Question: Jerome Schneider wrote several books on how

> Steller Corporation had the following transactions in June: Requirements: 1. Journalize the transactions. Ignore Cost of Goods Sold. Omit explanations. 2. Post the transactions to the general ledger and the accounts receivable subsidiary ledger. Assume

> Suppose The Right Rig Dealership is opening a regional office in Omaha. Cary Regal, the office manager, is designing the internal control system. Regal proposes the following procedures for credit checks on new customers, sales on account, cash collectio

> Unique Media Sign Incorporated sells on account. Recently, Unique reported the following figures: Requirements: 1. Compute Unique’s days’ sales in receivables for 2018. (Round to the nearest day.) 2. Suppose Unique&a

> Match the terms with their correct definition. Terms Definitions 1. Accounts receivable a. The party to a credit transaction who takes on an obligation/payable. b. The party who receives a receivable and will collect cash in the future. 2. Other rec

> Pauline’s Pottery has always used the direct write-off method to account for uncollectibles. The company’s revenues, bad debt write-offs, and year-end receivables for the most recent year follow: The business is appl

> When does an inventory error cancel out, and why?

> Weddings on Demand sells on account and manages its own receivables. Average experience for the past three years has been as follows: Sales ……………………………………….……..……………………………………..$ 350,000 Cost of Goods Sold …………………….…….…………………………………………210,000 Bad Debts Ex

> Canyon Canoe Company has experienced rapid growth in its first few months of operations and has had a significant increase in customers renting canoes and purchasing T-shirts. Many of these customers are asking for credit terms. Amber and Zack Wilson, st

> Buffalo Wild Wings, Inc. owns and operates more than 550 Buffalo Wild Wings, R Taco, and Pizza Rev restaurants. Additionally, the corporation has franchised restaurants in both the United States and Canada. The corporation takes internal control responsi

> Answer the following questions about the controls in bank accounts: Requirements: 1. Which bank control protects against forgery? 2. Which bank control reports the activity in the customer’s account each period? 3. Which bank control confirms the amount

> A purchasing agent for Franklin Office Supplies receives the goods that he purchases and also approves payment for the goods. Requirements: 1. How could this purchasing agent cheat his company? 2. How could Franklin avoid this internal control weakness?

> The Cash account of Guard Dog Security Systems reported a balance of $2,540 at December 31, 2018. There were outstanding checks totaling $400 and a December 31 deposit in transit of $100. The bank statement, which came from Park Cities Bank, listed the D

> Smythe Banners reported the following figures in its financial statements: Cash ……………………………………………………………………………..…………….. $ 26,500 Cash Equivalents ………………………………..………………………………………………5,000 Total Current Liabilities ………………………………………………………………….…30,000 Compute t

> Review your results from preparing Guard Dog Security System’s bank reconciliation in Short Exercise S7-9. Journalize the company’s transactions that arise from the bank reconciliation. Include an explanation with each entry.

> For each timing difference listed, identify whether the difference would be reported on the book side of the reconciliation or the bank side of the reconciliation. In addition, identify whether the difference would be an addition or subtraction. a. Depo

> Restaurants do a large volume of business by credit and debit cards. Suppose summer, Sand, and Castles Resort restaurant had these transactions on January 28, 2018: National Express credit card sales ………………………………………………………..$ 10,800 Value Card debit card

> What is the effect on cost of goods sold, gross profit, and net income if ending merchandise inventory is understated?

> Prepare the journal entries for the following petty cash transactions of Everly Gaming Supplies: Mar. 1 Established a petty cash fund with a $250 balance. 31 The petty cash fund has $24 in cash and $235 in petty cash tickets that were issued to pay

> Review the internal controls over cash receipts by mail presented in the chapter. Exactly what is accomplished by the final step in the process, performed by the controller?

> Sandra Kristof sells furniture for McKinney Furniture Company. Kristof is having financial problems and takes $650 that she received from a customer. She rang up the sale through the cash register. What will alert Megan McKinney, the controller, that som

> Internal controls are designed to safeguard assets, encourage employees to follow company policies, promote operational efficiency, and ensure accurate accounting records. Requirements: 1. Which objective do you think is most important? 2. Which objecti

> What are the steps taken to ensure control over purchases and payments by check?

