Chapter 1
Accounting in Action: CM Corporation (CMC)
CM Corporation (CMC) was founded in 2000 by Eric Conner and Phil Martin. The company designs, installs, and services security systems for high-tech companies. The founders, who describe themselves as "entrepreneurial geeks," met in a computer lab when they were teenagers and found they had common interests in working on security systems for critical industries. In January 2012, CMC hired you as an accounting intern. Lately Conner and Martin have been working with “radio frequency identification” (RFID) technology. They have developed a detailed system designed to track inventory items using RFID tags embedded invisibly in products. This technology has numerous inventory
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When you look at it, you find that the accounts are not in any particular order, which surprises you.
Instructions
(a) Download file 3a from the website. Prepare a trial balance in good form.
(b) From the website, access file 3b, which has the unadjusted trial balance with the accounts in proper order. This file also contains an accounting “system” comprised of a series of linked spreadsheets. The linkages enable the effects of all accounting entries (journal, adjusting, and closing) to flow through to spreadsheets for the income statement, balance sheet, and statement of cash flows. You notice that for the fiscal year ended December 31, 2012, someone has made all the journal entries but none of the adjusting or closing entries. The following information is provided for adjustments prior to closing the books. Lopez and Knepp ask you to enter the adjustments into the spreadsheet, in the two columns to the right of the unadjusted trial balance. (CM2 uses a perpetual inventory system.) 1. Wages earned by employees during December and to be paid in January are $33,875; associated payroll taxes on these wages are $2,710. 2. On July 1, a client paid CM2 $205,720 in advance for a year of consulting services. 3. You discover that a product sale was made and recorded in December for $128,600; the product had not yet been shipped. The cost
Create a Balance Sheet for November 30th assuming no other transactions occurred for the month other than those noted above.
4- The committee and Ms Beckel decided to include a religious studies curriculum in the program. The principal approved of it. However, Ms Wright one of the community members did not. She threatened to show up at the committee meeting with the media. On the day of the meeting, Ms Wright showed up with a placard protesting the use of the bible in public schools.
Sparkle Company is a Nigerian diamond mining company. Sparkle is a joint venture, 50 percent owned by Shine and 50 percent owned by Brighten. Both Shine and Brighten are U.S.-based companies with their functional currency being the American dollar. Sparkle Companies functional currency is that of Nigeria, being the Naira. During 2009, Sparkle had several transactions with its joint venture owners and outside parties. The details of Sparkle’s transactions are three loans, three expenditures, and one revenue stream. The loans the company took out were $1 million from Brighten, $1 million from Shine, and 300 million Naira from a local Nigerian bank. The expenditures
ASC 320-10-35-33F: “Changes in the quality of the credit enhancement should be considered when estimating whether a credit loss exists and the period over which the debt security is expected to recover.”
This case is talking about an executive retreat. It was introduced by John Matthews who was a executive had been selected to attend the two-and-a-half-week retreat. The retreat was more like a competition about academic and athletic. The team members should not only get know each other and cooperate with teammates but also need to compete with others. The whole participants were broken into five groups and their aim was to win the competition. There are several sessions about academic and athletic that the participants should complete. After the introduction part the case showed the experience of John. Before the group meeting John was wondering and worried about this retreat. When he was taking the first group meeting, he tried to learn
The court deciphering between criminal negligence and recklessness. Criminal negligence being a person failing to perceive a substantial and unjustifiable risk that the result will occur or that the circumstance exists. The risk must be of such nature and degree that the failure to perceive it constitutes a gross deviation from the standard of care that a reasonable person would observe in the situation.
4. On the basis of the response to Question 3, how should Coconut account for the execution of the May 1, 2012, agreement? Provide the deferred revenue balance and cumulative revenue recognized related to the Buffett arrangement upon execution of the May 1, 2012, agreement.
On a snowy January evening, the Midwestern Medical Group (MMG) management team held a retirement party for Judith Olsen, MMG president. During the evening, Olsen reflected back on the years she had worked for MMG with mixed feelings about her experience. Over the course of their eight-year integration
Shakespeare Inc., a private publishing company issued its F/S on March 20, 2012. There were several accruals and events that the management of Shakespeare is considering to determine if they should be recognized or disclosed in Dec 31, 2011 F/S. In my opinion, the important things to focus on subsequent events are the period they effect and if their influence is material or not, so that in conclusion, the F/S are fairly presented.
In 2007, the Company contracted with a Facility in Hawaii to provide CRNA services. In the initial contract with the Facility, there was no mention of the Hawaii GET; however, in the final contract, the Facility chose to include the GET recovery charge in addition to the agreed-upon monthly contractual amount due. The Company then contracted with various CRNAs in Hawaii to fulfill the terms of the contract with the Facility. The Company also sourced CRNAs from the mainland for temporary assignments when local resources were not available.
The accounting equation of Assets + Expenses = Liabilities + Owners Equity + Revenue is used to place the accounts on the correct side of the trial balance. Assets and Expenses go on the left hand side and Liabilities, Owners Equity and Revenue on the right hand side. Your receipts (received when a cash sale takes place) and invoices (issued when a credit sale takes place) are the source documents used to draw up the accounts from which you will take the information for your trial balance. The order in which one conducts business is: Source →transaction →data processing →trial balance →final accounts. Each transaction will have a double effect to balance your accounts.
Nowadays, RFID has been used widely in many industrial services, distribution, manufacturing and security. It can help to identify and monitor items (products, people, animals, etc...) wirelessly within a specified range. Although RFID technology dates back to WWII, it has not been used commercially until fairly recently, when Wal-Mart began using it for inventory management. In an attempt to fully integrate the RFID system, thereby substantially saving on logistics and manpower costs, streamlining in-store automatic product management procedure, and raising the company overall operating efficiency Wal-Mart demanded that its top 100 suppliers to affix a RFID tag onto the packaging of the goods they supplied. In an effort to improve business and service quality, save time and effort.
Engineering is giving organizations approaches to end up quicker and more effective in every aspect of the inventory control and supply chain, from the business to the consumer. The motivation behind this paper is to investigate one technology that has had an incredible effect on the production planning. This technology is the Radio Frequency identification (RFID).
Dell offers real-time feedback online to suppliers about critical aspects of inventory management such as inventory volumes, product quality and customer satisfaction. Dell uses Radio Frequency Identification (RFID) tagging. This technology-based method of identifying unique items using radio waves streamlines the inventory and shipment tracking process, reducing costs. By speeding up movement through