ACC 306 Extraordinary Success |snaptutorial.com

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ACC 306 Entire Course (New) For more classes visit
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FOR BEST A 6RADES t Visit On
ACC 306 Week 1 Assignment E13-21, E13-22, P12-1,
P12-7,P12-10, P12-14, P13-6 ACC 306 Week 1
Quiz ACC 306 Week 1 DQ 1 Equity Method ACC 306
Week 1 DQ 1 Accounting Pronouncements ACC 306
Week 1 DQ 2 Judgment Case 13-9 ACC 306 Week 2
Quiz ACC 306 Week 2 DQ 1 Ethics Case 14-8 Hunt
Manufacturing Debt for equity swaps ACC 306 Week
2 DQ 2 Ethics Case 15-4 Leasehold Improvements
ACC 306 Week 2 Assignment E 14-16, E 14-18, E
15-25, P14-21, P153
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ACC 306 Week 3 Assignment E 16-24, E 16-25, E
17-10, E 17-19, P 16-7, P 17-16 ACC 306 Week 3
Quiz ACC 306 Week 3 Ethics Case 17-6 401(k) plan
contributions ACC 306 Week 3 Integrating Case
16-5 accounting changes and error correction ACC
306 Week 4 Communication Case 18-10 ACC 306 Week
4 Quiz ACC 306 Week 4 Ethics Case 19-7
International Network Solutions ACC 306 Week 4
Assignment E 18-18, E 18-24, E 19-2, E 19-5, E
19-9, E 19-24, P 18-5 ACC 306 Week 5 Analysis
Case 20-10 ACC 306 Week 5 Ethics Case 20-5
Softening the blow ACC 306 Week 5 Ethics Case 21-7
ACC 306 Week 5 Assignment E 20-18, P 21-11, P 21-14 ACC 306 Week 5 Assignment E 20-18, P 21-11, P 21-14
ACC 306 Week 5 Final Lease Paper (2 Papers)
ACC 306 Week 1 Assignment E13-21, E13-22, P12-1,
P12-7.P12-10, P12-14, P13-6 For more classes
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ACC 306 Week 1 Assignment E13-21, E13-22, P12-1,
P12-7,P12-10, P12-14, P13-6
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ACC 306 Week 1 DQ1 Accounting Pronouncements For
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Accounting Pronouncements. The Financial
Accounting Standards Board has issued accounting
pronouncements that affect how accounting
transactions should be treated. These
pronouncements may affect all companies or just
specific industries, but no pronouncements have
been issued that affect social media companies,
like Zynga and Facebook. In the Forbes article,
Social Media's Phony Accounting, written by
Francine McKenna, the author discusses how these
new rules are being invented. Read the article
and then a. Discuss the methods that have
been invented and how management estimates can
manipulate the resulting income from these
transactions. Provide examples to support your
opinion. b. Should these invented rules be
implemented without authoritative approval? c.
Should these new rules be labeled as Generally
Accepted Accounting Principles (GAAP)? You must
respond to at least two of your classmates
postings by Day 7 to receive full credit.
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ACC 306 Week 1 DQ1 Equity Method For more classes
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P 12-13 - Miller Properties - Equity method LO5
LO6 On January 2, 2011, Miller Properties paid
19 million for 1 million shar es of Marlon
Companys 6 million outstanding common shares.
Millers CEO became a member of Marlons board of
directors during the first q uarter of 2011. The
carrying amount of Marlons net assets was 66
million. Miller esti mated the fair value of
those net as- sets to be the same except for a
pate nt valued at 24 million above cost. The
remaining amortization period f or the patent is
10 years. Marlon reported earnings of 12 million
and paid dividends of 6 millio n during 2011. On
December 31, 2011, Marlons common stock was tra
ding on the NYSE at 18.50 per share. Required 1.
When considering whether to account for its
investment in Marlon un der the equity method,
what criteria should Millers management
apply? 2. Assume Miller accounts for its
investment in Marlon using the equity method.
Ignoring income taxes, deter- mine the amounts
related to the in vestment to be reported in its
2011 a. Income statement. b. Balance
sheet. c. Statement of cash flows.
