Explain how alignment to relevant regulations and ethical reporting influenced your accounting practices and notes, providing examples to support your claims.

Overview: For Milestone One, which is due in Module Three, you will create adjusting entries for various situations, prepare annual financial reports, calculate
ratios, and develop a brief report for management explaining accounting ratios and the effects of interest rates on the future value of money.

Prompt: First, review the Final Project Scenario document and the accompanying Final Project Workbook. Follow the instructions below and complete the
workbook with the information provided in the scenario. Using your review of the scenario, develop a management analysis brief that addresses the critical
elements indicated below. Use information from your accounting workbook to support your claims in the management analysis brief.

Note: Milestone One is a draft of some critical elements of the final project. Note that the management analysis brief corresponds to the management analysis
memo in the final project.

Specifically, the following critical elements must be addressed
:
I. Accounting Workbook: Your accounting workbook must include appropriate calculations, ratios, and notes:
A. Create adjusting entries for financial statement preparation.
B. Create an adjusted trial balance for financial statement preparation.
C. Prepare financial statements for determining the company’s financial position.
D. Calculate ratios for determining the company’s financial health. Refer to the Final Project Scenario for the ratio formulas.

II. Management Analysis Brief: Your management analysis brief should explain financial information to management. Provide evidence from your
accounting workbook to support your ideas when applicable.
A. Assess the company’s financial health based on ratio analyses presented in the accounting workbook.
B. Compare ratio analysis to trends in financial ratios over time for illustrating their impact, providing examples to support your claims.
C. Summarize the effects of different compounding periods and interest rates on future value of money.
D. Explain how alignment to relevant regulations and ethical reporting influenced your accounting practices and notes, providing examples to
support your claims.

Rubric
Guidelines for Submission: You will submit two files for this milestone. Your accounting workbook must be submitted as a Microsoft Excel document. Your
management analysis brief should be a 1- to 2-page Microsoft Word document with double spacing, 12-point Times New Roman font, and one-inch margins.

TIps from Professor:

Class,
1. A supplier shipped $3,000 of ingredients on 12/29/17. Peyton receives an invoice for $3,175 for the goods and freight of $175, all dated 12/29/17. Goods were shipped FOB supplier’s warehouse. OK there a couple of things to consider. When were the items shipped? What does FOB mean? What did the company do or not do? Is freight part of COGS?
2. At 12/31/17, Peyton has $200 worth of merchandise on consignment at Bruno’s House of Bacon. What does goods on consignment generally mean? What did the company do or not do?
3. On 12/23/17, Peyton received $1,000 deposit from Pet Globe for product to be shipped by Peyton in the second week of January. OK ask yourself this question: Is the earning process complete? How is a down payment treated if the earning process is not complete?
4. On 12/03/2017, a mixer with cost of $2,000, accumulated depreciation $1,200, was destroyed by a forklift. As of 12/23/17, insurance company has agreed to pay $700 in January 2018, for accidental destruction. This is a complicated one. You need to dispose of the old machine. There are several issues to consider. The asset, accumulated depreciation, and did the company have a gain or loss on this transaction?
*****Finally, make sure your workbooks look professional. Make sure you are using the one I e-mailed to you. Make sure you are using fonts no bigger than 12. Make sure your alignment is correct. You may see pages with missing grid lines. You can solve this by clicking and painting the entire page and then clicking no-fill. This will correct the missing gridlines. Otherwise DO CHANGE THE WORKBOOK.
Again, if you have questions please ask.
Michael

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