Accounting- please see the attached.
NOTE: Be sure to show all your detailed calculations. NOTE: WHEN APPLICABLE ROUND ALL CALCULATIONS AND FINAL ANSWERS TO THE NEAREST WHOLE DOLLAR. WHEN REQUIRED AND POSSIBLE, YOU NEED TO USE THE 5 DECIMAL TABLE FACTOR FROM THE TIME VALUE OF MONEY TABLES. I. Questions 1. Per the Roger CPA Exam Review, what does the financial reporting framework include? 2. Risks and Uncertainties requires disclosure in financial statements of risks and uncertainties existing at the date of the financial statements. What are the four areas of disclosure described in the Roger CPA Exam Review? 3. What are the 4 steps of the accounting cycle? 4. What are the five types of adjusting entries? 5. What are the three valuation techniques used when measuring financial assets and financial liabilities at fair value? 6. In the debt versus equity financing decision, what were the three advantages of Old World Corporation by selecting option 1 Issue 12% debt, due in three years? II. Exercises 1. Standward Company’s shareholders’ equity section balance sheet at December 31, 2016 is shown below. Preferred shares Authorized—100 shares Issued and outstanding—55 shares $2,145. Common shares Authorized—900 shares Issued and outstanding—600 shares $1,010. Retained earnings $450. Total shareholders’ equity $3,605. Required: 1. What is the average price received for each issued preferred share? 2. What is the average price received for each issued common share? NOTE: For this part 2 only round your answer to the nearest 2 decimal places. 2. If shareholders’ equity increased $11,000 and assets decreased $5,000, what was the change in total liabilities? 3. Expresso Company had the following information related to common and preferred shares during the year: Common shares outstanding 1/1 568,750 Common shares repurchased 3/1 17,500 Conversion of preferred shares 7/1 32,500 Common shares repurchased 12/1 29,250 Expresso reported net income of $1,625,000 at December 31. What amount of shares should Expresso use as the denominator in the computation of basic earnings per share? 4. An extract from the trial balance of Armstrong Corp. at June 30, 2016 is reproduced below: Account Amount in unadjusted trial balance Amount in adjusted trial balance 1 Prepaid insurance $3,200 $2,600 2 Salaries payable $1,500 $2,100 3 Interest payable $ 0 $ 1,000 4 Unearned revenue $5,000 $4,000 5 Accumulated depreciation $2,200 $2,750 6 Unused office supplies $ 450 $ 125 Required: Prepare in general journal format the entries that were posted, including a plausible description. General ledger account numbers are not necessary. 5. Simpson Inc. has a cash flow of $750,000 to be received during the next three years, 2018, 2019 and 2020 with probabilities of 40%, 50%, and 10%, respectively. The rate of interest on default risk-free investments is 9%. Required: What is the expected present value of Simpson's cash flow? If applicable, round your answers to the nearest whole dollar. Page 1 of 3