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ACT360: INTERMEDIATE ACCOUNTING II

Credit Hours: 3 Contact Hours: This is a 3-credit course, offered in accelerated format. This means that 16 weeks of material is

covered in 8 weeks. The exact number of hours per week that you can expect to spend on each course will vary based upon the weekly coursework, as well as your study style and preferences. You should plan to spend 14-20 hours per week in each course’s reading material, interacting on the discussion boards, writing papers, completing projects, and doing research.

COURSE DESCRIPTION AND OUTCOMES

Course Description:

This course extends knowledge gained in ACT350 involving measurement and valuation related to the assets and current liabilities on the balance sheet, and provides a comprehensive study of accounting principles and financial statements using automation, business intelligence (BI), data analytics, and other digital technologies in performing measurement and valuation related to the liabilities and stockholders’ equity section of the balance sheet. Students will develop an understanding of the conceptual framework of financial reporting, the codification of accounting standards, financial statement analysis including the interpretation of data and financial statement disclosures. Students will analyze real-world cases, research accounting concepts, apply IFRS standards to GAAP standards (and present an assessment of the effect that each standard may have on a situation, communicate findings), and facilitate workplace solutions in a team-based environment.

Course Overview:

This course is the second of two Intermediate Accounting courses. You will be provided with a thorough understanding of financial accounting topics. Topics covered include long-term liabilities, stockholders’ equity, dilutive securities and earnings per share, investments, accounting for income taxes, pensions, revenue recognition and leases; accounting change and error analysis; full disclosure in financial reporting; and statement of cash flows. You are required to develop a Portfolio Project that demonstrates mastery of the concepts learned throughout the course through the analysis, recording, and accounting for transactions that span the covered topics using Artificial Intelligence (AI) and Business Intelligence (BI) tools.

Course Learning Outcomes:

1. Analyze transactions related to long-term debt and stockholders’ equity. 2. Investigate the various classifications of investment securities, changes in value, and disposal. 3. Examine lease accounting and revenue recognition. 4. Assess income tax concepts such as deferred taxes, temporary differences, and permanent differences. 5. Evaluate transactions associated with payroll, employee pensions, and postretirement benefits. 6. Explain the process of reviewing accounting changes and errors. SAMPLE

7. Review financial reporting disclosures and prepare the statement of cash flows using artificial intelligence (AI).

PARTICIPATION & ATTENDANCE

Prompt and consistent attendance in your online courses is essential for your success at CSU-Global Campus. Failure to verify your attendance within the first seven days of this course may result in your withdrawal. If for some reason you would like to drop a course, please contact your advisor.

Online classes have deadlines, assignments, and participation requirements just like on-campus classes. Budget your time carefully and keep an open line of communication with your instructor. If you are having technical problems, problems with your assignments, or other problems that are impeding your progress, let your instructor know as soon as possible.

COURSE MATERIALS

Textbook Information is located in the CSU-Global Booklist on the Student Portal.

COURSE SCHEDULE

Due Dates The Academic Week at CSU-Global begins on Monday and ends the following Sunday.

• Discussion Boards: The original post must be completed by Thursday at 11:59 p.m. MT, and peer responses posted by Sunday at 11:59 p.m. MT. Late posts may not be awarded points.

• Opening Exercises: Take the Opening Exercise before reading each week’s content to see which areas you will need to focus on. You may take these exercises as many times as you need. The Opening Exercises will not affect your final grade.

• Mastery Exercises: Students may access and retake Mastery Exercises through the last day of class until they achieve the scores they desire.

• Critical Thinking: Assignments are due Sunday at 11:59 p.m. MT. • Live Classroom: Although participation is not required, Live Classroom sessions are held Week 3 and in

Week 6. There are two total sessions.

WEEKLY READING AND ASSIGNMENT DETAILS

Module 1

Readings · Chapter 14 in Intermediate Accounting · Florou, A., & Kosi, U. (2015). Does mandatory IFRS adoption facilitate debt financing? Review of

Accounting Studies, 20(4), 1407-1456. · Pianeselli D., & Zaghini, A. (2014). The cost of firms’ debt financing and the global financial crisis.