ACC 306 Week 1 DQ 2 Judgment Case 13-9
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ACC 306 Week 1 DQ2 Judgment Case 13-9 Judgment
Case 139 - Valleck Corporation - Loss contingency
and full disclosure LO5 L O6 In the March 2012
meeting of Valleck Corporations board of
directors, a question arose as to the way a
possible obligation should be disclosed i n the
forthcoming financial statements for the year
ended December 31. A veteran board member brought
to the meeting a draft of a disclosure n ote that
had been prepared by the controllers office for
inclusion in the a nnual report. Here is the
note On May 9, 2011, the United States
Environmental Protection Agency (E PA) issued a
Notice of Violation (NOV) to Valleck alleging
violations o f the Clean Air Act. Subsequently,
in June 2011, the EPA commenced a civil action
with respect to the foregoing violation seeking
civil penalties of approximately 853,000. The
EPA alleges that Valleck exceeded app licable
volatile organic substance emission limits. The
Company estimat es that the cost to achieve
compliance will be 190,000 in addition the
Company expects to settle the EPA lawsuit for a
civil penalty of 205,00 0 which will be paid in
2014. Where did we get the 205,000 figure?
he asked. On being informed that this is the
amount negotiated last month by company attorneys
with the EPA, the director inquires, Arent we
supposed to report a liability f or that in
addition to the note? Required Explain whether
Valleck should report a liability in addition to
the note. Why or why not? For full disclosure,
should anything be added to the dis closure note
itself?
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ACC 306 Week 1 Quiz For more classes visit
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Question 1 Which of the following may create
employer liabilities in connection with their
payrolls? Question 2 Current liabilities are
normally recorded at the amount expected to be
paid rather than at their present value. This
practice can be supported by GAAP according to
the concept of Question 3 The investment
category for which the investor's "positive
intent and ability to hold" is important
is Question 4 Which of the following investment
securities held by Zoogle Inc. may be classified
as held-to-maturity securities in its balance
sheet? Question 5 Large, highly rated firms
sometimes sell commercial paper Question 6 If
Pop Company exercises significant influence over
Son Company and owns 40 of its common stock,
then Pop Company Question 7 A contingent loss
should be reported in a footnote to the financial
statements rather than being accrued if Question
8 Assume that, on 1/1/06, Matsui Co. paid
1,200,000 for its investment in 60,000 shares of
Yankee Inc. Further, assume that Yankee has
200,000 total shares of stock issued. The book
value and fair value of Yankee's identifiable net
assets were both 4,000,000 at 1/1/06. The
following information pertains to Yankee during
2006 Net Income200,000 Dividends
declared and paid60,000 Market price of
common stock on 12/31/06
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22/share What amount would Matsui report in
its year-end 2006 balance sheet for its
investment in Yankee? Question 9 Other things
being equal, most managers would prefer to report
liabilities as noncurrent rather than current.
The logic behind this preference is that the
long-term classification permits the company to
report Question 10 Which of the following
investment securities held by Zoogle Inc. are not
reported at fair value in its balance sheet?
ACC 306 Week 2 Assignment E14-16, E14-18, ACC 306 Week 2 Assignment E14-16, E14-18,
E15-25, P14-21, P15-3 For more classes visit
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ACC 306 Week 2 Assignment E 14-16, E 14-18, E
15-25, P14-21, P153
ACC 306 Week 2 DQ1 Ethics Case 14-8 Hunt ACC 306 Week 2 DQ1 Ethics Case 14-8 Hunt
Manufacturing Debt for equity swaps
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Ethics Case 148 - Hunt Manufacturing - Debt for
equity swaps have your cake and eat it too
LO5 The cloudy afternoon mirrored the mood of the
conference of division m anagers. Claude Meyer,
assistant to the controller for Hunt Manufacturin
g, wore one of the gloomy faces that were just
emerging from the confer ence room. Wow, I knew
it was bad, but not that bad, Claude thought t 0
himself. I dont look forward to sharing
those numbers with sharehol ders. The numbers he
discussed with himself were fourth quarter losses
which more than offset the profits of the first
three quarters. Everyone had kno wn for some time
that poor sales forecasts and production delays
had wr eaked havoc on the bottom line, but most
were caught off guard by the s everity of
damage. Later that night he sat alone in his
office, scanning and rescanning the pr eliminary
financial statements on his computer monitor.
