Complete The Following Activities From Chapters 3 And 4

Completethe Following Activities From Chapters 3 And 4 In Thefinancial

Complete the following activities from Chapters 3 and 4 in the Financial & Managerial Accounting textbook in Microsoft Word or Excel: · Brief Exercise 3.3 · Exercise 3.1 · Exercise 3.5 · Exercise 3.8 · Exercise 3.10 · Brief Exercise 4.2 · Brief Exercise 4.3 · Brief Exercise 4.6 · Exercise 4.1 · Exercise 4.3 · Exercise 4.5 SHOW THE WORK! How did you do it?????? BRIEF EXERCISE 3.3 Recording Transactions Jan. 18 Issued capital stock in exchange for $400,000 cash. Jan. 22 Borrowed $100,000 from its bank by issuing a note payable. Jan. 23 Paid $200 for a radio advertisement aired on January 24. Jan. 25 Provided $5,000 of services to clients for cash. Jan. 26 Provided $18,000 of services to clients on account. Jan. 31 Collected $4,200 cash from clients for the services provided on January 26. a. Record each of these transactions. b. Determine the balance in the Cash account on January 31. Be certain to state whether the balance is debit or credit. Exercise 3.1 Realization principle Credit Time period principle Accounting period Matching principle Expenses Net income Accounting cycle Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the term described, or answer “None” if the statement does not correctly describe any of the terms. a. The span of time covered by an income statement. b. The sequence of accounting procedures used to record, classify, and summarize accounting information. c. The traditional accounting practice of resolving uncertainty by choosing the solution that leads to the lowest amount of income being recognized. d. An increase in owners’ equity resulting from profitable operations. e. The underlying accounting principle that determines when revenue should be recorded in the accounting records. f. The type of entry used to decrease an asset or increase a liability or owners’ equity account. g. The underlying accounting principle of offsetting revenue earned during an accounting period with the expenses incurred in generating that revenue. h. The costs of the goods and services used up in the process of generating revenue. Exercise 3.5 The following information came from a recent balance sheet of Apple Computer Inc. Assets- End of Year Beginning of Year 176.0 Billion 116.4 Billion Liabilities- 57.9 Billion ? Owners Equity- ? 76.6 Billion Exercise 3.8 Shown below are selected transactions of the architectural firm of Baxter, Claxter, and Stone Inc. April 5 Prepared building plans for Spangler Construction Company. Sent Spangler an invoice for $11,000 requesting payment within 30 days. (The appropriate revenue account is entitled Drafting Fees Earned.) May 17 Declared a cash dividend of $2,000. The dividend will not be paid until June 25. May 29 Received a $4,500 bill from Bob Needham, CPA, for accounting services performed during May. Payment is due by June 10. (The appropriate expense account is entitled Professional Expenses.) June 4 Received full payment from Spangler Construction Company for the invoice sent on April 5. June 10 Paid Bob Needham, CPA, for the bill received on May 29. June 25 Paid the cash dividend declared on May 17. a. Prepare journal entries to record the transactions in the firm's accounting records. b. Identify any of the above transactions that will not result in a change in the company’s net income. Exercise 3.10 Janet Enterprises incorporated on May 3, 2015. The company engaged in the following transactions during its first month of operations: May 3 Issued capital stock in exchange for $950,000 cash. May 4 Paid May office rent expense of $1,800. May 5 Purchased office supplies for $600 cash. The supplies will last for several months. May 15 Purchased office equipment for $12,400 on account. The entire amount is due June 15. May 18 Purchased a company car for $45,000. Paid $15,000 cash and issued a note payable for the remaining amount owed. May 20 Billed clients $120,000 on account. May 26 Declared a $8,000 dividend. The entire amount will be distributed to shareholders on June 26. May 29 Paid May utilities of $500. May 30 Received $90,000 from clients billed on May 20. May 31 Recorded and paid salary expense of $32,000. A partial list of the account titles used by the company includes: Cash Dividends Payable Accounts Receivable Dividends Office Supplies Capital Stock Office Equipment Client Revenue Vehicles Office Rent Expense Notes Payable Salary Expense Accounts Payable Utilities Expense Prepare journal entries, including explanations, for the above transactions. b. Post each entry to the appropriate ledger accounts (use the T account format illustrated in Exhibit 3–8 on page 110). c. Prepare a trial balance dated May 31, 2015. Assume accounts with zero balances are not included in the trial balance. Brief Exercise 4.2 On February 1, Watson Storage agreed to rent Hillbourne Manufacturing warehouse space for $300 per month. Hillbourne Manufacturing paid the first three months’ rent in advance. a. Prepare the necessary adjusting entry for Hillbourne Manufacturing on February 28, assuming it recorded the expenditure on February 1 as Prepaid Rent. b. Prepare the necessary adjusting entry for Watson Storage on February 28, assuming it recorded Hillbourne Manufacturing’s payment as Unearned Rent Revenue. Brief Exercise 4.3 On March 1, Phonic Corporation had office supplies on hand of $1,000. During the month, Phonic purchased additional supplies costing $500. Approximately $200 of unused office supplies remain on hand at the end of the month. Prepare the necessary adjusting entry on March 31 to account for office supplies. Brief Exercise 4.6 Jasper’s unadjusted trial balance reports Unearned Client Revenue of $4,000 and Client Revenue Earned of $30,000. An examination of client records reveals that $2,500 of previously unearned revenue has now been earned. a. Prepare the necessary adjusting entry pertaining to these accounts. b. At what amount will Client Revenue Earned be reported in Jasper’s income statement? Exercise 4.1 Listed below are 9 technical accounting terms used in this chapter: Unrecorded revenue, Adjusting entries ,Accrued expenses, Book value, Matching principle, Accumulated depreciation, Unearned revenue, Materiality, Prepaid expenses. Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the accounting term described, or answer “None” if the statement does not correctly describe any of the terms. a. The net amount at which an asset is carried in the accounting records as distinguished from its market value. b. An accounting concept that may justify departure from other accounting principles for purposes of convenience and economy. c. The offsetting of revenue with expenses incurred in generating that revenue. d. Revenue earned during the current accounting period but not yet recorded or billed, which requires an adjusting entry at the end of the period. e. Entries made at the end of the period to achieve the goals of accrual accounting by recording revenue when it is earned and by recording expenses when the related goods and services are used. f. A type of account credited when customers pay in advance for services to be rendered in the future. g. A balance sheet category used for reporting advance payments of such items as insurance, rent, and office supplies. h. An expense representing the systematic allocation of an asset’s cost over its useful life. Exercise 4.3 The Freemont Flyers, a professional soccer team, prepares financial statements on a monthly basis. The soccer season begins in May, but in April the team engaged in the following transactions: 1. Paid $1,500,000 to the municipal stadium as advance rent for use of the facilities for the six-month period from May 1 through October 31. This payment was initially recorded as Prepaid Rent. 2. Collected $6,000,000 cash from the sale of season tickets for the team’s home games. The entire amount was initially recorded as Unearned Ticket Revenue. During the month of May, the team played several home games at which $750,000 of the season tickets sold in April were used by fans. Prepare the two adjusting entries required on May 31. Exercise 4.5 The geological consulting firm of Gilbert, Marsh, & Kester prepares adjusting entries on a monthly basis. Among the items requiring adjustment on December 31, 2015, are the following: 1. The company has outstanding a $50,000, 9 percent, two-year note payable issued on July 1, 2014. Payment of the $50,000 note, plus all accrued interest for the two-year loan period, is due in full on June 30, 2016. 2. The firm is providing consulting services to Texas Oil Company at an agreed-upon rate of $1,000 per day. At December 31, 10 days of unbilled consulting services have been provided. a. Prepare the two adjusting entries required on December 31 to record the accrued interest expense and the accrued consulting revenue earned. b. Assume that the $50,000 note payable plus all accrued interest are paid in full on June 30, 2016. What portion of the total interest expense associated with this note will be reported in the firm’s 2016 income statement? c. Assume that on January 30, 2016, Gilbert, Marsh, & Kester receive $25,000 from Texas Oil Company in full payment of the consulting services provided in December and January. What portion of this amount constitutes revenue earned in January? read Case 8-1 (“Steelcase, Inc.") in Corporate Communication and respond to the following questions. •Where should Grueber report and why? •What resources should Grueber ask for? What are the biggest challenges for IR? •How would you position the function to handle those challenges? How do you see these issues relating to empowerment? •What changes would you have made to strengthen empowerment and hence strengthen (possibly) Steelcase, Inc.?