Finance Research Letters, 11(2), 74-83. · Bartov, E., & Mohanram, P. (2014). Does income statement placement matter to investors? The case

of gains/losses from early debt extinguishment. The Accounting Review, 89(6), 2021-2055. SAMPLE

Opening Exercise (0 points)

Discussion (25 points)

Mastery Exercise (10 points)

Critical Thinking (60 points) Option #1: Bonds Issued at a Premium Computer Inc. is one of the pioneers in the manufacture of microprocessor for computers. On April 1, 2018, Intel issued $1,600,000 of 12% face value bonds for $1,703,411.40. The bonds are due in 4 years, and pay interest semiannually on September 30 and March 31. Intel sold the bonds to yield 10%.

a. Use the spreadsheet included in this assignment to prepare a bond interest expense and premium amortization schedule using the straight-line method.

b. Use the same spreadsheet to prepare a bond interest expense and premium amortization schedule using the effective interest method.

c. Prepare any adjusting entries for the end of the fiscal year, December 31, 2018, using the: 1. Straight-line method of amortization 2. Effective interest method of amortization.

Assume the company retires the bonds on June 30, 2019, at 103 plus accrued interest. Prepare the journal entries to record the bond retirement using the straight-line method of amortization and the effective interest method of amortization. Option #2: Bonds Issued at a Discount On October 1st, 2018, Franklin Corporation issued $2 million of 13.5% bonds for $1,970,143.36. The bonds are due in 4 years, and pay interest semiannually on March 31 and September 30. Assume an effective yield rate of 14%.

a. Use the spreadsheet included in this assignment to prepare a bond interest expense and discount amortization schedule using the straight-line method.

b. Use the attached spreadsheet to prepare a bond interest expense and discount amortization schedule using the effective interest method.

c. Prepare any adjusting entries for the end of the fiscal year December 31, 2018, using the: 1. Straight-line method of amortization 2. Effective interest method of amortization.

Assume the company retired the bonds on June 30, 2019, at 98 plus accrued interest. Prepare the journal entries to record the bond retirement using the straight-line method of amortization and the effective interest method of amortization.

Module 2

Readings · Chapter 12 in Intermediate Accounting · Currie, C., Althoff, J. Kelley, M. & Joseph,J. (2016, January 7). Classification and measurement - FASB

issues final standard. Retrieved from https://www.pwc.com/us/en/cfodirect/publications/in-brief/fasb-classification-measurement-final-standard.html

· Levi, S., & Segal, B. (2015). The impact of debt-equity reporting classifications on the firm’s decision to issue hybrid securities. European Accounting Review 24(4), 801-822. SAMPLE

· Popatia, K. (2017). IFRS & GAAP: Reconciling differences between accounting systems and assessing the proposed changes to the IFRS constitution. Northwestern Journal of International Law & Business, 38(1), 137-159.

· Beck, A. K., Behn, B. K., Lionzo, A., & Rossignoli, F. (2017). Firm equity investment decisions and U.S. GAAP and IFRS consolidation control guidelines: An empirical analysis. Journal of International Accounting Research, 16(1), 37-57. doi:10.2308/jiar-51657

· Weiss, J., C.P.A. (2015). Proposed accounting standards update (ASU), investments-equity method and joint ventures (ASC 323): Simplifying the equity method of Accounting/Proposed accounting standards update (ASU), derivatives and hedging (ASC 815): Effect of derivative contract novations on existing hedge accounting relationships (issue 15-D, A proposed consensus of the FASB emerging issues task force (EITF))/Proposed accounting standards update (ASU), derivatives and hedging (ASC 815): Contingent put and call options in debt instruments (issue 15-E, A proposed consensus of the EITF). Miller GAAP Update Service, 15(17), 1-8.




Critical Thinking (60 points) Option #1: Investments in Debt Securities Complete the following questions. In addition to answering the items below, you must submit an analysis of the assignment. Analyze the specific outcomes and write an analysis directed toward the team at BAJA Corporation describing what the numbers mean and how they relate to the business. Submit journal entries in the Excel file included with this assignment, and written segments in an MS Word document. For written answers, please make sure your responses are well-written, formatted per the CSU-Global Guide to Writing and APA, and have proper citations, where applicable. On January 1, 2017, BAJA Corporation purchased bonds with a face value of $600,000 for $616,747.06 The bonds are due June 30, 2020, carry a 13% stated interest rate, and were purchased to yield 12%. Interest is payable semiannually on June 30 and December 31. On March 31, 2018, in contemplation of a major acquisition, the company sold one-half the bonds for $319,000 including accrued interest; the remainder were held until maturity.

