GBA 5205

Survey of Accounting Fifth Edition by Edmonds (ISBN 9781307078473)

Problem 2-32

Recording events in a horizontal statements model

The following events pertain to Super Cleaning Company:

1. Acquired $10,000 cash from the issue of common stock.

2. Provided $15,000 of services on account.

3. Provided services for $5,000 cash.

4. Received $2,800 cash in advance for services to be performed in the future.

5. Collected $12,200 cash from the account receivable created in Event 2.

6. Paid $1,900 for cash expenses.

7. Performed $1,400 of the services agreed to in Event 4.

8. Incurred $3,600 of expenses on account.

9. Paid $4,800 cash in advance for one-year contract to rent office space.

10. Paid $2,800 cash on the account payable created in Event 8.

11. Paid a $1,500 cash dividend to the stockholders.

12. Recognized rent expense for nine months’ use of office space acquired in Event 9

Required

Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flows column, use the letters OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Use NA to indicate accounts not affected by the event. The first event is recorded as an example.

PROBLEM 2-32

*$          x    /12 = $

Summary: Key Points in the Article

Apple Computer CEO Steve Jobs announced he was taking a leave of absence for health reasons. Jobs has been fighting cancer and also recently underwent a liver transplant. Even though the computer giant is in good hands with Chief Operating Officer Tom Cook taking over the stock price fell by​ US$6.40, or nearly two​ percent, on the news.

Jobs is widely known as a visionary and a micromanager. Under his leadership Apple has transformed the computing industry. While​ Jobs' health outlook is unknown many investors are betting on his recovery and return. Those who bought Apple stock when Jobs stepped down in 2004 for health reasons made a nice profit when he returned to the helm.  

Question                                                                                                                               2 Marks

“When a financial manager makes good or bad financial decisions the impact of these decisions will be reflected in the​ company's Stock price”.

Do you agree with the decision taken in the above case? What decisions you will take to improve the stock price of Apple Computers in this situation?

You must comment on two peer posts.

Uber has long been criticized for its use of surge pricing, setting prices based on current supply and demand factors, which, at times, results in a sudden and drastic increase in prices. In a Wall Street Journal article, the CEO of Uber was asked if we are seeing the end of surge pricing. His response: “. . . at the end of the day, Friday night is three or five times bigger than a Sunday night in any city around the world. And if you’ve got enough supply on the system so that we were perfectly supplied on a Friday night for as much demand as a city could ever throw at us, then the rest of the week you have drivers not making a living.”

a. Draw a demand and supply graph for Uber rides in Miami on a Sunday night. How does demand change on a Friday night? How does the supply of Uber rides change? Label the shortage of Uber cars that results on a Friday night without surge pricing.

b. Show what happens to consumer and producer surplus on a Friday night without surge pricing.

c. How does surge pricing change consumer and producer surplus?

INSTRUCTIONS

10. Prepare a post-closing trial balance as of April 30, 2020.

Janet Stevens began her tax business, Stevens Tax Service, on February 1, 2020. Below is the Chart of Accounts for the company:

Acct # Account Title

11 Cash

12 Accounts receivable

14 Supplies

15 Prepaid Rent

16 Prepaid Insurance

18 Office Equipment

19 Accumulated Depreciation

21 Accounts Payable

23 Unearned Fees

31 Janet Stevens, Capital

32 Janet Stevens, Drawing

41 Fees Earned

51 Salary Expense

52 Rent Expense

53 Supplies Expense

54 Depreciation Expense

55 Insurance Expense

59 Miscellaneous Expense

After closing the books at the end of March, Stevens Tax Service had the following post-closing trial balance:

Stevens Tax Service

Post-Closing Trial Balance

March 31, 2020

Acct # Account Title Debit Credit

11 Cash 12,800

12 Accounts Receivable 9,750

14 Supplies 725

15 Prepaid Rent 5,000

16 Prepaid Insurance 2,250

18 Office Equipment 10,500

19 Accumulated Depreciation 700

21 Accounts Payable 1,510

23 Unearned Fees 1,800

31 Janet Stevens, Capital 37,015

Totals 41,025 41,025

During the month of April, 2020, Stevens Tax Service entered into the following transactions:

Apr. 3. Received cash from clients as advance payments for services to be provided and recorded it as unearned fees, $4,500.

