...Tevin Trader starts a merchandising business on December 1 and enters into three inventory purchases: Trader sells 15 units for $25 each on December 15. Eight of the sold units are from the December 7 purchase and seven are from the December 14 purchase. Trader uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory when costs are assigned based on (a) FIFO, (b) LIFO, (c) weighted average, and (d ) specific identification. December 7 10 units @ $ 6 cost December 14 20 units @ $12 cost December 21 15 units @ $14 cost a) FIFO = 15 @ 12/unit + 15@ 14 per unit = $390 b) LIFO = 10 @ 6/unit + 20@ 12 per unit = $300 c) Weighted average = 30 units @ 11.33 per unit = $340 d) specific identification = 2 @6/unit + 13@ 12/unit + 15@14/units = $378 Lakia Corporation reported the following current-year purchases and sales data for its only product:Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory . . . . . . . 120 units @ $6.00 $ 720 Jan. 10 Sales . . . . . . . . . . . . . . . . . . 70 units @ $15 Mar. 7 Purchase . . . . . . . . . . . . . . . 200 units @ $5.50 1,100 Mar. 15 Sales . . . . . . . . . . . . . . . . . . 125 units @ $15 July 28 Purchase . . . . . . . . . . . . . . . 500 units @ $5.00 2,500 Oct. 3 Purchase . . . . . . . . . . . . . . . 375 units @ $4.40 1,650 Oct. 5 Sales . . . . . . . . . . . . . . . . . . 600 units @ $15 Dec. 19 Purchase . . . . . . . . . . . . ....
Words: 544 - Pages: 3
...1) Talk to a family member or friend regarding his/her work environment. Is his/her company a sole proprietorship, partnership, or corporation? Who is associated with the accounting judgments and information? In what ways is your family member or friend influenced by the accounting information? 2) Explain one of the four fundamental fiscal statements, and reply the following queries. For what is it usually used? What information is the most important? How does it complement one other fiscal statement? Solutions I have interviewed a buddy who works for Verizon as a Regional Sales Manager. Verizon is a company whose shares are publicly operated. The Chief Financial Officer is the leader of the Finance Division which deals with the organization's financials – whether fiscal, or managerial accounting, and funding. My buddy is impacted by the accounting information because he needs to accomplish a particular sales goal to make sure that the allocated income figures are achieved, and that the expenditures are kept at a particular allocated level. The Declaration of Owners’ Equity records information regarding how value alters during the reporting interval. This statement displays starting capital, activities which enhance it (proprietor assets as well as net income), and activities which reduce it (withdrawals as well as net loss). Closing capital is calculated in this statement and is carried over and described on the balance sheet. This closing capital is...
Words: 271 - Pages: 2
...Financial Statements Author Axia College of University of Phoenix Financial Statements Through the use of financial statements businesses can efficiently provide internal and external users with information regarding the business assets, liabilities, expenses, and revenue. The financial statements include four important reports: the balance sheet, the income statement, the retained earnings statement, and the statement of cash flow (Kieso, Kimmel, & Weygandt, 2003). The use of these financial statements is important to the success of the company. The Balance Sheet The balance sheet presents the company’s assets and liabilities for internal and external users. The information found on the balance sheet is beneficial to the determination of the company’s eligibility credit and loans. The formula of the balance sheet must be balanced through the total of assets being equal to the liabilities and equity. The Income Statement The income statement, sometimes referred to as the profit and loss statement, is used by the internal and external users of the company to view a comparative of the business revenue to expenses to determine the success of the company for a specified time period. The comparison of revenues and expenses inform users of the net income or net loss associated with the company during that period of time. The Retained Earnings Statement The retained earnings statement provides users with information pertaining to the distribution of...
Words: 503 - Pages: 3
...GUIDELINES...............................................................................7 REAR YARD FENCE GUIDELINES ......................................................................................9 PLAY EQUIPMENT GUIDELINES ......................................................................................11 SATELLITE RECEIVER (DISH) GUIDELINES ..................................................................13 GENERAL IMPROVEMENTS, LANDSCAPE & MAINTENANCE GUIDELINES..........14 LIST OF RECOMMENDED PLANT SPECIES ....................................................................19 EXHIBIT A REQUEST FORM 2 CHRISTENBURY MASTER ASSOCIATION, INC. ARCHITECTURAL CONTROL COMMITTEE INTRODUCTION The Architectural Control Committee (ACC) is providing the attached Architectural Design Guidelines (“Guidelines”) in accordance with that Declaration of Covenants, Easements, Conditions and Restrictions (“Declaration”), for purposes of establishing and maintaining exterior design elements throughout Christenbury. This document should be filed with the homeowners’ copy of the Declaration received at closing. It is the responsibility of each homeowner to pass along the Declaration and Guidelines to any future buyer of their home at Christenbury. It is important to note that the Guidelines are applicable to most all future building exterior and property...
