Overview

To accomplish this assignment, you will be producing an assignment that is structured utilizing the I.R.A.C. method. As a reminder, I.R.A.C. is an acronym for:

• Issue(s)
• Rule(s)
• Analysis
• Conclusion

This is a group assignment.

Action Items

1. Based on the CFO's answers to your group's questions, your research from Issue and Rule Research, and your required readings, do the following for each identified accounting issue with your group:
   1. Issue: Succinctly state the accounting issue.
   2. Rule: Using your research of authoritative accounting sources, briefly identify and explain the authoritative rule.
   3. Analysis: Apply the facts of the case study to the rule and provide an in-depth analysis based on the issue. Your analysis should also include supporting schedules, calculations, and/or correcting journal entries.
   4. Conclusion: State your conclusion(s) based upon the results of your analysis and indicate any changes to the financial statements and disclosure notes resulting from the rule.
2. Using Word and/or Excel, prepare corrected balance sheet and statement of income and retained earnings including supporting schedules that incorporate the following items (Excel - Financial statements and journal entries. Word - Examinations, summaries, disclosure notes, etc...):
   1. Evaluation of the issuance of common stock.
   2. Assessment of the accounting for start-up costs.
   3. Analysis of the capitalization vs. expense treatment.
   4. Evaluation of revenue recognition including income deferral.
   5. Formulation of the accounting treatment for net operating losses.
   6. Calculation of the earnings per share.
   7. Prepare a statement of cash flows.
   8. Draft a complete set of financial statement disclosure notes.
3. With your group, complete the work necessary for a formal presentation of your findings to be delivered using a Word and/or Excel document.