Prepare the journal entries for all transactions

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Reference no: EM131950493

Intermediate Accounting Accounting Cycle Project

In this project, you have three main deliverables:

1. Financial statements including

a. income statement

b. balance sheet

c. statement of changes in stockholders' equity

d. all related notes. In the notes to the financial statement include notes on: significant accounting policies, cash and cash equivalents, revenue recognition, inventory, equipment, and any other notes you deem necessary.

You do not need to prepare a statement of cash flows.

2. A memo to the owners of Cherry & White Bike Company explaining and justifying the following accounting choices:

a. Accounting for inventory: inventory cost flow methods.

i. Determine possible alternatives and select a cost flow method for accounting for the racing bike inventory.

ii. Explain why you select the alternative that you use in the financial statements.

iii. Present an analysis of the alternatives.

iv. Show and discuss financial statements effects of the alternative methods and estimates such as change in net income, assets, or liabilities.

v. Examine the effects of the alternatives on the relevant common financial statement ratios of profitability, liquidity, and solvency.

Assume that CWB also used the method you selected or their standard bikes and children's bikes.

b. Accounting for equipment: purchase price and subsequent measurement.

i. Determine possible alternatives.

ii. Explain why you select the alternative that you use in the financial statements.

iii. Present an analysis of the alternatives.

iv. Show and discuss financial statements effects of the alternative methods and estimates such as change in net income, assets, or liabilities.

v. Examine the effects of the alternatives on the relevant common financial statement ratios of profitability, liquidity, and solvency.

You may consider looking at the Accounting Standards Codification (ASC) for guidance on accounting and alternatives.

3. Prepare the journal entries for all transactions in the general journal.

Attachment:- Assignment Files.rar

Reference no: EM131950493

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Reviews

len1950493

4/20/2018 3:40:19 AM

Detailed Question: So Let me explain how this should be done. So in the instructions it shows everything that should be done. In the assignment information file there are multiple questions that you have to do methods, which is basically that you use weighted average Periodic, Moving average Perpetual, FIFO Periodic, FIFO Perpetual, LIFO Periodic, LIFO Perpetual. PLEASE LET ME see all of them and state why the best one is the best one as said. Then that should be stated in the entries as well. This will take you to part 2 in the instructions and so on. There is a file called template which you can use the templates from that. I also showed an example sheet. The account numbers and names are in accounting information. Please let me know if you have questions or if you want to talk on the phone. PLEASE SHOW THE NOTES AND WORK DONE TO SOLVE PROBLEMS. ANSWER ALL QUESTIONS ON INSTRUCTION FILE.

len1950493

4/20/2018 3:40:13 AM

Income statement presentation is complete, accurate, and properly formatted multi-step income statement. Balance sheet presentation is complete, accurate, and properly formatted a classified balance sheet. Statement presentation is complete, accurate, and properly formatted multi-step statement. Notes are complete, accurate and well written.

len1950493

4/20/2018 3:40:08 AM

Proposes an appropriate accounting treatment and any possible alternatives that indicates a deep comprehension of the problem. Treatments and alternatives are sensitive to contextual factors of the case. Evaluation of appropriate accounting treatment and any possible alternatives is deep and elegant (for example, contains thorough and insightful explanation) and includes, deeply and thoroughly, all of the following: considers history of logic/ reasoning, examines feasibility of problem, reviews alternative, and weighs impacts of alternative.

len1950493

4/20/2018 3:40:04 AM

Uses language (word choice, vocabulary) that skillfully and clearly conveys meaning with no errors. Jargon used strategically and appropriately. Demonstrates sophisticated awareness and use of grammar and written mechanics. Free of any and all grammatical, spelling or punctuation errors. Consistently uses an appropriate, professional style and tone for the audience. Strong ability in analyzing and effectively addressing the needs of the assignment and intended audience. Presents an organized and influential message supported by very clearly identified main points. Paragraphs coherent, well sequenced and transitions display progression of thoughts/ideas. Document formatting and supporting visuals strongly enhance the effectiveness of the presentation and its clarity/cohesiveness.

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