Fi 504 Case Study I

In: Business and Management

Submitted By plew234
Words 1436
Pages 6
REQUIREMENT #1: Journal Entries
During its first month of operation, the Parkview Landscaping Corporation, which specializes in residential landscaping, completed the following transactions:

July 1 Began business by making a deposit in a company bank account of $24,000, in exchange for 4,800 shares of $5 par value common stock.

July 1 Paid the premium on a one-year insurance policy, $2,400.

July 1 Paid the current month's rent, $2,080.

July 3 Purchased landscaping equipment from Brookwood Company, $8,800. Paid $1,200 down and the balance was placed on account. Payments will be $400.00 per month for nineteen months. The first payment is due 8/1. Note: Use Accounts Payable for the Balance Due.

July 8 Purchased landscaping supplies from Lakeside Company on credit, $780.

July 12 Paid utility bill for July, $308.

July 16 Received cash for landscaping revenue for the first half of July, $2,724.

July 19 Made payment on account to Lakeside Company, $400.

July 31 Received cash for landscaping revenue for the last half of July, $2,620.

July 31 Declared and paid cash dividend of $1,600.

Prepare journal entries to record the July transactions in the General Journal below. Use the following account names for journal entries.

General Journal Chart of Accounts: Account Title (Normal Balance)
Date Description(Account Name) Debit Credit
1-Jul Cash 24,000 Assets Common Stock 24,000 Cash (Debit) (4,800 shares purchase @ $5 ea) Prepaid Insurance (Debit)
1-Jul Prepaid Insurance 2,400 Landscaping Supplies (Debit) Cash 2,400 Landscaping Equipment (Debit) (One year insurance policy) Accum Depr -Equipment (Credit)
1-Jul Rent Expense 2,080 Cash 2,080 Liabilities (Monthly…...

Similar Documents

Fis Project Team Case Study

...In the case of the FIS project team there were several underlying problems that ultimately caused the company enormous problems with its client. The group failed to display the characteristics that showed they were working as a whole team. Further compounding the problem was an issue with the immediate leadership from the project manager and the team leader. These problems caused the group to lack cohesion and were at the root of the company providing substandard work to the client as well as damaging the company’s reputation. We can look at the four stages of social dynamics that influence virtual teams and see how the break down in the FSI team occurred. The four stages are interaction and inclusion, position status and role definition, allocation of resources and power, and interaction and participation. These will affect the unity of the team. We can see from the start that there is little unity in the team. Before the large group of FIS project members showed up there was little discourse in the operation of the team. However once the full component of team members showed up problems started to emerge among the team. There was little interaction and inclusion from the team members. Cliques started to form among members who had worked together in other organizations. In doing this they failed to interact positively with the other members of the team. This would lead to dissension during meetings. The clique would often make suggestions that they had come up with......

Words: 1831 - Pages: 8

Ac 504 Case Study

...Case Study 1 Information Materials Purchased $325,000 Direct Labor $220,000 Sales $1,350,000 Gross Margin 30% Cost of Goods Available for sale $1,020,000 Prime Costs $545,000 Manufacturer Overhead 65% of the conversion Direct Materials $325,000 Beginning Balance Raw Materials $41,000 Work In Progress $56,000 Finished Goods $35,000 Solve: Conversion Cost = Manufacturing overhead + Direct Labor Manufacturing overhead = 65% of conversion Direct Labor = $220,000 Direct = 35% of conversion costs 35% 220,000 = 35% of conversion 220,000 / 0.35 = Conversion Cost Conversion Cost = Manufacturing Overhead + Direct labor $628,571 Direct Labor = $220,000 Manufacturing Overhead $408,571 Prime Cost = Direct material Cost + Direct Labor Cost 545,000 = Direct Material Cost + 220,000 Direct Material Cost = 545,000 – 220,000 Direct material Cost = 325,000 Therefore, The Raw Material Cost $325,000 Work In Progress $24,471 Finished Goods Inventory $75,000 Solution Calculating Gross Margin Sales $135,000 Cost of Goods sold: Beginning finished goods inventory 35,000 Add: cost of goods manufactured 985,000 -------------- Cost of Goods Available for Sale 1,020,000 Minus: Ending Finished Goods Inventory 75,000 945,000 ...

