emphasize?
______Will the company be able to pay its short-term debts?

Instructions
Identify each of the questions as being more likely asked by an internal user or an external user.

ACC 557 Week 1 Assignment

E1-4 The following situations involve accounting principles and assumptions.

1. Grossman Company owns buildings that are worth substantially more than they originally cost. In an effort to provide more relevant information, Grossman reports the buildings at market value in its accounting reports.

2. Jones Company includes in its accounting records only transaction data that can be expressed in terms of money.

3. Caleb Borke, president of Caleb’s Cantina, records his personal living costs as expenses of the Cantina.

Instructions
For each of the three situations, say if the accounting method used is correct or incorrect. If correct, identify which principle or assumption supports the method used. If incorrect, identify which principle or assumption has been violated.

ACC 557 E1-8

An analysis of the transactions made by S. Moses & Co., a certified public accounting firm, for the month of August is shown below. Each increase and decrease in stockholder's equity is explained.

Cash + Accounts
Receivable + Supplies + Office
Equipment = Accounts
Payable + Stockholder's Equity
1. +$15,000 +$15,000 Investment
2.-2,000 +$5,000 +$3,000
3.-750 +$750
4.+4,600 +$3,700 +8,300 Service Revenue
5.-1,500 -1,500
6.-2,000 -2,000 Dividends
7.-650 -650 Rent Expense
8.+450 -450
9.-4,900 -4,900 Salaries Expense
10. +500 -500 Utilities Expense

Instructions

(a) How much did stockholder's equity increase for the month?

$

(b) Compute the amount of net income for the month. (If a net loss, record amount using either a negative sign preceding the number eg -45 or parentheses eg (45).)

ACC 557 Week 1 E1-14

Deer Park, a public camping ground near the Lake Mead National Recreation Area, has compiled the following financial information as of December 31, 2008.

Revenues during 2008—camping fees $140,000 Notes payable $ 60,000
Revenues during 2008—general store 50,000 Expenses during 2008 150,000
Accounts payable 11,000 Supplies on hand 2,500
Cash on hand 23,000 Common stock 20,000
Original cost of equipment 105,500 Retained earnings ?
Market value of equipment 140,000

Instructions

(a) Determine Deer Park’s net income for 2008.
(b) Prepare a balance sheet for Deer Park as of December 31, 2008.

ACC 557 Week 1 P1-4A

Mark Miller started a delivery service, Miller Deliveries, on June 1, 2008.The following transactions occurred during the month of June.

June 1 Stockholders invested $10,000 cash in the business.
2 Purchased a used van for deliveries for $12,000. Mark paid $2,000 cash and signed a note payable for the remaining balance.
3 Paid $500 for office rent for the month.
5 Performed $4,400 of services on account.
9 Paid $200 in cash dividends.
12 Purchased supplies for $150 on account.
15 Received a cash payment of $1,250 for services provided on June 5.
17 Purchased gasoline for $100 on account.
20 Received a cash payment of $1,500 for services provided.
23 Made a cash payment of $500 on the note payable.
26 Paid $250 for utilities.
29 Paid for the gasoline purchased on account on June 17.
30 Paid $1,000 for employee salaries.

Instructions

(a) Show the effects of the previous transactions on the accounting equation using the following
format.
Problems: Set A 39
(b) Net income $1,900
(a) Retained earnings $3,850
(b) Net income $4,050
(c) Cash $8,200
Stockholders’
Assets Liabilities Equity
Accounts Delivery Notes Accounts Common Retained
Date Cash _ Receivable _ Supplies _ Van _ Payable _ Payable _ Stock _ Earnings
Include explanations for any changes in the Retained Earnings account in your analysis.
(b) Prepare an income statement for the month of June.
(c) Prepare a balance sheet at June 30, 2008.

ACC 557 Week 1 P1–5A

Financial statement information about four different companies is as follows.

Instructions

(a) Determine the missing amounts. (Hint: For example, to solve for (a), Assets _ Liabilities _
Stockholders’ Equity _ $45,000.)
(b) Prepare the retained earnings statement for Yates Company. Assume beginning retained
earnings was $20,000.
(c) Write a memorandum explaining the sequence for preparing financial statements and the interrelationship of the retained earnings statement to the income statement and
balance sheet.

Karma Yates McCain Dench
Company CompanyCompanyCompany
January 1, 2008
Assets $ 95,000 $110,000 (g) $170,000
Liabilities 50,000 (d) 75,000 ( j)
Stockholders’ equity (a) 60,000 45,000 90,000
December 31, 2008
Assets (b) 137,000 200,000 (k)
Liabilities 55,000 75,000 (h) 80,000
Stockholders’ equity 60,000 (e) 130,000 170,000
Stockholders’ equity changes in year
Additional investment (c) 15,000 10,000 15,000
Dividends 25,000 (f) 14,000 20,000
Total revenues 350,000 420,000 (i) 520,000
Total expenses 320,000 385,000 342,000 (l)

ACC 557 Week 2

E2-2 Selected transactions for D. Reyes, Inc., an interior decorating firm, in its first month of?

Jan. 2 Invested $10,000 cash in the business in exchange for common stock.
3 Purchased used car for $4,000 cash for use in business.
9 Purchased supplies on account for $500.
11 Billed customers $1,800 for services performed.
16 Paid $200 cash for advertising.
20 Received $700 cash from customers billed on January 11.
23 Paid creditor $300 cash on balance owed.
28 Declared and paid a $1,000 cash dividend.
Instructions
For each transaction indicate the following.
(a) The basic type of account debited and credited (asset, liability, stockholders’ equity).
(b) The specific account debited and credited (cash, rent expense, service revenue, etc.).
(c) Whether the specific account is increased or decreased.
(d) The normal balance of the specific account.

ACC 557 Week 2 E2-3

Selected transactions for D. Reyes, an interior decorator in her first month of business, are as follows.
Jan.

2
Invested $10,000 cash in business.

3
Purchased used car for $4,000 cash for use in business.

9
Purchased supplies on account for $500.

11
Billed customers $1,800 for services performed.

16
Paid $200 cash for advertising.

20
Received $700 cash from customers billed on January 11.

23
Paid creditor $300 cash on balance owed.

28
Withdrew $1,000 cash for personal use of owner.
Instructions
Journalize the transactions:

ACC 557 Week 2 E2-7

Rowand Enterprises had the following selected transactions.

Aaron Rowand invested $4,000 cash in the business in exchange for common stock.
Paid office rent of $1,100.
Performed consulting services and billed a client $5,200.
Paid $700 cash dividend

ACC 557 Week 2 E2-10

The T accounts below summarize the ledger of Simon Landscaping Company at the end of the first month of operations.

Cash	No. 101
4/1	15,000	4/15	600
4/12	900	4/25	1,500
4/29	400
4/30	1,000

Accounts Receivable	No. 112
4/7	3,200	4/29	400

Supplies	No. 126
4/4	1,800

Accounts Payable	No. 201
4/25	1,500	4/4	1,800

Unearned Revenue	No. 205
		4/30	1,000

Common Stock	No. 311
		4/1	15,000

Service Revenue	No. 400
		4/7	3,200
		4/12	900

Salaries Expense	No. 726
4/15	600

Instructions

(a) Prepare the complete general journal from which the postings to Cash were made.

