| | | Ashford University ACC205 |
| | | Guidance Report |
| | | Week Three |
| | LISTEN TO AUDIO/VIDEO EXPLAINING THE GUIDANCE REPORT | | Guidance Report Download Date | | 11/28/17 | Guidance Report Revision Date | | 12/1/17 |
| | | | YELLOW INDICATES ACCOUNT AMOUNTS CHANGED |
| | | | Change Account to: |
| | | | Based Upon Course Start Date |
| | Account to
be changed | Original
Amount | Jan - Feb | Mar-Apr | May-Jun | Jul-Aug | Sept-Oct | Nov-Dec |
| | Ch 5 Ex 1 |
| | Inventory understated | 4,000 | 5,000 | 6,000 | 7,000 | 8,000 | 9,000 | 10,000 |
| | Questions | YOUR ANSWERS BASED UPON COURSE START DATE |
| | | 20X3 |
| | Sales |
| | Cost of goods sold |
| | Gross profit |
| | Expenses |
| | Net income |
| | | 20X4 |
| | Sales |
| | Cost of goods sold |
| | Gross profit |
| | Expenses |
| | Net income |
| | What is the effect of the error on ending owner's equity for 20X3 and 20X4? |
| | Account to
be changed | Original
Amount |
| | Ch 5 Pb 2 |
| | Sold | 710 | 720 | 730 | 740 | 750 | 760 | 770 |
| | Ending Inventory | 160 | 150 | 140 | 130 | 120 | 110 | 100 |
| | Questions | YOUR ANSWERS BASED UPON COURSE START DATE |
| | FIFO |
| | Sales |
| | Purchases |
| | Ending inventory |
| | Cost of Goods Sold |
| | Gross Profit |
| | LIFO |
| | Sales |
| | Purchases |
| | Ending inventory |
| | Cost of Goods Sold |
| | Gross Profit |
| | Average Cost |
| | Sales |
| | Purchases |
| | Ending inventory |
| | Cost of Goods Sold |
| | Gross Profit |
| | Which of the three methods would be chosen if management's goal is to: |
| | Produce an up-to-date inventory valuation on the balance sheet? |
| | Approximate the physical flow of a sand and gravel dealer? |
| | Report low earnings (for tax purposes) for a separate electronics company that has been experiencing declining purchase prices? |
| | Account to
be changed | Original
Amount |
| | Ch 6 Ex 2 |
| | Purchase price | 30000 | 31,000 | 32,000 | 33,000 | 34,000 | 35,000 | 36,000 |
| | Questions | YOUR ANSWERS BASED UPON COURSE START DATE |
| | Units-of-output |
| | Straight-line |
| | Double-declining-balance |
| | Account to
be changed | Original
Amount |
| | Ch 6 Ex 3 |
| | Cost | 1000 | 1,100 | 1,200 | 1,300 | 1,400 | 1,500 | 1,600 |
| | Questions | YOUR ANSWERS BASED UPON COURSE START DATE |
| | The machine's book value on December 31, 20X5, assuming use of the straight-line depreciation method |
| | Depreciation expense for 20X4, assuming use of the units-of-output depreciation method. Actual washing cycles in 20X4 totaled 500. |
| | Accumulated depreciation on December 31, 20X5, assuming use of the double-declining-balance depreciation method. |
| | Account to
be changed | Original
Amount |
| | Ch 6 Pb 2 |
| | Machine | 50000 | 55,000 | 60,000 | 65,000 | 70,000 | 75,000 | 80,000 |
| | Part C Cost | 47800 | 52,800 | 57,800 | 62,800 | 67,800 | 72,800 | 77,800 |
| | Questions | YOUR ANSWERS BASED UPON COURSE START DATE |
| | Straight line |
| | 20X3 |
| | 20X4 |
| | 20X5 |
| | 20X6 |
| | 20X7 |
| | Units-of-output |
| | 20X3 |
| | 20X4 |
| | 20X5 |
| | 20X6 |
| | 20X7 |
| | Double Declining Balance |
| | 20X3 |
| | 20X4 |
| | 20X5 |
| | 20X6 |
| | 20X7 |
| | On January 1, 20X5, management shortened the remaining service life of the machine to 20 months. Assuming use of the straight-line method, compute the company's depreciation expense for 20X5. |
| | Briefly describe what you would have done differently in part (a) if Aussie Imports had paid $47,800 for the machinery rather than $50,000 In addition, assume that the company incurred $800 of freight charges $1,400 for machine setup and testing, and $300 for insurance during the first year of use. |
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GuidanceReportWeekThree.xlsx
