ACCT 550 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

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
Prepare a Single-step Income Statement in good form
Put the Course Project in the Dropbox for the project in Week 8

Grading Rubrics

Category	Points	%	Description
Making proper selection of accounts relative to the balance sheet or the income statement	30	20	From the provided listing of accounts determine which accounts are Balance Sheet accounts and which accounts are Income Statement accounts.
Putting the accounts into the proper subgroup according to functionality	15	10	Each account belongs to a particular subgroup. The student is to determine which subgroup the account belongs. This should be done according to functionality.
Preparing the balance sheet in good form	45	30	Proper form is important in the preparation of the balance sheet. Examples can be found in the text.
Preparing the income statement in good form	45	30	Proper form is important in the preparation of the income statement. Examples can be found in the text.
Ensuring that the Balance Sheet and the Income Statement have been computed correctly	15	10	It is important that the balance sheet and income statement are computed correctly and have the correct totals. An incorrect total in any part of the financials can invalidate the entire project.
Total	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

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 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 1/1/2013 500,000

ACCT 550 Balance Sheet and Single-Step Income Statement