Date	Description/Account	Debit	Credit
Apr. 1	Cash	15000
	Common Stock		15000
	(Owner's investment of cash in business.)
Apr. 12	Cash	900
	Service Revenue		900
	(Received cash for services provided.)
Apr. 15	Salaries Expense	600
	Cash		600
	(Paid salaries to date.)
Apr. 25	Accounts Payable	1500
	Cash		1500
	(Paid creditors on account.)
Apr. 29	Cash	400
	Accounts Receivable		400
	(Received cash in payment of account.)
Apr. 30	Cash	1000
	Unearned Revenue		1000
	(Received cash for future services.)

(b) Prepare a trial balance at April 30, 2008. (If answer is zero, please enter 0. Do not leave any fields blank.)

ACC 557 Week 2 P2-3A

Jack Shellenkamp owns and manages a computer repair service, which had the following trial balance on December 31, 2007 (the end of its fiscal year).

BYTE REPAIR SERVICE, INC.
Trial Balance
December 31, 2007
Cash	$8,000
Accounts Receivable	15,000
Parts Inventory	13,000
Prepaid Rent	3,000
Shop Equipment	21,000
Accounts Payable		$19,000
Common Stock		30,000
Retained Earnings		11,000
	$60,000	$60,000

Summarized transactions for January 2008 were as follows:

Advertising costs, paid in cash, $1,000.
Additional repair parts inventory acquired on account $4,000.
Miscellaneous expenses, paid in cash, $2,000.
Cash collected from customers in payment of accounts receivable $14,000.
Cash paid to creditors for accounts payable due $15,000.
Repair parts used during January $4,000. (Hint: Debit this to Repair Parts Expense.)
Repair services performed during January: for cash $6,000; on account $9,000.
Wages for January, paid in cash, $3,000.
Dividends paid in January were $3,000.

ACC 557 Week 2 P2-5A

The Lake Theater opened on April 1. All facilities were completed on March 31. At this time, the ledger showed: No. 101 Cash $6,000; No. 140 Land $10,000; No. 145 Buildings (concession stand, projection room, ticket booth, and screen) $8,000; No. 157 Equipment $6,000; No. 201 Accounts Payable $2,000; No. 275 Mortgage Payable $8,000; and No. 311 Common Stock $20,000. During April, the following events and transactions occurred.

Apr. 2 Paid film rental of $800 on first movie.
3 Ordered two additional films at $1,000 each.
9 Received $2,800 cash from admissions.
10 Made $2,000 payment on mortgage and $1,000 for accounts payable due.
11 Lake Theater contracted with R. Wynns Company to operate the concession stand. Wynns is to pay 17% of gross concession receipts (payable monthly) for the right to operate the concession stand.
12 Paid advertising expenses $500.
20 Received one of the films ordered on April 3 and was billed $1,000. The film will be shown in April.
25 Received $5,200 cash from admissions.
29 Paid salaries $2,000.
30 Received statement from R.Wynns showing gross concession receipts of $1,000 and the balance due to The Lake Theater of $170 ($1,000 17%) for April. Wynns paid one-half of the balance due and will remit the remainder on May 5.
30 Prepaid $900 rental on special film to be run in May.

In addition to the accounts identified above, the chart of accounts shows: No. 112 Accounts Receivable, No. 136 Prepaid Rentals, No. 405 Admission Revenue, No. 406 Concession Revenue, No. 610 Advertising Expense, No. 632 Film Rental Expense, and No. 726 Salaries Expense.

Instructions

(a) Journalize the April transactions. (If there is no transaction, enter No entry as the description and 0 for the amount.) List amounts from largest to smallest eg 10, 5, 3, 2. If amounts are the same, list alphabetically

ACC 557 Week 3

E3-4

Emeril Corporation encounters the following situations:

Instructions

Identify what type of adjusting entry (prepaid expense, unearned revenue, accrued expense, accrued revenue) is needed in each situation, at December 31, 2008.

1. Emeril collects $1,000 from a customer in 2008 for services to be performed in 2009.

2. Emeril incurs utility expense which is not yet paid in cash or recorded.

3. Emeril's employees worked 3 days in 2008, but will not be paid until 2009.

4. Emeril earned service revenue but has not yet received cash or recorded the transaction.

5. Emeril paid $2,000 rent on December 1 for the 4 months starting December 1.

6. Emeril received cash for future services and recorded a liability until the revenue was earned.

7. Emeril performed consulting services for a client in December 2008. On December 31, it billed the client $1,200.

8. Emeril paid cash for an expense and recorded an asset until the item was used up.

9. Emeril purchased $900 of supplies in 2008; at year-end, $400 of supplies remain unused.

10. Emeril purchased equipment on January 1, 2008; the equipment will be used for 5 years.

11. Emeril borrowed $10,000 on October 1, 2008, signing an 8% one-year note payable.

ACC 557 Week 3 E3-8

Andy Wright, D.D.S., opened a dental practice on January 1, 2008. During the first month
of operations the following transactions occurred.
1. Performed services for patients who had dental plan insurance. At January 31, $875 of such
services was earned but not yet recorded.
2. Utility expenses incurred but not paid prior to January 31 totaled $520.
3. Purchased dental equipment on January 1 for $80,000, paying $20,000 in cash and signing a
$60,000, 3-year note payable.The equipment depreciates $400 per month. Interest is $500 per
month.
4. Purchased a one-year malpractice insurance policy on January 1 for $12,000.
5. Purchased $1,600 of dental supplies. On January 31, determined that $400 of supplies were on
hand.
Instructions
Prepare the adjusting entries on January 31. Account titles are: Accumulated Depreciation—
Dental Equipment, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance
Expense, Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Suppl

ACC 557 Week 3 E3-10

Quesiton

The income statement of Benning Co. for the month of July shows net income of $1,400 based on Service Revenue $5,500, Wages Expense $2,300, Supplies Expense $1,200, and Utilities Expense $600. In reviewing the statement, you discover the following.

Insurance expired during July of $400 was omitted.
Supplies expense includes $200 of supplies that are still on hand at July 31.
Depreciation on equipment of $150 was omitted.
Accrued but unpaid wages at July 31 of $300 were not included.
Services provided but unrecorded totaled $500.

Instructions

Prepare a correct income statement for July 2008

ACC 557 Week 3 E3-13

The trial balances before and after adjustment for Garcia Company at the end of its fiscal year are presented below.

GARCIA COMPANY
Trial Balance
August 31, 2008
	Before Adjustment	After Adjustment
	Dr.	Cr.	Dr.	Cr.
Cash	$10,400		$10,400
Accounts Receivable	8,800		9,800
Office Supplies	2,300		700
Prepaid Insurance	4,000		2,500
Office Equipment	14,000		14,000
Accumulated Depreciation–Office Equipment		$3,600		$4,500
Accounts Payable		5,800		5,800
Salaries Payable		-0-		1,100
Unearned Rent		1,500		600
Common Stock		10,000		10,000
Retained Earnings		5,600		5,600
Service Revenue		34,000		35,000
Rent Revenue		11,000		11,900
Salaries Expense	17,000		18,100
Office Supplies Expense	-0-		1,600
Rent Expense	15,000		15,000
Insurance Expense	-0-		1,500
Depreciation Expense	-0-		900
	$71,500	$71,500	$74,500	$74,500

Instructions

Answerss

Prepare the adjusting entries that were made.

ACC 557 Week 3 P3-2A

Neosho River Resort, Inc. opened for business on June 1 with eight air-conditioned units. Its trial balance before adjustment on August 31 is as follows.