> How do businesses control cash receipts by mail?

> How do businesses control cash receipts over the counter?

> What are some limitations of internal controls?

> What is the difference between an internal auditor and external auditor?

> What are the five components of internal control? Briefly explain each component.

> What account is debited when recording the adjusting entry to write down merchandise inventory under the LCM rule?

> The Davis Lamp Company (DLC) is a wholesale company that purchases lamps from the manufacturer and resells them to retail stores. The company has three inventory items: desk lamps, table lamps, and floor lamps. DLC uses a perpetual inventory system, FIFO

> Chitika, Inc. provided online tracking tools on websites. When consumers clicked the “opt-out” button, indicating that they did not want to be tracked, they were not – for ten days. After that, the software would resume tracking. Is there a legal problem

> Barrow was a government employee. Because he shared his office computer with another worker, he brought in his personal computer from home to use for office work. No other employee accessed it, but it was connected to the office network. The computer was

> An undercover drug informant learned from a mutual friend that Philip Friedman “knew where to get marijuana.” The informant asked Friedman three times to get him some marijuana, and Friedman agreed after the third request. Shortly thereafter Friedman sol

> Irving was a lawyer who prepared income tax returns for Maroevich. Irving agreed to draft a will for Maroevich, leaving all of the property to Maroevich’s sister, Biakanja. When Maroevich died, the probate court refused to accept the will because Irving

> When Thomas and Susan Tamplin were shopping at Star Lumber with their six-year-old daughter Ann Marie, a 150-pound roll of vinyl flooring fell on the girl, seriously injuring her head and pituitary gland. Ann was clearly entitled to recover for the physi

> A new truck, manufactured by General Motors Corp., (GMC) stalled in rush hour traffic on a busy interstate highway because of a defective alternator, which caused a complete failure of the truck’s electrical system. The driver stood nearby and waved traf

> Caldwell was shopping in a K-Mart store, carrying a large purse. A security guard observed her look at various small items such as stain, hinges, and antenna wire. On occasion she bent down out of sight of the guard. The guard thought he saw Caldwell put

> You are a vice-president in charge of personnel at a large manufacturing company. In-house detectives inform you that Gates, an employee, was seen stealing valuable computer equipment. Gates denies the theft, but you believe the detectives and fire him.

> Van is brought to the police station for questioning about a shooting at a mall. The police read him his Miranda rights. For the rest of the three-hour interrogation, he remains silent except for a few one word responses. Has he waived his right to remai

> Over the course of 10 months, Joseph Melle sent more than 60 million unsolicited email advertisements to AOL members. What charges could be brought against him? Would you need more information before deciding?

> Sixteen-year-old Travis Mitchell brought his Pontiac GTO into M&M Precision Body and Paint for body work and a paint job. M&M did the work and charged $1,900, which Travis paid. When, Travis later complained about the quality of the work, M&M did some to

> The McAllisters had several serious problems with their house, including leaks in the ceiling, a buckling wall, and dampness throughout. They repaired the buckling wall by installing I-beams to support it. They never resolved the leaks and the dampness.

> Raymond Barrows owned a 17-acre parcel of undeveloped land in Seaford, Delaware. For most of his life Mr. Barrows had been an astute and successful businessman, but by the time he was 85 years old, he had been diagnosed as “very senile and confused 90 pe

> Morell bought a security guard business from Conley, including the property on which the business was located. Neither party knew that underground storage tanks were leaking and contaminating the property. After the sale, Morell discovered the tanks and

> Hasbro used to manufacture a toy called “Wonder World Aquarium”. The toy included a powder that, when mixed with water, formed a gel that filled a plastic aquarium. Children could then place plastic fish in the aquarium and create underwater scenes. C

