ACC 557 Homework 2: Chapters 4, 5, And 6, Due Week 4, Worth

Acc 557 Homework 2 Chapters 4 5 And 6due Week 4 And Worth 105 Poi

Answer the following questions on a separate Microsoft Word or Excel document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link in Blackboard.

Paper For Above instruction

The assignment encompasses a comprehensive set of accounting tasks, primarily focusing on adjusting, closing, and analyzing financial data across various scenarios. It includes preparing closing entries, post-closing trial balances, correcting journal entries, analyzing inventory adjustments, and calculating cost of goods sold under different inventory methods. The purpose is to apply fundamental accounting principles such as recording transactions, adjusting entries, inventory valuation methods, and financial statement preparation, thereby solidifying understanding of core accounting processes.

First, students are tasked with preparing closing entries for Kay Magill Company based on its adjusted trial balance, followed by constructing a post-closing trial balance to verify the ledger's accuracy after closing temporary accounts. This exercise tests comprehension of the closing process, including the transfer of revenue and expense balances to retained earnings.

Next, the scenario involving an inexperienced accountant at Keenan Company highlights common journal entry errors. Students are required to prepare correcting entries to rectify mistakes in recording payments, supplies, and dividends, reinforcing the importance of accurate journalizing and the correction process.

The set also involves detailed transaction analysis related to merchandise purchases and sales. Tuzun Company’s purchase, freight, return, and payment activities demand journal entries reflecting inventory and accounts payable accounts accurately under a perpetual system. Correspondingly, Epps Company’s adjustments mirror these activities from the seller’s viewpoint, ensuring understanding of both buyer and seller accounting entries.

Another segment requires analyzing Juan Morales Company's year-end inventory data. Students must account for physical inventory counts, adjustments, and closing entries, emphasizing inventory valuation and the closing process. This checks knowledge of adjusting entries and closing procedures, including handling sales discounts and returns.

The financial discussions around Josef Company’s inventory emphasize the significance of freight terms (FOB shipping point vs FOB destination), goods in transit, and timing of sales, which impact the reported inventory balance. The task involves calculating the correct inventory balance by adjusting for goods in transit and ownership transfer timing, illustrating the critical importance of understanding shipping terms and their impact on financial statements.

Kaleta Company's inventory and cost of goods sold under FIFO and LIFO methods are examined to compare inventory valuation and gross profit. Students calculate inventory and COGS, analyze the differences, and discuss which method yields higher ending inventory or COGS, deepening understanding of inventory costing methods' implications.

Financial statement preparation from a worksheet, including income statement, retained earnings, and classified balance sheet, along with closing entries, provides practice in consolidating accounting data into formal reports. Post-closing trial balance preparation emphasizes accuracy after closing temporary accounts.

Latona Hardware Store’s entire merchandising cycle—purchasing, sales, returns, discounts, and inventory management—is analyzed through journal entries, ledger posting, and financial statement preparation. This comprehensive exercise consolidates knowledge of perpetual inventory systems.

Ziad Company’s inventory cost flow analysis using periodic inventory system across FIFO, LIFO, and average cost methods involves calculating total cost of goods available for sale, ending inventory, COGS, and determining which method reports the highest inventory or COGS, clarifying the effects of cost flow assumptions on financial statements.

Overall, these exercises are designed to strengthen students' understanding of accounting procedures, inventory valuation techniques, journal entries, and financial statement preparation, preparing them for practical application in professional accounting settings.

References

  • Horngren, C. T., Harrison, W. T., & Oliver, M. S. (2015). Accounting (11th ed.). Pearson.
  • Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2018). Financial Accounting (10th ed.). Wiley.
  • Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2019). Financial Accounting Theory and Analysis (12th ed.). Wiley.
  • Kinney, W. R., & Raiborn, M. H. (2017). Cost Accounting: Foundations and Evolutions. Cengage Learning.
  • Garrison, R. H., Noreen, E. W., & Brewer, P. C. (2018). Managerial Accounting (16th ed.). McGraw-Hill Education.
  • Craig, R., & Arthur, D. (2017). Principles of Accounting, Financial and Managerial. McGraw-Hill Education.
  • Fess, P., & Fess, E. (2014). Introduction to Financial Accounting. South-Western College Pub.
  • Heising, A. M., & Leitz, B. (2016). Principles of Financial Accounting. Cengage Learning.
  • Libby, T., Libby, R., & Short, D. G. (2019). Financial Accounting (9th ed.). McGraw-Hill Education.
  • Accounting Standards Codification (ASC). (2023). Financial Accounting Standards Board (FASB). https://asc.fasb.org

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