Posted: December 9th, 2014

Accounting Research Project

Accounting Research Project

Project description
Intermediate Accounting I
Fall 2014
Research Project

To access the Accounting Standards Codification (ASC), please use the username and password below at the following website:

http://aaahq.org/ascLogin.cfm

Student Access
Username – AAA51743
Password – 5FMcN4H

The computer-based CPA Exam contains cases that require test takers to use accounting knowledge and a database of authoritative literature to address proper accounting

treatments. Regardless of whether the CPA Exam is in your future, the ability to research proper accounting treatments is critical. To provide some exposure to such

research, you will be required to complete a short research assignment. The assignment will be graded on writing as well as accounting content. You may work with other

students as you conduct research, but you must write your own report. Please submit your report using Assignment function on Blackboard. The project is due before 6pm

on Wednesday, December 10, but you can always turn it in earlier. Late submissions will not be accepted.

Requirements
Select one of the following scenarios:

Case 1
On November 11, 2013, Darren Company signed an agreement to sell a parcel of twenty acres to Kramerica Industries for use as a potential building site. The sales

agreement required Kramerica to pay Darren $50,000 at the time the contract was signed, with a balance of $950,000 due within one year. Kramerica is negotiating two

big contracts that it will need to provide the cash needed to consummate the purchase. If Kramerica fails to complete the purchase within the specified one-year

period, the $50,000 deposit is not refundable and Darren can proceed to market the parcel to other interested parties. How should this transaction appear on Darrens

financial statements for the year ending December 21, 2013?

Case 2
On August 29, Watley Enterprises received a donation of 100 acres of land from the city of Springfield as an incentive for Watley to locate a new plant in Springfield.

Springfield requires that Watley Enterprises must build a manufacturing plant and a warehouse containing at least 250,000 square feet. In addition, at least 20 acres

must be used as a parking lot. All construction must be completed within three years. At the time of the donation, the fair market value of the tract of land was

$2,200,000. As of December 31, construction had not begun. How should this transaction be reflected in Watleys December 31 financial statements?

Case 3
Costanza and Son, a new start-up company, will build custom personal computers. Costanza and Son has been preparing to start operating for the past six months and is

almost ready to start production. It has incurred significant costs but no revenue has yet to be earned. Organization costs such as legal fees and advertising have

been capitalized as start-up costs. Constanza and Son has expensed all payroll expenses, rent, and other similar coststhis has resulted in a significant loss being

reported on the first years financial statements. Is Costanza and Sons accounting treatment of these items in accordance with GAAP?
Submit a report describing the proper accounting treatment for the transaction or event described in the case you select. Your report should contain at least two

sources. At least one of these should be an authoritative document (i.e. the accounting standards codification or ASC, for short). You should directly quote (i.e.

copy) the language from the ASC that supports your accounting treatment. The report should be about three pages, double spaced, neatly organized and formatted. If you

need help formatting the report, please refer to the Purdue Online Writing Lab:

http://owl.english.purdue.edu/owl/resource/632/1/

The sources used in your report should be properly cited using the formatting style of your choice (e.g. MLA, Chicago, etc.). The accounting standards codification

should be cited as shown below. If you need examples of how to cite sources, see the section titled Citations on the following website:

http://owl.english.purdue.edu/owl/resource/682/01/

The project is worth 30 points–10 points for your analysis of the accounting issues, 10 points for correctly identifying the appropriate guidance in the ASC, and 10

points for your writing (grammar, spelling, etc.).

Suggestions
Even though this is a relatively short assignment, dont put it off. Youll be busy at the end of the term, and it will be nice to have this out of the way.

Citing Codified Accounting Standards

Accounting standards must be cited using the numbers in the Codifications structural organization. As an example, for disclosure standards for unrecognized tax

benefits, the relevant Topic is Income Taxes (740), the Subtopic is Overall (10), the Section is Disclosure (50), and the Paragraph is 15. Thus, the proper reference

would be FASB ASC 740-10-50-15.

Citing Codified Accounting Standards in Papers

Internal citation
(FASB, 2014) or
(FASB ASC 740-10-50-15)

Bibliographic reference
Financial Accounting Standards Board (FASB). 2014. Income Taxes. FASB ASC 740-10-50-15.
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Added on 08.12.2014 15:06
I need my Language Style change to English (U.S.)