> During the Spanish-American War, the United States blockaded Cuba. It seized two commercial fishing vessels sailing under a Spanish flag off the Cuban coast. The crew knew nothing about the war and had no arms on board. U.S. officials auctioned off the

> Roy Newburn borrowed money and bought a $49,000 truck from Treadwell Ford. A few months later the truck developed transmission problems. Newburn learned that the truck had 170,000 more miles on it than the odometer indicated. The company admitted the mil

> On television and in magazines, Maurine and Mamie Mason saw numerous advertisements for Chrysler Fifth Avenue automobiles. The ads described the car as “luxurious,” “quality-engineered,” and “reliable.” When they went to inspect the car, the salesman tol

> Ramona Fricosu was indicted on charges of real estate fraud. During a legal search of her home, the police found a computer with encrypted files. Would it be a violation of her Fifth Amendment right against self-incrimination to force her to unencrypt th

> Richard and Michelle Kommit traveled to New Jersey to have fun in the casinos. While in Atlantic City, they used their MasterCard to withdraw cash from an ATM conveniently located in the “pit” - the gambling area of a casino. They ran up debts of $5,500

> Brockwell left his boat to be repaired at Lake Gaston Sales. The boat contained electronic equipment and other personal items. Brockwell signed a form stating that Lake Gaston had no responsibility for any loss to any property in or on the boat. Brockwel

> For 20 years, Art’s Flower Shop relied almost exclusively on advertising in the yellow pages to bring business to its shop in a small West Virginia town. One year the yellow pages printer accidentally omitted to print Art’s ad, and Art’s suffered an enor

> While conducting a valid search of a computer for evidence of a murder, a police officer discovered child pornography. Is that evidence admissible, even though the warrant was limited to a search relating to the murder?

> Oasis Waterpark, located in Palm Springs, California, sought out Hydrotech Systems, Inc., a New York corporation, to design and construct a surfing pool. Hydrotech replied that it could design the pool and sell all the necessary equipment to Oasis, but c

> 810 Associates owned a 42-story skyscraper in midtown Manhattan. The building had a central station fire alarm system, which was monitored by Holmes Protection. A fire broke out and Holmes received the signal. But Holmes’s inexperienced dispatcher misund

> Lou DiBella was an executive responsible for programming boxing shows on HBO cable network. DiBella signed Bernard Hopkins, the then–middleweight world boxing champion, to participate in a fight televised by HBO. After DiBella’s departure from the networ

> Guyan Machinery, a West Virginia manufacturing corporation, hired Albert Voorhees as a salesman and required him to sign a contract stating that if he left Guyan he would not work for a competing corporation anywhere within 250 miles of West Virginia for

> Melnick built a house for Gintzler, but the foundation was defective. Gintzler agreed to accept the foundation if Melnick guaranteed to make future repairs caused by the defects. Melnick agreed but later refused to make any repairs. Melnick argued that h

> Jack Tallas came to the United States from Greece in 1914. He lived in Salt Lake City for nearly 70 years, achieving great success in insurance and real estate. During the last 14 years of his life, his friend Peter Dementas helped him with numerous pers

> Dr. Ibrahim Khan caused an automobile accident in which a fellow physician, Dolly Yusufji, became a quadriplegic. Khan signed a contract for the lifetime support of Yusufji. When he refused to make payments under the contract, she sued him and obtained a

> Roommates.com operated a website designed to match people renting spare rooms with those looking for a place to live. Before subscribers could search listings or post housing opportunities on Roommate’s website, they had to create profiles, a process tha

> Officer Trottier stopped Marie Winfield for driving 20 miles over the speed limit. He then became suspicious because her son would not make eye contact and she was eating a Powerbar in a “hurried manner.” The officer asked for and Winfield granted him pe

> Sami walks into a restaurant. She is given a menu, which indicates that lobster is $30. Sami orders the lobster. It arrives, and Sami thinks it is very tasty. When the bill arrives, Sami tries to execute a clever ploy she learned about in her busines

> American Bakeries had a fleet of over 3,000 delivery trucks. Because of the increasing cost of gasoline, the company was interested in converting the trucks to propane fuel. It signed a requirements contract with Empire Gas, in which Empire would convert

> In the bleachers… “You’re a prince, George!” Mike exclaimed. “Who else would give me a ticket to the big game?” “No one, Mike, no one.” “Let me offer my thanks. I’ll buy you a beer!” “Ah,” George said. “A large beer would hit the spot right now.”

