Solved by verified expert :Devry ACCT301 all assignmentsweek 1-7ACCT301
Week 2 Homework

In two to three paragraphs,
describe the Sarbanes-Oxley Act and why it is important to the accounting
profession. (15 points)

Name and briefly describe the
five components of COSO’s internal control framework. (10 points)

Describe the relationship
between the Sarbanes-Oxley Act and COSO. (10 points)

Tom Jackson is a CPA who really
likes to go to Las Vegas, play poker, and bet on football games. Tom knows that
the accounting profession disapproves of gambling, but because he spends a lot
of time studying sports facts and how to win at poker, he feels that he is
simply making educated decisions based on facts. He says that this is no
different from using accounting information to buy stocks. Use the fraud
triangle as a basis to comment on Tom’s gambling activities. (15 points)Week 1Problem 1 Required: Identify
the financial statement on which each of the following items appears by making
an X in the appropriate column. The first one is done for you. (15 points total, 1 point each) Income Balance Statement
ofItem Statement Sheet Cash
FlowsAccounts Payable X Accounts Receivable Advertising Expense Common Stock Dividends Equipment Financing Activities Investing Activities Land Operating Activities Rent Expense Retained Earnings Revenue Salaries Payable Utility Expense Problem 2Problem 2 Required: Show the effects on the financial statements using
a horizontal statement model as outlined below.
The first one is done for you. (35 points total, 5 points each) 1 Sold $30,000 in merchandise for
cash 2 Paid $5,000 for rent with cash 3 Paid $10,000 in salaries to
employees with cash 4 Sold $25,000 in merchandise and
customer paid on credit 5 Collected $10,000 cash for
transaction #4 6 Purchased a building for $100,000
and took out a loan for the money 7 Paid the $1,200 telephone bill
with cash Week 3Problem 1 Required: Express each income statement component as a
percentage of sales, and comment on the trends in each line from 2013 to 2014. (25 points) 2014 % Sales 2013 % SalesSales $10,00,000 $12,00,000 Cost of goods sold
$4,50,000 $6,00,000 Gross margin
$5,50,000 $6,00,000 Operating expenses
$6,00,000 $4,50,000 Net income
$1,50,000 Problem 2 Required: Compute (1) accounts receivable turnover for 2014,
(2) the inventory turnover for 2014, and (3) the net margin for 2014. (25 points) 2014 2013 Balance sheet items Accounts
receivable $3,80,000.00 $3,76,000.00 Allowance
for doubtful accounts
$(20,000.00) $(16,000.00) Net
accounts receivable
$3,60,000.00 $3,60,000.00 Inventory $4,80,000.00 $4,40,000.00 Income statement items Sales $34,00,000.00 $30,80,000.00 Cost of
goods sold $16,00,000.00 $14,40,000.00 Operating
expenses $7,80,000.00 $6,80,000.00 Week 4Problem 1 Required: Use the following information to complete the
below schedule of cost of goods manufactured. (25 points) Purchases of raw materials
$1,20,000.00 Raw materials available for use $1,48,000.00 Cost of direct raw materials used $1,24,000.00 Manufacturing overhead
$24,000.00 Total manufacturing costs
$3,10,000.00 Ending work-in-process inventory $(46,000.00)Cost of goods manufactured
$3,06,000.00 Schedule of Cost of Goods Manufactured Beginning inventory, raw materials Plus: Purchases of raw materials Raw materials available for use $- Less: Ending raw materials inventory Cost of direct raw materials used $- Direct labor Manufacturing overhead Total manufacturing costs
$- Plus: Beginning work-in-process inventory Total work in process
$- Less: Ending work-in-process inventory Cost of goods manufactured
$- Problem 2 Required: JZ is a musician who is considering whether to
independently produce and sell a CD. JZ estimates fixed costs of $10,000 and
variable costs of $4.00 per unit. The expected selling price is $12 per CD.
What is JZ’s break-even point in units and dollars? (25 points) Break-even point in units Fixed
Costs Contribution
margin per unit Week 5

Problem 1

Required:Identify each of the following as
either a direct or indirect cost.

(20 points)

Direct or Indirect?

Material used in production

Salary of manufacturing supervisor

Wages of manufacturing worker

Telephone costs


Problem 2 Required: GH Company is trying to decide whether to replace
a current piece of machinery with a new machine. Using the below data,
determine the relevant costs of the old machine and the new machine. Should GH
Company purchase the new machine? (30 points) Old
Machine New machine Original cost
1,00,000 Accumulated depreciation
(50,000) Book value 50,000 Market value (now)
25,000 30,000 Salvage value (in 5 years)
5,000 8,000 Annual depreciation expense
11,000 Operating expenses Per year 9,000 4,500 Times number of
years 4 4 Total operating expenses
36,000 18,000Week 6

Problem 1

Required:In the space below, describe the
advantages of budgeting.

(10 points)

Problem 2

Required: Compute the ROI for each division
below to two decimal places. (30 points)
Which division has the best performance? (10 points)

(40 points total)




Operating income




Operating assets




Week 7

Problem 1

Required: In the space below, describe the net
present value method of capital budgeting.

(10 points)

Problem 2

Required:Compute the average annual cash
inflows. (20 points)
Compute the payback period using the accumulation method. (20 points)

(40 points total)






Incremental revenue






Cost of new machine


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