These are for Financial Accounting. You have a total of 5 problems. Please do them in MS Excel, each problem in a separate sheet.

1) check image: https://www.anony.ws/image/JFsm

a) Jounralize Klein Photography’s closing entries at December 31, 2012.
b) Determine Klein Photography’s ending Klein, capital balance at December 31, 2012.

2)

check image: https://www.anony.ws/image/JFsw

3)

Please calculate for CISCO systems the current ratio and the debt ratio for 2014 or 2015 (if you have the 2015 Annual Report).
What do these measures mean for CISCO systems?
Please find one company’s report in the same industry, calculate the current ratio and the debt ratio for 2014/2015 and compare those ratios to your company’s ones.

4) check image: https://www.anony.ws/image/JFs0

a) Prepare an income statement for the year ended December 31, 2015.
b) Prepare a statement of retained earnings.
c) Prepare a classified balance sheet at December 31, 2015. Are the One Corporation’s assets financed primarily by debt or equity?
d) Prepare a Post-closing Trial Balance.
5)

Tim Jones, a newly minted CPA, was on his second audit job in France with a new client called Voila Farm Products. He was looking through the last four years of financials ,and doing a few ratios, when he noticed something odd. The current ratio went from 1.85 in 2014 down to 0.32 in 2015, despite the fact that 2015 had record income. He decided to sample a few transactions from December 2015. He found that many of Voila Farm’s customers had returned products to the company because of substandard quality. Jones discovered that the company was clearing the receivables (i.e., crediting accounts receivable) but “stashing” the debits in an obscure long-term asset account called “grain reserves” to keep the company’s income “in the black” (i.e., positive income).

Requirements
1. How did the fraudulent accounting just described affect the current ratio? (Hint: Think about Cash.)
2. Can you think of any reasons why someone in the company would want to take this kind of action?