The specific course learning outcomes associated with this assignment are:
• Analyze how business transactions are recorded in the financials records of an
organization.
• Identify the accounting principles used to create the Income Statement, Balance Sheet,
and Statement of Cash Flows.
Similar to the exercise used in the course to introduce how business transactions are recorded in
the financial records of an organization and used to produce financial statements, Assignment 1
presents you with an organization’s opening financial position and a series of transactions that
take place over a year. You should determine the appropriate manner in which to record these
transactions and then produce three financial statements for the organization at the end of the
year.
Assignment:
Danny’s Security Systems, Inc. (DSSI) offers its clients security systems and alarm monitoring
services on a retail basis. DSSI specializes in offering the most up-to-date services with the most
technologically advanced equipment. For example, the high-end alarm system, called DAS59, is
widely recognized as an industry leader. All of the balance sheet items from December 31, 2012,
are shown below along with the events that occurred during 2013. Please ignore all taxes
(income and sales) in preparing your answer.
Danny’s Security Systems, Inc.
Balance Sheet Items
As of December 31, 2012
0.5 points Accounts payable $380,000
0.5 points Accounts receivable $611,000
1.0 points Accumulated depreciation $1,245,000
0.5 points Cash $267,000
0.5 points Common shares $1,152,000
0.5 points Short-term bank loan $125,000
0.5 points Plant, property, and equipment $2,111,000
0.5 points Interest payable $37,000
0.5 points Inventory $850,000
1.0 points Licenses (net) $180,000
0.5 points Long-term bank loan $525,000
0.5 points Goodwill $80,000
0.5 points Retained earnings $304,000
1.0 points Advances from customers $340,000
0.5 points Salaries payable $180,000
0.5 points Short-term investments (trading
securities)
$180,000
0.5 points Office supplies $9,000
The following events occurred during 2013:
JWI 530: Financial Management I
©2014 Strayer University. All Rights Reserved. This document contains Strayer University Confidential and Proprietary
information and may not be copied, further distributed, or otherwise disclosed in whole or in part, without the expressed written
permission of Strayer University.
JWMI 530–
0 comments