How to solve the part c, d, e on this file?c. Prepare the necessary journal entries to correct for each of the following attempts byTagPro to manipulate its financial statements. (Hint: compare the entry TagPro recordedto the correct entry to discern the correcting entry.)1. Issued an additional 5,000 shares of common stock in exchange for $25,000.Recorded the cash as sales revenue.2. Recorded as sales revenue $75,000 of cash received for services to be rendered inMarch 2016.3. Sold equipment with a book value $15,000 for $20,000 cash and a $35,000 longtermnote receivable. Recorded $55,000 of sales revenue and failed to remove thesold equipment from the books.4. TagPro recorded only half of its actual depreciation expense during 2016.d. Recalculate the ratios in question b after taking into account the transactions and eventslisted in part c. You may ignore any income tax effects.e. Was TagPro successful in its effort to change the portrait of the company painted by thefinancial statements?ACCT: 2100Spring 2016Chapter 5 Take Home QuizFollowing are the balance sheet and income statement for TagPro Inc.:TagPro, Inc.Balance SheetsAssetsCash and cash equivalentsAccounts receivable, net of allowance for doubtfulaccounts of $10,970 at 01/31/16 and $11,352 01/31/15InventoryShort-term marketable securitiesTotal current assetsJanuary 3120162015$119,790481,725$113,528457,512139,357108,140849,012144,731107,934823,705890,401860,30483,832$ 1,823,24573,874$ 1,757,883LiabilitiesAccounts payableAccrued compensationUnearned revenueIncome taxes payableOther current liabilitiesTotal current liabilities$102,23376,23590,01019,13569,518357,131$107,18452,98380,24717,92551,582309,921Notes payableOther long-term liabilitiesTotal liabilities217,19626,964601,291271,68026,912608,513276,313945,6411,221,954$ 1,823,245249,494899,8761,149,370$ 1,757,883Property, plant and equipment, net of accumulateddepreciationOther assetsTotal assetsStockholders’ equityCommon stock, no par value; 250,000 shares authorized;113,400 and 92,050 shares issued and outstandingrespectivelyRetained earningsTotal stockholders’ equityTotal liabilities and stockholders’ equity TagPro, Inc.Income StatementFor the Year Ended January 31, 2016Product salesBad debt expenseCost of goods soldDepreciationDividendsIncome tax expenseInterest expenseResearch and developmentSelling, general & administrative expensesService revenueTotal$ 3,295,885-32,990-1,125,614-45,102-46,025-384,775-29,814-439,128-1,166,67220,000$45,765Required:a. Prepare in good form a classified (multi-step) income statement showing total revenue.b. Calculate the following ratios for 2016:1. Earnings per share2. Current ratio3. Gross profit percentage4. Return on assets5. Net profit margin6. Total asset turnoverc. Prepare the necessary journal entries to correct for each of the following attempts byTagPro to manipulate its financial statements. (Hint: compare the entry TagPro recordedto the correct entry to discern the correcting entry.)1. Issued an additional 5,000 shares of common stock in exchange for $25,000.Recorded the cash as sales revenue.2. Recorded as sales revenue $75,000 of cash received for services to be rendered inMarch 2016.3. Sold equipment with a book value $15,000 for $20,000 cash and a $35,000 longterm note receivable. Recorded $55,000 of sales revenue and failed to remove thesold equipment from the books.4. TagPro recorded only half of its actual depreciation expense during 2016.d. Recalculate the ratios in question b after taking into account the transactions and eventslisted in part c. You may ignore any income tax effects.e. Was TagPro successful in its effort to change the portrait of the company painted by thefinancial statements?