1. Prepare an investment interest income and bond premium amortization schedule using the effective interest method.

2. Prepare the journal entries to record the purchase of the bonds. 3. Prepare the journal entries to record each interest payment. 4. Prepare the journal entries to record the partial sale of the investment on March 31, 2018, and

the retirement of the bond issue on June 30, 2020. Option #2: Investments in Equity Securities Complete the following questions. In addition to answering the items below, you must submit an analysis of the assignment. Analyze the specific outcomes and write an analysis directed toward the team at Chaz Corporation describing what the numbers mean and how they relate to the business. Submit journal entries in the Excel file included with this assignment, and written segments in an MS Word document. For written answers, please make sure your responses are well-written, formatted per the CSU-Global Guide to Writing and APA, and have proper citations, where applicable. SAMPLE

ROCKY Corporation prepares quarterly financial statements and invests its excess funds in marketable securities. At the end of 2018, ROCKY's portfolio of trading investments consisted of the following equity securities:

Security Number of Shares

Cost per Share Fair Value per Share

Bold Company 1200 $66 $66 Silver Inc. 1920 43 44 Quarter Company

960 70 72

During the first half of 2019, ROCKY engaged in the following investment transactions:

Jan. 6 Sold one-half of the Bold shares for $45 per share. Feb. 3 Purchased 1400 shares of Johnson Corporation

common stock for $45 per share. Mar. 31 Dividends of $2,500 were received on the

investments, and the following information is available on market prices.

Security Fair Value per Share Bold Company $65 Silver Inc. 45 Quarter Company 70 Johnson Corporation 43

Apr. 14 Purchased 720 shares of Jordan Company preferred stock for $52 per share.

May 11 Sold the remainder of the Bold shares for $42 per share.

June 30 Dividends of $2,800 were received on investments, and the following information is available:

Security Fair Value per Share Bold Company $68 Quarter Company 69 Johnson Corporation 46 Jordan Company 50

1. Record Rocky's investment transactions for January 6 through June 30, 2019. 2. Show the items of income or loss from investment transactions that Rocky reports for each of

the first and second quarters of 2019. 3. Show how the preceding items are reported on the first and second quarter 2019 ending

balance sheets, assuming that management expects to dispose of the Bold and silver securities within the next year.

Module 3

Readings · Chapters 5, 18, & 19 in Intermediate Accounting · Strauss, L. (2017). Seeking safe dividends? Check the payout ratio. Barron's, 97(17), 27. SAMPLE

· Weiss, J. (2015). Proposed accounting standards update (ASU), compensation-stock compensation (ASC 718): Improvements to employee-share-based payment accounting (Part 1). Miller GAAP Update Service, 15(15), 1-9.

· Miller, P. B. W., & Bahnson, P. R. (2017). It’s time to fearlessly reform accounting for stock-based compensation. Accounting Today, 31(5), 20-21.



Live Classroom (0 points)


Critical Thinking (60 points) Option #1: JetBlue Airways Case Analysis Prepare your case analysis in a PowerPoint presentation. Please make sure your responses are well-written, formatted per the CSU-Global Guide to Writing and APA, and have proper citations, if applicable. The new revenue recognition standard issued by the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) will call for major changes in the way companies in the airline industry recognize revenue. Airlines may have to change how they account for loyalty status benefits, mileage credits, change fees, and breakage for tickets that expire unused. The American Institute of Certified Public Accountants (AICPA) has formed an airlines task force to address the implementation issues of the new standard for the airline industry. Assume that you have been called upon to present an analysis of the impact of the new standard on JetBlue. Refer to JetBlue’s (ticker symbol: JBLU) current/most recent financial statements (10-K) and the accompanying notes to answer the following questions. The current/most recent financial statement can be found on the SEC’s Edgar Company Filings page. Search for the company in the ‘Fast Search’ box by using the ticker symbol provided above. In the list of results, find the latest filing labeled 10-K and select the ‘Documents’ link. On the next page, select the document of type ’10-K’ to open it.

