Description
Unformatted Attachment Preview
Financial Statement Preparation - (40 points)
Using the adjusted trial balance below, prepare the following financial statements:
1) Income Statement for the year ending 12/31/16 (15 points)
2) Statement of Owner's Equity for the year ending 12/31/16 (10 points)
3) Balance Sheet as of 12/31/16 (15 points)
Cookie Company - Adjusted Trial Balance
12/31/16
Debit
Credit
Cash
$100
Accounts Receivable
Equipment
Accumulated Deprn - Equipment
Accounts Payable
Unearned Revenue
Dog, Capital
Dog, Drawing
Service Revenue
Wage Expense
Supplies Expense
Phone Expense
50
200
40
20
60
165
30
150
30
15
10
(30 points)
Equipment cost = $ 100, Salvage value at end of useful life = $10
useful life = 3
years
Calculate depreciation expense in years 1 & 3 under:
a) STRAIGHT LINE
deprn expense in year 1:
deprn expense
in
year 3:
b) DOUBLE DECLINING BALANCE (DDB)
deprn expense in year 1:
deprn expense in year 3:
3) UNITS OF ACTIVITY (total units for entire life = 30 units)
Year 1, actual units = 8 deprn expense
Year 3, actual units = 10 deprn expense =
2) "ALLOWANCE METHOD" FOR UNCOLLECTIBLE ACCOUNTS (30 pc
Prepare the adjusting entries :
a) Using the % of Sales Method
Firm concludes that 1% of sales will be uncollectible. Sales = $100
"Allowance for Doubtful Accounts" has a credit balance = $ 7
b) Using Percentage of Receivables Method
Firm concludes that 5% of Accounts Receivable (A/R) will be uncollectible.
A/R = $100 "Allowance for Doubtful Accounts" has a credit balance of $ 2
Purchase answer to see full attachment
Purchase answer to see full attachment
Explanation & Answer:
1 Spreadsheet
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.
Explanation & Answer
Attached.
PART 1
DEPRECIATION
Cost
Salvage value
Useful life
Double declining rate
Dpreciation expense
Straight line
Year 1
Year2
Year 3
$100
10
3 Years
66.67%
Depreciation expense =(Cost - Salvage value)/Useful life in years
Depreciable cost
Depreciation expense
$90
$30
$90
$30
$90
$30
Double Declining balance Method
Year 1
Year2
Year 3
Depreciation expense =Book Value/Useful life in years * 2
Book Value
Depreciation expense
$100...
Completion Status:
100%
Review
Review
Anonymous
I was struggling with this subject, and this helped me a ton!
Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4
24/7 Homework Help
Stuck on a homework question? Our verified tutors can answer all questions, from basic math to advanced rocket science!
Most Popular Content
Marketing Plan III Starbucks Corporation Market Case Study
Hello guys, I hope you doing great. I want some help from you on my marketing plan.I have a marketing plan that divided in ...
Marketing Plan III Starbucks Corporation Market Case Study
Hello guys, I hope you doing great. I want some help from you on my marketing plan.I have a marketing plan that divided into three parts.My marketing plan is on Starbucks and my target are people with middle income and the people who enjoy having their coffee or flavor drink.Starbucks goal is quality.I have attach down three files that contain the requirements for the three parts of the marketing plan.
8 pages
Sexual Harrasment Policy
The sample sexual harassment policy falls in line with the latest supreme court decisions related to the topic of discussi ...
Sexual Harrasment Policy
The sample sexual harassment policy falls in line with the latest supreme court decisions related to the topic of discussion. Sexual harassment ...
submit both a horizontal and vertical analysis of Starbucks’ accounts receivable, fixed assets, and debt financing
For this assignment, due in Module Four, you will submit both a horizontal and vertical an ...
submit both a horizontal and vertical analysis of Starbucks’ accounts receivable, fixed assets, and debt financing
For this assignment, due in Module Four, you will submit both a horizontal and vertical analysis of Starbucks’ accounts receivable, fixed assets, and debt
financing. Use basic financial analysis to examine any horizontal and any vertical changes in Starbucks’ accounts receivable, fixed assets, and debt financing
balances over time. Be sure also to discuss how Starbucks’ methods for accounting for receivables and evaluating uncollectible receivables, purchase of fixed
assets, and methods of debt financing impact the recording process and presentation of financial statements (Critical Element II). In other words, what are this
company’s methods for accounting for receivables and evaluating uncollectible receivables? What types of fixed assets are acquired, and what methods are
preferred for debt financing? How do those affect how financial information is communicated?
