Assignment Type:Group Project Deliverable Length:1–3 pages; Excel file
Points Possible:200 Due Date:4/21/2013 11:59:59 PM CT
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
Individual Portion: - 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
Please add your file. Group Portion: 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.
You may work together, or you may assign each group member a different financial statement or part of the assignment to work on. Music Warehouse | Adjusted Trial Balance | December 31, 2008 | | | Debit | Credit | | Cash | $24,675 | | | 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%
Please add your file. The following grading criteria will apply to this assignment: Grading Criteria | Individual Portion | Submit a link to a company filing of your choice that contains a multiple-step income statement as proof of your research. | 10% | Prepare 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:
- 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
| 30% | Group Portion | Prepare a multiple-step income statement for Music Warehouse. | 30% | Prepare a statement of changes in stockholder's equity for Music Warehouse. | 30% | TOTAL | 100% |
APA formatted References
In-Text citation |
Solution: Income Statement