Words: 5815 - Pages: 24
...Acc/225 Stella Deaton 06/06/2012 Week 5 5-8 Identify whether each description best applies to a periodic or a perpetual inventory system. a. Provides more timely information to managers.—perpetual b. Requires an adjusting entry to record inventory shrinkage. -- Perpetual c. Markedly increased in frequency and popularity in business within the past decade. -- Periodic d. Records cost of goods sold each time a sales transaction occurs. – Perpetual 5-9 Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . $60,000 $42,500 $36,000 $78,000 $23,600 Cost of goods sold Merchandise inventory (beginning) . . . . . . . . . . 6,000 17,050 7,500 7,000 2,560 Total cost of merchandise purchases . . . . . . . 36,000 1550 41250 32,000 5,600 Merchandise inventory (ending) . . . . . . . . . . . . 7950 (2,700) (9,000) (6,600) (2,560) Cost of goods sold . . . . . . . . . . . . . . . . . . . . . 34,050 15,900 39,750 32,400 5,600 Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,950 26,600 3,750 45,600 18,000 Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000 10,650 12,150 2,600 6,000 Net income (loss) . . . . . . . . ...
Words: 292 - Pages: 2
...Jose Cando ENGL-2327 April 26, 2014 Balcones Fiction and Poetry Winners Reading Event: Natalie Diaz’s Reading of When My Brother Was an Aztec Outside the ACC Theater on April 9th, the public was greeted by tables of refreshment including fruits cheeses and crackers which was a nice surprise. Although, I had expected a packed theater, only about forty people were waiting inside. The event started at 6:30 pm when Charlotte Gullick, the chair of the creative a writing department took the stage. After promoting some of creative writing classes at ACC, she described the significance of the Balcones prizes. A teacher from the English department took the stage next to talk a little more about the Balcones prize. He pointed out that Natalie Diaz was the sixteenth winner of this prize. He described Ms. Diaz as a woman with her foot “in three different worlds.” Her childhood was spent on the Mojave reservation in the California Desert. She attended college in Virginia on a basketball scholarship, and from there she played professional basketball in Europe and Asia. After injuring her knee, she left basketball to study poetry in graduate school. Therefore, he claimed, she has a foot in the worlds of the reservation, basketball and poetry. With that, he welcomed Nathalie to the stage. Nathalie jumped into reading her poem, “When My Brother Was an Aztec.” I was shocked to hear the bitterness and resentment in her voice as she describe her brother as a nasty and careless force which...
Words: 668 - Pages: 3
...Exercise 2-4 | Date | | Explanation | Debit | Credit | August | 1 | CashEquipment Hashim Paris, owner Owner invested | $7, 500$32, 500 | $40, 000 | | 1 | Insurance policy Cash | $3, 000 | $3, 000 | | 5 | Office Supplies Cash Purchased | $1,400 | $1, 400 | | 20 | Cash Received in photography fees earned. | $2,650 | $2,650 | | 31 | Utilities Cash | $875 | $875 | EXERCISE 2-5 | | Debit | Credit | Cash | $4, 875 | | Office Supplies | $1, 400 | | Prepaid Insurance | $3, 000 | | Photography Equipment | $32, 500 | | H. Paris, Capital | | $40, 000 | Photography Fees Earned | | $2, 650 | Utilities Expense | $875 | | Totals | $42, 650 | $42, 650 | Problem 2-2A | Date | Description | Debit | Credit | a | CashOffice EquipmentDrafting Equipment S. Shelton, Capital | $105, 000$6, 000$45, 000 | $156, 000 | b | Land Cash Notes Payable | $54, 000 | $4,500$48, 600 | c | Building Cash | $75, 000 | $75, 000 | d | Prepaid Insurance Cash | $6,000 | $6, 000 | e | Cash Engineering Fees | $5, 700 | $5, 700 | f | Drafting Equipment Cash Notes Payable | $22, 500 | $10, 500$12, 000 | g | Accounts Receivable Engineering Fees | $12, 000 | $12, 000 | h | Office Equipment Accounts Payable | $2,250 | $2, 250 | i | Accounts Receivable Engineering Fees | $18, 000 | $18, 000 | j | Equipment Rental Expenses Accounts Payable | $1, 200 | $1, 200 | k | Cash Accounts Receivable | $7...
