Business Solutions Accounting Calculations and Explanations. Portfolio Project

ACT325 Portfolio Project

Problem 1 - Funding Business Expansion

1.1

Table 1

Entries for Three Funding Options

Note.

1.2:

1.3:

Problem 2 - Investments

2.1

Table 2

Journal Entries for Stock Acquisitions

2.2

Table 3

Fair Value Adjustment Entry

Problem 3 - Analyzing the Financial Statements

3.1

Table 4

Margin Analyses

3.2:

Table 5

Liquidity and Efficiency Ratio Analyses

3.3

Table 6

Solvency Ratio Analyses

3.4

Table 7

Margin Analyses

Problem 4 – Job Costs

Table 8

Accumulated Job Costs end of June 2012

4.1: The cost of raw materials used in June for the three jobs combined is:_______

4.2

The total direct labor cost incurred in June was ___________

4.3

The predetermined overhead rate used in June was ____. This was calculated by:_____________

4.4: The cost transferred to finished goods inventory in June is _________

Problem 5 – Activity Based Costing

Table 9

Total Cost for Job 6.15

Note. Total job costs for job 6.15 including _____rate of overhead applied to direct labor.

5.1

As equated in table 9 the cost of job 6.15 is _____ using a standard ___ overhead on direct labor calculation.

Table 10

Business Solutions Rates Derived for Activity Based Costing

.

Table 11

Total Cost for Job 6.15 Calculated with Activity Based Costing

5.2: As calculated in table 11, the total cost for job 6.15 using activity-based costing (ABC) is: _______________

5.3:

Problem 6 – Budgeted Income Statement

6.1

Budgeted Income Statements for April, May and June

6.2:

Problem 7 – Capital Budgeting

Cash Flow Analysis for Proposed Equipment Investment

7.1

As computed in table 14 with the data from the cash flow analysis in table 13: the payback period (PBP) for this equipment investment would be _____years.

The accounting rate of return (ARR) on this equipment investment would be _____%.

Payback Period and Accounting Rate of Return Calculations