Sample Paper For Above instruction

The series of exercises and case analysis from Chapters 3 and 4 of the Financial & Managerial Accounting textbook encompass fundamental accounting principles, journal entries, financial statement preparation, and managerial considerations critical for understanding business financial health. This comprehensive response focuses on exemplifying accurate transaction recording, adjusting entries, financial statement development, and strategic insights into corporate communication challenges, particularly in the context of Steelcase Inc.

Recording Transactions and Analyzing Cash Balances

The initial activity involves recording multiple transactions for a hypothetical company during January. These transactions include issuing stock, borrowing funds, making advertising payments, and providing services, both cash and on account. For example, issuing capital stock in exchange for $400,000 cash would be recorded as a debit to Cash and a credit to Capital Stock, reflecting an increase in assets and owner’s equity. Borrowing $100,000 from the bank is similarly recorded by increasing Cash and recognizing a note payable liability.

On January 25, providing services for cash of $5,000 results in a debit to Cash and a credit to Service Revenue, reflecting revenue earned and cash received. Providing services on account, such as $18,000, involves debiting Accounts Receivable and crediting Service Revenue, signifying revenue earned but not yet collected. When cash is subsequently received on January 31 from clients, Cash increases further, and Accounts Receivable decreases, clarifying the transaction’s impact on cash flow and receivables.

