ASU Wk 1 Accounting Faudulent Information & Financial Reporting Discussion
First two I need done by tomorrow the rest on fridayPart 1write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions with your classmates. Be substantive and clear, and use examples to reinforce your ideas.Click here ( https://www.accounting-degree.org/scandals/) to view a list of the top ten accounting scandals of the past decade. This will help you to focus on the importance of internal controls and section 404 of the Sarbanes-Oxley Act (SOX). There are several areas of financial fraud and fraudulent financial reporting. Each is different, but a violation is unethical and will create mistrust of the accountants and the accounting profession.Discuss the misrepresentation of financial information to the public, and answer the following questions: What statements are key targets for this manipulation, and what accounts found in the statements are the main focus? How can this fraudulent information be detected? What are the steps to prevent these actions? What is the importance of SOX section 404 to help with preventing fraud and fraudulent financial reporting? Part 2In this Individual Project, you will demonstrate an understanding of how to complete the accounting cycle steps. This will provide understanding on the importance of this cycle and the steps for accurate financial reporting.You will complete financial statements for a company using the data listed below.Accounting Data 4/1: Jim invested $100,000 in cash and $50,000 in equipment in the company. 4/2: The company prepaid for insurance with $1,200 cash. 4/3: The company paid cash for rent totaling $1,200. 4/5: The company completed services for a client for cash totaling $8,000. 4/10: The company provided a service for $15,000 on account. 4/11: The company purchased equipment for $5,000 and supplies for $3,000 on account. 4/15: The company paid $1,500 cash for employee salaries. 4/24: The company paid $300 cash for utility bills. 4/28: The company paid dividends totaling $2,000 cash. Adjusting entries completed on April 30 Insurance expired for the month of April. An ending count determined that supplies totaled $2,600. Wages of $3,000 were earned but not paid. Services of $5,000 were earned but not billed. Depreciation on the equipment is $500 per month. Using the above data, complete the following: Journal entries Posting to T-accounts Trial balance Adjusting entries Adjusting trial balance Income statement Statement of retained earnings Balance sheet and closing entries Click here to download a template to complete your project.Part 3write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.Assume a role in a company (e.g., chief financial officer [CFO] or capital market analyst) or as an outside potential investor, and using the financial statements from Unit 1, complete the following: Perform 2 different types of ratio analysis. Which type of ratio is best suited for your chosen position? Show the equations for each of your ratios, and explain why you chose them. Part 4Using the financial statements from Unit 1, complete the following: Perform a horizontal and vertical analysis of the Balance Sheet and the Income Statement for Jim’s Auto Body and Angel’s Auto Body, a similar company within the same industry. Analyze the data to glean information regarding the company’s profitability and any areas for improvement. Click here to download the data needed to complete this assignment.500-600 Words with excel templatePart 5400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.The terms tax avoidance and tax evasion or tax fraud have profoundly different meanings but are sometimes confused with each other. Complete the following: Research a case in which a company has committed tax fraud or evasion and summarize the details of the case including the IRS's position, findings and consequences. Might this case be interpreted as a case of tax avoidance instead of tax fraud? Be sure to fully explain your position and reasoning. Part 6 Prepare a 1120 U.S. Corporation Income Tax Return as Jim’s Auto Body, Inc. Complete the appropriate schedules in the 1120 and Statement 1 – Other Deductions. Prepare a 1065 U.S. Return of Partnership as Jim’s Auto Body, LLC. Complete the appropriate schedules in the 1065, Statement 1 – Other Deductions and the 1065 Schedule K1 for Jim. Note: This project is to be completed without the use of tax preparation software. Use of tax preparation software is considered cheating and is grounds for a failing grade.Additional InformationJim’s Auto Body (Inc., or LLC) 1122 Sesame Street New York, NY, 10002 EIN 90-1234567 Dated incorporated January 1st, 2010Jim Jameson 8701 Electric Avenue New York, NY, 10002SSN: 123-45-6789 Jim Jameson took on Fred as a partner for the LLC. Fred owns 50% of all profits, losses, and capital. You do not have to complete Part 2 K, L, or M on the 1065 Schedule K1 (there is not enough information provided). $4,500 salary expense is officer’s compensation for the corporation and guaranteed payment to partners for the LLC. $55,000 equipment is 7-year property in its 5th year of service and was placed into service in the middle of the year, thus using the half-year convention. Use the correct table from the IRS—Publication 946: How to Depreciate Property—to determine the tax deductible depreciation. Form 4562 is not required. Jim made four quarterly estimated tax payments of $800 each over the course of the year. In accordance with IRS instructions: "Corporations with total receipts and total assets at the end of the tax year less than $250,000 are not required to complete Schedules L, M-1, and M-2" (Internal Revenue Service, n.d.). This also applies to the LLC. For the 1065 Schedule K1, you will not have enough information to fill out Part 2 K, L, and M. Jim's Auto Body Revenues: Service Revenue 28,000 Total Revenue 28,000 Expenses: Salary Expense 4,500 Rent Expense 1,200 Utility Expense 300 Depreciation Expense 500 Insurance Expense 100 Supply Expense 400 7,000 Net Income 21,000 Jim's Auto Body Balance Sheet As of April 30, 2015 Assets Cash 101,800 Acct Rec'able 20,000 PP In 1,100 Equipment 55,000 Accu. Dep. 500 Supplies 2,600 Total Assets 180,000 ______________________________________________ ______________________________________________ Liabilities and Stockholders' Equity Liabilities: Accounts Payable 8,000 Salary Payable 3,000 Total Liabilities 11000.00 Stockholders' Equity: Common Stock 150,000 Retained Earnings 19000 ______________________________________________ ______________________________________________ Total Stockholders' Equity 169000.00 Total Liabilities and Stockholders' Equity 180,000 ______________________________________________ ______________________________________________ ReferenceInternal Revenue Service. (2015). Instructions for form 1120. Retrieved from https://www.irs.gov/pub/irs-pdf/i1120.pdf