Words: 365 - Pages: 2

Acct 504 Case Study 2

...ACCT 504 Case Study 2 Keller Graduate School DeVry University ABSTRACT There are several internal control requirements that need to be put into place if the company decides to go public. Those principals are establishment of responsibility, segregation of duties, physical controls, independent internal verification, documentation procedures and human resource controls. Establishment of responsibility is making sure that only designated personnel has the authority to handle certain financial responsibilities. Segregation of duties is ensuring that different individuals have different responsibilities. A physical control is having the proper items that need to be secure in a place that has limited access. Independent internal verification is having individuals confirm the information that is received by various departments to make sure there is accuracy in the documents and reports that are being reported. Documentation procedures is using proper documentation to keep records accurate and having supporting evidence for the transactions that had taken place to make sure that fraud has not occurred. Human resource is handling personnel issues such vacations, conducting background checks and issuing bond personnel for the individuals who handle cash. All of these internal control principals are important to protect the company’s assets, increase the effectiveness of the operations and ensure compliance with laws and regulations. These controls also heighten the...

Words: 1591 - Pages: 7

Acct 504 Case Study 2

...LBJ Company: Internal Control Evaluation Accounting 504: Managerial Use & Analysis Case Study 2 Written by: 8/10/13 This evaluation is being presented as an assessment of the preparedness of the LJB Company to go public at a future date. By researching current regulations regarding publicly traded firms we hope to prepare for a smooth transition into the trading market. The Sarbanes-Oxley Act of 2002 (SOX) has established the following guidelines for publicly traded corporations and require adherence for internal controls and procedures for financial reporting. Senior management and executives will be responsible for ensuring that controls are effective and reliable. Outside auditors must periodically verify the accuracy of and adherence to the internal controls. As part of the annual Exchange Act report, an internal control report will generated along with the information recorded during each fiscal year. It is recommended that the LJB Company adopt the framework set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and remain in compliance with the SOX Act. This framework will follow six principles of internal control. 1) Establishment of Responsibility 2) Segregation of Duties 3) Documentation of Procedures 4) Physical Controls 5) Independent Internal Verification 6) Human Resource Controls Bruce Bulmer Consultations has completed its preliminary assessment of the current......

Words: 617 - Pages: 3

Acct 504 Case Study

...| | | | | | Keller UniversityACCT-504-61338 Accounting Finance: Managerial Use and Analysis Professor: Sean WrightMarch 2014 | | Table of Contents Abstract 1 Introduction 2 Part A: Communication Plan 2 Part B: Communication Piece: Company Email 3 Part C: Analysis of Media 4 References 6 Abstract Let me take this opportunity to thank you for choosing Kwakye and Associates Accounting Firm to evaluate LJB’s internal control systems. This report will inform you of any new internal control requirements if LBJ decides to go public. It will cover what the company is currently doing well, and what areas need improvement. There will also a recommendation on whether or not to purchase the indelible ink machine along with some valuable control activities that will prove beneficial for LJB to put into action. Introduction Internal controls….. Internal Control Rules and Regulations Before the LJB Company decides to go public, it is imperative that you review and understand the rules and regulations by Security and exchange commission as directed by Section 404 of the Sarbanes-Oxley Act of 2002. According to the report by Securities and Exchange Commission, LJB Company will have to adapt to rules requiring companies subject to the reporting requirements of the Securities Exchange Act of 1934, other than registered investment companies, to include in their annual reports a report of management on the company's internal control over......