Specifically, the following critical elements must be addressed:
II. Horizontal and Vertical Analysis: In this section, you will conduct horizontal and vertical analyses for the balance sheet and income statement accounts
and report any significant observations for a two-year period. You should include a table of your calculations as an appendix to your analysis. Include all
calculations in an Excel document. Specifically discuss the following categories:
Accounts Receivable:
Use basic financial analysis to examine any horizontal changes in Starbucks’ accounts receivable balances over time.
Use basic financial analysis to examine any vertical changes in Starbucks’ accounts receivable balances over time.
Analyze how Starbucks’ methods for accounting for receivables and evaluating uncollectible receivables impact the recording process and
presentation of financial statements. In other words, what are this company’s methods for accounting for receivables and evaluating
uncollectible receivables, and how do those affect how financial information is communicated?
Asset Acquisition, Depreciation, and Amortization:
Use basic financial analysis to examine any horizontal changes in Starbucks’ fixed assets, intangible assets, depreciation, and amortization
over time.
Use basic financial analysis to examine any vertical changes in Starbucks’ fixed assets, intangible assets, depreciation, and amortization
over time.
Analyze Starbucks’ methods for fixed asset and intangible asset acquisitions as well as depreciation and amortization, including asset
categorization. How do these methods affect the balance sheet, income statement, and statement of cash flows?
Debt Financing
Use basic financial analysis to examine any horizontal changes in Starbucks’ short- and long-term debt over time.
Use basic financial analysis to examine any vertical changes in Starbucks’ short- and long-term debt over time.
Analyze Starbucks’ method of debt financing. In your analysis, you should address both current and long-term liabilities, including the
issuance of bonds.
Rubric
Guidelines for Submission: Milestone One should adhere to the following formatting requirements: 2–3 pages (not including cover page or appendix), double-
spaced, using 12-point Times New Roman font and the most current guidelines for APA formatting. Include all calculations in an Excel document.
Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information,
review these instructions.
Critical Elements
Proficient (100%)
Needs Improvement (75%)
Not Evident (0%)
Value
Analysis: Accounts:
Horizontal
Uses basic financial analysis to
examine any horizontal changes in
Starbucks’ accounts receivable
balances over time
Uses basic financial analysis to
examine any horizontal changes in
Starbucks’ accounts receivable
balances over time, but with gaps in
accuracy or relevant detail
Does not use basic financial analysis
to examine any horizontal changes in
Starbucks’ accounts receivable
balances over time
10
Analysis: Accounts:
Vertical
Uses basic financial analysis to
examine any vertical changes in
Starbucks’ accounts receivable
balances over time
Uses basic financial analysis to
examine any vertical changes in
Starbucks’ accounts receivable
balances over time, but with gaps in
accuracy or relevant detail
Does not use basic financial analysis
to examine any vertical changes in
Starbucks’ accounts receivable
balances over time
10
Analysis: Accounts:
Methods
Analyzes how Starbucks’ methods for
accounting for receivables and
evaluating uncollectible receivables
impact the recording process and
financial statement presentation
Analyzes how Starbucks’ methods for
accounting for receivables and
evaluating uncollectible receivables
impact the recording process and
financial statement presentation, but
with gaps in logic or detail
Does not analyze how Starbucks’
methods for accounting for
receivables and evaluating
uncollectible receivables impact the
recording process and financial
statement presentation
10
Analysis: Asset:
Horizontal
Uses basic financial analysis to
examine any horizontal changes in
Starbucks’ fixed assets, intangible
assets, depreciation, and
amortization over time
Uses basic financial analysis to
examine any horizontal changes in
Starbucks’ fixed assets, intangible
assets, depreciation, and
amortization over time, but with gaps
in accuracy or relevant detail
Does not use basic financial analysis
to examine any horizontal changes in
Starbucks’ fixed assets, intangible
assets, depreciation, and
amortization over time
10
Analysis: Asset: Vertical
Uses basic financial analysis to
examine any vertical changes in
Starbucks’ fixed assets, intangible
assets, depreciation, and
amortization over time
Uses basic financial analysis to
examine any vertical changes in
Starbucks’ fixed assets, intangible
assets, depreciation, and
amortization over time, but with gaps
in accuracy or relevant detail
Does not use basic financial analysis
to examine any vertical changes in
Starbucks’ fixed assets, intangible
assets, depreciation, and
amortization over time
10
Analysis: Asset:
Methods
Analyzes Starbucks’ methods for fixed