Suddenly his m ood brightened. This may work,
he said aloud, though no one could he ar. Fifteen
minutes later he congratulated himself,
Yes! The next day he eagerly explained his plan
to Susan Barr, controller of Hunt for the last
six years. The plan involved 300 million in
convertible bonds issued three years
earlier. Meyer By swapping stock for the bonds,
we can eliminate a substantia 1 liability from
the balance sheet, wipe out most of our interest
expense, and reduce our loss. In fact, the book
value of the bonds is significantly more than the
market value of the stock wed issue. I think we
can produ ce a profit. Barr But Claude, our
bondholders are not inclined to convert the bonds
Meyer Right. But, the bonds are callable. As of
this year, we can call th e bonds at a call
premium of 1. Given the choice of accepting that
rede
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mption price or converting to stock, theyll all
convert. We wont have t o pay a cent. And, since
no cash will be paid, we wont pay taxes either.
Required Do you perceive an ethical dilemma?
What would be the impact of follo wing up on
Claudes plan? Who would benefit? Who would be
injured?
ACC 306 Week 2 DQ 2 Ethics Case 15-4 Leasehold
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Ethics Case 154 - American Movieplex - Leasehold
improvements LO3 American Movieplex, a large
movie theater chain, leases most of its thea ter
facilities. In conjunction with recent operating
leases, the company sp ent 28 million for seats
and carpeting. The question being discussed ov er
break- fast on Wednesday morning was the length
of the depreciation period for these leasehold
improvements. The com- pany controller, Sara h
Keene, was surprised by the suggestion of Larry
Person, her new assist ant. Keene Why 25 years?
Weve never depreciated leasehold improvements
for suc h a long period.
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Person I noticed that in my review of back
records. But during our expansion to the Midwest,
we dont need expenses to be any higher than
necessary. Keene But isnt that a pretty rosy
estimate of these assets actual life? Trade pu
blications show an average depreciation period of
12 years. Required 1. How would increasing the
depreciation period affect American Moviepl exs
income? 2. Does revising the estimate pose an
ethical dilemma? 3. Who would be affected if
Persons suggestion is followed?
ACC 306 Week 2 Quiz For more classes
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Question 1 The method used to pay interest
depends on whether the bonds are Question 2
Bond X and bond Y are both issued by the same
company. Each of the bonds has a maturity value
of 100,000 and each matures in 10 years. Bond X
pays 8 interest while bond Y pays 9 interest.
The current market rate of interest is 8. Which
of the following is correct? Question 3 Which of
the following statements characterizes a
leveraged lease? Question 4 If the lessee and
lessor use different interest rates to account
for a capital lease, then
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Question 5 Of the four criteria for a capital
lease, which two are not applied if the lease
begins during the final quarter of the asset's
useful life? Question 6 Griggs Co. failed to
amortize the premium on an outstanding five-year
bond issue. What is the resulting effect on
interest expense and the bond carrying value,
respectively? Question 7 When the interest
payment dates are March 1 and September 1, and
the notes are issued on July 1, the amount of
interest expense to be accrued at December 31 of
the year of issue would Question 8 When bonds
are retired prior to their maturity date
Question 9 Which of the following statements
characterizes an operating lease? Question 10
The four criteria provided in FASB Statement No.
