ACCT 550 Course Project Balance Sheet and Single-Step Income Statement
Course Project Title: Balance Sheet and Single-Step Income Statement
Objective
To prepare a comprehensive balance sheet and Single-Step Income Statement presented in good form and derived from a list of various accounts. The amounts relative to each account will be given and the student will learn to determine whether an account is a balance sheet account or a temporary account that belongs to the income statement. The accounts will be comprised of all the various subgroupings in the balance sheet (Current Assets, Investment, Fixed Assets, Intangibles, and Other Assets, as well as Current Liabilities, Long-term Liabilities, and the Equity sections).
Guidelines
Obtain the list of accounts under the title of Course Project in Doc Sharing
Determine which accounts belong to the Balance Sheet and which accounts belong to the Income Statement
Determine to which subgroup each account belongs
Arrange the accounts in proper order and functionality
Prepare a Comprehensive Balance Sheet in good form
Prepare a Single-step Income Statement in good form
Put the Course Project in the Dropbox for the project in Week 8
Grading Rubrics
Category Points % Description
Making proper selection of accounts relative to the balance sheet or the income statement 30 20 From the provided listing of accounts determine which accounts are Balance Sheet accounts and which accounts are Income Statement accounts.
Putting the accounts into the proper subgroup according to functionality 15 10 Each account belongs to a particular subgroup. The student is to determine which subgroup the account belongs. This should be done according to functionality.
Preparing the balance sheet in good form 45 30 Proper form is important in the preparation of the balance sheet. Examples can be found in the text.
Preparing the income statement in good form 45 30 Proper form is important in the preparation of the income statement. Examples can be found in the text.
Ensuring that the Balance Sheet and the Income Statement have been computed correctly 15 10 It is important that the balance sheet and income statement are computed correctly and have the correct totals. An incorrect total in any part of the financials can invalidate the entire project.
Total 150 100 A quality project will meet or exceed all of the above requirements.
Course Project Listing of Accounts:
Accounts Payable $197,532
Account Receivable 165,824
Accrued Interest on Notes Payable 500
Accrued Liabilities 9,500
Accumulated Depreciations 341,200
Additional Paid-in Capital 37,500
Administrative Expenses 350,000
Allowance for doubtful accounts 1,850
Building 975,800
Cash 42,485
Common Stock 400,000
Copyrights 105,000
Cost of Goods Sold 1,000,000
Customer Deposits
(expected to be paid next year) 420
Deposits with Vendors
(based on a long-term purchase contract) 50,000
Depreciation Expense
(40% – Selling, 60% – Administrative) 100,000
Dividend Income 30,000
Goodwill 100,000
Income Tax Expense 82,250
Income Taxes Payable 62,520
Interest Revenue 25,000
Inventories 499,493
Investments in Warren Co. 87,500
Land 125,000
Mortgage Payable ($1,500 per month) 308,000
Notes Payable to Banks 50,000
Notes Receivable (due next year) 23,000
Patents 125,000
Preferred Stock, 7% 300,000
Prepaid Expenses 16,252
Rental Income 50,000
Retained Earnings 162,582
Selling Expenses 300,000
Salaries Payable 52,000
Sales Discounts 120,000
Sales Revenue 2,000,000
Securities (available for sale) – at fair
Market value 28,250
Trademarks 80,000
Twenty-year, 12% Bonds, due 1/1/2013 500,000