ACCT 504 help A Guide to career/uophelp.com ACCT 504 help A Guide to career/uophelp.com | Page 45

2: Compute the profit margin ratio and gross profit rate. Caltor
Company’s assets at the beginning of the year were $770,000 and were
$830,000 at the end of the year. To qualify for full credit, you must state
the formula you are using, show your computations, and explain your
findings.
Question 13. Question : (TCO D and E) Please prepare the following
journal entries. Indicate which account should be debited and which
account should be credited, along with the dollar amount of the debit and
credit.
a: Investors invest $50,000 in exchange for 1,000 shares of common
stock.
b: Company purchased equipment for $10,000 on credit.
c: Company received $5,000 for services performed.
d: Company made payment on account for $2,000.
e: Company received $7,000 for services not yet performed.
Question 14. Question : (TCO D) Your friend Wendy plans to open a
hair salon. Wendy states that she does not have time to develop and
implement a system of internal controls.
a: Explain to Wendy the objectives of a system of internal control.
b: Explain to Wendy at least four key controls she must establish to
protect herself against fraud. You should state specific internal control
principles and relate your answer to her hair salon business.
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ACCT 504 Week 1-7 All Discussion Questions