ACC520 Case1 KimFuller
CASE 1: Kim Fuller
ACC520 Principles of Accounting
Prof. Fe Violeta G. Baluran
______________________________
Luis Francisco
Wenzi Jeanne Martinez
Timmy Song
______________________________
1. What information will Fuller need to manage the business? Classify this information in two categories: accounting information and non-accounting information.
I. Accounting Information
a.) Operation Information
These are the information needed to conduct the daily activities of the company. It contains the largest quantity of data required. For this case, the following are the information needed as follows:
Operating Revenue revenue Variable cost
Fuel
Inventory cost
Fixed Cost
Employee salary & wages
Depreciation expense for the machineries
Interest expense
Overhead (supplies, utilities, etc.)
Insurance
b.) Financial Accounting
It is intended for external use and for comparison with other companies in order to assess the financial capability of the company being reviewed.
Bank statement
Statement of cash flows
Balance sheets
Loans
c.) Management Accounting
This is intended for internal users such as the president, company marketing manager and production manager. It is primarily to serve the purpose of the manager`s functions such planning, implementation and control.
Budgeting
d.) Tax Accounting
This is intended for government mandated taxes.
Income statement
II. Non-accounting information
a) Human Resource Information
b) Sale Information
c) Company Related Public Assessment
2. See what you can do to draw up a beginning of business list of the assets and liabilities of Fuller’s company making any assumptions you consider useful. How should Fuller go about putting a value on the company’s assets? Using your values, what is the company’s opening owners’ equity?
The following assumptions considered to prepare the balance sheet are as follows:
1. Acquisition prices:
a. Equipment: $65,000.00, composed of the following:
i. Used Truck
ii.
ACC520 Principles of Accounting
Prof. Fe Violeta G. Baluran
______________________________
Luis Francisco
Wenzi Jeanne Martinez
Timmy Song
______________________________
1. What information will Fuller need to manage the business? Classify this information in two categories: accounting information and non-accounting information.
I. Accounting Information
a.) Operation Information
These are the information needed to conduct the daily activities of the company. It contains the largest quantity of data required. For this case, the following are the information needed as follows:
Operating Revenue revenue Variable cost
Fuel
Inventory cost
Fixed Cost
Employee salary & wages
Depreciation expense for the machineries
Interest expense
Overhead (supplies, utilities, etc.)
Insurance
b.) Financial Accounting
It is intended for external use and for comparison with other companies in order to assess the financial capability of the company being reviewed.
Bank statement
Statement of cash flows
Balance sheets
Loans
c.) Management Accounting
This is intended for internal users such as the president, company marketing manager and production manager. It is primarily to serve the purpose of the manager`s functions such planning, implementation and control.
Budgeting
d.) Tax Accounting
This is intended for government mandated taxes.
Income statement
II. Non-accounting information
a) Human Resource Information
b) Sale Information
c) Company Related Public Assessment
2. See what you can do to draw up a beginning of business list of the assets and liabilities of Fuller’s company making any assumptions you consider useful. How should Fuller go about putting a value on the company’s assets? Using your values, what is the company’s opening owners’ equity?
The following assumptions considered to prepare the balance sheet are as follows:
1. Acquisition prices:
a. Equipment: $65,000.00, composed of the following:
i. Used Truck
ii.