Question;Case 1 is a set of three research;mini-cases. Each mini-case is independent of the others. For each;mini-case you should do Steps One ? Five on pages 64-65 of the course textbook;but only turn in Step Five. Upload your responses to the appropriate;Dropbox in eCollege no later than 11:59 p.m. central time on September 22nd.;Step Two is done for you because the only allowed source is the FASB;Codification. Steps One and Three are important, if you skip ahead to;Step Five it will show in your write-up.;Type your answer in memo format.;Your response should be a maximum of two paragraphs per mini-case (?;to ? of a page). Use the following rules: double-space, 1? margins;Times New Roman. You must cite the appropriate source from the FASB;Codification in your response. Citing complete sentences out of the;Codification will hurt your grade. Please use your own words in your response.;Mini-Case # 1;James Olds buys a four-year, $1,000,000;certificate of deposit from the Second National Bank. James will receive;5% interest in year 1, 5.5% in year 2, 6% in year three, and 6.5% interest in;year 4. If James ?redeems? this certificate before the maturity date, he;would receive a cumulative 4.5% annual rate of interest of 4.5%. The Bank;has ascertained that less than one percent of its depositors redeem their;certificates before the maturity date. The bank asks you, its accountant;how to accrue and measure such interest payment obligations.;Mini-Case # 2;Jane Construction Company is building;an office building for speculative purposes. That is, the Company has not;yet found a buyer for the building, but expects to do so within a few months.;Jane, who expects to spend about another two years to complete construction;of the building, asks you, his accountant, if interest and property taxes;associated with this construction site should be capitalized or expensed.;At what rate of interest should Jane use, if any, to capitalize any;interest costs?;Mini-Case # 3;The Justin Company?s fiscal year ends;on June 30. Its employees (with at least three months of experience) are;entitled to 12 paid sick days annually for each calendar year beginning on;January 1. An employee not taking his/her earned sick days would receive;payment thereon on December 31 of that year. How should Justin record and;measure such a liability as of June 30th?
Paper#40218 | Written in 18-Jul-2015Price : $42