Reference no: EM131816766

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.