1. Provide an overview of JetBlue’s current fare structures and revenue sources. 2. For each of the following revenue categories, describe the current accounting, the likely

changes (if any) that the new revenue recognition standard will require, and the potential impact of those changes on patterns of revenue recognition:

• Flight Transportation (for tickets used and for ticket breakage) • Loyalty Program • Ancillary Services and Other Revenue.

3. Identify any areas that will require more discretion and judgment and specify why. Option #2: Southwest Airlines Case Analysis Prepare your case analysis in a PowerPoint presentation. Please make sure your responses are well-written, formatted per the CSU-Global Guide to Writing and APA, and have proper citations, if applicable. The new revenue recognition standard issue by the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) will call for major changes in the way companies in the airline industry recognize revenue. Airlines may have to change how they account for loyalty status benefits, mileage credits, change fees, and breakage for tickets that expire unused. The American Institute of Certified Public Accountants (AICPA) has formed an airlines task force to address the SAMPLE

implementation issues of the new standard for the airline industry. Assume that you have been called upon to present an analysis of the impact of the new standard on Southwest Airlines. Refer to Southwest’s (ticker symbol: LUV) current/most recent financial statements (10-K) and the accompanying notes to answer the following questions. The current/most recent financial statement can be found on the SEC’s Edgar Company Filings page. Search for the company in the ‘Fast Search’ box by using the ticker symbol provided above. In the list of results, find the latest filing labeled 10-K and select the ‘Documents’ link. On the next page, select the document of type ’10-K’ to open it.

1. Provide an overview of Southwest’s current fare structures and revenue sources. 2. For each of the following revenue categories, describe the current accounting, the likely

changes (if any) that the new revenue recognition standard will require, and the potential impact of those changes on patterns of revenue recognition:

• Flight Transportation (for tickets used and for ticket breakage) • Loyalty Program • Ancillary Services and Other Revenue.

3. Identify any areas that will require more discretion and judgment and specify why.

Module 4

Readings · Chapter 15 in Intermediate Accounting · Berman, M. (2016). New lease accounting and health care: The FASB's new standard for lease

accounting will bring significant change to real estate and contract transactions for healthcare organizations. Healthcare Financial Management, 70(5), 78-83.

· Grant, C. (2016). No more hiding lease liability. Strategic Finance, 98(1), 40-47. Opening Exercise (0 points)



Critical Thinking (60 points)

Option #1: Lease

Complete the following questions. In addition to answering the items below, you must submit an analysis of the assignment. Analyze the specific outcomes and write an analysis directed toward the team at Coco Inc. describing what the numbers mean and how they relate to the business. Submit journal entries in an Excel file, and written segments in an MS Word document. For written answers, please make sure your responses are well-written, formatted per the CSU-Global Guide to Writing and APA, and have proper citations, where applicable. Assume that the following facts pertain to a non-cancelable lease agreement between Coco Inc. and Bubs Corp, a Lessee.

Inception date January 1, 2018 Residual value of equipment at end of lease term, unguaranteed $100,000

Lease term 6 years

Economic life of leased equipment 8 years SAMPLE

Fair value of asset at January 1, 2017 $800,000 Lessor’s implicit rate 12% Lessee’s incremental borrowing rate 10%

The lessee assumes responsibility for all executory costs, which are expected to amount to $4,000 per year. The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line depreciation method for all equipment. 1. Using the spreadsheet Lease Amort Schedule, prepare an amortization schedule that would be suitable for the lessee for the lease term. 2. Using the spreadsheet Journal Entries, prepare the journal entries for the lessee for 2018 and 2019 to record the lease agreement and all expenses related to the lease. Assume the Lessee’s annual accounting period ends on December 31 and that reversing entries are used when appropriate. 3. Prepare journal entries for the lessor of the transaction. Option #2: Lease Complete the following questions. In addition to answering the items below, you must submit an analysis of the assignment. Analyze the specific outcomes and write an analysis directed toward the team at Fifth-Third Leasing Company describing what the numbers mean and how they relate to the business. Submit journal entries in an Excel file, and written segments in an MS Word document. For written answers, please make sure your responses are well-written, formatted per the CSU-Global Guide to Writing and APA, and have proper citations, where applicable. Assume that the following facts pertain to a non-cancelable lease agreement between Fifth-Third Leasing Company and Bob Evans Farms, a Lessee.