> CeCe Hylton and Edward Meztista, partners in a small advertising firm, agreed to terminate the business and split assets evenly. Meztista gave Hylton a two-page document showing assets, liabilities, and a bottom line of $35,235.67, with one half due to e

> In Japan, automobile GPS systems come equipped with an option for converting them into televisions so that drivers can watch their favorite shows, yes, while driving. “We can’t help but respond to our customers’ needs,” says a company spokesperson. Alth

> Leslie Bergh and his two brothers, Milton and Raymond, formed a partnership to help build a fancy saloon and dance hall in Evanston, Wyoming. Later, Leslie met with his friend and drinking buddy, John Mills, and tricked Mills into investing in the saloon

> The day after Thanksgiving, known as Black Friday, is the biggest shopping day of the year. One major retailer advertised a “Black Friday only” laptop for $150. On Thanksgiving night, hundreds of people waited for the store to open to take advantage of t

> Case law tells us that a course syllabus is not a binding contract—but how about your school’s honor code? Under what conditions could an honor code be a contract?

> Each time employees at BizCorp enter their work computers, the following alert appears: “You are attempting to access the BizCorp network. By logging in, you agree to BizCorp’s Computer Usage Policy and certify that your use of this computer is strictly

> Mickle pleaded guilty to rape. The judge sentenced him to prison for five years and also ordered that he undergo a vasectomy. Was this cruel and unusual punishment?

> Consolidated Edison Co. of New York (Con Ed) sought bids from General Electric Co. (GE) and others to supply it with two huge transformers. Con Ed required that the bids be held open for 90 days. GE submitted a written bid and included a clause holding

> The Tufte family leased a 260-acre farm from the Travelers Insurance Co. Toward the end of the lease, Travelers mailed the Tuftes an option to renew the lease. The option arrived at the Tuftes’ house on March 30, and gave them until April 14 to accept.

> James, the owner of an auto parts store, told his employee, Rickey, to clean and paint some tires in the basement. Highly flammable gasoline fumes accumulated in the poorly ventilated space. James threw a firecracker into the basement, as a joke, intendi

> The town of Sanford, Maine, decided to auction off a lot it owned. The town advertised that it would accept bids through the mail, up to a specified date. Arthur and Arline Chevalier mailed in a bid that turned out to be the highest. When the town ref

> After the 9/11 terrorist attacks, the U.S. government imprisoned suspected terrorists in Guantanamo Bay, Cuba. Officials argued that these detainees did not enjoy constitutional rights because they were not on U.S. soil, even though they were held by Am

> When a Tom Cat Bakery delivery van struck Elizabeth Nadel, she suffered significant injuries, Nadel filed suit. Before the trial, Tom Cat’s attorney offered a $100,000 settlement, which Nadel refused. While the jury was deliberating, the bakery’s lawyer

> Niels owned three adjoining parcels of land in Arizona. Hannah wanted to buy one. Over dinner, the two sketched and signed this agreement: “Binding Contract: Niels agrees to sell one of his three Arizona lots to Hannah. Within 14 days, the parties will m

> Pacific Express began operating as an airline in 1982. It had routes connecting western cities with Los Angeles and San Francisco and by the summer of 1983 was beginning to show a profit. In 1983, United Airlines tried to enter into a cooperative arrange

> Central Maine Power Co. made a promotional offer in which it promised to pay a substantial sum to any homeowner or builder who constructed new housing heated with electricity. Motel Services, Inc., which was building a small housing project for the city

> Each year, the sale of Girl Scout cookies is the major fund-raiser for local troops. But because the organization was criticized for promoting such unhealthy food, it introduced a new cookie, Mango Cremes with Nutrifusion. It promotes this cookie as a