Words: 323 - Pages: 2
...1 Cost of Goods Available for Sales FIFO Amount Units Cost of Goods Sold 26,400.00 740 Endng Inventory 33,040.00 200 59,440.00 940 LIFO Amount Units Cost of Goods Sold 24,000.00 740 Endng Inventory 35,440.00 200 59,440.00 940 Specific Identification Amount Units Cost of Goods Sold 24,000.00 740 Endng Inventory 35,440.00 200 59,440.00 940 Weighted Average Amount Units Cost of Goods Sold 25,384.00 740 Endng Inventory 34,056.00 200 59,440.00 940 2 to 3 A. FIFO Goods Purchased Cost of Goods Sold Inventory Balance Date Qty Unit Cost Total Cost Qty Unit Cost Total Cost Qty Unit Cost Total Cost January 1 Beginning Balance 600 44.00 26,400.00 February 10 200 40.00 8,000.00 600 44.00 34,400.00 200 40.00 March 13 100 20.00 2,000.00 600 44.00 36,400.00 200 40.00 100 20.00 March 15 400 44.00 17,600.00 200 44.00 18,800.00 200 40.00 100 20.00 August 21 160 60.00 9,600.00 ...
Words: 840 - Pages: 4
...Page 335 Quick Study 8-6 1. For each of the following items, indicate whether its amount (i) affects the bank or book side of a bank reconciliation and (ii) represents an addition or a subtraction in a bank reconciliation: a. Outstanding checks- affects the bank side and represents a subtraction in a bank reconciliation b. Debit memos- affects the book side and represents a subtraction in a bank reconciliation c. NSF checks- affects the book side and represents a subtraction in a bank reconciliation d. Unrecorded deposits- affects the bank side and represents an addition in a bank reconciliation e. Interest on cash balance- affects book side and represents an addition in a bank reconciliation f. Credit memos- affects the book side and represents an addition in a bank reconciliation g. Bank service charges- affects the book side and represents a subtraction in a bank reconciliation 2. Which of the items in part 1 require an adjusting journal entry? *The items in part 1 that require an adjusting journal entry would be interest on cash balance, NSF checks and bank service charges. Page 336 Exercise 8-3 Bemis Company is a rapidly growing start-up business. Its record-keeper, who was hired one year ago, left town after the company’s manager discovered that a large sum of money had disappeared over the past six months. An audit disclosed that the record-keeper had written and signed several checks made payable to her fiancé and then recorded the checks as salaries...
Words: 622 - Pages: 3
...CheckPoint: Accounting Information Systems and Special Journals QS 7-1 and 7-3 and Exercises 7-1, 7-4, 7-7, and 7-10 QS 7-1 Place the letter of each system principle in the blank next to its best description. A. Control principle D. Flexibility principle B. Relevance principle E. Cost-benefit principle C. Compatibility principle 1. The principle prescribes the accounting information system to change in response to technological advances and competitive pressures. D. Flexibility principle 2. The principle prescribes the accounting information system to help monitor activities. A. Control principle 3. The principle prescribes the accounting information system to provide timely information for effective decision making. B. Relevance principle 4. The principle prescribes the accounting information system to adapt to the unique characteristics of the company. C. Compatibility principle 5. The principle that affects all other accounting information system principles. E. Cost-benefit principle QS 7-3 Identify the most likely role in an accounting system played by each of the numbered items 1 through 12 by assigning a letter from the list A through E on the left: A. Source documents B. Input devices C. Information processors D. Information storage E. Output devices 1. Bar code reader –B. Input devices 2. Filing cabinet –D. Information storage 3. Bank statement –A. Source documents 4. Computer scanner –B. Input devices 5. Computer keyboard –B....
Words: 1228 - Pages: 5
...QS 6-1 Tevin Trader starts a merchandising business on December 1 and enters into three inventory purchases: December 7 10 units @ $6 cost December 14 20 units @ $12 cost December 21 15 units @ $14 cost Trader sells 15 units for $25 each on December 15. 8 of the sold units are from the December 7 purchase and 7 are from the December 14 purchase. Trader uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory when costs are assigned based on (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. a) FIFO |Date |Goods Purchased |Cost of Goods Sold |Inventory Balance | |12/7 |10 @ $6= $60 | |10 @ $6 = $60 | |12/14 |20@ $12= $240 | |10@ $6 | | | | |20@ $12 = $300 | |12/15 | |10 @ $6 |15@ $12 = $180 | | | |5 @ $12 =$120 | | |12/21 ...