13 for distinguishing a capital lease from an
operating lease do not include
ACC 306 Week 3 Ethics Case 17-6 401(k)
plan contributions For more classes visit
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Ethics Case 17-6 - VXI International - 401(k)
plan contributions LO1 You are in your third
year as internal auditor with VXI International,
ma nufacturer of parts and supplies for jet air-
craft. VXI began a defined co ntribution pension
plan three years ago. The plan is a so-called
401(k) plan (named after the Tax Code section
that specifies the c onditions for the favorable
tax treatment of these plans) that permits volu
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ntary contributions by employees. Employees
contributions are matche d with one dollar of
employer contribution for every two dollars of
empl oyee contribution. Approximately 500,000 of
contributions is deducted from employee paychecks
each month for investment in one of three em
ployer-sponsored mutual funds. While performing
some preliminary audit tests, you happen to
notice tha t employee contributions to these
plans usually do not show up on mutua l fund
statements for up to two months following the end
of pay periods from which the deductions are
drawn. On further investigation, you disc over
that when the plan was first begun, contributions
were invested wit hin one week of receipt of the
funds. When you question the firms inves tment
manager about the apparent change in the timing
of investments, y ou are told, Last year Mr.
Maxwell (the CFO) directed me to initially d
eposit the contributions in the corporate
investment account. At the close of each quarter,
we add the employer matching contribution and
deposit the combined amount in specific employee
mutual funds. Required 1. What is Mr. Maxwells
apparent motivation for the change in the way co
ntributions are handled? 2. Do you perceive an
ethical dilemma?
ACC 306 Week 3 Ethics Case 17-6 401(k)
plan contributions For more classes visit
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Ethics Case 17-6 - VXI International - 401(k)
plan contributions LO1 You are in your third
year as internal auditor with VXI International,
ma nufacturer of parts and supplies for jet air-
craft. VXI began a defined co ntribution pension
plan three years ago. The plan is a so-called
401(k) plan (named after the Tax Code section
that specifies the c onditions for the favorable
tax treatment of these plans) that permits volu
ntary contributions by employees. Employees
contributions are matche d with one dollar of
employer contribution for every two dollars of
empl oyee contribution. Approximately 500,000 of
contributions is deducted from employee paychecks
each month for investment in one of three em
ployer-sponsored mutual funds. While performing
some preliminary audit tests, you happen to
notice tha t employee contributions to these
plans usually do not show up on mutua l fund
statements for up to two months following the end
of pay periods from which the deductions are
drawn. On further investigation, you disc over
that when the plan was first begun, contributions
were invested wit hin one week of receipt of the
funds. When you question the firms inves tment
manager about the apparent change in the timing
of investments, y ou are told, Last year Mr.
Maxwell (the CFO) directed me to initially d
eposit the contributions in the corporate
investment account. At the close of each quarter,
we add the employer matching contribution and
deposit the combined amount in specific employee
mutual funds. Required 1. What is Mr. Maxwells
apparent motivation for the change in the way co
ntributions are handled? 2. Do you perceive an
ethical dilemma?
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ACC 306 Week 3 Integrating Case 16-5 accounting
changes and error correction For more classes
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Integrating Case 16-5 - Williams- Santana, Inc. -
Tax effects of accounting changes and error
correction si x situations LO1 LO2
LO8 Williams-Santana, Inc. is a manufacturer of
high- tech industrial parts that was started in
1997 by two talented engineers w ith little
business training. In 2011, the company was
acquired by one of its major customers. As part
of an internal audit, the following facts wer e
discovered. The audit occurred during 2011 before
any adjusting entrie s or closing entries were
prepared. The income tax rate is 40 for all
yea rs. a. A five- year casualty insurance
policy was purchased at the beginning of 2009 f
or 35,000. The full amount was debited to
insurance expense at the tim e. b. On December
31, 2010, merchandise inventory was overstated by
2 5,000 due to a mistake in the physical
inventory count using the periodic inventory
system. c. The company changed inventory cost
methods to FIFO from LIFO at the end of 2011 for
both financial statement and income tax purposes.
The c hange will cause a 960,000 increase in the
beginning inventory at Janua ry 1, 2010.
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d. At the end of 2010, the company failed to
accrue 15,500 of sales co mmissions earned by
employees during 2010. The expense was recorded
when the commissions were paid in early 2011. e.
At the beginning of 2009, the company purchased
a machine at a cost of 720,000. Its useful life
was estimated to be 10 years with no salvage
value. The machine has been depreciated by the
double declining- balan ce method. Its carrying
amount on December 31, 2010, was 460,800. O n
January 1, 2011, the company changed to the
straight-line method.