In addition to those accounts listed on the trial balance, the chart of accounts for Neosho River Resort also contains the following accounts and account numbers: No. 112 Accounts Receivable, No. 144 Accumulated Depreciation–Cottages, No. 150 Accumulated Depreciation–Furniture, No. 212 Salaries Payable, No. 230 Interest Payable, No. 320 Retained Earnings, No. 620 Depreciation Expense–Cottages, No. 621 Depreciation Expense–Furniture, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense.

Other data:

Insurance expires at the rate of $400 per month.
A count on August 31 shows $600 of supplies on hand.
Annual depreciation is $6,000 on cottages and $2,400 on furniture.
Unearned rent of $4,100 was earned prior to August 31.
Salaries of $400 were unpaid at August 31.
Rentals of $1,000 were due from tenants at August 31. (Use Accounts Receivable.)
The mortgage interest rate is 9% per year. (The mortgage was taken out on August 1.)

Instructions

(a) Journalize the adjusting entries on August 31 for the 3-month period June 1–August 31.

ACC 557 Week 3 P3-5A

On September 1, 2008, the account balances of Rand Equipment Repair, Inc. were as follows.

No.	Debits		No.		Credits
101	Cash	$4,880		154		Accumulated Depreciation	$1,500
112	Accounts Receivable	3,520		201		Accounts Payable	3,400
126	Supplies	2,000		209		Unearned Service Revenue	1,400
153	Store Equipment	15,000		212		Salaries Payable	500
				311		Common Stock	15,000
				320		Retained Earnings	3,600
		$25,400					$25,400

During September the following summary transactions were completed.

Sept. 8		Paid $1,400 for salaries due employees, of which $900 is for September.
10		Received $1,200 cash from customers on account.
12		Received $3,400 cash for services performed in September.
15		Purchased store equipment on account $3,000.
17		Purchased supplies on account $1,200.
20		Paid creditors $4,500 on account.
22		Paid September rent $500.
25		Paid salaries $1,250.
27		Performed services on account and billed customers for services provided $1,500.
29		Received $650 from customers for future service.

Adjustment data consist of:

Supplies on hand $1,200.
Accrued salaries payable $400.
Depreciation is $100 per month.
Unearned service revenue of $1,450 is earned.

Instructions

(a)	Journalize the September transactions. (Your instructor may advise you to post to ledger accounts, that should be turned in as part of the problem.)
(b)	Prepare a trial balance at September 30.
(c)	Journalize and post adjusting entries.
(d)	Prepare an adjusted trial balance.
(e)	Prepare an income statement and a retained earnings statement for September and a balance sheet at September 30.

ACC 557 Week 4

E4-1

The trial balance columns of the worksheet for Briscoe Company at June 30, 2008, are below.

Other data:

A physical count reveals $300 of supplies on hand.
$100 of the unearned revenue is still unearned at month-end.
Accrued salaries are $280.

Instructions

Complete the worksheet.

ACC 557 E4-7

Emil Skoda Company had the following adjusted trial balance.

EMIL SKODA COMPANY
Adjusted Trial Balance
June 30, 2008
	Adjusted Trial Balance
Account Titles	Debits	Credits
Cash	$3,712
Accounts Receivable	3,904
Supplies	480
Accounts Payable		$1,792
Unearned Revenue		160
Common Stock		5,000
Retained Earnings		760
Dividends	300
Service Revenue		4,064
Salaries Expense	1,344
Miscellaneous Expense	256
Supplies Expense	2,228
Salaries Payable		448
	$12,224	$12,224

Instructions

(a) Prepare closing entries at June 30, 2008. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)

ACC 557 E4-11

Selected accounts for Nina's Salon are presented below. All June 30 postings are from closing entries.

Salaries Expense		Service Revenue
6/10	3,200	6/30	8,800	6/30	15,100	6/15	6,700
6/28	5,600					6/24	8,400

Retained Earnings		Supplies Expense
6/30	2,500	6/1	12,000	6/12	600	6/30	1,300
		6/30	2,000	6/24	700
		Bal.	11,500

Rent Expense		Dividends
6/1	3,000	6/30	3,000	6/13	1,000	6/30	2,500
				6/25	1,500

Instructions

(a) Prepare the closing entries that were made.

(a) Prepare the closing entries that were made. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)

ACC 557 Week 4 E 4-12

Question

Max Weinberg Company discovered the following errors made in January 2008.

A payment of Salaries Expense of $600 was debited to Equipment and credited to Cash, both for $600.
A collection of $1,000 from a client on account was debited to Cash $100 and credited to Service Revenue $100.
The purchase of equipment on account for $980 was debited to Equipment $890 and credited to Accounts Payable $890.

Instructions

(a) Correct the errors by reversing the incorrect entry and preparing the correct entry.

ACC 557 Week 4 p4-5A

Question

Laura Eddy opened Eddy's Carpet Cleaners on March 1. During March, the following transactions were completed.

Mar.	1	Issued stock for $10,000 in cash.
	1	Purchased used truck for $6,000, paying $3,000 cash and the balance on account.
	3	Purchased cleaning supplies for $1,200 on account.
	5	Paid $1,200 cash on one-year insurance policy effective March 1.
	14	Billed customers $4,800 for cleaning services.
	18	Paid $1,500 cash on amount owed on truck and $500 on amount owed on cleaning supplies.
	20	Paid $1,800 cash for employee salaries.
	21	Collected $1,400 cash from customers billed on March 14.
	28	Billed customers $2,500 for cleaning services.
	31	Paid gas and oil for month on truck $200.
	31	Declared and paid a $700 cash dividend.

The chart of accounts for Eddy's Carpet Cleaners contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 128 Cleaning Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation-Equipment, No. 201 Accounts Payable, No. 212 Salaries Payable, No. 311 Common Stock, No. 320 Retained Earnings, No. 332 Dividends, No. 350 Income Summary, No. 400 Service Revenue, No. 633 Gas & Oil Expense, No. 634 Cleaning Supplies Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries Expense

ACC 557 Week 4 P4-4A

Question

DISNEY AMUSEMENT PARK, INC. has a fiscal year ending on September 30. Selected data from the September 30 worksheet are presented below.

ACC 557 Chapter 5

E5-3

On September 1, Howe Office Supply had an inventory of 30 pocket calculators at a cost of $18 each. The company uses a perpetual inventory system. During September, the following transactions occurred.

E 5-4

On June 10, Meredith Company purchased $8,000 of merchandise from Leinert Company FOB shipping point, terms 2/10, n/30. Meredith pays the freight costs of $400 on June 11. Damaged goods totaling $300 are returned to Leinert for credit on June 12. The scrap value of these goods is $150. On June 19, Meredith pays Leinert Company in full, less the purchase discount. Both companies use a perpetual inventory system.

E5-11

In 2008, Walter Payton Company had net sales of $900,000 and cost of goods sold of $540,000. Operating expenses were $230,000, and interest expense was $11,000. Payton prepares a multiple-step income statement.

