Revenue recognition case
THE HEALTH SPA CASE
Lets get physical!
Hardy Hearts is a health spa located in a rapidly growing suburban area populated largely
by young professionals. Like other spas, memberships are its lifeblood. Typical
ACC 3510 - Laufer
Inventory Assignment ICC 21
LIFO and FIFO Corporation
1. Both companies begin operations by exchanging stock for $10,000 in cash and
300 widgets. The widgets had a value of $30,000.
2. Transactions - all on a cash basis.
Based on the information below what would the ending inventory and the cost of goods sold
be for Gargleblaster Inc (GI) under the following cost flow assumptions?
Cost of Goods Sold
LIFO (periodic i
REL/LEW CE TEE ECG/QUEEN (E1 CYCLE
TEE ECCCULLTLNC CYCLE Ls TEE SCUECE CE ELL
ELNELNCLEL ECCCUNLTLNE ENCWLEDEE = KNQW LT EECM
TEENSECTLCNS TC ELNENCLEL STATEMENTS
A = L + O/E THEREFORE A - L
ALSO O/E = net assets
R -E =
ACC 3510 Laufer ICC 7
You will be assigned to complete either ICC 7A or 7B if in doubt do ICC 7A.
Assignment # 7A
MARKET VALUE INSTRUCTIONS
Background: You are an accountant. One of your clients, Ms. Sherri Pena asked your assistance in
ACC 3510 Laufer
Background: You are a "Super" Senior Staff Accountant with the CPA firm of Foote & Tick. A
co-worker, Les X. Cess, seeks your assistance on a few financial issues. The questions arose on
the audit job Les is presently working on
ACC 3510- Laufer
Assignment ICC 5
Presented below is information related to the accounts of Lever Leisure Suits Company as of
Accounts receivable. 12,000
Allowance for uncollectible accounts.
ACC 3510- Laufer
1. On October 1, Year 1, ABC Company paid $24,000 for insurance coverage for the period 10-1-1
through 3-31-2. The prepaid insurance account was debited on October 1. The balance in the
account prior to this transact
Constructing Contracting Case
In August of 2015 ACC 3510 Company entered in to a contract to construct a solar generation plant for
the town of Walla Walla, Washington. The contract price was $1 million. The table below details activity
Below preceded by identifying letters are seven items that would cause Xavier Sales Company's
book balance of cash to differ from its bank statement balance.
a. A service charge made by the bank.
b. A chec