ACC 306 Week 3 Quiz For more classes
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Question 1 If a company's deferred tax asset is
not reduced by a valuation allowance, the company
believes it is more likely than not
that Question 2 Which of the following
statements typifies defined contribution
plans? Question 3 The annual pension expense for
what type of pension plan(s) is recorded by a
journal entry that includes a debit to pension
expense and a credit to the pension asset or
pension liability? Question 4 Which of the
following causes a temporary difference between
taxable and pretax accounting income? Question 5
The result of interperiod tax allocation is
that Question 6 Pension gains related to plan
assets occur when Question 7 Under SFAS 87,
delayed recognition of gains and losses in
earnings achieves
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Question 8 Consider the following I present
value of vested benefits at present pay levels II
present value of nonvested benefits at present
pay levels III present value of additional
benefits related to projected pay increases Which
of the above constitutes the vested benefit
obligation? Question 9 Of the following
temporary differences, which one ordinarily
creates a deferred tax asset? Question 10 A gain
from changing an estimate regarding the
obligation for pensions and other postretirement
benefit plans will
ACC 306 Week 4 Assignment E18-18, E18-24, E19-2,
E19-5, E19-9, E19-24, P18-5 For more classes
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ACC 306 Week 4 Assignment E 18-18, E 18-24, E
19-2, E 19-5, E 199, E 19-24, P 18-5
ACC 306 Week 4 Communication Case 18-10 For more
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Communication Case 18-10 Should the present
two- category distinction between liabilities and
equity be retained? Group int eraction. LO1 The
current conceptual distinction between
liabilities and equity defines liabilities
independently of assets and equity, with equity
defined as a res idual amount. The present
proliferation of financial instruments that com
bine features of both debt and equity and the
difficulty of drawing a disti nction have led
many to conclude that the present two-category
distinction between liabilities and equity should
be eliminated. Two opposing viewpoints are View
1 The distinction should be maintained. View 2
The distinction should be eliminated and
financial instruments s hould instead be reported
in accordance with the priority of their claims
t 0 enterprise assets. One type of security
that often is mentioned in the debate is
convertible bonds. Although stock in many ways,
such a security also obligates the i ssuer to
transfer assets at a specified price and
redemption date. Thus it a lso has features of
debt. In considering this question, focus on
conceptua 1 issues regarding the practicable
and theoretically appropriate treatment,
unconstrained by GAAP. Required 1. Which view do
you favor? Develop a list of arguments in support
o f your view prior to the class session for
which the case is assigned
ACC306 Week 4 Ethics Case 19-7International Networ
k Solutions
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Ethics Case 19-7 International Network Solutions
LO6 International Network Solutions provides
products and services related t o remote access
networking. The company has grown rapidly during
its f irst 10 years of operations. As its segment
of the industry has begun to m ature, though, the
fast growth of previous years has begun to slow.
In fac t, this year revenues and profits are
roughly the same as last year. One morning, nine
weeks before the close of the fiscal year, Rob
Mashb urn, CFO, and Jessica Lane, controller,
were sharing coffee and ideas in Lanes
office. Lane About the Board meeting Thursday.
You may be right. This may be the time to suggest
a share buyback program. Mashburn To begin this
year, you mean? Lane Right! I know Barber will
be lobbying to use the funds for our Eu ropean
expansion. Shes probably right about the best
use of our funds, b ut we can always issue more
notes next year. Right now, we need a quic k fix
for our EPS numbers. Mashburn Our shareholders
are accustomed to increases every year.
Required 1. How will a buyback of shares
provide a quick fix for EPS? 2. Is the proposal
ethical? 3. Who would be affected if the proposal
is impl emented?