P5-4A

J. Hafner, a former professional tennis star, operates Hafner’s Tennis Shop at the Miller Lake Resort. At the beginning of the current season, the ledger of Hafner’s Tennis Shop showed Cash $2,500, Merchandise Inventory $1,700, and Common Stock $4,200. The following transactions were completed during April.
Apr. 4 Purchased racquets and balls from Wellman Co. $840, FOB shipping point, terms 2/10, n/30.
6 Paid freight on purchase from Wellman Co. $40.
8 Sold merchandise to members $1,150, terms n/30. The merchandise sold had a cost of $790.
10 Received credit of $40 from Wellman Co. for a damaged racquet that was returned.
11 Purchased tennis shoes from Venus Sports for cash, $420.
13 Paid Wellman Co. in full.
14 Purchased tennis shirts and shorts from Serena’s Sportswear $900, FOB shipping point, terms 3/10, n/60.
15 Received cash refund of $50 from Venus Sports for damaged merchandise that was returned.
17 Paid freight on Serena’s Sportswear purchase $30.
18 Sold merchandise to members $810, terms n/30.The cost of the merchandise sold was $530.
20 Received $500 in cash from members in settlement of their accounts.
21 Paid Serena’s Sportswear in full.
27 Granted an allowance of $30 to members for tennis clothing that did not fit properly.
30 Received cash payments on account from members, $660.
The chart of accounts for the tennis shop includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Merchandise Inventory, No. 201 Accounts Payable, No. 311 Common Stock, No. 401 Sales, No. 412 Sales Returns and Allowances, No. 505 Cost of Goods Sold.
(a) Net income $30,100
Retained earnings $62,100
Total assets $356,100
Journalize, post, and prepare a trial balance.
Instructions
(a) Journalize the April transactions using a perpetual inventory system.
(b) Enter the beginning balances in the ledger accounts and post the April transactions. (Use J1 for the journal reference.)
(c) Prepare a trial balance on April 30, 2008.

P5-6A (a-d)

Kristen Montana operates a retail clothing operation. She purchases all merchandise inventory on credit and uses a periodic inventory system. The accounts payable account is used for recording inventory purchases only; all other current liabilities are accrued in separate accounts. You are provided with the following selected information for the fiscal years 2005, 2006, 2007, and 2008.

ACC 557 Week 6

E6-2

Kale Thompson, an auditor with Sneed CPAs, is performing a review of Strawser Company's inventory account. Strawser did not have a good year and top management is under pressure to boost reported income. According to its records, the inventory balance at year-end was $740,000. However, the following information was not considered when determining that amount.

Instructions

Determine the correct inventory amount. (If answer is zero, please enter 0. Do not leave any fields blank. If amount has a negative effect, use either a negative sign preceding the number eg -45 or parentheses eg (45).)

Ending inventory-as reported.

$
1. Included in the company's count were goods with a cost of $250,000 that the company is holding on consignment. The goods belong to Superior Corporation.

2. The physical count did not include goods purchased by Strawser with a cost of $40,000 that were shipped FOB destination on December 28 and did not arrive at Strawser's warehouse until January 3.

3. Included in the inventory account was $17,000 of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year.

4. The company received an order on December 29 that was boxed and was sitting on the loading dock awaiting pick-up on December 31. The shipper picked up the goods on January 1 and delivered them on January 6. The shipping terms were FOB shipping point. The goods had a selling price of $40,000 and a cost of $30,000.The goods were not included in the count because they were sitting on the dock.

5. On December 29 Strawser shipped goods with a selling price of $80,000 and a cost of $60,000 to District Sales Corporation FOB shipping point. The goods arrived on January 3. District Sales had only ordered goods with a selling price of $10,000 and a cost of $8,000. However, a sales manager at Strawser had authorized the shipment and said that if District wanted to ship the goods back next week, it could.

6. Included in the count was $40,000 of goods that were parts for a machine that the company no longer made. Given the high-tech nature of Strawser's products, it was unlikely that these obsolete parts had any other use. However, management would prefer to keep them on the books at cost, "since that is what we paid for them, after all."

ACC 557 Week 6 E6-7

Question

Jones Company had 100 units in beginning inventory at a total cost of $10,000. The company purchased 200 units at a total cost of $26,000. At the end of the year, Jones had 80 units in ending inventory.

ACC 557 Week 6 E6-9

Question

Americus Camera Shop uses the lower-of-cost-or-market basis for its inventory. The following data are available at December 31.

Instructions

Determine the amount of the ending inventory by applying the lower-of-cost-or-market basis.

ACC 557 Week 6 E6-11

Question

Lebo Hardware reported the cost of goods sold as follows:

Lebo made two errors: (1) 2008 ending inventory was overstated by $3,000 and (2) 2009 ending inventory was understated $6,000.

Instructions

Compute the correct cost of goods sold for each year.

ACC 557 week 6 P6-2A

Question

Glanville Distribution markets CDs of the performing artist Harrilyn Clooney. At the beginning of March, Glanville had in beginning inventory 1,500 Clooney CDs with a unit cost of $7. During March Glanville made the following purchases of Clooney CDs.

March 5

3,000 @ $8

March 21

4,000 @ $10

March 13

5,500 @ $9

March 26

2,000 @ $11

During March 12,500 units were sold. Glanville uses a periodic inventory system.

ACC 557 week 6 P6-5A

Question

You are provided with the following information for Pavey Inc. for the month ended October 31, 2008. Pavey uses a periodic method for inventory.

Instructions

(a) Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rate under each of the following methods. (Round weighted-average cost per unit to 3 decimal places, e.g. 2.250. Use the rounded amount for future computations. Round gross profit rate to 1 decimal place, e.g. 10.5 and all other answers to 0 decimal places, e.g. 125.)

      (1) LIFO.
      (2) FIFO.
      (3) Average-cost.

ACC 557 Week 7

E7-2

Presented below are some business transactions that occurred during 2008 for Vicki Prowitz Company.

(a) Merchandise inventory with a cost of $208,000 is reported at its market value of $260,000.The following entry was made.
Merchandise Inventory 52,000
Gain 52,000

(b) Equipment worth $62,000 was acquired at a cost of $41,000 from a company that had water damage in a flood.The following entry was made.
Equipment 62,000
Cash 41,000
Gain on Purchase of Equipment 21,000

(c) The president of Vicki Prowitz Company, Mark Nabke, purchased a truck for personal use and charged it to his expense account.The following entry was made.
Travel Expense 18,000
Cash 18,000

(d) An electric pencil sharpener costing $50 is being depreciated over 5 years. The following entry was made.
Depreciation Expense—Pencil Sharpener 10
Accumulated Depreciation—Pencil Sharpener 10

Instructions
In each of the situations above, identify the assumption, principle, or constraint that has been violated, if any. Discuss the appropriateness of the journal entries, and give the correct journal entry, if necessary.

E 7-4

Consider the following transactions of Parolini Company for 2008.

For each item below, indicate the amount of revenue Parolini Company should recognize in calendar year 2008. (If answer is zero, please enter 0. Do not leave any fields blank.)

E 7-8 a

Net sales, net income, total assets, and total common stockholders' equity information for a recent year is available for the following three companies. All amounts are in millions.

Company Net Sales Net Income Total Assets Total Common Equity

Southern Company $11,251 $1,474 $35,045 $9,648

Toys "R" Us, Inc. $11,305 $229 $10,218 $4,222

Intel Corp. $30,141 $5,641 $47,143 $37,846

Required:

Compute the following relationships for each company.

1. Debt to total assets ratio

2. Profit margin percentage (Return on sales)

3. Return on assets

4. Return on common stockholders' equity

E7-10 Presented below is partial balance sheet information related to Batten Ltd., a United Kingdom company at December 31. All financial information has been translated from pounds to dollars.

