ACCT 3150–Writing for the Accounting Profession
Question # 00409411
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Updated on: 10/20/2016 01:48 AM Due on: 10/20/2016
ACCT 3150 – Writing for the Accounting Profession
Assignment
#4
Initial draft due in Blackboard by noon October
19
Review by WAC Intern by November 9
Be sure to make appointments early!
Final draft due in Blackboard by noon,
November 19
For this assignment, you will need to perform research in the FASB
Accounting Standards Codification (ASC). To learn how to do so, you’ll
read key portions of the FASB’s “How to Use the Codification—
Codification Learning Guide.” Instructions for accessing the ASC
and the guide are posted in Blackboard.
You are the accountant for Leed Building & Supply (LBS), a small,
privately held company with a fiscal year-end of March 31. Here in
the last month of fiscal 2016, the owner,
Lee Leed, has come to you with a question about the financial
statement presentation of
a $15,000 bank loan maturing on June 30 of this year. Interest on the
loan is paid monthly, and the loan agreement allows for early payoff.
In addition to its regular checking account, LBS has a savings
account on deposit with the same bank with a current balance of
$18,000. Leed has decided to use the money in this account to pay
the loan when it comes due. Therefore, Leed is thinking that it might
make sense to net the loan and savings amounts and report only the
savings account in the upcoming fiscal 2016 balance sheet at an
amount of $3,000. Given the plan to use the savings balance to settle
the debt, Leed is concerned that it would be misleading to show an
$18,000 current asset as though it was available for other purposes.
The combining of the
two accounts would be explained in a note to the financial statements.
Leed wants your advice on the matter, and so you’ve indicated that
you’ll summarize your views in the form of a file memorandum.
Requireme
nts
Prepare the memorandum called for in this situation—identify the
fundamental accounting issue(s), perform appropriate research,
analyze your findings, and express a conclusion. Limit your memo to
no more than three pages. Also note these grading policies:
• Your initial draft should be (1) prepared with the same careful
attention to detail that all professional work demands and (2) • submitted in a finished, polished form. If its quality suggests a
“rough draft,” you will not be allowed to submit a revision and the
initial draft will be graded as the final version.
Even though the initial draft is not scored, remember that no
late submissions are accepted in this course. So if you fail to
meet the initial draft’s submission deadline, you will not be
allowed to submit a final version and you will receive a zero as your
score on Assignment #4.
Assignment
#4
Initial draft due in Blackboard by noon October
19
Review by WAC Intern by November 9
Be sure to make appointments early!
Final draft due in Blackboard by noon,
November 19
For this assignment, you will need to perform research in the FASB
Accounting Standards Codification (ASC). To learn how to do so, you’ll
read key portions of the FASB’s “How to Use the Codification—
Codification Learning Guide.” Instructions for accessing the ASC
and the guide are posted in Blackboard.
You are the accountant for Leed Building & Supply (LBS), a small,
privately held company with a fiscal year-end of March 31. Here in
the last month of fiscal 2016, the owner,
Lee Leed, has come to you with a question about the financial
statement presentation of
a $15,000 bank loan maturing on June 30 of this year. Interest on the
loan is paid monthly, and the loan agreement allows for early payoff.
In addition to its regular checking account, LBS has a savings
account on deposit with the same bank with a current balance of
$18,000. Leed has decided to use the money in this account to pay
the loan when it comes due. Therefore, Leed is thinking that it might
make sense to net the loan and savings amounts and report only the
savings account in the upcoming fiscal 2016 balance sheet at an
amount of $3,000. Given the plan to use the savings balance to settle
the debt, Leed is concerned that it would be misleading to show an
$18,000 current asset as though it was available for other purposes.
The combining of the
two accounts would be explained in a note to the financial statements.
Leed wants your advice on the matter, and so you’ve indicated that
you’ll summarize your views in the form of a file memorandum.
Requireme
nts
Prepare the memorandum called for in this situation—identify the
fundamental accounting issue(s), perform appropriate research,
analyze your findings, and express a conclusion. Limit your memo to
no more than three pages. Also note these grading policies:
• Your initial draft should be (1) prepared with the same careful
attention to detail that all professional work demands and (2) • submitted in a finished, polished form. If its quality suggests a
“rough draft,” you will not be allowed to submit a revision and the
initial draft will be graded as the final version.
Even though the initial draft is not scored, remember that no
late submissions are accepted in this course. So if you fail to
meet the initial draft’s submission deadline, you will not be
allowed to submit a final version and you will receive a zero as your
score on Assignment #4.
-
Rating:
/5
Solution: ACCT 3150–Writing for the Accounting Profession