The cash balance on January 31 can be calculated by summing the inflows and outflows. Starting with initial transactions, the net change resulting from the activities yields a final Cash balance, which remains a debit balance, typical for assets. Proper analysis confirms that Cash increases primarily from capital issuance, loans, and collections, net of advertisement expenses and service payments.

Understanding Key Accounting Principles and Terms

The statements provided involve key principles such as the realization principle, which dictates revenue recognition upon the completion of delivery or performance, and the matching principle, which aligns expenses with revenues in the period they generate. The accounting cycle encompasses the steps from transaction analysis to financial statement preparation, ensuring consistency and accuracy.

For example, the realization principle is exemplified when services are recognized as revenue once performed, regardless of cash receipt timing. The time period principle guides reporting within specific fiscal periods, while the matching principle ensures expenses like advertising or salaries are matched to the revenues they help generate.

Analysis of Apple’s Balance Sheet and Notable Transactions

The balance sheet of Apple Inc. reflects substantial assets, liabilities, and equity, with assets increasing from $116.4 billion to $176 billion over the period, and liabilities totaling $57.9 billion at the end of the year. The missing component, Owners’ Equity, can be deduced by balancing the accounting equation Assets = Liabilities + Owner’s Equity, resulting in an Equity figure of approximately $118.1 billion.

In examining Baxter, Claxter, and Stone Inc., the transactions involve invoice issuance, dividend declarations, bill payments, and collections. Recording the invoices increases Accounts Receivable and Revenue, dividend declarations increase Dividends Payable, and cash collections decrease Accounts Receivable. Payments for services and expenses are marked as reductions in cash and increases in respective expense accounts, impacting net income accordingly. Notably, dividends declared reduce retained earnings when paid, aligning with accounting standards.

Journal Entries and Ledger Posting for Janet Enterprises

The first month’s entries involve issuing capital stock, which increases Cash and Capital Stock accounts. Rent expense paid reduces Cash and increases Rent Expense. Purchasing supplies and equipment, along with the car, are recorded as increases in respective asset accounts, with associated liabilities if on credit. Billing clients increases Accounts Receivable and Service Revenue, while dividend declarations increase Dividends Payable.

Payments reduce Cash and liabilities or expenses accordingly. The trial balance consolidates all account balances, ensuring debits equal credits, and provides an overview of the company’s financial position as of May 31, 2015.

Adjusting Entries for Prepaid Expenses and Unearned Revenue

For Hillbourne Manufacturing, initial rent payments are recorded as Prepaid Rent. The adjusting entry on February 28 involves debiting Rent Expense and crediting Prepaid Rent, reflecting the rent expense incurred during the month. Conversely, Watson Storage’s unearned rent revenue is adjusted by debiting Unearned Rent Revenue and crediting Rent Revenue, recognizing the rent earned in February.

Similarly, Phonic Corporation’s supplies on hand are accounted for by debiting Supplies Expense and crediting Supplies. The difference between purchased supplies and remaining supplies determines the expense recognized. Jasper’s adjustment involves recognizing earned revenue from previously unearned amounts, aligning with the matching principle.

Recognizing Revenue and Expenses for Sports and Consulting Firms

The Fremont Flyers’ season ticket revenue is deferred as unearned revenue initially, then recognized proportionally as games are played, involving a journal debit to Unearned Ticket Revenue and a credit to Ticket Revenue. Gilbert, Marsh, & Kester must accrue interest expense on their note payable, which is calculated based on the principal, rate, and time, and record revenue from consulting services provided but not billed by December 31.

The adjustments ensure financial statements accurately reflect earned revenue and incurred expenses within the period, following the accrual basis of accounting. For the firm’s year-end, accrued interest expense is recorded, and at payment, these liabilities are settled, affecting the subsequent period’s financial results.

Corporate Communication and Strategic Financial Reporting

The case of Steelcase Inc. underscores the importance of transparent and strategic corporate communication. Grueber should report internally to senior management for strategic guidance, but also externally to investors and stakeholders to maintain confidence and transparency. Securing resources such as market analysts, communication specialists, and financial data systems are critical to effectively manage information dissemination.

Challenges for Investor Relations (IR) include managing investor perceptions, providing timely and accurate disclosures, and handling media relations. Positioning IR to be proactive, transparent, and aligned with corporate strategy enhances stakeholder trust. Empowerment within IR involves giving team members authority to communicate independently within established protocols, which improves responsiveness and credibility.

Implementing stronger empowerment strategies, such as training, delegation, and decision-making authority, can foster a more agile and persuasive IR function. These measures help address stakeholder concerns, facilitate better investor engagement, and ultimately support the company's strategic growth initiatives.

Enhancements in empowerment and strategic communication would increase organizational resilience, improve external perceptions, and foster a culture of transparency. Such initiatives lead to better stakeholder relationships, investor confidence, and long-term sustainability for Steelcase Inc.