Southern New Hampshire University
ACC309 - Intermediate Accounting III
INSTRUCTIONS FOR FINAL (Due Week 7)
IMPORTANT NOTE:
Make sure to completely review the Rubric for Final Project
This page contains new information the must be included in the final project but has not been in milestone 1 or milest
ITEMS TO COMPLETE FOR THIS MILESTONE:
GENERAL
In preparation of the annual audit, prepare appropriate adjusting entries and post to the trial balance workbook (red
preliminary 2017 statements (yellow tabs) to prepare revised financial statements that are audit ready. Calculate the imp
options will cause. (Orange tabs)
ADJUSTING ENTRIES
Prepare appropriate adjusting entries for patent
Prepare appropriate adjusting entries for capitalization of machine repair
ADJUSTED TRIAL BALANCE
Prepare the adjusted trial balance
REVISED FINANCIAL STATEMENTS
Prepare a revised income statement - include comprehensive income
Prepare a revised retained earnings statement
Prepare a revised balance sheet
EARNINGS PER SHARE
Determine the impact on earnings per share caused by each expansion plan option
NOTES TO THE FINANCIAL STATEMENTS - Prepare in a Word document - see the rubric for final project
A. Compose appropriate footnotes within a statement of comprehensive income in accordance with applicable acc
International Financial Reporting Standards, and SEC, as applicable.
, MANAGEMENT BRIEF - Prepare in a Word document - see the rubric for final project
I. Evaluate the company’s current performance based on the outcomes of relevant ratio analysis.
J. Discuss types of accounting changes encountered and when retrospective and prospective approaches should be
K. Predict the impact of new credit policies or a change in product or markets based on relevant ratio analysis.
L. Discuss relevant accounting standards for informing the company’s financial reporting strategies.
M. Explain how the four-step process was used for effectively correcting and reporting errors in the revision proces
FINANCIAL INFORMATION FOR THIS MILESTONE
Stockholder Equity / Earnings per share
Peyton Approved prides itself on transparency with shareholders and investors. The company has added two storefron
campaign, which is estimated to bring in 20,000 new customers over the next 6 months.
The company expects this expansion will require an additional $1,000,000 of capital and generate an additional $600,0
1) Issuing an additional $1,000,000 of 10%, 100-par convertible preferred stock (same class as is currently outstand
2) Issue an additional $1,000,000 of 8% convertible bonds (same terms as the existing issue)
3) $500,000 each of preferred stock and bonds
Other Items
On December 31, 20XX, the company repaired a packaging machine at cost of $27,000.00. It is expected that th
by four years. No depreciation is necessary this year.
The company spent $50,000 to obtain and defend a patent for its formula for dog treats. The patent took effec
protection. The $50,000 amount was incorrectly charged to Misc. Expense
1 Preferred Stock
Old shares 5000
new shares 10000
total 15000
current net profit
12,505,417.87
additional profit 600,000.00
Expected profit
13,105,417.87
earning per share(EPS)873.69
2 common stock
current stock 1750000
new stock 1000000
total 2750000
EPS 4.77
ACC309 - Intermediate Accounting III
INSTRUCTIONS FOR FINAL (Due Week 7)
IMPORTANT NOTE:
Make sure to completely review the Rubric for Final Project
This page contains new information the must be included in the final project but has not been in milestone 1 or milest
ITEMS TO COMPLETE FOR THIS MILESTONE:
GENERAL
In preparation of the annual audit, prepare appropriate adjusting entries and post to the trial balance workbook (red
preliminary 2017 statements (yellow tabs) to prepare revised financial statements that are audit ready. Calculate the imp
options will cause. (Orange tabs)
ADJUSTING ENTRIES
Prepare appropriate adjusting entries for patent
Prepare appropriate adjusting entries for capitalization of machine repair
ADJUSTED TRIAL BALANCE
Prepare the adjusted trial balance
REVISED FINANCIAL STATEMENTS
Prepare a revised income statement - include comprehensive income
Prepare a revised retained earnings statement
Prepare a revised balance sheet
EARNINGS PER SHARE
Determine the impact on earnings per share caused by each expansion plan option
NOTES TO THE FINANCIAL STATEMENTS - Prepare in a Word document - see the rubric for final project
A. Compose appropriate footnotes within a statement of comprehensive income in accordance with applicable acc
International Financial Reporting Standards, and SEC, as applicable.
, MANAGEMENT BRIEF - Prepare in a Word document - see the rubric for final project
I. Evaluate the company’s current performance based on the outcomes of relevant ratio analysis.
J. Discuss types of accounting changes encountered and when retrospective and prospective approaches should be
K. Predict the impact of new credit policies or a change in product or markets based on relevant ratio analysis.
L. Discuss relevant accounting standards for informing the company’s financial reporting strategies.
M. Explain how the four-step process was used for effectively correcting and reporting errors in the revision proces
FINANCIAL INFORMATION FOR THIS MILESTONE
Stockholder Equity / Earnings per share
Peyton Approved prides itself on transparency with shareholders and investors. The company has added two storefron
campaign, which is estimated to bring in 20,000 new customers over the next 6 months.
The company expects this expansion will require an additional $1,000,000 of capital and generate an additional $600,0
1) Issuing an additional $1,000,000 of 10%, 100-par convertible preferred stock (same class as is currently outstand
2) Issue an additional $1,000,000 of 8% convertible bonds (same terms as the existing issue)
3) $500,000 each of preferred stock and bonds
Other Items
On December 31, 20XX, the company repaired a packaging machine at cost of $27,000.00. It is expected that th
by four years. No depreciation is necessary this year.
The company spent $50,000 to obtain and defend a patent for its formula for dog treats. The patent took effec
protection. The $50,000 amount was incorrectly charged to Misc. Expense
1 Preferred Stock
Old shares 5000
new shares 10000
total 15000
current net profit
12,505,417.87
additional profit 600,000.00
Expected profit
13,105,417.87
earning per share(EPS)873.69
2 common stock
current stock 1750000
new stock 1000000
total 2750000
EPS 4.77
