ACCT315-1201A-01 Intermediate Accounting I Assignment Name: Unit 4 Group Project Deliverable Length: 1–3 pages; Excel file Details: It is the end of a reporting period. Because there are more people than usual retiring this year, your manager has asked your accounting department to create 2 things: A process documentation detailing the different methods of preparing income statements, specific sections of the income statement, and how to handle the special types of income statement items Basic financial statements for your company Visit the SEC's Web site (http://idea.sec.gov/idea/searchidea/companysearch_idea.html). Select a company filing of your choice that contains a multiple-step income statement. Communicate your selection with your group (each of you should submit a different company). Submit the link to this filing as proof of your research. Prepare a process documentation that is prepared in a professional manner because it will be the desktop guide used by others in the event of your absence to prepare the financial statements for Music Warehouse. is in the form of a memorandum or as a numbered listing of items, depending on your individual preference. includes the following elements: a definition and description of the specific sections of the income statement a description of the different methods of preparing income statements an explanation of the conceptual guidelines for reporting income how to handle the special types of income statement items Using the information below, do the following: Prepare a multiple-step income statement for Music Warehouse. Prepare a statement of changes in stockholder's equity for Music Warehouse. Music Warehouse Adjusted Trial Balance December 31, 2008 Cash Debit $24,675 Credit  Accounts Receivable 5,625   Inventory 65,980   Land 93,000   Building 289,000   Accumulated Depreciation   75,000 Notes Payable   85,000 Accounts Payable   53,600 Interest... 

ACCT315-1201A-01 Intermediate Accounting I   

Assignment Name: Unit 4 Group Project   

Deliverable Length: 1–3 pages; Excel file   

Details: It is the end of a reporting period. Because there are more people than usual retiring this year, your manager has asked your accounting department to create 2 things:

A process documentation detailing the different methods of preparing income statements, specific sections of the income statement, and how to handle the special types of income statement items

Basic financial statements for your company

Visit the SEC's Web site (http://idea.sec.gov/idea/searchidea/companysearch_idea.html).

Select a company filing of your choice that contains a multiple-step income statement.

Communicate your selection with your group (each of you should submit a different company).

Submit the link to this filing as proof of your research.

Prepare a process documentation that

is prepared in a professional manner because it will be the desktop guide used by others in the event of your absence to prepare the financial statements for Music Warehouse.

is in the form of a memorandum or as a numbered listing of items, depending on your individual preference.

includes the following elements:

a definition and description of the specific sections of the income statement

a description of the different methods of preparing income statements

an explanation of the conceptual guidelines for reporting income

how to handle the special types of income statement items

Using the information below, do the following:

Prepare a multiple-step income statement for Music Warehouse.

Prepare a statement of changes in stockholder's equity for Music Warehouse.   

Music Warehouse   

Adjusted Trial Balance   

December 31, 2008   

  

 

 

Cash          

Debit

$24,675 Credit   

Accounts Receivable 5,625   

Inventory 65,980   

Land 93,000   

Building 289,000   

Accumulated Depreciation 75,000   

Notes Payable 85,000   

Accounts Payable 53,600   

Interest Payable 4,750   

Common Stock 10,000   

Additional Paid-in Capital 120,000   

Dividends 10,000   

Retained Earnings 59,980   

Sales 937,500   

Sales Discounts 22,675   

Cost of Goods Sold 723,000   

Salaries 81,000   

Utilities 8,900   

Repairs & Maintenance 5,225   

Telephone 2,850   

Interest Expense 4,400   

Depreciation Expense 9,500   

                   $1,345,830 $1,345,830  

The following is additional information needed for financial-statement preparation:

Loss as a result of hurricane damage on the building: $17,000 (assume that the building is not located in an area that sustains frequent hurricane damage.)

Loss because of the discontinuation of the cassette tape music segment: $26,875

Beginning of the year balance of common stock: $8,000 (assume that changes are related to issuance of common stock.)

Beginning of the year balance of additional paid-in capital: $102,000

Effective income tax rate: 35%

Objective: • Understand the concepts of income, explain the conceptual guidelines for reporting income, and define the elements of an income statement.

• Classify the assets and liabilities of a balance sheet, explain the statement of changes in stockholders' equity, and describe the Security and Exchange Commission (SEC) integrated disclosures and the major components of an income statement, compute income from continuing operations, and report the results from discontinued operations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACCT315-1201A-01 Intermediate Accounting I

Assignment Name: Unit 4 Discussion Board

Deliverable Length: 3–4 paragraphs

Details: A friend of yours who is not an accountant heard a story on the news about revenue recognition fraud and doesn't understand what that means.

Research the Internet to find a relevant article about revenue recognition fraud from an accounting publication or authoritative source regarding revenue recognition fraud.

• Based on your research, explain what is meant by the GAAP terms recognition and earned.

• Based on your research, explain why revenue recognition is an area of significant concern as it relates to ethical behavior of management.

• If you were in the situation described, explain to your friend what you would have done to prevent or remedy the revenue recognition fraud.

• Include in-text citations and references where appropriate.

Grading Criteria

Based on your research, explain what is meant by the GAAP terms recognition and earned. 25%

Based on your research, explain why revenue recognition is an area of significant concern as it relates to ethical behavior of management. 25%

If you were in the situation described, explain to your friend what you would have done to prevent or remedy the revenue recognition fraud. 20%

 

Objective: • Understand the concepts of income, explain the conceptual guidelines for reporting income, and define the elements of an income statement.

• Discuss the impact of technology on business and effective communication techniques and recognize situations that present potential ethical and legal issues and develop solutions for those issues.

• Understand capital markets and decision making, explain what is included in financial reporting, and discuss generally accepted accounting principles (GAAP) and the sources of GAAP.