Inception date January 1, 2018 Residual value of equipment at end of lease term, guaranteed by the lessee $100,000

Lease term 6 years Economic life of leased equipment 8 years Fair value of asset at January 1, 2017 $800,000

Lessor’s implicit rate 10% Lessee’s incremental borrowing rate 12%

The lessee assumes responsibility for all executory costs, which are expected to amount to $4,000 per year. The asset will revert to the lessor at the end of the lease term. The lessee has guaranteed the lessor a residual value of $50,000. The lessee uses the straight-line depreciation method for all equipment. 1. Using the spreadsheet Lease Amort Schedule, prepare an amortization schedule that would be suitable for the lessee for the lease term. 2. Using the spreadsheet Journal Entries, prepare the journal entries for the lessee for 2018 and 2019 to record the lease agreement and all expenses related to the lease. Assume the Lessee’s annual accounting period ends on December 31 and that reversing entries are used when appropriate. 3. Prepare journal entries for the lessor of the transaction. SAMPLE

Module 5

Readings · Chapter 16 in Intermediate Accounting · Bauman, M. P., & Shaw, K. W. (2016). Balance sheet classification and the valuation of deferred

taxes. Research in Accounting Regulation, 28(2), 77-85. · Jordan, C. (2016). FASB's new standard for classifying deferred taxes: An expedient solution. The CPA

Journal, 86(7), 22-23. · Krumwiede, T., & Farrar, R. (2016). Essentials of accounting for income taxes: Inter-period tax

allocation. Taxes: The Tax Magazine, 94(12), 11-20, 51. Opening Exercise (0 points)




Option #1: Book and Income Tax Differences Complete the following questions. In addition to answering the items below, you must submit an analysis of the assignment. Analyze the specific outcomes and write an analysis directed toward the team at Geyser Company describing what the numbers mean and how they relate to the business. Submit journal entries in an Excel file, and written segments in an MS Word document. For written answers, please make sure your responses are well-written, formatted per the CSU-Global Guide to Writing and APA, and have proper citations, where applicable. Geyser Company began operations in 2017 and has provided the following information:

1. Pretax financial income for 2017 is $200,000. 2. The tax rate enacted for 2017 and future years is 40%. 3. Differences between the 2017 income statement and tax return are listed below:

a. Warranty expense accrued for financial reporting purposes amounts to $10,000. Warranty deductions per the tax return amount to $4,000.

b. Gross profit on construction contracts using the percentage-of-completion method for book purposes amounts to $184,000. Gross profit on construction contracts for tax purposes amounts to $124,000.

c. Depreciation of property, plant, and equipment for financial reporting purposes amounts to $60,000. Depreciation of these assets amounts to $80,000 for the tax return.

d. A $3,500 fine paid for violation of pollution laws was deducted in computing pretax financial income.

e. Interest revenue earned on an investment in tax-exempt municipal bonds amounts to $1,400.

4. Taxable income is expected for the next few years. Provided with this assignment is the Excel workbook containing the spreadsheets you will need for this exercise. Use the spreadsheet Journal Entries to prepare the journal entry to record income tax expense, deferred taxes, and income taxes payable for 2017. Draft the income tax expense section of the income statement, beginning with “Income before income taxes”. SAMPLE

Option #2: Book and Income Tax Differences Complete the following questions. In addition to answering the items below, you must submit an analysis of the assignment. Analyze the specific outcomes and write an analysis directed toward the team at John Hicks Company describing what the numbers mean and how they relate to the business. Submit journal entries in an Excel file, and written segments in an MS Word document. For written answers, please make sure your responses are well-written, formatted per the CSU-Global Guide to Writing and APA, and have proper citations, where applicable. John Hicks Company reports the following revenues and expenses in its pretax financial income for the year ended December 31, 2016:

1. Revenues total $229,600 and expenses total $160,100. 2. The tax rate enacted for 2016 is 35%, but in 2015 Congress enacted a 30% rate for 2017 and

future years. 3. Differences between the 2016 income statement and tax return are listed below:

a. Warranty expense accrued for financial reporting purposes amounts to $5,000. Warranty deductions per the tax return amount to $13,900.

b. Depreciation deducted for financial reporting exceeded depreciation deducted for income taxes by $11,000.

c. Percentage depletion deducted for income taxes exceeded cost depletion deducted for financial reporting by $15,600.

d. Legal expense of $9,800 was deducted for financial reporting; it will be deducted for income taxes when paid in a future year.