How to solve the part c, d, e on this file?c. Prepare the necessary journal entries to correct for each of the following attempts byTagPro to manipulate its financial statements. (Hint: compare the entry TagPro recordedto the correct entry to discern the correcting entry.)1. Issued an additional 5,000 shares of common stock in exchange for $25,000.Recorded the cash as sales revenue.2. Recorded as sales revenue $75,000 of cash received for services to be rendered inMarch 2016.3. Sold equipment with a book value $15,000 for $20,000 cash and a $35,000 longtermnote receivable. Recorded $55,000 of sales revenue and failed to remove thesold equipment from the books.4. TagPro recorded only half of its actual depreciation expense during 2016.d. Recalculate the ratios in question b after taking into account the transactions and eventslisted in part c. You may ignore any income tax effects.e. Was TagPro successful in its effort to change the portrait of the company painted by thefinancial statements?ACCT: 2100Spring 2016Chapter 5 Take Home QuizFollowing are the balance sheet and income statement for TagPro Inc.:TagPro, Inc.Balance SheetsAssetsCash and cash equivalentsAccounts receivable, net of allowance for doubtfulaccounts of $10,970 at 01/31/16 and $11,352 01/31/15InventoryShort-term marketable securitiesTotal current assetsJanuary 3120162015$119,790481,725$113,528457,512139,357108,140849,012144,731107,934823,705890,401860,30483,832$ 1,823,24573,874$ 1,757,883LiabilitiesAccounts payableAccrued compensationUnearned revenueIncome taxes payableOther current liabilitiesTotal current liabilities$102,23376,23590,01019,13569,518357,131$107,18452,98380,24717,92551,582309,921Notes payableOther long-term liabilitiesTotal liabilities217,19626,964601,291271,68026,912608,513276,313945,6411,221,954$ 1,823,245249,494899,8761,149,370$ 1,757,883Property, plant and equipment, net of accumulateddepreciationOther assetsTotal assetsStockholders’ equityCommon stock, no par value; 250,000 shares authorized;113,400 and 92,050 shares issued and outstandingrespectivelyRetained earningsTotal stockholders’ equityTotal liabilities and stockholders’ equity TagPro, Inc.Income StatementFor the Year Ended January 31, 2016Product salesBad debt expenseCost of goods soldDepreciationDividendsIncome tax expenseInterest expenseResearch and developmentSelling, general & administrative expensesService revenueTotal$ 3,295,885-32,990-1,125,614-45,102-46,025-384,775-29,814-439,128-1,166,67220,000$45,765Required:a. Prepare in good form a classified (multi-step) income statement showing total revenue.b. Calculate the following ratios for 2016:1. Earnings per share2. Current ratio3. Gross profit percentage4. Return on assets5. Net profit margin6. Total asset turnoverc. Prepare the necessary journal entries to correct for each of the following attempts byTagPro to manipulate its financial statements. (Hint: compare the entry TagPro recordedto the correct entry to discern the correcting entry.)1. Issued an additional 5,000 shares of common stock in exchange for $25,000.Recorded the cash as sales revenue.2. Recorded as sales revenue $75,000 of cash received for services to be rendered inMarch 2016.3. Sold equipment with a book value $15,000 for $20,000 cash and a $35,000 longterm note receivable. Recorded $55,000 of sales revenue and failed to remove thesold equipment from the books.4. TagPro recorded only half of its actual depreciation expense during 2016.d. Recalculate the ratios in question b after taking into account the transactions and eventslisted in part c. You may ignore any income tax effects.e. Was TagPro successful in its effort to change the portrait of the company painted by thefinancial statements?
How to solve the part c, d, e on this file?c. Prepare the necessary journal entries to correct for each of the following attempts byTagPro to manipulate its financial statements. (Hint: compare the entry TagPro recordedto the correct entry to discern the correcting entry.)1. Issued an additional 5,000 shares of common stock in exchange for $25,000.Recorded the cash as sales revenue.2. Recorded as sales revenue $75,000 of cash received for services to be rendered inMarch 2016.3. Sold equipment with a book value $15,000 for $20,000 cash and a $35,000 longtermnote receivable. Recorded $55,000 of sales revenue and failed to remove thesold equipment from the books.4. TagPro recorded only half of its actual depreciation expense during 2016.d. Recalculate the ratios in question b after taking into account the transactions and eventslisted in part c. You may ignore any income tax effects.e. Was TagPro successful in its effort to change the portrait of the company painted by thefinancial statements?ACCT: 2100Spring 2016Chapter 5 Take Home QuizFollowing are the balance sheet and income statement for TagPro Inc.:TagPro, Inc.Balance SheetsAssetsCash and cash equivalentsAccounts receivable, net of allowance for doubtfulaccounts of $10,970 at 01/31/16 and $11,352 01/31/15InventoryShort-term marketable securitiesTotal current assetsJanuary 3120162015$119,790481,725$113,528457,512139,357108,140849,012144,731107,934823,705890,401860,30483,832$ 1,823,24573,874$ 1,757,883LiabilitiesAccounts payableAccrued compensationUnearned revenueIncome taxes payableOther current liabilitiesTotal current liabilities$102,23376,23590,01019,13569,518357,131$107,18452,98380,24717,92551,582309,921Notes payableOther long-term liabilitiesTotal liabilities217,19626,964601,291271,68026,912608,513276,313945,6411,221,954$ 1,823,245249,494899,8761,149,370$ 1,757,883Property, plant and equipment, net of accumulateddepreciationOther assetsTotal assetsStockholders’ equityCommon stock, no par value; 250,000 shares authorized;113,400 and 92,050 shares issued and outstandingrespectivelyRetained earningsTotal stockholders’ equityTotal liabilities and stockholders’ equity TagPro, Inc.Income StatementFor the Year Ended January 31, 2016Product salesBad debt expenseCost of goods soldDepreciationDividendsIncome tax expenseInterest expenseResearch and developmentSelling, general & administrative expensesService revenueTotal$ 3,295,885-32,990-1,125,614-45,102-46,025-384,775-29,814-439,128-1,166,67220,000$45,765Required:a. Prepare in good form a classified (multi-step) income statement showing total revenue.b. Calculate the following ratios for 2016:1. Earnings per share2. Current ratio3. Gross profit percentage4. Return on assets5. Net profit margin6. Total asset turnoverc. Prepare the necessary journal entries to correct for each of the following attempts byTagPro to manipulate its financial statements. (Hint: compare the entry TagPro recordedto the correct entry to discern the correcting entry.)1. Issued an additional 5,000 shares of common stock in exchange for $25,000.Recorded the cash as sales revenue.2. Recorded as sales revenue $75,000 of cash received for services to be rendered inMarch 2016.3. Sold equipment with a book value $15,000 for $20,000 cash and a $35,000 longterm note receivable. Recorded $55,000 of sales revenue and failed to remove thesold equipment from the books.4. TagPro recorded only half of its actual depreciation expense during 2016.d. Recalculate the ratios in question b after taking into account the transactions and eventslisted in part c. You may ignore any income tax effects.e. Was TagPro successful in its effort to change the portrait of the company painted by thefinancial statements?
