The objective is to prepare a comprehensive balance sheet and single-step income statement presented in good form and derived from a list of various accounts. The amounts relative to each account will be given and the student will learn to determine whether an account is a balance sheet account or a temporary account that belongs to the income statement. The accounts will be comprised of all the various subgroupings in the balance sheet (current assets, investment, fixed assets, intangibles, and other assets, as well as current liabilities, long-term liabilities, and the equity sections). Guidelines include the following.

Obtain the list of accounts under the section Course Project Listing of Accounts.

Determine which accounts belong to the balance sheet and which accounts belong to the income statement.

Determine to which subgroup each account belongs.

Arrange the accounts in proper order and functionality.

Prepare a comprehensive balance sheet in good form.

Prepare a single-step income statement in good form.

Put the Course Project in the Dropbox for the project in Week 8.

Grading Rubric

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Category	Points	%	Description
Making proper selection of accounts relative to the balance sheet or the income statement	30	20	From the provided listing of accounts, determine which accounts are balance sheet accounts and which accounts are income statement accounts.
Putting the accounts into the proper subgroup according to functionality	15	10	Each account belongs to a particular subgroup. The student is to determine to which subgroup the account belongs. This should be done according to functionality.
Prepare the balance sheet in good form	45	30	Proper form is important in the preparation of the balance sheet. Examples can be found in the text.
Prepare the income statement in good form	45	30	Proper form is important in the preparation of the income statement. Examples can be found in the text.
Ensuring that the balance sheet and the income statement have been computed correctly	15	10	A quality paper will meet or exceed all of the above requirements.
Total	150	100

Course Project Listing of Accounts

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Accounts Payable	197,532
Account Receivable	165,824
Accrued Interest on Notes Payable	500
Accrued Liabilities	9,500
Accumulated Depreciations	341,200
Additional Paid-In Capital	37,500
Administrative Expenses	350,000
Allowance for Doubtful Accounts	1,850
Building	975,800
Cash	42,485
Common Stock	400,000
Copyrights	105,000
Cost of Goods Sold	1,000,000
Customer Deposits (expected to be paid next year)	420
Deposits With Vendors (based on a long-term purchase contract)	50,000
Depreciation Expense (40% Selling, 60% Administrative)	100,000
Dividend Income	30,000
Goodwill	100,000
Income Tax Expense	82,250
Income Taxes Payable	62,520
Interest Revenue	25,000
Inventories	499,493
Investments in Warren Co.	87,500
Land	125,000
Mortgage Payable ($1,500 per month)	308,000
Notes Payable to Banks	50,000
Notes Receivable (due next year)	23,000
Patents	125,000
Preferred Stock, 7%	300,000
Prepaid Expenses	16,252
Rental Income	50,000
Retained Earnings	162,582
Selling Expenses	300,000
Salaries Payable	52,000
Sales Discounts	120,000
Sales Revenue	2,000,000
Securities (available for sale) at Fair Market Value	28,250
Trademarks	80,000
Twenty-year, 12% Bonds, Due 1/1/2015	500,000