> Ryder leased a truck to Florida Food Service; Powers, an employee, drove it to make deliveries. He noticed that the door strap used to close the rear door was frayed, and he asked Ryder to fix it. Ryder failed to do so in spite of numerous requests. The

> Pennsylvania contracted with Envirotest Systems, Inc., an Arizona company, to build 86 automobile emissions inspection stations in 25 counties and operate them for seven years. This contract is worth hundreds of millions of dollars to Envirotest. But Pen

> Gail Norton began dating Russell Hoyt under the mistaken impression that he was single. She later learned that he was married, but he repeatedly assured her he was getting a divorce. Six years later, Hoyt convinced Norton to quit her job so that they cou

> John Stevens owned a dilapidated apartment that he rented to James and Cora Chesney for a low rent. The Chesneys began to remodel and rehabilitate the unit. Over a four-year period, they installed two new bathrooms, carpeted the floors, installed new sep

> You want to lease your automobile to a friend for the summer but do not want to pay a lawyer to draw up the lease. Joanna, a neighbor, is in law school. She is not licensed to practice law. She offers to draft a lease for you for $100, and you unwisely a

> In 1966, Arketex Ceramic Corp. sold land in rural Indiana to Malcolm Aukerman. The deed described the southern boundary as the section line between sections 11 and 14 of the land. Further south than this section line stood a dilapidated fence running eas

> Interactive Data Corp. hired Daniel Foley as an assistant product manager at a starting salary of $18,500. Over the next six years Interactive steadily promoted Foley until he became Los Angeles branch manager at a salary of $56,116. Interactive’s office

> Marina Stengart used her company laptop to communicate with her lawyer via her personal, password-protected, web-based e-mail account. The company’s policy stated: ‘E-mail and voice mail messages, internet use and communication and computer files are con

> Matt Drudge published a report on his website (http://www.drudgereport.com) that White House aide Sidney Blumenthal “has a spousal abuse past that has been effectively covered up…. There are court records of Blumenthal’s violence against his wife.” The D

> Tata Consultancy of Bombay, India, is an international computer consulting firm. It spends considerable time and effort recruiting the best personnel from India’s leading technical schools. Tata employees sign an initial three-year employment commitment,

> Lydia D’Ettore received a degree in computer programming at the DeVry Institute of Technology, with a grade-point average of 2.51. To finance her education, she borrowed $20,516.52 from a federal student loan program. After graduation, she could not find

> At approximately 7:50 pm bells at the train station rang and red lights flashed, signaling an express train’s approach. David Harris walked onto the tracks, ignoring a yellow line painted on the platform instructing people to stand back. Two men shouted

> Asher and Stephen formed a corporation named “Ampersand” to produce plays. Both men were employed by the corporation. Stephen decided to write Philly’s Beat, focusing on the history of rock and roll in Philadelphia. As the play went into production, howe

> Wallace, Inc. adopted a poison pill. Five years later, Moore Corp. offered to buy all Wallace’s stock for $56 a share, which was 27 percent over the existing market price. However, the offer was contingent upon the Wallace board eliminating the poison pi

> Both Viacom and Paramount owned a diverse group of entertainment businesses. QVC was a televised shopping channel. The Paramount board of directors accepted a merger offer from Viacom at a price of $69 per share. QVC and Viacom then entered a bidding war

> Congressional Airlines was highly profitable operating flights between Washington, D.C., and New York City. The directors approved a plan to offer flights from Washington to Boston. This decision turned out to be a major mistake, and the airline ultimate

> Ulrick and Birger started an air taxi service in Berlin, Germany, under the name Berlinair, Inc. Birger was approached by a group of travel agents who were interested in hiring an air charter business to take German tourists on vacation. Birger formed Ai

> Accountants do not have a fiduciary duty to their clients when performing accounting services. Why not?

> Krug International, an Ohio corporation, had a contract with Iraqi Airways to build aeromedical equipment for training pilots. Krug then contracted for Power Engineering, an Iowa corporation, to build the specialized gearbox to be used in the training eq