Course Project
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
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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, dated 12/31/14
Prepare a Single-step Income Statement in good form for calendar year 2014
Put the Course Project in the Dropbox for the project in Week 7
Note: You will not have enough information to calculation EPS.
Grading Rubrics
Category
Points %
Making proper selection of
accounts relative to the
balance sheet or the income
statement
30
From the provided listing of accounts determine
20 which accounts are Balance Sheet accounts and
which accounts are Income Statement accounts.
Putting the accounts into the
proper subgroup according
to functionality
15
Each account belongs to a particular subgroup. The
student is to determine which subgroup the account
10
belongs. This should be done according to
functionality.
Preparing the balance sheet
in good form
45
30
Preparing the income
statement in good form
45
Proper form is important in the preparation of the
30 income statement. Examples can be found in the
text.
Ensuring that the Balance
15
10 It is important that the balance sheet and income
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Description
Proper form is important in the preparation of the
balance sheet. Examples can be found in the text.
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Course Project
Sheet and the Income
Statement have been
computed correctly
Total
statement are computed correctly and have the
correct totals. An incorrect total in any part of the
financials can invalidate the entire project.
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
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Course Project
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, (due next year)
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 1/1/2017
500,000
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