asset and intangible asset
acquisitions as well as depreciation
and amortization for how they affect
the balance sheet, income statement,
and statement of cash flows
Analyzes Starbucks’ methods for fixed
asset and intangible asset
acquisitions as well as depreciation
and amortization for how they affect
the balance sheet, income statement,
and statement of cash flows, but with
gaps in logic or detail
Does not analyze Starbucks’ methods
for fixed asset and intangible asset
acquisitions as well as depreciation
and amortization for how they affect
the balance sheet, income statement,
and statement of cash flows
10
Analysis: Debt:
Horizontal
Uses basic financial analysis to
examine any horizontal changes in
Starbucks’ short- and long-term debt
over time
Uses basic financial analysis to
examine any horizontal changes in
Starbucks’ short- and long-term debt
over time, but with gaps in accuracy
or relevant detail
Does not use basic financial analysis
to examine any horizontal changes in
Starbucks’ short- and long-term debt
over time
10
Analysis: Debt: Vertical
Uses basic financial analysis to
examine any vertical changes in
Starbucks’ short- and long-term debt
over time
Uses basic financial analysis to
examine any vertical changes in
Starbucks’ short- and long-term debt
over time, but with gaps in accuracy
or relevant detail
Does not use basic financial analysis
to examine any vertical changes in
Starbucks’ short- and long-term debt
over time
10
Analysis: Debt: Method
Analyzes Starbucks’ method of debt
financing, addressing current and
long-term liabilities and the issuance
of bonds
Analyzes Starbucks’ method of debt
financing, addressing current and
long-term liabilities and the issuance
of bonds, but with gaps in logic or
detail
Does not analyze Starbucks’ method
of debt financing, addressing current
and long-term liabilities and the
issuance of bonds
10
Articulation of Response
Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Submission has major errors related
to citations, grammar, spelling,
syntax, or organization that
negatively impact readability and
articulation of main idea
Submission has critical errors related
to citations, grammar, spelling,
syntax, or organization that prevent
understanding of ideas
10
Total
100%
1 page
Connection Commitment Celebration
I agree that connection, celebration and commitment are very important in creating a strong business culture. Connection u ...
Connection Commitment Celebration
I agree that connection, celebration and commitment are very important in creating a strong business culture. Connection usually helps in connecting ...
Texas Woman's University Key Trends in the Clothing Industry Essay
Need help writing a 6 page essay for small business management class. Please review the attached instructions on essay.
Texas Woman's University Key Trends in the Clothing Industry Essay
Need help writing a 6 page essay for small business management class. Please review the attached instructions on essay.
Similar Content
Logic Of Masculinist Protection Terrorism And Civil Liberties Response
write a reflection based on the reading provided in the folder attached...
I want someone to help me do this final, I want to get 100%
I have an emergency tomorrow and I can't do it and it is by tomorrow.Please help me with my final...
Choose a CEO from the Fortune Global 500 list in industries that you have an interest in pursuing as a career. List the name of the CEO, the company name and the Fortune Global 500
Choose a CEO from the Fortune Global 500 list in industries that you have an interest in pursuing as a career. List the na...
Need help with Module 2 Article Discussions
The assignment instructions are attached. All that is needed is pick 3 of the articles to read and right two paragraphs fo...
Johnson & Wales University Personal Making Key Decisions Discussion
What if you could do something that you would not get caught at; something that would make you financially secure, happy a...
Business Assignment - Task 3 and Task 7
📌 Please bid for this assignment only if you can adhere to the following: • Stick to the given deadline, NO extensio...
1573620205174 Malaysia Hotel
The Malaysian hotel industry is one of the significant contributors to the Malaysian economy. The growth of the hotel indu...
Conflict Resolution Class Notes_245250220-Lessons-and-Learns-From-Conflict-Resolution-Process
uploads/services/161584/Conflict Resolution Class Notes_245250220-Lessons-and-Learns-From-Conflict-Resolution-Process.pdf...
Financial Management
Credit rating is a mathematical analysis carried out by lenders and financial institutions on an individual's creditworthi...
Related Tags
Book Guides
Shutter Island
by Dennis Lehane
Hidden Figures
by Margot Lee Shetterly
And Then There Were None
by Agatha Christie
The Secret Garden
by Frances Hodgson Burnett
The Prince
by Niccolò Machiavelli
Alice in Wonderland
by Lewis Carroll
The Underground Railroad
by Colson Whitehead
The Sixth Extinction An Unnatural History
by Elizabeth Kolbert
The Secret Life of Bees
by Sue Monk Kidd
Get 24/7
Homework help
Our tutors provide high quality explanations & answers.