BATTEN LTD.
Balance Sheet (partial)
(in thousands)
Fixed Assets
	Tangible assets		$900,000
Current Assets
	Stocks (inventory)	$300,000
	Debtors	121,000
	Investments	53,000
	Cash	62,000
		536,000
Creditors
	Amounts falling due within one year	100,000
Net current assets		436,000
Total assets less current liabilities		1,336,000
Creditors
	Amounts falling due over one year		240,000
	Total net assets		$1,096,000

Restate the asset side of the balance sheet in accordance with generally accepted accounting principles in the United States.

P7-1A

Scott and Quick are accountants for Millenium Computers. They disagree over the following transactions that occurred during the calendar year 2008.

For each transaction, indicate why Quick disagrees. Identify the accounting principle or assumption that Scott would be violating if his suggestions were used. Prepare the correct journal entry for each transaction, if any.

1. Scott suggests that equipment should be reported on the balance sheet at its liquidation value, which is $15,000 less than its cost.

2. Millenium bought a custom-made piece of equipment for $36,000. This equipment has a useful life of 6 years. Millenium depreciates equipment using the straight-line method. "Since the equipment is custom-made, it will have no resale value. Therefore, it shouldn't be depreciated but instead should be expensed immediately," argues Scott. "Besides, it provides for lower net income."

3. Depreciation for the year was $18,000. Since net income is expected to be lower this year, Scott suggests deferring depreciation to a year when there is more net income.

4. Land costing $60,000 was appraised at $90,000. Scott suggests the following journal entry.

5. Millenium purchased equipment for $35,000 at a going-out-of-business sale. The equipment was worth $45,000. Scott believes that the following entry should be made.

P7-5A part (a,b)

The ledgers of Mid City Galleries Inc. contain the following balances as of December 31, 2008.

	Advertising expense	$123,000
	Commissions expense on art sales	1,200,000
	Depreciation expense (administrative)	98,000
	Dividend revenue	50,000
	Insurance expense	600,000
	Interest expense	98,000
	Inventory, January1	1,650,000
	Inventory, December 31	1,424,000
	Loss on the sale of office equipment	21,300
	Miscellaneous administrative expenses	53,200
	Miscellaneous selling expenses	39,000
	Net purchases	3,200,000
	Net sales	9,275,000
	Rent expense	808,000
	Freight-in	232,000
	Freight-out	82,500
	Utilities expense	117,000
	Wages and salaries	1,264,000

Income taxes are calculated at 30 percent of income. The galleries had 90,000 shares of common stock outstanding for the entire year. Total assets amounted to $7,509,000, and common stockholder's equity was $3,975,400.

ACC 557 Chapter 8

Question E 8-5

Listed below are five procedures followed by The Beat Company.

Several individuals operate the cash register using the same register drawer.
A monthly bank reconciliation is prepared by someone who has no other cash responsibilities.
Ellen May writes checks and also records cash payment journal entries.
One individual orders inventory, while a different individual authorizes payments.
Unnumbered sales invoices from credit sales are forwarded to the accounting department every four weeks for recording.

Instructions

Indicate whether each procedure is an example of good internal control or of weak internal control. If it is an example of good internal control, indicate which internal control principle is being followed. If it is an example of weak internal control, indicate which internal control principle is violated. Use the table below.

E 8-7

James Hughes Company established a petty cash fund on May 1, cashing a check for $100. The company reimbursed the fund on June 1 and July 1 with the following results.

June 1: Cash in fund $2.75. Receipts: delivery expense $31.25; postage expense $39.00; and miscellaneous expense $25.00.

July 1: Cash in fund $3.25. Receipts: delivery expense $21.00; entertainment expense $51.00; and miscellaneous expense $24.75.

On July 10, James Hughes increased the fund from $100 to $150.

Instructions

Prepare journal entries for James Hughes Company for May 1, June 1, July 1, and July 10

E8-13

The cash records of Givens Company show the following four situations.

The June 30 bank reconciliation indicated that deposits in transit total $720. During July the general ledger account Cash shows deposits of $15,750, but the bank statement indicates that only $15,600 in deposits were received during the month.
The June 30 bank reconciliation also reported outstanding checks of $680. During the month of July, Givens Company books show that $17,200 of checks were issued. The bank statement showed that $16,400 of checks cleared the bank in July.
In September, deposits per the bank statement totaled $26,700, deposits per books were $25,400, and deposits in transit at September 30 were $2,100.
In September, cash disbursements per books were $23,700, checks clearing the bank were $25,000, and outstanding checks at September 30 were $2,100.

There were no bank debit or credit memoranda. No errors were made by either the bank or Givens Company.

Question E 8-14

Lipkus Company has recorded the following items in its financial records.

Cash in bank	$47,000
Cash in plant expansion fund	100,000
Cash on hand	12,000
Highly liquid investments	34,000
Petty cash	500
Receivables from customers	89,000
Stock investments	61,000

The cash in bank is subject to a compensating balance of $5,000. The highly liquid investments had maturities of 3 months or less when they were purchased. The stock investments will be sold in the next 6 to 12 months. The plant expansion project will begin in 3 years.
What amount should Lipkus report as "Cash and cash equivalents" on its balance sheet?

Question P8-2A

Winningham Company maintains a petty cash fund for small expenditures. The following transactions occurred over a 2-month period.

July	1	Established petty cash fund by writing a check on Cubs Bank for $200.
	15	Replenished the petty cash fund by writing a check for $196.00. On this date the fund consisted of $4.00 in cash and the following petty cash receipts: freight-out $94.00, postage expense $42.40, entertainment expense $46.60, and miscellaneous expense $11.20.
	31	Replenished the petty cash fund by writing a check for $192.00. At this date, the fund consisted of $8.00 in cash and the following petty cash receipts: freight-out $82.10, charitable contributions expense $45.00, postage expense $25.50, and miscellaneous expense $39.40.
Aug.	15	Replenished the petty cash fund by writing a check for $187.00. On this date, the fund consisted of $13.00 in cash and the following petty cash receipts: freight-out $75.60, entertainment expense $43.00, postage expense $33.00, and miscellaneous expense $37.00.
	16	Increased the amount of the petty cash fund to $300 by writing a check for $100.
	31	Replenished petty cash fund by writing a check for $284.00. On this date, the fund consisted of $16 in cash and the following petty cash receipts: postage expense $140.00, travel expense $95.60, and freight-out $47.10.

Question P8-4A

The bank portion of the bank reconciliation for Backhaus Company at November 30, 2008, was as follows.

BACKHAUS COMPANY
Bank Reconciliation
November 30, 2008

Cash balance per bank		$14,367.90
Add: Deposits in transit		2,530.20
		16,898.10

Less: Outstanding checks
Check Number	Check Amount
3451	$2,260.40
3470	720.10
3471	844.50
3472	1,426.80
3474	1,050.00		6,301.80
Adjusted cash balance per bank		$10,596.30

The adjusted cash balance per bank agreed with the cash balance per books at November 30. The December bank statement showed the following checks and deposits.

ACC 557 Chapter 9

9-3

The ledger of Hixson Company at the end of the current year shows Accounts Receivable $120,000, Sales $840,000, and Sales Returns and Allowances $30,000.