4. John Hicks expects its percentage depletion to exceed its cost depletion in each of the next five years by the same amount as in 2016. At the end of 2016, the other three expenses are expected to result in total future taxable or deductible amounts as follows:

Totals: Future taxable amounts Depreciation expense difference $63,000 Future deductible amounts Warranty expense difference 48,400 Legal expense difference 9,800

At the beginning of 2016, Quick had a deferred tax liability of $22,200 related to the depreciation difference and a deferred tax asset of $17,190 related to the warranty difference. Provided with this assignment is the Excel workbook containing the spreadsheets you will need for this exercise. Use the spreadsheet Journal Entries to prepare the journal entry to record income tax expense, deferred taxes, and income taxes payable for 2016. Assume no valuation allowance is necessary. Draft the income tax expense section of the income statement, beginning with “Income before income taxes”.

Module 6

Readings · Chapter 17 in Intermediate Accounting · Clark, M. (2014). Minimum pension law proposed to pad Americans’ retirement savings.

International Business Times. Retrieved from http://www.ibtimes.com/minimum-pension-law-proposed-pad-americans-retirement-savings-1690104 SAMPLE

· Walsh, M. W. (2014). Detroit rolls out new model: A hybrid pension plan. New York Times. Retrieved from http://dealbook.nytimes.com/2014/06/18/detroit-rolls-out-new-model-a-hybrid-pension-plan/?_php=true&_type=blogs&_r=0



Live Classroom (0 points)



Option #1: Pension Complete the following questions. In addition to answering the items below, you must submit an analysis of the assignment. Analyze the specific outcomes and write an analysis directed toward the team at Scottsdale Corp. describing what the numbers mean and how they relate to the business. Submit journal entries in an Excel file, and written segments in an MS Word document. For written answers, please make sure your responses are well-written, formatted per the CSU-Global Guide to Writing and APA, and have proper citations, where applicable. Scottsdale Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances relate to this plan. Plan assets $480,000 Projected benefit obligation 625,000 Accumulated OCI (PSC) 100,000 Dr.

Accumulated OCI (Gain/Loss) 85,000 Cr. As a result of the operation of the plan during 2017, the following additional data are provided by the actuary: Service cost for 2017 $90,000 Settlement rate 9% Actual return on plan assets in 2017 57,000

Expected return on plan assets 10% Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 76,000

Contributions in 2017 99,000 Benefits paid retirees in 2017 85,000 Avg. remaining service life (all employees) 12 years

1. Use the spreadsheet Pensions to prepare a pension worksheet. On the pension worksheet,

compute pension expense, pension asset/liability, projected benefit obligation, plan assets, prior service cost, and net gain or loss.

2. Prepare the journal entry using the spreadsheet Journal Entries to record pension expense in 2017.

3. Indicate the reporting of the 2017 pension amounts in the income statement and balance sheet using the spreadsheet Pensions. SAMPLE

4. What is the amount of deferred pension gain or loss that the company will carry forward to 2018?

Compute the same items as in (#1), assuming that the expected rate of return is 14% and the accumulated OCI (gain/loss) is a debit balance at January 1, 2017. Option #2: Pension Complete the following questions. In addition to answering the items below, you must submit an analysis of the assignment. Analyze the specific outcomes and write an analysis directed toward the team at Tsangaris Metro describing what the numbers mean and how they relate to the business. Submit journal entries in an Excel file, and written segments in an MS Word document. For written answers, please make sure your responses are well-written, formatted per the CSU-Global Guide to Writing and APA, and have proper citations, where applicable. Tsangaris Metro amended its pension plan effective January 1, 2018. The increase in the Pension Benefit Obligation (PBO) occurring as a result of the plan amendment is $630,000. Farris decides to use the years-of-service method to amortize the increase. As at January 1, 2018, the company has 60 employees who are entitled to the benefits of the amendment. Farris estimates that an average of 15 employees will retire at the end of each year (including 2017). The following were the balances for the pension plan as of January 1, 2018: Plan assets $540,000 Accumulated benefit obligation 420,000 Projected benefit obligation 480,000 Accumulated OCI (Gain/Loss) 25,000 Dr.

