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What could a Logitech staff accountant have done if he/she knew that the CFO and controller failed to write down the discontinued Revue parts inventory?

In the fourth quarter of 2010, Logitech International released the Revue, a TV set-top box designed to integrate cable/satellite TV with internet content. The Revue Google search bar would be able to find any desired content from any provider and project that content to the TV screen. The Revue was manufactured by contract manufacturers, not […]

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How does Apple’s issuance of bonds and buyback of its own stock impact its accounting equation?

In May 2017, Apple Inc., filed a prospectus with the SEC, indicating that it would be issuing another $7 billion in bonds during 2017. (Apple issued $10 billion in bonds in February 2017 in the US and $1 billion in Taiwan.) With the bond proceeds, Apple will be buying back its own stock. Apple has […]

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How will Brooklinen, the luxury bedsheets startup, account for its $10 million Series A stock issuance?

Vicki and Rich Fulop, a millennial couple from Brooklyn, New York, went on vacation and stayed in a hotel where they fell in love with the bedsheets. When the Fulops made inquiries about how they might purchase the bedsheets, they found out that those sheets were not available for sale by retail customers.  Similar sheets […]

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What internal controls might have stopped a Cargill accountant from embezzling $3.1 million?

Cargill, Inc., is the largest privately held corporation in the United States as measured by revenue. According to Wikipedia, if it were a publicly-held corporation, it would rank number 12 on the Fortune 500. In addition to its agricultural business, it also deals in energy, food ingredients, financial services, and a broad array of other […]

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How should Ford treat the contingency resulting from the Ford Mustang Shelby GT350 owners’ class action lawsuit?

Ford Motor Company produces and sells the Ford Mustang Shelby GT350, which Ford markets as a track-ready car built to reach and sustain high speeds. Three of the 2016 Ford Mustang Shelby GT350 owners have filed a class action suit against Ford, alleging that these cars are not track-ready. These owners claim that the car […]

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How is Tesla’s balance sheet impacted by its issuance of common stock and convertible five-year notes?

Tesla, Inc. (NASDAQ: TSLA) is ramping up to begin production of the Tesla Model 3. The Model 3 is an all-electric four-door compact luxury sedan that will have a range of at least 215 miles. It will be the most affordable of the Tesla models, starting at $35,000 for the base model. As of mid-March […]

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Introductory financial accounting Jeopardy game for end-of-semester review

At the end of the semester, I thought it might be useful to have a review game before the final exam. I have created a Jeopardy-style game that covers basic topics within an introductory financial accounting course. This PowerPoint file contains a Jeopardy-style game suitable for use in an introductory financial accounting class. There are […]

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What costs at LimeBike, the bike sharing service, would be capitalized versus expensed?

LimeBike is a start-up founded in 2017 located in San Mateo, California. Its mission is to make shared bicycles accessible and affordable.  The company has taken the basic idea of shared bicycles and eliminated the need to return the bike to a docking station, which may not be near the cyclist’s destination. LimeBike charges $1 […]

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How will Dr Pepper Snapple’s dividend impact its financial statements?

On November 16, 2016, Dr Pepper Snapple Group, Inc. (NYSE: DPS) made the following announcement: “Dr Pepper Snapple Group, Inc. (NYSE: DPS) today announced that its Board of Directors declared a quarterly dividend of $0.53 per share on the company’s common stock.  The dividend is payable in U.S. dollars on January 5, 2017, to shareholders of record on December […]

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How long is the operating cycle of Williamette Valley Vineyards?

Oregon has the third most wineries in the United States; only California and Washington have more wineries. Williamette Valley Vineyards, Inc. (NASDAQ: WVVI) is one of these Oregon wineries and is publicly-held. Williamette Valley Vineyards produces and sells several types of bottled wines under its Williamette Valley Vineyards label, including Pinot Noir, Chardonnay, Pinot Gris, […]

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