Question E9-6

On December 31, 2008, Jarnigan Co. estimated that 2% of its net sales of $400,000 will become uncollectible. The company recorded this amount as an addition to Allowance for Doubtful Accounts. On May 11, 2009, Jarnigan Co. determined that Terry Frye's account was uncollectible and wrote off $1,100. On June 12, 2009, Frye's paid the amount previously written off.

Instructions

Prepare the journal entries on December 31, 2008, May 11, 2009, and June 12, 2009.

Question 9-9

Topeka Stores accepts both its own and national credit cards. During the year the following selected summary transactions occurred.

Jan.	15	Made Topeka credit card sales totaling $18,000. (There were no balances prior to January 15.)
	20	Made Visa credit card sales (service charge fee 2%) totaling $4,300.
Feb.	10	Collected $10,000 on Topeka credit card sales.
	15	Added finance charges of 1% to Topeka credit card balance.

Journalize the transactions for Topeka Stores

Question E9-12

Singletary Company had the following select transactions.

2008
Apr.	1,	2008	Accepted Wilson Company's 1-year, 12% note in settlement of a $20,000 account receivable.
July	1,	2008	Loaned $25,000 cash to Richard Dent on a 9-month, 10% note.
Dec.	31,	2008	Accrued interest on all notes receivable.
Apr.	1,	2009	Received principal plus interest on the Wilson note.
Apr.	1,	2009	Richard Dent dishonored its note; Singletary expects it will eventually collect.

Instructions

Prepare journal entries to record the transactions. Singletary prepares adjusting entries once a year on December 31.

Question P9-5A

At December 31, 2008, the trial balance of Worcester Company contained the following amounts before adjustment.

	Debits	Credits
Accounts receivable	$385,000
Allowance for doubtful accounts		$2,000
Sales		950,000

Question P9-6A

Mendosa Company closes its books monthly. On September 30, selected ledger account balances are:

Notes receivable	$33,000
Interest receivable	$170

Notes Receivable include the following.

Date	Maker	Face	Term	Interest
Aug. 16	Chang Inc.	$8,000	60 days	8%
Aug. 25	Hughey Co.	9,000	60 days	10%
Sept. 30	Skinner Corp.	16,000	6 months	9%

Interest is computed using a 360-day year. During October, the following transactions were completed.

Oct.	7	Made sales of $6,900 on Mendosa credit cards.
	12	Made sales of $900 on MasterCard credit cards. The credit card service charge is 3%.
	15	Added $460 to Mendosa customer balance for finance charges on unpaid balances.
	15	Received payment in full from Chang Inc. on the amount due.
	24	Received notice that the Hughey note has been dishonored. (Assume that Hughey is expected to pay in the future.)

ACC 557 Chapter 10

Chapter E10- 7

Question 1

Brainiac Company purchased a delivery truck for $30,000 on January 1, 2008. The truck has an expected salvage value of $2,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,000 in 2008 and 12,000 in 2009.

Question E10-8

Jerry Grant, the new controller of Blackburn Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2008. His findings are as follows.

			Accumulated	Useful Life
Type	Date		Depreciation	in Years	Salvage Value
of Asset	Acquired	Cost	1/1/08	Old	Proposed	Old	Proposed
Building	1/1/02	$800,000	$114,000	40	50	$40,000	$37,000
Warehouse	1/1/03	100,000	19,000	25	20	5,000	3,600

All assets are depreciated by the straight-line method. Blackburn Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Jerry's proposed changes.

Question 3

E10-10

Beka Company owns equipment that cost $50,000 when purchased on January 1, 2005. It has been depreciated using the straight-line method based on estimated salvage value of $5,000 and an estimated useful life of 5 years.

Instructions

Prepare Beka Company's journal entries to record the sale of the equipment in these four independent situations.

Question 10-13

Herzogg Company, organized in 2008, has the following transactions related to intangible assets.

1/2/08	Purchased patent (7-year life)	$560,000
4/1/08	Goodwill purchased (indefinite life)	360,000
7/1/08	10-year franchise; expiration date 7/1/2018	440,000
9/1/08	Research and development costs	185,000

Instructions

Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of December 31, 2008, recording any necessary amortization and reflecting all balances accurately as of that date.

Question 10-4A

At the beginning of 2006, Lehman Company acquired equipment costing $90,000. It was estimated that this equipment would have a useful life of 6 years and a residual value of $9,000 at that time. The straight-line method of depreciation was considered the most appropriate to use with this type of equipment. Depreciation is to be recorded at the end of each year.
During 2008 (the third year of the equipment's life), the company's engineers reconsidered their expectations, and estimated that the equipment's useful life would probably be 7 years (in total) instead of 6 years. The estimated residual value was not changed at that time. However, during 2011 the estimated residual value was reduced to $5,000.

Instructions

Indicate how much depreciation expense should be recorded each year for this equipment, by completing the following table.

ACC 557 Chapter 11

E11-1

Rob Judson Company had the following transactions involving notes payable.

July 1, 2008	Borrows $50,000 from Third National Bank by signing a 9-month, 12% note.
November 1,2008	Borrows $60,000 from DeKalb State Bank by signing a 3-month, 10% note.
December 31, 2008	Prepares adjusting entries.
February 1, 2009	Pays principal and interest to DeKalb State Bank.
April 1, 2009	Pays principal and interest to Third National Bank.

Instructions

Prepare journal entries for each of the transactions shown above

Question E11-5

Don Walls's gross earnings for the week were $1,780, his federal income tax withholding was $301.63, and his FICA total was $135.73

What was Walls's net pay for the week?

Questions E11-9

Northeast Airlines is considering two alternatives for the financing of a purchase of a fleet of airplanes. These two alternatives are:

Issue 60,000 shares of common stock at $45 per share. (Cash dividends have not been paid nor is the payment of any contemplated).
Issue 10%, 10-year bonds at par for $2,700,000.

It is estimated that the company will earn $800,000 before interest and taxes as a result of this purchase. The company has an estimated tax rate of 30% and has 90,000 shares of common stock outstanding prior to the new financing.

Instructions

Determine the effect on net income and earnings per share for these two methods of financing.

Question E11-12

Deng Company issued $500,000 of 5-year, 8% bonds at 97 on January 1, 2008. The bonds pay interest twice a year.

Question P11-3A

On May 1, 2008, Newby Corp. issued $600,000, 9%, 5-year bonds at face value. The bonds were dated May 1, 2008, and pay interest semiannually on May 1 and November 1. Financial statements are prepared annually on December 31

Question P 11-15A

Fordyce Electronics issues a $400,000, 8%, 10-year mortgage note on December 31, 2007. The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for semiannual installment payments, exclusive of real estate taxes and insurance, of $29,433. Payments are due June 30 and December 31.

ACC 557 Chapter 12

Question 12 E- 4

Grossman Corporation issued 1,000 shares of stock.

Instructions

Prepare the entry for the issuance under the following assumptions.

The stock had a par value of $5 per share and was issued for a total of $52,000

Question 12-7

Garza Co. had the following transactions during the current period.

Mar. 2		Issued 5,000 shares of $1 par value common stock to attorneys in payment of a bill for $30,000 for services provided in helping the company to incorporate.
June 12		Issued 60,000 shares of $1 par value common stock for cash of $375,000.
July 11		Issued 1,000 shares of $100 par value preferred stock for cash at $110 per share.
Nov. 28		Purchased 2,000 shares of treasury stock for $80,000.

Instructions

Journalize the transactions.

