Purpose
The purpose of this assignment is to assess your ability to:
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recommend year-end financial statements and disclosure notes
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analyze deferred taxes
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calculate property depreciation (fractional and tax depreciation methods)
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assess accounting for bad debts
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evaluate treatment of notes payable (amortization schedules and expense accruals)
Overview
To accomplish this assignment, you will be producing an assignment that
is structured utilizing the I.R.A.C. method. As a reminder, I.R.A.C. is
an acronym for:
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Issue(s)
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Rule(s)
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Analysis
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Conclusion
Action Items
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Based on the CFO's answers to your group's questions, your research
from the prior week, and the above Requirement readings, do the
following for each identified accounting issue with your group:
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Issue: Succinctly state the accounting issue.
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Rule: Using your research of authoritative accounting sources, briefly identify and explain the authoritative rule.
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Analysis: Apply the facts of the case study to the rule and provide
an in-depth analysis based on the issue. Your analysis should also
include supporting schedules, calculations, and/or correcting journal
entries.
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Conclusion: State your conclusion(s) based upon the results of your
analysis and indicate any changes to the financial statements and
disclosure notes resulting from the rule.
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Using Word and/or Excel, prepare corrected balance sheet and
statement of income and retained earnings including supporting schedules
that incorporate the following items (Excel - Financial statements and
journal entries. Word - Examinations, summaries, disclosure notes,
etc...):
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Evaluation of the issuance of common stock.
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Assessment of accounting for start-up costs.
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Analysis of the capitalization vs. expense treatment.
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Evaluation of revenue recognition including income deferral.
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Formulation of the accounting treatment for net operating losses.
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Calculation of the earnings per share.
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Prepare a statement of cash flows.
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Draft a complete set of financial statement disclosure notes.
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With your group, complete the work necessary for a formal
presentation of your findings to be delivered using a Word and/or Excel
document.
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Instructions to access the RIA Checkpoint and the FASB Accounting
Standards Codification databases. Accounting research data can be
accessed either through the:
Answers
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