How to solve the part c, d, e on this file?c. Prepare the necessary journal entries to correct for each of the following attempts byTagPro to manipulate its financial statements. (Hint: compare the entry TagPro recordedto the correct entry to discern the correcting entry.)1. Issued an additional 5,000 shares of common stock in exchange for $25,000.Recorded the cash as sales revenue.2. Recorded as sales revenue $75,000 of cash received for services to be rendered inMarch 2016.3. Sold equipment with a book value $15,000 for $20,000 cash and a $35,000 longtermnote receivable. Recorded $55,000 of sales revenue and failed to remove thesold equipment from the books.4. TagPro recorded only half of its actual depreciation expense during 2016.d. Recalculate the ratios in question b after taking into account the transactions and eventslisted in part c. You may ignore any income tax effects.e. Was TagPro successful in its effort to change the portrait of the company painted by thefinancial statements?ACCT: 2100Spring 2016Chapter 5 Take Home QuizFollowing are the balance sheet and income statement for TagPro Inc.:TagPro, Inc.Balance SheetsAssetsCash and cash equivalentsAccounts receivable, net of allowance for doubtfulaccounts of $10,970 at 01/31/16 and $11,352 01/31/15InventoryShort-term marketable securitiesTotal current assetsJanuary 3120162015$119,790481,725$113,528457,512139,357108,140849,012144,731107,934823,705890,401860,30483,832$ 1,823,24573,874$ 1,757,883LiabilitiesAccounts payableAccrued compensationUnearned revenueIncome taxes payableOther current liabilitiesTotal current liabilities$102,23376,23590,01019,13569,518357,131$107,18452,98380,24717,92551,582309,921Notes payableOther long-term liabilitiesTotal liabilities217,19626,964601,291271,68026,912608,513276,313945,6411,221,954$ 1,823,245249,494899,8761,149,370$ 1,757,883Property, plant and equipment, net of accumulateddepreciationOther assetsTotal assetsStockholders’ equityCommon stock, no par value; 250,000 shares authorized;113,400 and 92,050 shares issued and outstandingrespectivelyRetained earningsTotal stockholders’ equityTotal liabilities and stockholders’ equity TagPro, Inc.Income StatementFor the Year Ended January 31, 2016Product salesBad debt expenseCost of goods soldDepreciationDividendsIncome tax expenseInterest expenseResearch and developmentSelling, general & administrative expensesService revenueTotal$ 3,295,885-32,990-1,125,614-45,102-46,025-384,775-29,814-439,128-1,166,67220,000$45,765Required:a. Prepare in good form a classified (multi-step) income statement showing total revenue.b. Calculate the following ratios for 2016:1. Earnings per share2. Current ratio3. Gross profit percentage4. Return on assets5. Net profit margin6. Total asset turnoverc. Prepare the necessary journal entries to correct for each of the following attempts byTagPro to manipulate its financial statements. (Hint: compare the entry TagPro recordedto the correct entry to discern the correcting entry.)1. Issued an additional 5,000 shares of common stock in exchange for $25,000.Recorded the cash as sales revenue.2. Recorded as sales revenue $75,000 of cash received for services to be rendered inMarch 2016.3. Sold equipment with a book value $15,000 for $20,000 cash and a $35,000 longterm note receivable. Recorded $55,000 of sales revenue and failed to remove thesold equipment from the books.4. TagPro recorded only half of its actual depreciation expense during 2016.d. Recalculate the ratios in question b after taking into account the transactions and eventslisted in part c. You may ignore any income tax effects.e. Was TagPro successful in its effort to change the portrait of the company painted by thefinancial statements?