Question E 12-15

On October 31, the stockholders' equity section of Omar Company consists of common stock $600,000 and retained earnings $900,000. Omar is considering the following two courses of action: (1) declaring a 5% stock dividend on the 60,000, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $14 per share.

Instructions

Complete the tabular summary of the effects of the alternative actions on the components of stockholders' equity, outstanding shares, and book value per share.

Question E12-17

On January 1, 2008, Castle Corporation had retained earnings of $550,000. During the year, Castle had the following selected transactions.

Declared cash dividends $120,000.
Corrected overstatement of 2007 net income because of depreciation error $30,000.
Earned net income $350,000.

Declared stock dividends $80,000.

Instructions

Complete the retained earnings statement for the year.

Question P12-3A

The stockholders' equity accounts of Jajoo Corporation on January 1, 2008, were as follows.

Preferred Stock (10%, $100 par, noncumulative, 5,000 shares authorized)	$ 300,000
Common Stock ($5 stated value, 300,000 shares authorized)	1,000,000
Paid-in Capital in Excess of Par Value-Preferred Stock	20,000
Paid-in Capital in Excess of Stated Value-Common Stock	425,000
Retained Earnings	488,000
Treasury Stock-Common (5,000 shares)	40,000

During 2008, the corporation had the following transactions and events pertaining to its stockholders' equity.

Feb. 1		Issued 3,000 shares of common stock for $25,000.
Mar. 20		Purchased 1,500 additional shares of common treasury stock at $8 per share.
June 14		Sold 4,000 shares of treasury stock-common for $36,000.
Sept. 3		Issued 2,000 shares of common stock for a patent valued at $17,000.
Dec. 31		Determined that net income for the year was $340,000.

Question 12-7A

On January 1, 2008, Snider Corporation had the following stockholders' equity accounts.

Common Stock ($10 par value, 90,000 shares issued and outstanding)	$900,000
Paid-in Capital in Excess of Par Value	200,000
Retained Earnings	540,000

During the year, the following transactions occurred.

Jan. 15		Declared a $1 cash dividend per share to stockholders of record on January 31, payable February 15.
Feb. 15		Paid the dividend declared in January.
Apr. 15		Declared a 10% stock dividend to stockholders of record on April 30, distributable May 15. On April 15, the market price of the stock was $15 per share.
May 15		Issued the shares for the stock dividend.
July 1		Announced a 2-for-1 stock split. The market price per share prior to the announcement was $17. (The new par value is $5.)
Dec. 1		Declared a $0.50 per share dividend to stockholders of record on December 15, payable January 10, 2009.
Dec. 31		Determined that net income for the year was $250,000.

ACC 557 Chapter 13

Question E13-3

EmmyLou Company purchased 70 Harris Company 12%, 10-year, $1,000 bonds on January 1, 2008, for $73,000. EmmyLou Company also had to pay $500 of broker's fees. The bonds pay interest semiannually. On January 1, 2009, after receipt of interest, EmmyLou Company sold 40 of the bonds for $40,100.

Question E13-4

Dossett Company had the following transactions pertaining to stock investments.

Feb. 1		Purchased 600 shares of Goetz common stock (2%) for $6,000 cash, plus brokerage fees of $200.
July 1		Received cash dividends of $1 per share on Goetz common stock.
Sept. 1		Sold 300 shares of Goetz common stock for $4,400, less brokerage fees of $100.
Dec. 1		Received cash dividends of $1 per share on Goetz common stock.

Instructions

Journalize the transactions

Question E13-8

Presented below are two independent situations.

Heath Cosmetics acquired 15% of the 200,000 shares of common stock of Van Fashion at a total cost of $13 per share on March 18, 2008. On June 30, Van declared and paid a $60,000 dividend. On December 31, Van reported net income of $122,000 for the year. At December 31, the market price of Van Fashion was $15 per share. The stock is classified as available-for-sale.
Yoder, Inc., obtained significant influence over Parks Corporation by buying 30% of Parks 30,000 outstanding shares of common stock at a total cost of $9 per share on January 1, 2008. On June 15, Parks declared and paid a cash dividend of $30,000. On December 31, Parks reported a net income of $80,000 for the year.

Instructions

Prepare all the necessary journal entries for 2008 for (a) Heath Cosmetics and (b) Yoder, Inc.

Question E13-12

McGee Company has the following data at December 31, 2008.

Securities	Cost	Fair Value
Trading	$120,000	$124,000
Available-for-sale	100,000	94,000

The available-for-sale securities are held as a long-term investment.

Question P13-2A

In January 2008, the management of Noble Company concludes that it has sufficient cash to permit some short-term investments in debt and stock securities. During the year, the following transactions occurred.

Feb. 1		Purchased 600 shares of Hiens common stock for $31,800, plus brokerage fees of $600.
Mar. 1		Purchased 800 shares of Pryce common stock for $20,000, plus brokerage fees of $400.
Apr. 1		Purchased 50 $1,000, 7% Roy bonds for $50,000, plus $1,000 brokerage fees. Interest is payable semiannually on April 1 and October 1.
July 1		Received a cash dividend of $0.60 per share on the Hiens common stock.
Aug. 1		Sold 200 shares of Hiens common stock at $58 per share less brokerage fees of $200.
Sept. 1		Received a $1 per share cash dividend on the Pryce common stock.
Oct. 1		Received the semiannual interest on the Roy bonds.
Oct. 1		Sold the Roy bonds for $50,000 less $1,000 brokerage fees.

At December 31, the fair value of the Hiens common stock was $55 per share. The fair value of the Pryce common stock was $24 per share.

Journalize the transactions and post to the accounts Debt Investments and Stock Investments. (Use the T-account form.)

Question P13-4A

Glaser Services acquired 30% of the outstanding common stock of Nickels Company on January 1, 2008, by paying $800,000 for the 45,000 shares. Nickels declared and paid $0.30 per share cash dividends on March 15, June 15, September 15, and December 15, 2008. Nickels reported net income of $320,000 for the year. At December 31, 2008, the market price of Nickels common stock was $24 per share.

ACC 557 Chapter 14

E14-2

An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Gagliano Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary.

E14-3

Rachael Ray Corporation had the following transactions.

Sold land (cost $12,000) for $15,000.
Issued common stock for $20,000.
Recorded depreciation of $17,000.
Paid salaries of $9,000.
Issued 1,000 shares of $1 par value common stock for equipment worth $8,000.
Sold equipment (cost $10,000, accumulated depreciation $7,000) for $1,200.

E14-6

The three accounts shown below appear in the general ledger of Cesar Corp. during 2008.

Equipment
Date			Debit	Credit	Balance
Jan.	1	Balance			160,000
July	31	Purchase of equipment	70,000		230,000
Sept.	2	Cost of equipment constructed	53,000		283,000
Nov.	10	Cost of equipment sold		49,000	234,000

Accumulated Depreciation-Equipment
Date			Debit	Credit	Balance
Jan.	1	Balance			71,000
Nov.	10	Accumulated depreciation on
		equipment sold	30,000		41,000
Dec.	31	Depreciation for year		28,000	69,000

Retained Earnings
Date			Debit	Credit	Balance
Jan.	1	Balance			105,000
Aug.	23	Dividends (cash)	14,000		91,000
Dec.	31	Net income		67,000	158,000

E14-7

Scully Corporation's comparative balance sheets are presented below.