Words: 1110 - Pages: 5

Case Study 3, Acct 504

...CASE STUDY 3—Cash Budget Template | | | | | | | | | | | | | | | | | | SCHEDULE OF EXPECTED CASH COLLECTIONS FROM CUSTOMERS May | June | 65,800 | | 26,850 | 62,650 | | 22,500 | 92,650 | 85,150 | | | | | | | May | June | 117,000 | | 54,000 | 81,000 | | 25,200 | 171,000 | 106,200 | | | | | | | | | | | May | June | $20,000 | $20,000 | | | 92,650 | 85,150 | 33,000 | | | 50,000 | 75,000 | 57,000 | 200,650 | 192,150 | 220,650 | 212,150 | | | 171,000 | 106,200 | 15,000 | 15,000 | 10,150 | 10,150 | 35,000 | | | 20,000 | 231,150 | 151,350 | (10,500) | 60,800 | | | | | 30,500 | | | (31,008) | $20,000 | 29,792 | | | To see all the figures look above | | | Credit Sales | | | May | June | (94000 x70%) | | 65,800 | | May(89500 x 30%), Jun (89500 x 70%) | | 26,850 | 62,650 | (75000 x 30%) | | | 22,500 | Total Cash Collections | | 92,650 | 85,150 | | | | | | | | | | | SCHEDULE FOR EXPECTED PAYMENTS FOR PURCHASE OF INVENTORY | | | Inventory purchases | | May | June | April(195000 x60%) | | 117,000 | | (135000 x 40%), Jun (135000 x 60%) | | 54,000 | 81,000 | ......

Words: 555 - Pages: 3

Acct 504 Case Study 2

...LJB Company: Internal Control Evaluation Acct: 504 Case Study 2 Prepared by: Lennard Razor Prepared for: LJB Company 11/29/2014 LJB, 1 Table Of Contents Introduction: LJB Company Assessment 2 LJB Company: The Transition 3 Summary 5 Works Cited 6 LJB, 2 Introduction: LJB Company Assessment The overall purpose of this document is to assess the current state of the LJB Company. This assessment will thoroughly diagnose all of the components, both good and bad, used by LJB Company to help determine the company’s readiness to go public. Upon assessing all of the components and regulations currently utilized by LJB Company, I will also make recommendations for the improvement and future success of this company moving into the public market. In order to properly perform an assessment of the LBJ Company, there first had to be some set of standards or regulations that outline the internal controls and proper procedures for companies and businesses to adhere to for financial reporting. As it turns out internal control is a key component of Foreign Corrupt Practices Act(FCPA) of 1977 and the Sarbanes-Oxley Act(SOX) of 2002 which required companies to follow this set of internal controls. This list of internal controls is as follows: 1). Conduct its business in an orderly and efficient manner, 2). Safeguard its assets and resources, 3)...

Words: 939 - Pages: 4

Acct 504 Case Study 2

...Case Study 2 The five internal control procedures are: Smart Hiring Practices and Separation of Duties: In a business with good internal controls, no important duty is overlooked. Each person in the information chain is important. The chain should start with hiring. Background checks should be conducted on job applicants. Proper training and supervision, as well as paying competitive salaries, helps ensure that all employees are sufficiently competent for their jobs. Employee responsibilities should be clearly laid out in position descriptions. Comparisons and Compliance Monitoring: No person or department should be able to completely process a transaction from beginning to end without being cross-checked by another person or department. Adequate Records: Accounting records provide the details of business transactions. The general rule is that all major groups of transactions should be supported by either hard copy documents or electronic records. Limited Access: To complement segregation of duties, company policy should limit access to assets only to those persons or departments that have custodial responsibilities. Proper Approvals: No transaction should be processed without management’s general or specific approval. The bigger the transaction, the more specific approval it should have. For individual small transactions, management might delegate approval to a specific department. Situation A In evaluating the internal control over cash payments of......

