Project Homework: Adjusting Entries & Communication
This is the third of three milestone homework that will lead to completion of your course project. In this homework, you will complete Critical Element 1: Adjusting Entries and Critical Element 2: Communication.
This milestone addresses the following course outcomes:
1. Differentiate between the Generally Accepted Accounting Principles and the International Financial Reporting Standards for their impact on financial statements.
2. Determine appropriate accounting treatments of business transactions, including adjusting entries, for their impact on the results of financial statements.
Continue to work with the company you chose to use in building your portfolio.
Specifically, the following critical elements must be addressed:
1. Adjusting Entries: For this part of the assessment, you will continue your financial analysis paper.
a. Explain the type of depreciation method your company uses and why they use this method.
b. Identify an example of an adjusting entry (other than depreciation), such as prepaid expenses, supplies, or unearned revenue, and whether or not your company has this account listed on the balance sheet. You could consider why this might not be listed.
2. Communication: For this part of the assessment, you will prepare memorandums to upper management addressing certain scenarios or situations.
a. As the controller of your chosen company, compose a memo to the CEO addressing the advantages and disadvantages of transitioning from GAAP to IFRS.
b. As the controller of your chosen company, compose a memo to the CEO addressing the following scenario: Your biggest customer has just gone bankrupt, and you must inform the CEO how this will affect your accounts receivable. Assume that the accounts receivable balance is at least $100,000.
Format your homework according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.