As a result of the operation of the plan during 2018, the following additional data are provided by the actuary: Service cost for 2018 $54,000 Settlement rate 7% Actual return on plan assets in 2018 75,000 Expected return on plan assets 15%

Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 39,000

Contributions in 2018 80,000 Benefits paid retirees in 2018 45,000 Avg. remaining service life (all employees) 8 years

1. Use the spreadsheet Pensions to prepare a pension worksheet. On the pension worksheet,

compute pension expense, pension asset/liability, projected benefit obligation, plan assets, prior service cost, and net gain or loss.

2. Prepare the journal entry using the spreadsheet Journal Entries to record pension expense in 2018.

3. Indicate the reporting of the 2018 pension amounts in the income statement and balance sheet using the spreadsheet Pensions.

SAMPLE

4. What is the amount of deferred pension gain or loss that the company will carry forward to 2019?

5. Compute the same items as in (#1), assuming that the expected rate of return is 8% and the accumulated OCI (gain/loss) is a debit balance at January 1, 2018.

Module 7

Readings · Chapter 20 in Intermediate Accounting · Georgiades, G. (2015). A refresher on auditing accounting estimates: AU-C Section 540, auditing

accounting estimates, including fair value accounting estimates, and related disclosures. Miller GAAS Update Service, 15(8), 1-9.

· Zenith Announces Amendments to 2014 Annual Financial Statements. (2015, July 25). News Bites—Energy. Retrieved from http://tmx.quotemedia.com/article.php?newsid=76984143&qm_symbol=ZEE

· CPA Exam Club. (n.d.a). Fraud and irregularities [Video playlist]. Retrieved from http://www.cpaexamclub.com/aud/category/fraud

· CPA Exam Club (n.d.b.). Materiality. [Video]. Retrieved from http://www.cpaexamclub.com/aud/category/materiality

· PR Newswire. (2014, March 25). Datang International Power Generation Company Ltd - announcement on correction of accounting errors. PR Newswire UK Disclose.




Module 8

Readings · Chapter 21 in Intermediate Accounting · Ernst & Young LLP. (2016, December). Disclosure effectiveness in action: Companies make great

strides. Retrieved from https://www.ey.com/Publication/vwLUAssets/ey-disclosure-effectiveness-in-action-companies-make-great-strides/$FILE/ey-disclosure-effectiveness-in-action-companies-make-great-strides.pdf

· Labelle, R., & Trabelsi, S. (2009). The economic consequences of disclosure regulation: evidence from online disclosure of corporate governance practices in the US and Canadian markets. Retrieved from: International Journal of Auditing Technology, 2(4), 345-363. Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1534251

· Rahman, K. M., & Marc, B. (2016). Accounting irregularities at Toshiba: An inquiry into the nature and causes of the problem and its impact on corporate governance in Japan. Global Advanced Research Journal of Management and Business Studies, 5(4), 88-101. Retrieved from http://garj.org/garjmbs/4/2016/5/4/accounting-irregularities-at-toshiba--an-inquiry-into-the-nature-and-causes-of-the-problem-and-its-impact-on-corporate-governance-in-japan




Portfolio Project (350 points)

Option #1: Booster Company SAMPLE

Complete the following questions. In addition to answering the items below, you must submit an analysis of the assignment. Analyze the specific outcomes and write an analysis directed toward the management team at Booster Company describing what the numbers mean and how they relate to the business. Submit journal entries in an Excel file, and written segments in an MS Word document. For written answers, please make sure your responses are well-written, formatted per the CSU-Global Guide to Writing and APA, and have proper citations, where applicable. Booster Company is preparing its financial statements for the year ended June 30, 2018. The financial statements are complete except for the statement of cash flows. You have been asked to prepare a statement of cash flows for the year ended June 30, 2017. Download the Excel spreadsheet Booster Company A1. Required:

1. Prepare a spreadsheet to support a statement of cash flows for the year ended June 30, 2018. 2. In the tab named ‘Journal Entries’, show in journal entry form the entries that would be made in

preparation of the statement of cash flows. 3. Prepare the Booster Company’s statement of cash flows for the year ended June 30, 2018. Prepare

the statement of cash flows using the indirect method. Note: For full credit, you must prepare the statement of cash flow in good form with all necessary disclosures, including disclosures about non-cash financing and investing activities.

