Partnership: The company is considering forming a partnership and wants to be sure it understands the key issues regarding partnership formation, income distribution, and liquidation.
Explain the process and methods used to account for partnership formation. How do these methods impact the firm’s balance sheet?
Illustrate how the company could split profits and losses.
Describe what happens if the partnership doesn’t do well and the company has to dissolve it, or one of the partners becomes insolvent.
Illustrate the dissolution process by creating a hypothetical cash distribution schedule. Ensure all information is entered accurately.
Corporation: The company is also considering structuring its business as a corporation, but is aware that there are a lot of complex issues to consider when accounting for an incorporated entity. The company is concerned about the following key areas:
Differentiate between various forms of bankruptcy and restructuring that the firm should understand.
Summarize the key points of interest if the firm fell on hard times and had to file voluntary bankruptcy. What ethical implications should be considered when debating whether or not to file bankruptcy?
Identify the key areas of concern if the firm fell on hard times and their creditors forced them into bankruptcy. What defenses are available in this situation?
Illustrate hypothetical calculations that would be done to help creditors understand how much money they might receive if the company were to liquidate. Ensure all information is entered accurately. Please refer to the illustration (Exhibit 13.2) on page 592 from your textbook to view potential calculations. ***see attached file
ACC 690 Milestone One Guidelines and Rubric Overview: The final project for this course is the creation of a portfolio consisting of a report, spreadsheets, and a PowerPoint presentation. You will be placed in a real-world scenario in which you will take the role of an associate in a certified public accountant (CPA) firm. The CPA partners in the scenario would like to help you grow within the firm by getting you more contact with some of the larger clients. You will address questions from one of the firm’s most influential and growing clients by assembling and presenting the necessary information in report and presentation format. Your presentation should include spreadsheet examples. Topics addressed in the portfolio will cover partnership formation, bankruptcy, and acquisition of another company (which may be international). Your three milestone assignments will consist of shorter reports and supporting spreadsheets, which will prepare you for completing a comprehensive report, spreadsheets, and a presentation. You should use your instructor’s feedback from the milestone submissions to improve your final report, spreadsheets, and presentation. Prompt: In Milestone One, you will complete a report covering Section I and Part A of Section II of the final project. In the report you will discuss the key issues of partnership, such as formation, splitting profits/losses, dissolution, and a cash distribution schedules. You will also discuss the issue of bankruptcy, both voluntary and forced, as well as liquidation. Specifically, the following critical elements must be addressed:
I. Partnership: The company is considering forming a partnership and wants to be sure it understands the key issues regarding partnership formation, income distribution, and liquidation.
A. Explain the process and methods used to account for partnership formation. How do these methods impact the firm’s balance sheet? B. Illustrate how the company could split profits and losses. C. Describe what happens if the partnership doesn’t do well and the company has to dissolve it, or one of the partners becomes insolvent. D. Illustrate the dissolution process by creating a hypothetical cash distribution schedule. Ensure all information is entered accurately.
II. Corporation: The company is also considering structuring its business as a corporation, but is aware that there are a lot of complex issues to consider
when accounting for an incorporated entity. The company is concerned about the following key areas: A. Differentiate between various forms of bankruptcy and restructuring that the firm should understand.
1. Summarize the key points of interest if the firm fell on hard times and had to file voluntary bankruptcy. What ethical implications should be considered when debating whether or not to file bankruptcy?
2. Identify the key areas of concern if the firm fell on hard times and their creditors forced them into bankruptcy. What defenses are available in this situation?
3. Illustrate hypothetical calculations that would be done to help creditors understand how much money they might receive if the company were to liquidate. Ensure all information is entered accurately. Please refer to the illustration (Exhibit 13.2) on page 592 from your textbook to view potential calculations.
Guidelines for Submission: Your report must be submitted as a 2- to 3-page Word document with double spacing, 12-point Times New Roman font, one-inch margins, and at least two sources (in addition to your textbook) cited in APA format. Your accompanying spreadsheets must be submitted as Microsoft Excel files.
Critical Elements Proficient (100%) Needs Improvement (75%) Not Evident (0%) Value
Partnership: Formation
Explains the process and methods used to account for partnership formation and how they impact the firm’s balance sheet
Explains the process and methods used to account for partnership formation but does not explain how they impact the firm’s balance sheet or explanation is cursory or has inaccuracies
Does not explain the process and methods used to account for partnership foundation
12.86
Partnership: Split Illustrates the options for distribution of profits and ensures all information is entered accurately
Illustrate the options for distribution of profits and losses but there are inaccuracies
Does not illustrate the options for distribution of profits and losses
12.86
Partnership: Dissolve
Describes what happens in partnership dissolution or partner insolvency
Describes what happens in partnership dissolution or partner insolvency but description is cursory or has inaccuracies
Does not describe what happens in partnership dissolution or partner insolvency
12.86
Partnership: Cash Distribution
Schedule
Illustrates the dissolution process by providing an example of a cash distribution schedule, ensuring accuracy
Illustrates the dissolution process by providing an example of a cash distribution schedule, but there are inaccuracies
Does not provide an example of a cash distribution schedule
12.86
Corporation: Voluntary
Bankruptcy
Summarizes the key points of interest if the firm had to file voluntary bankruptcy and discusses the ethical implications that should be considered
Summarizes the key points of interest if the firm had to file voluntary bankruptcy but does not discuss the ethical implications that should be considered, or discussion is cursory or has inaccuracies
Does not summarize the key points of interest if the firm had to file voluntary bankruptcy
12.86
Corporation: Forced Bankruptcy
Identifies the key areas of concern if the firm was forced into bankruptcy and the defenses available in this situation
Identifies the key areas of concern if the firm was forced into bankruptcy but does not identify defenses available, or identification is cursory or has inaccuracies
Does not identify the key areas of concern if the firm was forced into bankruptcy
12.86
Corporation: Liquidate
Illustrates calculations and ensures all information is entered accurately
Illustrates calculations but there are inaccuracies
Does not illustrate calculations 12.86
Articulation of Response
Submission has no major errors related to citations, grammar, spelling, syntax, or organization
Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas
Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas
9.98
Total 100%