5. Received cash from clients on account, $5,550.

8. Paid cash for an online advertisement for $600.

10. Paid Office Depot on account, $1,000.

12. Recorded services provided on account for the period of April 1-15, $9,450.

14. Paid receptionist for two weeks’ salary $1,500.

15. Recorded cash from cash clients for fees earned during the period of April 1-15, $8,300.

16. Purchased office supplies on account, $1,500.

20. Paid telephone bill, $500.

21. Paid electricity bill, $720.

25. Recorded cash received from clients on account, $6,200.

28. Paid receptionist for two weeks’ pay, $1,500.

30. Recorded cash from cash clients for fees earned for the period March 16-30, $8,900.

30. Recorded services on account for February 16-30, $10,600.

30. Janet withdrew $9,000 for personal use.

Strategic Management: A Taiwanese story about strategy and structure Before 2000 the Taiwan-based company Acer had competing strategies. For 15 years one part of the firm had been building computers for other PC sellers who would put their own labels on the machines, while another part sold very similar computers under the company’s own brand. The latter strategy was predicated on direct sales to consumers, which had brought the firm into direct competition with companies such as Dell. However, in 2000 the firm decided to adopt a new business strategy in order to increase its global market share. Acer’s manufacturing division was made an independent company (Wistron) and this enabled a smaller and more nimble sales firm to emerge. The strategy based on direct sales was discarded and replaced with a strategy focused on selling as many low-cost laptops and netbooks as possible to consumers but via a network of partners and retailers. A new logo was adopted to reflect this new strategic direction, which had proved very successful despite the industry downturn. By 2008, Acer had replaced Hewlett-Packard as the market leader in Europe, the Middle-East, and Africa, partly as a result of Acer’s success in the booming netbook market. This strategy enabled the firm to become the world’s second largest PC vendor. However, in 2011 tensions at board level over the firm’s strategic direction culminated in the resignation of Acer’s CEO Gianfranco Lanci. The difference in opinion appears to be about whether the firm’s future lay in PC’s or mobile devices. Acting CEO J.T Wang announced that the PC would continue to be the firm’s core business. In 2009 the firm entered the smartphone market with the launch of four different smartphones and the promise of more in the pipeline. Unlike Apple, which was focused on developing one phone only, Acer’s strategy is based on targeting each of its phones at a different market segment. In march MODULE FUNDAMENTALS OF HUMAN RESOURCE MANAGEMENT TOTAL MARKS 60 MARKS 2011, Acer announced that revenue projections for the first quarter in 2011 will fall short of expectations by about 10% due to weaker demand in the PC market in the US and Europe. (Source: New York Times, 2009, Bloomberg Business Week, The Financial Times, PC Pro)

Questions Discuss the purpose of Strategic Human Resource Management for organisations today. In your discussion, identify which organisational strategies have been employed by ACER over the years, justify your answer using evidence provided in the case study and discuss how these organisational strategies affect the HR strategy. (60) You are encouraged to use at least 5 current and relevant external literary sources to support your discussion on Strategic Human Resource Management.

Develop your own visual/graphic showing how each applicant fared

Recommend 6-8 applicants to proceed to a panel interview phase

Critique the process of identifying the best candidates to proceed in a selection process by using a custom-designed formula applied to each candidate. Thank You

Judith and Eric Sultan own a business providing HR decision-making expertise to employers across the nation. The name of their business is HRM Analysis Services. Their business is located in Phoenix and has grown exponentially since 2005. Up to this point they have not had their own employees, but instead hired established consultants (often called management analysts) to work on a project-by-project basis.

They want to hire three full-time management analysts to work in three different locations: San Francisco, Philadelphia, and Miami. The analysts would scout out work in their designated regions and manage the contracting and oversight of contractual consultants.

Judith and Eric plan to keep ownership of the company, but want to step away from the day-to-day as soon as the business is working well enough without them.

The focus of this assignment is to assist Judith and Eric with the selection of three Management Analysts by coming up with a weighted formula of important selection factors.

You would expect a bond of an Eastern European government to pay (options: the same, a higher, a lower) interest rate as compared to a bond of the U.S. government.

You would expect a bond that repays the principal in year 2040 to pay (options: the same, a higher, a lower) interest rate as compared to a bond that repays the principal in year 2020.

You would expect a bond from a software company you run in your garage and a bond from Coca-Cola to pay different interest rates because of differences in the bonds' (options: terms of maturity, tax treatments, credit risks)

You would expect a bond issued by the federal government and a bond issued by New York State to pay different interest rate because of differences in the bonds' (options: terms of maturity, tax treatments, credit risks)

You would expect a bond of the U.S. government and a bond of an Eastern European government to pay different interest rates because of differences in the bonds’ (Credit risk/ tax treatment/ term ).

You would expect a bond that repays the principal in year 2040 to pay (the same/ higher/ lower ) interest rate as compared to a bond that repays the principal in year 2020.

You would expect a bond from a software company you run in your garage and a bond from Coca-Cola to pay different interest rates because of differences in the bonds’ (Credit risk/ tax treatment/ term ).  

You would expect a bond issued by the federal government to pay (the same/ higher/ lower ) interest rate as compared to a bond issued by New York State.

I need an accountant, auditor or CPA for an interview. Only three questions out of eight given.

1. What do you think about the growth of automation, business intelligence, and data analytics in the field of auditing?
2. What do you feel are the most effective ways to cut fraud in a company?
3. Have you ever personally found fraud as an auditor? How did you handle the situation?
4. What do you like most about your career as an auditor?
5. What is different about being an internal auditor versus an external auditor?
6. What professional certifications would you suggest an auditor earn?
7. What internal controls have you found to be the most effective?
8. What types of sampling and audit testing have you worked with in the past? What did you find to be the most effective?

You are an I/O psychologist consulting with an individual who wants to start a small business (two or more employees). Your client wants the business to be one in which the employees have a manageable level of stress, so you will need to consider the workload and environmental factors. Your client also wants to promote good communication among all employees, so you may need to consider the office layout, design, and other factors. Your client wants his/her employees to enjoy their jobs and be committed to the company. Consider the responsibilities of the necessary employment positions. Consider what needs to be included in the employee selection process (interview only, tests, screenings, etc.) and what types of training may need to be provided. Design a list of recommendations for your client’s basic plan for his/her small business.