During its first year of operations, Collin Raye Corporation had the following transactions pertaining to its common stock

E15-1 (Recording the Issuances of Common Stock) During its first year of operations, Collin Raye Corporation had the following transactions pertaining to its common stock.

Jan 10 Issued 80,000 shares for case at $6 per share
Mar 1 Issued 5,000 shares to attorneys in payment of a bill for $35,000 for services rendered in helping the company to incorporate.
July 1 Issued 30,000 shares for cash at $8 per share

Instructions
a.) Prepare the journal entries for these transactions, assuming that the common stock has a par value of $5 per share.
b.) Prepare the journal entries for these transactions assuming that the common stock is no par with a stated value of $3 per share.

Click here for the solution: During its first year of operations, Collin Raye Corporation had the following transactions pertaining to its common stock

Data pertaining to job cost sheets for Reyes Tool & Die are given in BE15-3 and BE15-4

BE 15-5 Data pertaining to job cost sheets for Reyes Tool & Die are given in BE15-3 and BE15-4. Prepare the job cost sheets for each of the three jobs. (Note: You may omit the column for manufacturing overhead).

Data given in BE15-3 and 15-4:

BE 15-3 In January, Reyes Tool & Die requisitions raw materials for production as follows: Job 1 $900, Job 2 $1,200, Job 3 $700, and general factory use $600.

BE 15-4 During January, time tickets show that the factory labor of $5,000 was used as follows: Job 1 $1,200, Job 2 $1,600 Job 3 $1,400, and general factory use $800.

Click here for the solution: Data pertaining to job cost sheets for Reyes Tool & Die are given in BE15-3 and BE15-4

The board of trustees of a local church is concerned about the internal accounting controls pertaining

The board of trustees of a local church is concerned about the internal accounting controls pertaining to the offering collections made at weekly services. They ask you to serve on a three-person audit team with the internal auditor of the university and a CPA who has just joined the church. At a meeting of the audit team and the board of trustees you learn the following.

1. The church’s board of trustees has delegated responsibility for the financial management and audit of the financial records to the finance committee. This group prepares the annual budget and approves major disbursements but is not involved in collections or recordkeeping. No audit has been made in recent years because the same trusted employee has kept church records and served as financial secretary for 15 years. The church does not carry any fidelity insurance.
2. The collection at the weekly service is taken by a team of ushers who volunteer to serve for 1 month. The ushers take the collection plates to a basement office at the rear of the church. They hand their plates to the head usher and return to the church service. After all plates have been turned in, the head usher counts the cash received. The head usher then places the cash in the church safe along with a notation of the amount counted. The head usher volunteers to serve for 3 months.
3. The next morning the financial secretary opens the safe and recounts the collection. The secretary withholds $150 – $200 in cash, depending on the cash expenditures expected for the week, and deposits the remainder of the collections in the bank. To facilitate the deposit, church members who contribute by check are asked to make their checks payable to “Cash.”
4. Each month the financial secretary reconciles the bank statement and submits a copy of the reconciliation to the board of trustees. The reconciliations have rarely contained any bank errors and have never shown any errors per books.

Instructions
(a) Indicate the weaknesses in internal accounting control in the handling of collections.
(b) List the improvements in internal control procedures that you plan to make at the next meeting of the audit team for (1) the ushers, (2) the head usher, (3) the financial secretary, and (4) the finance committee.
(c) What church policies should be changed to improve internal control?


Click here for the solution: The board of trustees of a local church is concerned about the internal accounting controls pertaining

Foren Corporation had the following transactions pertaining to debt investments

ACC 291 Week 4 Assignment

E12-2 Foren Corporation had the following transactions pertaining to debt investments.

Jan. 1 Purchased 50 8%, $1,000 Choate Co. bonds for $50,000 cash plus brokerage fees of $900. Interest is payable semiannually on July 1 and January 1.
July 1 Received semiannual interest on Choate Co. bonds.
July 1 Sold 30 Choate Co. bonds for $34,000 less $500 brokerage fees.

Instructions
(a) Journalize the transactions.
(b) Prepare the adjusting entry for the accrual of interest at December 31.


Click here for the solution: Foren Corporation had the following transactions pertaining to debt investments

Data pertaining to the postretirement health care benefit plan of Sterling Properties include the following for 2011

E 17-27 Postretirement benefits; components of postretirement benefit expense

Data pertaining to the postretirement health care benefit plan of Sterling Properties include the following for 2011:

Service cost 124
Accumulated postretirement benefit obligation, Jan 1 700
Prior service cost AOCI 50
Prior service cost AOCI none
Net gain AOCI (2011 amort, 1) 91
retiree benefits paid (end of year) 87
contribution to health care benefit fund (end of year) 185
Discount rate 7%

Required:
1. Determine the postretirement benefit expense for 2011.
2. Prepare the appropriate journal entries to record the postretirement benefit expense, funding, and retiree benefits for 2011.


Click here for the solution: Data pertaining to the postretirement health care benefit plan of Sterling Properties include the following for 2011

During its first year of operations, Sitwell Corporation had the following transactions pertaining to its common stock

E15-1 (Recording The Issuance Of Common Stock) During its first year of operations, Sitwell Corporation had the following transactions pertaining to its common stock.

Jan. 10 Issued 80,000 shares for cash at $6 per share.
Mar. 1 Issued 5,000 shares to attorneys in payment of a bill for $35,000 for services rendered in helping the company to incorporate.
July 1 Issued 30,000 shares for cash at $8 per share.
Sept. 1 Issued 60,000 shares for cash at $10 per share.

Instructions
(a) Prepare the journal entries for these transactions, assuming that the common stock has a par value of $3 per share.
(b) Prepare the journal entries for these transactions, assuming that the common stock is no-par with a stated value of $2 per share.

Click here for the solution: During its first year of operations, Sitwell Corporation had the following transactions pertaining to its common stock