Words: 779 - Pages: 4

Acct 504 Case Study

...Case Study 2 Due by Sunday of Week 5, 11:59 p.m., Mountain time (Learning Objectives 2, 4: Explain the components of internal control; evaluate internal controls) Each of the following situations reveals an internal control weakness: Situation a. In evaluating the internal control over inventory for the Williams Oil Services Company, an auditor learns that the warehouse receiving clerk is responsible for ordering parts for supply inventory use in drilling services, counts the inventory when received at the dock, records the receipts into the inventory ledger, and takes the annual inventory, No supervisor reviews the receiving clerk’s work. Situation b. Nicole Lopez handles employee travel and expense reports for Scott Sales Services. With the growth in the economy, the sales team began traveling extensively gaining new business. Because of the heavy volume, she no longer required the sales team to provide original airline, hotel, or car rental receipts. She told them to just keep their meals under the $100 per day per diem and no receipts were required. She allowed them to use their own credit cards so they could get the frequent flyer points. She required them to turn in a summary of the travel expenses quarterly. Situation c. Michael Jordon is a new employee hired from Craig’s List recommended by a co-worker. Mike was hired as a Human Resource Assistant. Mike’s first day on the job he is told that he should follow his own judgments when deciding how employee......

Words: 370 - Pages: 2

Case Study 2 Acct 504

...Case Study 2 ACCT-504-61405 Situation A: - In evaluating the internal control over inventory for the Williams Oil Services Company, an auditor learns that the warehouse receiving clerk is responsible for ordering parts for supply inventory use in drilling services, counts the inventory when received at the dock, records the receipts into the inventory ledger, and takes the annual inventory, No supervisor reviews the receiving clerk’s work. Missing Internal Control characteristics for William Oil Services: - In the William’s case oil Services Company, The missing internal control characteristic is Monitoring Control, The clerk is the only person who has to maintain all the inventory related records. Possible Problem: - In this company, the clerk is the person who can handle all the activities of accounts and responsible for Inventory and there is no other staff to monitor or supervise or double check accounting documents which are prepared by the clerk. Solution for the Problem: - The solution for the internal control weakness over Inventory for the Williams Oil Services company is as follows: - Employee or a group should be prohibiting from processing a transaction completely. -all programs controls by computerized system -Hired auditors to monitor control -Internal – monitor from the inside to safeguard assets -External – test from the outside to ensure accounting records are accurate References: Class 4 Presentation 2015 & http://smallbusiness...

Words: 962 - Pages: 4

Acct 504 Case Study 2

...ACCT 504 Case Study 2 http://homeworklance.com/downloads/acct-504-case-study-2/ Case Study 2 Due by Sunday of Week 5, 11:59 p.m., Mountain time (Learning Objectives 2, 4: Explain the components of internal control; evaluate internal controls) Each of the following situations reveals an internal control weakness: Situation a. In evaluating the internal control over inventory for the Williams Oil Services Company, an auditor learns that the warehouse receiving clerk is responsible for ordering parts for supply inventory use in drilling services, counts the inventory when received at the dock, records the receipts into the inventory ledger, and takes the annual inventory, No supervisor reviews the receiving clerk’s work. Situation b.Nicole Lopez handles employee travel and expense reports for Scott Sales Services. With the growth in the economy, the sales team began traveling extensively gaining new business. Because of the heavy volume, she no longer required the sales team to provide original airline, hotel, or car rental receipts. She told them to just keep their meals under the $100 per day per diem and no receipts were required. She allowed them to use their own credit cards so they could get the frequent flyer points. She required them to turn in a summary of the travel expenses quarterly. Situation c. Michael Jordon is a new employee hired from Craig’s List recommended by a co-worker. Mike was hired as a Human Resource Assistant. Mike’s first day on the......