Post question
Most Popular Content
Marketing Plan III Starbucks Corporation Market Case Study
Hello guys, I hope you doing great. I want some help from you on my marketing plan.I have a marketing plan that divided in ...
Marketing Plan III Starbucks Corporation Market Case Study
Hello guys, I hope you doing great. I want some help from you on my marketing plan.I have a marketing plan that divided into three parts.My marketing plan is on Starbucks and my target are people with middle income and the people who enjoy having their coffee or flavor drink.Starbucks goal is quality.I have attach down three files that contain the requirements for the three parts of the marketing plan.
8 pages
Sexual Harrasment Policy
The sample sexual harassment policy falls in line with the latest supreme court decisions related to the topic of discussi ...
Sexual Harrasment Policy
The sample sexual harassment policy falls in line with the latest supreme court decisions related to the topic of discussion. Sexual harassment ...
submit both a horizontal and vertical analysis of Starbucks’ accounts receivable, fixed assets, and debt financing
For this assignment, due in Module Four, you will submit both a horizontal and vertical an ...
submit both a horizontal and vertical analysis of Starbucks’ accounts receivable, fixed assets, and debt financing
For this assignment, due in Module Four, you will submit both a horizontal and vertical analysis of Starbucks’ accounts receivable, fixed assets, and debt
financing. Use basic financial analysis to examine any horizontal and any vertical changes in Starbucks’ accounts receivable, fixed assets, and debt financing
balances over time. Be sure also to discuss how Starbucks’ methods for accounting for receivables and evaluating uncollectible receivables, purchase of fixed
assets, and methods of debt financing impact the recording process and presentation of financial statements (Critical Element II). In other words, what are this
company’s methods for accounting for receivables and evaluating uncollectible receivables? What types of fixed assets are acquired, and what methods are
preferred for debt financing? How do those affect how financial information is communicated?
Specifically, the following critical elements must be addressed:
II. Horizontal and Vertical Analysis: In this section, you will conduct horizontal and vertical analyses for the balance sheet and income statement accounts
and report any significant observations for a two-year period. You should include a table of your calculations as an appendix to your analysis. Include all
calculations in an Excel document. Specifically discuss the following categories:
Accounts Receivable:
Use basic financial analysis to examine any horizontal changes in Starbucks’ accounts receivable balances over time.
Use basic financial analysis to examine any vertical changes in Starbucks’ accounts receivable balances over time.
Analyze how Starbucks’ methods for accounting for receivables and evaluating uncollectible receivables impact the recording process and
presentation of financial statements. In other words, what are this company’s methods for accounting for receivables and evaluating
uncollectible receivables, and how do those affect how financial information is communicated?
Asset Acquisition, Depreciation, and Amortization:
Use basic financial analysis to examine any horizontal changes in Starbucks’ fixed assets, intangible assets, depreciation, and amortization
over time.
Use basic financial analysis to examine any vertical changes in Starbucks’ fixed assets, intangible assets, depreciation, and amortization
over time.
Analyze Starbucks’ methods for fixed asset and intangible asset acquisitions as well as depreciation and amortization, including asset
categorization. How do these methods affect the balance sheet, income statement, and statement of cash flows?
Debt Financing
Use basic financial analysis to examine any horizontal changes in Starbucks’ short- and long-term debt over time.
Use basic financial analysis to examine any vertical changes in Starbucks’ short- and long-term debt over time.
Analyze Starbucks’ method of debt financing. In your analysis, you should address both current and long-term liabilities, including the
issuance of bonds.
Rubric
Guidelines for Submission: Milestone One should adhere to the following formatting requirements: 2–3 pages (not including cover page or appendix), double-
spaced, using 12-point Times New Roman font and the most current guidelines for APA formatting. Include all calculations in an Excel document.
Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information,
review these instructions.