Submit a well-formatted electronic file with your last name as the file name. For example, Lastname_PortfolioProject.xls. Option #2: Spears Company Complete the following questions. In addition to answering the items below, you must submit an analysis of the assignment. Analyze the specific outcomes and write an analysis directed toward the management team at Spears Company describing what the numbers mean and how they relate to the business. Submit journal entries in an Excel file, and written segments in an MS Word document. For written answers, please make sure your responses are well-written, formatted per the CSU-Global Guide to Writing and APA, and have proper citations, where applicable. Spears Company is preparing its financial statements for the year ended June 30, 2018. The financial statements are complete except for the statement of cash flows. You have been asked to prepare a statement of cash flows for the year ended June 30, 2018. Download the Excel spreadsheet Spears Company B1. Required:

1. Prepare a spreadsheet to support a statement of cash flows for the year ended June 30, 2018. 2. In the tab named ‘Journal Entries’, show in journal entry form the entries that would be made in

preparation of the statement of cash flows. 3. Prepare the Spears Company statement of cash flows for the year ended June 30, 2018. Prepare

the statement of cash flows using the indirect method. Note: For full credit, you must prepare the statement of cash flow in good form with all necessary disclosures, including disclosures about noncash financing and investing activities.

Submit a well-formatted electronic file with your last name as the file name. For example, Lastname_PortfolioProject.xls. SAMPLE

Grading Scale SAMPLE

COURSE POLICIES

Course Grading 20% Discussion Participation 0% Opening Exercises 0% Live Classroom 8% Mastery Exercises 37% Critical Thinking Assignments 35% Final Portfolio Project

A 95.0 – 100

A- 90.0 – 94.9

B+ 86.7 – 89.9

B 83.3 – 86.6

B- 80.0 – 83.2

C+ 75.0 – 79.9

C 70.0 – 74.9

D 60.0 – 69.9

F 59.9 or below

SAMPLE

IN-CLASSROOM POLICIES

For information on late work and incomplete grade policies, please refer to our In-Classroom Student Policies and Guidelines or the Academic Catalog for comprehensive documentation of CSU-Global institutional policies.

Academic Integrity Students must assume responsibility for maintaining honesty in all work submitted for credit and in any other work designated by the instructor of the course. Academic dishonesty includes cheating, fabrication, facilitating academic dishonesty, plagiarism, reusing /repurposing your own work (see the CSU-Global Guide to Writing and APA for percentage of repurposed work that can be used in an assignment), unauthorized possession of academic materials, and unauthorized collaboration. The CSU-Global Library provides information on how students can avoid plagiarism by understanding what it is and how to use the library and internet resources. Citing Sources with APA Style All students are expected to follow the CSU-Global Guide to Writing and APA when citing in APA (based on the most recent APA style manual) for all assignments. A link to this guide should also be provided within most assignment descriptions in your course. Disability Services Statement CSU-Global is committed to providing reasonable accommodations for all persons with disabilities. Any student with a documented disability requesting academic accommodations should contact the Disability Resource Coordinator at 720-279-0650 and/or email [email protected] for additional information to coordinate reasonable accommodations. Netiquette Respect the diversity of opinions among the instructor and classmates and engage with them in a courteous, respectful, and professional manner. All posts and classroom communication must be conducted in accordance with the student code of conduct. Think before you push the Send button. Did you say just what you meant? How will the person on the other end read the words? Maintain an environment free of harassment, stalking, threats, abuse, insults, or humiliation toward the instructor and classmates. This includes, but is not limited to, demeaning written or oral comments of an ethnic, religious, age, disability, sexist (or sexual orientation), or racist nature; and the unwanted sexual advances or intimidations by email, or on discussion boards and other postings within or connected to the online classroom. If you have concerns about something that has been said, please let your instructor know.

SAMPLE

http://portal.csuglobal.edu/document/ACPOLICIES

http://portal.csuglobal.edu/document/ACPOLICIES

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