Hello, Documents 1 and 2 are giving info about a company. Week 3 document has a yellow highlighted requirement. I did my IR for issue 1 and 2 please check on them and do the AC for them( I do not have to do the rest of the 13 questions). And I need the Retained Earnings statement for the whole company. Thank you
Action Items
1. Based on the CFO's answers to your group's questions, your research from Issue and Rule Research, and your required readings, do the following for each identified accounting issue (1 and 2 only in yellow high light) :
a. Issue: Succinctly state the accounting issue.
b. Rule: Using your research of authoritative accounting sources, briefly identify and explain the authoritative rule.
c. 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.
d. 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.
2. 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...):
a. Prepare and Calculate the Retained Earnings
Notes:
1. Instructions to access the RIA Checkpoint and the FASB Accounting Standards Codification databases. Accounting research data can be accessed either through the:
a. RIA Checkpoint database - Practice Area: Accounting, Audit and Corporate Finance located on the Franklin library website or through the
2. American Accounting Association (AAA) FASB Codification student login. Login information for the AAA website can be obtained from your professor.
YOUR QUESTIONS AND CLIENT RESPONSES
Issue 1. Are all receivables collectible? Do you require an allowance for doubtful accounts?
Client response: Collection of the receivables will be no problem. We know all the customers with whom we have a contract and we have reviewed each of the accounts at year-end for any potential problems. Everyone has paid on time thus far.
Issue 2. Are any supplies still unused at year-end? If so, did you take a physical inventory of them?
Client response: There is usually a quantity of shop supplies on hand. Also, the quantities are fairly stable over time. We took an inventory on January 2. I computed the cost of the items from the latest invoices and derived an amount of $5,190.
My IR :
Issue number (1)
Issue: Aguamaint wound up discounting $69,600 of their receivables this year since they could not gather on them. They feel that they may need to discount an extra money from the open records on their books as of December 31, 20X1. Also, Aguamaint has an overdue debt on its accounts, for which in the foreseeable future the receipt of cash or cash equivalents for repayment (execution) of this debt is not expected, it is considered doubtful. The foreseeable future refers to a period of at least three years.
Rule: The rule for the stipend for uncollectible records is in ASC 310-10-35-10 Loss from Uncollectible Receivables. The standard necessitates that a recompense be made when both of two conditions are met. The primary condition is that there should be data before giving the fiscal summaries that demonstrates that there is a chance of no gathering on a receivable. The subsequent condition is that the misfortune on the receivable can sensibly be assessed. On the off chance that these conditions can be meet than a section should be offered for the leniency. Also, a disclosure note needs to be made in the financial statements, it is all about the allowance regardless of whether if any entry is made or not.
Issue number (2)
Issue: On December 31, Aguamaint led a physical stock of their shop supplies. They determined the expense of the stock dependent on the most current solicitations. They booked a modifying section to catch this expense. They do not need to bother with an extra changing passage this year.
Rule: The rule for booking Inventory is FASB 330-10-30 and 35. This guidelines expresses that an organization that has working materials that would be utilized in the typical course of working together ought to be reserved as stock during the period in which they were bought. This assists with coordinating suitable expenses against incomes. Cost should be resolved dependent on how the stock is estimated yet most stock is esteemed at the lower of cost or net feasible worth. A section should be made to book the fitting measure of stock dependent on the valuation. Revelations should be made in the budget reports that depict things, for example, reason for valuation, technique for how the expenses were resolved and any significant misfortunes in stock expense.