Critical Elements
Proficient (100%)
Needs Improvement (75%)
Not Evident (0%)
Value
Analysis: Accounts:
Horizontal
Uses basic financial analysis to
examine any horizontal changes in
Starbucks’ accounts receivable
balances over time
Uses basic financial analysis to
examine any horizontal changes in
Starbucks’ accounts receivable
balances over time, but with gaps in
accuracy or relevant detail
Does not use basic financial analysis
to examine any horizontal changes in
Starbucks’ accounts receivable
balances over time
10
Analysis: Accounts:
Vertical
Uses basic financial analysis to
examine any vertical changes in
Starbucks’ accounts receivable
balances over time
Uses basic financial analysis to
examine any vertical changes in
Starbucks’ accounts receivable
balances over time, but with gaps in
accuracy or relevant detail
Does not use basic financial analysis
to examine any vertical changes in
Starbucks’ accounts receivable
balances over time
10
Analysis: Accounts:
Methods
Analyzes how Starbucks’ methods for
accounting for receivables and
evaluating uncollectible receivables
impact the recording process and
financial statement presentation
Analyzes how Starbucks’ methods for
accounting for receivables and
evaluating uncollectible receivables
impact the recording process and
financial statement presentation, but
with gaps in logic or detail
Does not analyze how Starbucks’
methods for accounting for
receivables and evaluating
uncollectible receivables impact the
recording process and financial
statement presentation
10
Analysis: Asset:
Horizontal
Uses basic financial analysis to
examine any horizontal changes in
Starbucks’ fixed assets, intangible
assets, depreciation, and
amortization over time
Uses basic financial analysis to
examine any horizontal changes in
Starbucks’ fixed assets, intangible
assets, depreciation, and
amortization over time, but with gaps
in accuracy or relevant detail
Does not use basic financial analysis
to examine any horizontal changes in
Starbucks’ fixed assets, intangible
assets, depreciation, and
amortization over time
10
Analysis: Asset: Vertical
Uses basic financial analysis to
examine any vertical changes in
Starbucks’ fixed assets, intangible
assets, depreciation, and
amortization over time
Uses basic financial analysis to
examine any vertical changes in
Starbucks’ fixed assets, intangible
assets, depreciation, and
amortization over time, but with gaps
in accuracy or relevant detail
Does not use basic financial analysis
to examine any vertical changes in
Starbucks’ fixed assets, intangible
assets, depreciation, and
amortization over time
10
Analysis: Asset:
Methods
Analyzes Starbucks’ methods for fixed
asset and intangible asset
acquisitions as well as depreciation
and amortization for how they affect
the balance sheet, income statement,
and statement of cash flows
Analyzes Starbucks’ methods for fixed
asset and intangible asset
acquisitions as well as depreciation
and amortization for how they affect
the balance sheet, income statement,
and statement of cash flows, but with
gaps in logic or detail
Does not analyze Starbucks’ methods
for fixed asset and intangible asset
acquisitions as well as depreciation
and amortization for how they affect
the balance sheet, income statement,
and statement of cash flows
10
Analysis: Debt:
Horizontal
Uses basic financial analysis to
examine any horizontal changes in
Starbucks’ short- and long-term debt
over time
Uses basic financial analysis to
examine any horizontal changes in
Starbucks’ short- and long-term debt
over time, but with gaps in accuracy
or relevant detail
Does not use basic financial analysis
to examine any horizontal changes in
Starbucks’ short- and long-term debt
over time
10
Analysis: Debt: Vertical
Uses basic financial analysis to
examine any vertical changes in
Starbucks’ short- and long-term debt
over time
Uses basic financial analysis to
examine any vertical changes in
Starbucks’ short- and long-term debt
over time, but with gaps in accuracy
or relevant detail
Does not use basic financial analysis
to examine any vertical changes in
Starbucks’ short- and long-term debt
over time
10
Analysis: Debt: Method
Analyzes Starbucks’ method of debt
financing, addressing current and
long-term liabilities and the issuance
of bonds
Analyzes Starbucks’ method of debt
financing, addressing current and
long-term liabilities and the issuance
of bonds, but with gaps in logic or
detail
Does not analyze Starbucks’ method
of debt financing, addressing current
and long-term liabilities and the
issuance of bonds
10
Articulation of Response
Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Submission has major errors related
to citations, grammar, spelling,
syntax, or organization that
negatively impact readability and
articulation of main idea
Submission has critical errors related
to citations, grammar, spelling,
syntax, or organization that prevent
understanding of ideas
10
Total
100%
1 page
Connection Commitment Celebration
I agree that connection, celebration and commitment are very important in creating a strong business culture. Connection u ...
Connection Commitment Celebration
I agree that connection, celebration and commitment are very important in creating a strong business culture. Connection usually helps in connecting ...
Texas Woman's University Key Trends in the Clothing Industry Essay
Need help writing a 6 page essay for small business management class. Please review the attached instructions on essay.
Texas Woman's University Key Trends in the Clothing Industry Essay
Need help writing a 6 page essay for small business management class. Please review the attached instructions on essay.
Earn money selling
your Study Documents