Words: 384 - Pages: 2

Acct 504 Case Study 3

...ACCT 504 Case Study 3 http://homeworklance.com/downloads/acct-504-case-study-3/ (Learning Objective 5: Construct and use a cash budget) Nathan Farmer, chief financial officer of Wang Appliance Store, is responsible for the company’s budgeting process. Farmer’s staff is preparing the Wang cash budget for 2014. A key input to the budgeting process is last year’s statement of cash flows, which follows (amounts in thousands): Wang Appliance Store Statement of Cash Flows 2013 (in thousands) Cash Flows from Operating Activities Collections from customers $51,000 Interest Received 500 Purchase of inventory (36,000) Operating expenses (10,200) Net cash provided by operating activities 5,300 Cash Flows from Investing Activities Purchase of equipment (3,500) Purchase of investments (500) Sale of investments 1,000 Net cash used for investing activities (3,000) Cash Flows from Financing Activities Payment of long term debt ...

Words: 284 - Pages: 2

Fi 504 Case Study 2

...Case Study 2 -Internal Control LJB Company, a local distributor, has asked your accounting firm to evaluate their system of internal controls because they are planning to go public in the future. The President wants to be aware of any new regulations required of his company if they go public so he met with a colleague of yours at a local restaurant. The President of the company explained the current system of internal controls to your colleague. Your colleague has since been promoted to a tax position so she has passed on the information below so you can generate recommendations for the partner at your accounting firm to share with the President of LJB Company. Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees. They have one accountant who serves as Treasurer and Controller which streamlines many of their processes. In this dual role, he purchases all of the supplies and pays for these purchases. He also receives the checks and completes the monthly bank reconciliation. The accountant is so busy that the company handles petty cash a bit differently. All employees have access to the petty cash in a desk drawer and are asked to only place a note if they use any of the cash. The accountant has recently started using pre-numbered invoices and wants to buy an indelible ink machine to print their checks. The President is waiting to hear from you if this is a necessary purchase before authorizing. On payday, the......

Words: 494 - Pages: 2

Fi 504 Case Study

...FI504 Case Study 2 -Internal Control Due by Sunday of week 5, 11:59PM, Mountain Time LJB Company, a local distributor, has asked your accounting firm to evaluate their system of internal controls because they are planning to go public in the future. The President wants to be aware of any new regulations required of his company if they go public so he met with a colleague of yours at a local restaurant. The President of the company explained the current system of internal controls to your colleague. Your colleague has since been promoted to a tax position so she has passed on the information below so you can generate recommendations for the partner at your accounting firm to share with the President of LJB Company. Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees. They have one accountant who serves as Treasurer and Controller which streamlines many of their processes. In this dual role, he purchases all of the supplies and pays for these purchases. He also receives the checks and completes the monthly bank reconciliation. The accountant is so busy that the company handles petty cash a bit differently. All employees have access to the petty cash in a desk drawer and are asked to only place a note if they use any of the cash. The accountant has recently started using pre-numbered invoices and wants to buy an indelible ink machine to print their checks. The President is waiting to hear from you if this is a......

Words: 612 - Pages: 3

Fi 504 Case Study 3

...Case Study 2 -Internal Control Due by Sunday of week 5, 11:59PM, Mountain Time LJB Company, a local distributor, has asked your accounting firm to evaluate their system of internal controls because they are planning to go public in the future. The President wants to be aware of any new regulations required of his company if they go public so he met with a colleague of yours at a local restaurant. The President of the company explained the current system of internal controls to your colleague. Your colleague has since been promoted to a tax position so she has passed on the information below so you can generate recommendations for the partner at your accounting firm to share with the President of LJB Company. Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees. They have one accountant who serves as Treasurer and Controller which streamlines many of their processes. In this dual role, he purchases all of the supplies and pays for these purchases. He also receives the checks and completes the monthly bank reconciliation. The accountant is so busy that the company handles petty cash a bit differently. All employees have access to the petty cash in a desk drawer and are asked to only place a note if they use any of the cash. The accountant has recently started using pre-numbered invoices and wants to buy an indelible ink machine to print their checks. The President is waiting to hear from you if this is a necessary......

Words: 611 - Pages: 3