Recent Tutoring Session Reviews
"The student and I reviewed the theories for stated/coupon/nominal rates, face value/par value/principal amount/maturity value, discounts, premiums, and effective yields. We also reviewed sample problems to learn how to do the journal entries for bonds issued at par on the interest date, bonds issued at discount on the interest date, bonds issued at premium on the interest date, bonds issued between interest dates, and the effective interest method. The student had a very positive attitude with a desire to learn toward the material that was reviewed. He had a question from his professor about the impact of different transactions on working capital. I gave him a tip to first determine what the formula is for working capital. Then, determine what factors would increase working capital. Based on that, review each transaction one by one to see if it would increase, decrease, or have no effect on working capital. I also gave him tips on how to do the journal entries for bonds as well as preparing a schedule of bond discount amortization using the effective interest method."
"The student sent 2 specific questions to work through some accounting pieces and then wanted to discuss her project for analyzing a UK grocery store. The first question asked how specific transactions would affect the balance sheet accounts shown in the data provided. She did really well with this section. The second question asked for Depreciation expense and balance sheet impacts of a company's fixed assets. These questions involved an asset sale, purchase and 2 different recognition methods. We spent a lot of time on this question, but it was very complicated and I believe she gained a better understanding. I put together a spreadsheet to help walk through each item of calculation and will be sending it to her. Finally, we talked a little about her project, but she needs some more time on analysis to help focus her questions. She will pull together her questions and send them prior to her presentation on Tuesday to clear up any items."
"During this session, we went over the concept of how to calculate break even point in units and dollars, and how to analyze these numbers as they relate to production of a product and profit. We went over how to calculate contribution margin and sales mix percentages. We used this information to make a recommendation to the company regarding whether they can or cannot be profitable with the sales mix that they chose and why. We went over formulas and definition of those formulas in layman's terms so that he could fully understand the real life implications. We worked through his case study until completion. By the end of the session, the student fully understood the concepts and how to analyze and apply the concepts. After the session, he will go over his notes and begin to memorize formulas so that he can be able to solve similar problems through the course."