ACC 306 Week 4 Quiz For more classes visit
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Question 1 Which of the following will require a
recalculation of weighted-average shares
outstanding for all years presented? Question 2
Which of the following statements is true when
dividends are not declared or paid on cumulative
preferred stock? Question 3 When treasury shares
are sold at a price above cost Question 4 When
a property dividend is declared, the reduction in
retained earnings is for Question 5 When
preferred stock is purchased by the issuing
corporation at a price below the original issue
price and the stock is retired, the
transaction Question 6 When stock is issued in
exchange for property, the best evidence of
market value might be any of the following
except Question 7 When treasury stock is
purchased for an amount greater than its par
value, what is the effect on total shareholders'
equity? Question 8 Preferred shares that are
participating may Question 9 Stock options do
not affect the calculation of Question 10
Preferred dividends are subtracted from earnings
when computing earnings per share whether or not
the dividends are declared or paid if the
preferred stock is
ACC 306 Week 5 Analysis Case 20-10 For more
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Analysis Case 2010 - DRS Corporation - Various
changes LO1 through LO4 DRS Corporation changed
the way it depreciates its computers from the
sum-of-the-years-digits method to the
straightline method beginning January 1, 2011.
DRS also changed its estimated residual value
used in computing depreciation for its office
building. At t he end of 2011, DRS changed the
specific subsidiaries constituting the g roup of
companies for which its consolidated financial
statements are pr epared. Required 1. For each
accounting change DRS undertook, indicate the
type of change and how DRS should report the
change. Be specific. 2. Why should companies
disclose changes in accounting principles?
ACC 306 Week 5 Assignment E 20-18, P
21-11, P21-14 For more classes visit
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ACC 306 Week 5 Assignment E 20-18, P 21-11, P
21-14
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ACC 306 Week 5 Ethics Case 20-5 Softening
the blow For more classes visit
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Ethics Case 20-5 Softening the blow LO1 LO2 LO3
Late one Thursday afternoon, Joy Martin, a
veteran audit manager with a regional CPA firm,
was reviewing documents for a longtime client of
the firm, AMT Transport. The year-end audit was
scheduled to begin Monday. For three months, the
economy had been in a down cycle and the transpo
rtation industry was particularly hard hit. As a
result, Joy expected AMT s financial results
would not be pleasant news to shareholders.
However , what Joy saw in the preliminary
statements made her sigh aloud. Result s were
much worse than she feared. Larry (the company
president) already is in the doghouse with
sharehol ders, Joy thought to herself. When
they see these numbers, theyll han g him out to
dry. I wonder if hes considered some strategic
accounting changes, she th ought, after
reflecting on the situation. The bad news could
be softened quite a bit by changing inventory
methods from LIFO to FIFO or reconsi dering some
of the estimates used in other areas. Required 1
. How would the actions contemplated contribute
toward softening the bad news? 2. Do you
perceive an ethical dilemma? What would be the
likely impact o
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f following up on Joys thoughts? Who would
benefit? Who would be in jured?
ACC306 Week 5 Ethics Case 21-7
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Ethics Case 21-7 - Ben Naegle - Wheres the cash?
LO1 LO3 After graduating near the top of his
class, Ben Naegle was hired by the l ocal office
of a Big 4 CPA firm in his hometown. Two years
later, impre ssed with his technical skills and
experience, Park Electronics, a large re gional
consumer electronics chain, hired Ben as
assistant controller. This was last week. Now
Bens initial excitement has turned to
distress. The cause of Bens distress is the set
of financial statements hes stared a t for the
last four hours. For some time prior to his
recruitment, he had b een aware of the long trend
of moderate profitability of his new employe r.
The reports on his desk confirm the slight, but
steady, improvements i n net income in recent
years. The trend he was just now becoming aware
of, though, was the decline in cash flows from
operations. Ben had sketched out the following
comparison ( in millions) Profits? Yes.
Increasing profits? Yes. The cause of his
distress? The omi nous trend in cash flow which
is con sistently lower than net income. Upon
closer review, Ben noticed three events in the
last two years that, u nfortunately, seemed
related
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a. Parks credit policy had been loosened credit
terms were relaxed and pa yment periods were
lengthened. b. Accounts receivable balances
had increased dramatically. c. Several of the
companys compensation arrangements, including
that of the controller and the company president,
were based on reported net inc ome. Required 1.
What is so ominous about the combination of
events Ben sees? 2. What course of action, if
any, should Ben take?
ACC 306 Week 5 Final Lease Paper (2 Papers) For
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ACC 306 Week 5 Final Paper (Lease)
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