Words: 816 - Pages: 4
...Student Name: Week 3 Checkpoint – Part 1 (4 points) Classify the following adjusting journal entries as involving prepaid expenses (PE), unearned revenues (UR), accrued expenses (AE), or accrued revenues (AR). |AE |To record utilities expense incurred, but not yet recorded or paid. | |PE |To record expiration of rent paid in advance. | |UR |To record revenue earned that was previously received as cash in advance. | |AR |To record services performed, but not yet recorded or billed. | Week 3 Checkpoint - Part 2 (8 points) Warrior, Co. recently completed its first year of operations. The company earned $70,200 in revenues and $11,700 of these were Accounts Receivable. (Hint: Also determine how much of the revenues were Cash) The company also incurred expenses of $48,600, but had not paid $6,400 of them at year-end. Separately, Warrior Co. also prepaid $3,750 cash for expenses that would be incurred the next year. Required: Calculate Warrior Co.’s first year net income using both the cash basis and the accrual basis of accounting. |Cash Basis Income Statement | |Accrual Basis Income Statement ...
Words: 335 - Pages: 2
...Barings Bank and Nick Leeson Introduction I would like to present the case of Barings Bank, one of the most famous histories in the world when one man led to the bankruptcy the oldest British bank. Barings collapsed on February 26, 1995, due to the activities of one trader, Nick Leeson, who lost almost $1.4 billion. The loss was caused by a large exposure to the Japanese stock market, which was achieved through the futures market. Leeson, the chief trader for Barings Futures in Singapore, had been accumulating positions in stock index futures on the Nikkei 225, a portfolio of Japanese stocks. As the market fell more than 15 percent in the first two months of 1995, Barings Futures suffered huge losses, which were made even higher due to the sale of options, which implied a bet on a stable market. As losses mounted, Leeson increased the size of the position, in a stubborn belief he was right. Finally, on 25 February 1995 he walked away, when he realized that bank was unable to make the cash payments required by the exchanges. Later, he sent a fax to his superiors, offering “sincere apologies for the predicament that I have left you in.” Nick Leeson had totally wiped out the venerable 233-year-old Baring Investment Bank, which proudly counted Queen Elizabeth as a client. He left behind huge liabilities totaling $1.4 billion, more than the entire capital and reserves of the British institution. This situation - and a similar scam at the New York branch of Japan's Daiwa Bank in October...
Words: 3328 - Pages: 14
...Barings |The activities of Nick Leeson on the Japanese and Singapore futures exchanges, which led to the downfall of his employer, | |Barings, are well-documented. The main points are recounted here to serve as a backdrop to the main topic of this chapter - the | |policies, procedures and systems necessary for the prudent management of derivative activities. | |Barings collapsed because it could not meet the enormous trading obligations, which Leeson established in the name of the bank. | |When it went into receivership on February 27, 1995, Barings, via Leeson, had outstanding notional futures positions on Japanese | |equities and interest rates of US$27 billion: US$7 billion on the Nikkei 225 equity contract and US$20 billion on Japanese | |government bond (JGB) and Euroyen contracts. Leeson also sold 70, 892 Nikkei put and call options with a nominal value of $6.68 | |billion. The nominal size of these positions is magnificent; their enormity is all the more astounding when compared with the | |banks reported capital of about $615 million. | |The size of the positions can also be underlined by the fact that in January and February 1995, Barings Tokyo and London | |transferred US$835 million to its Singapore office to enable the latter the meet its margin obligations on the Singapore | |International Monetary Exchange...
Words: 6854 - Pages: 28
...Topic: The biggest scams in the banking history Course: Banking Students: Nino Vepkhvadze, Gohar Trchunyan, Giorgi Menteshashvili & Giorgi Paksashvili Date: 04.06.2012 A fraud, by definition, is the act of deliberate deception of people to secure an unlawful gain. These are mainly for the purpose of defrauding money as well as prestige rather than immediate financial gain. A study by BBC has revealed that the average woman lies twice a day while a man tells three lies a day. However, the lies they tell differ from each other a lot, both in essence and the results yielded. This is why we decided that the frauds and scams of the banking industry as well as their influence on other financial institutions would be quite interesting and intriguing. Let us together investigate how far a human mind can go to earn as much money and glory as we desire. Jerome Kerviel’s case-Societe Generale on the edge In January 2008, A French court sentenced former Société Générale trader Jérôme Kerviel to three years in prison for his role in one of the world's biggest-ever trading scandals and ordered him to repay his former employer €4.9 billion—a sum it would take him 180,000 years to pay at his current salary. In convicting Mr. Kerviel of breach of trust, forgery, and unauthorized computer use, the judge also handed Mr. Kerviel a lifetime trading ban. The prison sentence handed to Mr Kerviel is for five years, of which two years were suspended. Throughout the trial, Mr. Kerviel and...
Words: 3438 - Pages: 14
