Order InstructionsCompetencyIn this project, you will demonstrate your mastery of the following competency:
Evaluate financial statement components for adherence to accounting principles and methodsApply accounting principles and methods to long-term assetsOverviewNow that you’ve had an opportunity to practice preparing financials for a small start-up company in the first project, you will have an opportunity to take the same skill set and apply it to a large-scale company for this second project. No matter the size of the company, adherence to accounting principles and methods is top priority. As a future accountant, you must remember the foundational practices of accounting when working with clients no matter their stature. This is why, again, in this project, you will need to show your calculations as well as provide rationale for your application of methods and principles.
As with any financial records, accuracy is key. It is imperative to keep accurate and complete records. You will have the opportunity to correct any errors in the Project Two Milestone Journal Entries tab.
ScenarioYou are a professional accountant who is working with an established construction company, Lou’s Crew, to prepare its financial statements for the current fiscal year. You have been given the accounts and information you need to prepare the financial statements, but you will need to use your understanding of the balance sheet accounts for long-term assets to report accurate information to the finance department.
For a large company, they would more than likely use a software program to manage their finances. For purposes of this assignment, the information has been provided in Microsoft Excel.
DirectionsUsing the scenario provided, complete the following in the same file, Project Two Workbook, that includes your original work from Project Two Milestone and the feedback from your instructor. All work should be completed in the VDI.
Note: You may choose to complete an assignment using a desktop program instead of SNHU’s virtual desktop (VDI); however, technical support will not be provided by SNHU if you select this option.
Project Two Workbook: Correct Journal Entries, Ledger Accounts, Income Statement, and Balance Sheet
Correct all journal entries from Project Two Milestone by using the Corrected Journal Entries tab.Highlight the corrected errors in green.Complete the Ledger Accounts, Income Statement, and Balance Sheet tabs in the same workbook based on the Corrected Journal Entries tab.Upload the entire completed Project Two Workbook for submission.Note: If you received a perfect score on the Project Two Milestone and do not need to correct any errors, simply note it in the designated section within the Corrected Journal Entries tab. You will receive full points for those specific criteria for this assignment.
Project Two Analysis Paper
Complete an analysis of the information contained in the completed Project Two Workbook including your revisions.Format your paper in APA style; specific formatting can be found in the What to Submit section.Address all of the rubric criteria for the Project Two Analysis Paper below.Specifically, you must address the following rubric criteria:
Project Two Workbook
Correct all errors for the Journal Entries and Inventory tabs of the workbook. Highlight corrections in green.Prepare the long-term assets accurately and completely on the Ledger Accounts tab in the workbook.Prepare the long-term assets components accurately and completely on the Income Statement and Balance Sheet tabs in the workbook.Project Two Analysis Paper
Determine the importance of the company having property, plant, and equipment as part of the long-term assets on its balance sheet. Consider the following questions to guide your response:What are the costs for determining what is included in the acquisition of property, plant, and equipment?What are the methods you can use to calculate depreciation? Which method makes the most sense for this company?Taking into account the disposal of property, plant, and equipment, what is the correct way to record a disposal?Determine the importance of the company having goodwill or intangibles as part of the long-term assets on its balance sheet. Consider the following questions to guide your response:How do companies acquire goodwill?What are examples of intangible assets and how are they amortized?Determine the importance of the company having long-term investments as part of the long-term assets on its balance sheet. Consider the following questions to guide your response:Should they retain long-term investments?How is the right-of-use asset determined on inception of the lease?How do you calculate the amortization the cost of a leased asset?Cite the applicable FASB Codification section for the following items as a list: property plant and equipment, investments, and intangibles.If you need writing support, access the Academic Support module of your course.
What to SubmitTo complete this project, you must submit the following:
Completed Project Two WorkbookSubmit the same file submitted for the Project Two Milestone with your instructor feedback and the following tabs completed: Corrected Journal Entries, Ledger Accounts, Income Statement, and Balance Sheet. The Ledger Accounts, Income Statement, and Balance Sheet tabs should be based on the Corrected Journal Entries tab. This work should be completed using Microsoft Excel in the VDI. Remember to save your file on your OneDrive before exiting the VDI.
Project Two Analysis PaperSubmit your APA style 3- to 5-page Microsoft Word document with double spacing, 12-point Times New Roman font, and one-inch margins. Sources should be cited according to APA style.