SCULLY CORPORATION
Comparative Balance Sheets
December 31
	2008	2007
Cash	$14,300	$10,700
Accounts receivable	21,200	23,400
Land	20,000	26,000
Building	70,000	70,000
Accumulated depreciation	(15,000)	(10,000)
Total	$110,500	$120,100

Accounts payable	$12,370	$31,100
Common stock	75,000	69,000
Retained earnings	23,130	20,000
Total	$110,500	$120,100

P14-5A

Grania Company's income statement contained the condensed information below.

GRANIA COMPANY
Income Statement
For the Year Ended December 31, 2008
Revenues		$970,000
Operating expenses, excluding depreciation	$624,000
Depreciation expense	60,000
Loss on sale of equipment	16,000	700,000
Income before income taxes		270,000
Income tax expense		40,000
Net income		$230,000

P14-9A

Condensed financial data of Arma Inc. follow.

ARMA INC.
Comparative Balance Sheets
December 31
Assets	2008	2007
Cash	$ 90,800	$ 48,400
Accounts receivable	92,800	33,000
Inventories	112,500	102,850
Prepaid expenses	28,400	26,000
Investments	138,000	114,000
Plant assets	270,000	242,500
Accumulated depreciation	(50,000)	(52,000)
Total	$682,500	$514,750

Liabilities and Stockholders' Equity
Accounts payable	$112,000	$ 67,300
Accrued expenses payable	16,500	17,000
Bonds payable	110,000	150,000
Common stock	220,000	175,000
Retained earnings	224,000	105,450
Total	$682,500	$514,750

ARMA INC.
Income Statement
For the Year Ended December 31, 2008
Sales		$392,780
Less:
Cost of goods sold	$135,460
Operating expenses, excluding depreciation	12,410
Depreciation expense	46,500
Income taxes	27,280
Interest expense	4,730
Loss on sale of plant assets	7,500	233,880
Net income		$158,900

Additional information:

New plant assets costing $85,000 were purchased for cash during the year.
Old plant assets having an original cost of $57,500 were sold for $1,500 cash.
Bonds matured and were paid off at face value for cash.
A cash dividend of $40,350 was declared and paid during the year.

ACC 557 Chapter 15

E15-4

The comparative condensed income statements of Hendi Corporation are shown below.

HENDI CORPORATION
Comparative Condensed Income Statements
For the Years Ended December 31
	2009	2008
Net sales	$600,000	$500,000
Cost of goods sold	483,000	420,000
Gross profit	117,000	80,000
Operating expenses	57,200	44,000
Net income	$ 59,800	$ 36,000

E15-7

Bennis Company has the following comparative balance sheet data.

BENNIS COMPANY
Balance Sheets
December 31
	2009	2008
Cash	$ 15,000	$ 30,000
Receivables (net)	70,000	60,000
Inventories	60,000	50,000
Plant assets (net)	200,000	180,000
	$345,000	$320,000

Accounts payable	$50,000	$60,000
Mortgage payable (15%)	100,000	100,000
Common stock, $10 par	140,000	120,000
Retained earnings	55,000	40,000
	$345,000	$320,000

Additional information for 2009:

Net income was $25,000.
Sales on account were $410,000. Sales returns and allowances were $20,000.
Cost of goods sold was $198,000.

E15-11

Scully Corporation's comparative balance sheets are presented below.

SCULLY CORPORATION
Balance Sheets
December 31
	2008	2007
Cash	$ 4,300	$ 3,700
Accounts receivable	21,200	23,400
Inventory	10,000	7,000
Land	20,000	26,000
Building	70,000	70,000
Accumulated depreciation	(15,000)	(10,000)
Total	$110,500	$120,100

Accounts payable	$ 12,370	$ 31,100
Common stock	75,000	69,000
Retained earnings	23,130	20,000
Total	$110,500	$120,100

Scully's 2008 income statement included net sales of $100,000, cost of goods sold of $60,000, and net income of $15,000.

15-12

For its fiscal year ending October 31, 2008, Molini Corporation reports the following partial data.

	Income before income taxes	$540,000
	Income tax expense (30% $390,000)	117,000
	Income before extraordinary items	423,000
	Extraordinary loss from flood	150,000
	Net income	$273,000

The flood loss is considered an extraordinary item. The income tax rate is 30% on all items.

P15-3

Condensed balance sheet and income statement data for Kersenbrock Corporation appear below.

KERSENBROCK CORPORATION
Balance Sheets
December 31
	2009	2008	2007
Cash	$ 25,000	$ 20,000	$ 18,000
Receivables (net)	50,000	45,000	48,000
Other current assets	90,000	95,000	64,000
Investments	75,000	70,000	45,000
Plant and equipment (net)	400,000	370,000	358,000
	$640,000	$600,000	$533,000

Current liabilities	$ 75,000	$ 80,000	$ 70,000
Long-term debt	80,000	85,000	50,000
Common stock, $10 par	340,000	310,000	300,000
Retained earnings	145,000	125,000	113,000
	$640,000	$600,000	$533,000

KERSENBROCK CORPORATION

P15-8A

Cheaney Corporation owns a number of cruise ships and a chain of hotels. The hotels, which have not been profitable, were discontinued on September 1, 2008. The 2008 operating results for the company were as follows.

Operating revenues	$12,850,000
Operating expenses	8,700,000
Operating income	$ 4,150,000

Analysis discloses that these data include the operating results of the hotel chain, which were: operating revenues $2,000,000 and operating expenses $2,400,000.The hotels were sold at a gain of $200,000 before taxes. This gain is not included in the operating results. During the year, Cheaney suffered an extraordinary loss of $800,000 before taxes, which is not included in the operating results. In 2008, the company had other revenues and gains of $100,000, which are not included in the operating results. The corporation is in the 30% income tax bracket.

ACC 557 Chapter 1-15 All Problems Solved – Guaranteed A Grade

Strayer University ACC/557 Financial Accounting Chapters 1-15

All problems Solved – Latest

Assignments:

· Chapter 1: Exercises 2, 4, 8, 14; Problems 4 and 5

Assignments:

Chapter 2: Exercises 2, 3, 7, 10; Problems 3 and 5
Chapter 3: Exercises 4, 8, 10,13; Problems 2 and 5

Assignments:

Chapter 4: Exercises 1, 7, 11, 12; Problems 4 and 5

Assignments:

Chapter 5: Exercises 3, 4, 8, 11; Problems 4 and 6(a-d)
Chapter 6: Exercises 2, 7, 9, 11; Problems 2 and 5

Assignments:

Chapter 7: Exercises 2, 4, 8(a) 10; Problems 1 and 5
Chapter 8: Exercises 5, 7, 13, 14(a); Problems 2 and 4
Chapter 8: BYP 8-5
Assignments
Chapter 9: Exercises 3, 6, 9(a) 12; Problems 5(a-e) and 6
Chapter 10: Exercises 7, 8, 10, 13; Problems 4 and 5

Assignments:

Chapter 11: Exercises 1, 5, 9, 12; Problems 3 and 5
Chapter 12: Exercises 4, 7, 15, 17; Problems 3 and 7

Assignments:

Chapter 13:Exercises 3, 4, 8, 12; Problems 2 and 4
Chapter 13: BYP 13-3

Assignments:

Chapter 14:Exercises 2, 3, 6, 7; Problems 5 and 9

Assignments:

Chapter 15: Exercises 4, 7, 11, 12(a); Problems 3(a), 8

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