Posts Tagged: Journal entries

Chapter 11 for Quiznos

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Intermediate Accounting, Video Updates.

Quiznos, the Denver-based sandwich chain, is preparing to file for bankruptcy in the next few weeks, due to debt and declining sales. Questions: 1. This is not the first time that Quiznos has negotiated with creditors. Explain its out-of-court restructuring deal that occurred two years ago. 2. Assuming that the past debt load was similar… Read more »

Sometimes Plans Just Don’t Work Out

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Although it was an excellent strategy to run a two-minute Bob Dylan ad at the end of the third quarter, the moment of peak Super Bowl excitement, the Seahawks stole the show early in a 36-0 blowout. Questions: 1. How much did the 2-minute ad cost Chrysler? 2. According to the article, when will the… Read more »

A Christmas Miracle?

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A single father stumbles upon $50K in bonds in a discarded Christmas box and tries to return the money to the owner. Questions: 1. What are bearer bonds? What types of journal entries are associated with them for the issuer? Give examples. 2. What had Mr. Tran done that made these bonds worthless? What do… Read more »

It Takes Money to Make Money

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How much would you like to make per hour at your job or your next job? Legendary investor Warren Buffett makes about $1.54 million per hour (even when he is sleeping)! This article documents the 10 richest investors and entrepreneurs and their wealth gains during 2013. Questions: 1. Who is the wealthiest of those ten… Read more »

Target hit by credit-card breach

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On December 19, 2013, Target admitted that it was hit by an extensive theft of its customers’ credit-card and debit-card data over the Black Friday weekend. The theft was national in scope and happened in stores, not online. Questions: 1. When and what happened with respect to a card breach at T.J. Maxx and Marshalls… Read more »

Conflict of Interest?

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The commercials may sound wonderful, but unfortunately, patients are being victimized by medical credit cards. The cards, issued by specialty finance companies and commercial banks, carry huge interest rates after an initial zero interest period expires. There are also heavy penalties for late payments. Questions: 1. What types of services can be paid for with… Read more »

Trolling for Patent Infringement Cases

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One of the most striking results of a new academic study is that in 2012, litigation by patent monetization entities now represents a majority of the patent litigation filed in the United States. Specifically, patent monetization entities filed 58% of the patent lawsuits in 2012. This is a sharp rise from 2007, when patent monetization… Read more »

So, is it a record if you don’t pay for it?

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For all you Starbuck’s watchers, remember in February 2012 when Logan Warren held the record for the most expensive Starbuck’s drink? It was a 31-ounce Trenta that cost $23.60. Into it went a Java Chip Frappuccino, enhanced with plenty of that’ll-cost-you-add-ons: 16 shots of espresso, soy milk, caramel, banana and strawberry purees, vanilla beans, and… Read more »

Hyundai & Kia overstated mileage

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Hyundai Motors America and Kia Motors America are being forced to lower the fuel economy estimates on the majority of their 2012-13 models after an investigation by the Environmental Protection Agency found that the companies overstated the fuel efficiency numbers for their vehicles in previous years. Based on the audit, they will also have to… Read more »

Long Island Stock Broker Creates Complex Web of Deceit

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Stockbroker, Mark Hotton, defrauded the producers of a Broadway production of “Rebecca,” through the combination of a fictitious loan and phantom investors, conjured up as part of a sham plan to rescue the financially ailing show. Questions: 1. How was the complex fraud described by federal authorities? 2. How could the producers have been proactive… Read more »