ACCOUNTING-ACT 2200 PROJECT: CASE IN TECHNICAL AND ETHICAL ISSUES OF FINANCIAL ACCOUNTING

ACT
2200 PROJECT: CASE IN TECHNICAL AND ETHICAL ISSUES OF FINANCIAL ACCOUNTING

For the following real world accounting case, you will
provide a Case Analysis from the
perspective of the Accountant that analyzes both the technical and ethical accounting
issues present in the case and proposes a solution based on these
considerations.

BE SUREto read the instructions
below the case thoroughly, as they lay out exactly what is required. Also, it is IMPERATIVEthatyou read
the accompanying rubric, on which
your project grade will be based, so that you understand the exact expectations set forth to achieve
a high score.

Keep in mind that I am looking for a WELL-WRITTEN, PROOFREAD, WELL-ORGANIZED, HIGH QUALITYreport that
shows a thorough understanding of the accounting issues faced. The report has no specific length requirement
as long as you are sure to address all considerations of case.

CASE INFORMATION: MAVEN
MAGAZINE COMPANY

You are an
Accountant for the South Florida regional office of Maven Magazine Company. Jack
Jones, your boss, is the Regional Manager of this office. As the Regional Manager, his pay package
includes a base salary, commissions, and a bonus when his region sells new
policies in excess of its quota. Jack
has been under enormous pressure lately, stemming largely from two factors. First, he is experiencing mounting personal
debt due to hospital bills of a sick family member. Second, compounding his worries, his region’s
sales of magazine subscriptions have dipped below the normal quota for the
first time in years.

You have been working for Jack
for three years, and like everyone else in the office, you consider yourself
lucky to work for such a supportive boss. You also feel great sympathy for his personal
problems over the last few months. In
your position as Accountant for the regional office, you are very aware of the
drop in new subscription sales and the impact this will have on the Regional Manager’s
bonus. While you are working on the
year-end financial statements, Jack stops by your office.

Jack asks you to change the
manner in which you are planning to account for a new large subscriptions sale
made to a big customer. A check for the subscriptions,
substantial in amount, came in the mail on December 31, the last day of the reporting
year; however, the related magazines will not start to be delivered to the
customer until January of the next year. Originally, you had planned to deposit this
check and book an entry deferring the recognition of revenue until next
year. But when Jack approaches you, he
says, “Hey, we have the money this year, so why not count it as revenue this
year? I never did understand why you
accountants are so picky about these things anyway. I’d like you to change the way you record this
transaction. Instead, I want you to recognize
the subscriptions revenue this year. And
anyway, I’ve done favors for you in the past, and I am asking for such a small
thing in return.” With that, he leaves your office.

Instructions:

Technical:In a thorough Case
Analysis, first analyze the technical accounting issue here by identifying and
explaining the effects of both transaction alternatives (the original way and
the way proposed by Jack) on the overall Accounting Equation (on both specific
accounts and on overall assets, liabilities, and stockholders’ equity), and on
both the Income Statement and Balance Sheet (on specific accounts and on
overall net income and on assets, liabilities, and stockholders’ equity). Then, explain how these Income Statement and
Balance Sheet effects of both alternatives would be perceived by specific
financial statement users, being sure to address their specific uses and
related perception effects.

Ethical:Then, explain why
or why not you, the Accountant in this case, are faced with an ethical dilemma,
describing the nature of any internal conflict you may be facing and the
difficulty you may have making a decision given this conflict. Secondly, identify and explain any potential parties
(including Jack and yourself) who could be impacted by your decision, and how
these considerations affect your ethical dilemma.

Recommendation:Lastly, based on
these considerations, recommend and justify the course of action you would take
as the Accountant in this case, making sure you cite the specific technical and
ethical considerations that led you to this decision.

YOU
WILL BE GRADED USING THE FOLLOWING RUBRIC, SO BE SURE TO COMPLETE YOUR PROJECT
ACCORDING TO THE FOLLOWING POINT GUIDELINES TO MAXIMIZE YOUR SCORE:

Name of Student:

Course: ACT 2200	Date:
Lead Professor:Litt	Instructional Specialist:
TITLE OF RUBRIC:Case in Technical and Ethical Issues of Accounting
LEARNING OUTCOME/S: CC5:Recognize the impact of basic business transactions on accounts and financial statements; CC 7.Demonstrate effective written communication using proper organization, structure, grammar, punctuation and spelling including the use of appropriate technologies; CC8. Recognize ethical issues in business.
PURPOSE: To utilize technical accounting knowledge and ethical considerations to critically assess a real world business scenario and generate an effective recommendation.
VALIDITY: Critical assessment and recommendations based on Generally Accepted Accounting Principles as promulgated by the Financial Accounting Standards Board; Ethical assessments based on AICPA’sCode of Professional Conduct; Writing criteria based on APA standards.
COMPANION REFERENCES:ACT 2200 Course Textbook; APA Style Manual

	Earning maximum points in each box in ‘PROFICIENT’ column and / or points in columns to the right of ‘PROFICIENT’ meets standard.
	<<<<<<<<<< less quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . more quality >>>>>>>>>>
Performance Criteria	Missing (0 points)	Developing (2 points)	Proficient (3.5 points)	Accomplished (4 points)	Exemplary (5 points)	Score
Analyze the effects of transaction alternatives on the Accounting Equation (CC5)	Does not attempt to analyze the effects of either alternative on the Accounting Equation	Attempts but does not accurately analyze the effects of either alternative on the Accounting Equation	Analyzes the effects of each alternative on the Accounting Equation partially accurately OR accurately analyzes the effect of only one alternative on the Accounting Equation	Accurately analyzes the effects of both alternatives on the Accounting Equation, citing specific accounts OR overall effects on assets, liabilities, and stockholders’ equity	Accurately analyzes the effects of both alternatives on the Accounting Equation, citing specific accounts and overall effects on assets, liabilities, and stockholders’ equity
Analyze the effects of transactions alternatives on the Income Statement and Balance Sheet (CC5)	Does not attempt to analyze the effects of either alternative on the Income Statement or Balance Sheet	Attempts but does not accurately analyze the effects of either alternative on the Income Statement and Balance Sheet	Analyzes the effects of each alternative on the Income Statement and/or Balance Sheet partially accurately OR accurately analyzes the effect of only one alternative on these statements	Accurately analyzes the general effects of both alternatives on the Income Statement and Balance Sheet.	Accurately analyzes the effects of both alternatives on the Income Statement and Balance Sheet, citing specific accounts and overall effects on net income and on assets, liabilities, and stockholders’ equity
Describe the effects of transactions on the perceptions of users of the Income Statement and Balance Sheet (CC5)	Does not attempt to describe the effects of either alternative on the perceptions of financial statement users	Attempts but does not accurately describe the effects of either alternative on perceptions of financial statement users	Describes the effects of each alternative on the perceptions of users partially accurately OR accurately analyzes their perceptions based on only one alternative	Accurately describes the general effects of both alternatives on perceptions of financial statement user s	Accurately describes the effects of both alternatives on perceptions of users, thoroughly describing each user and the manner in which their perceptions would be affected
Identify the ethical dilemma faced in a business situation (CC8)	Does not recognize or acknowledge that an ethical dilemma exists in this case	Attempts but does not accurately identify the key ethical issues deriving the ethical dilemma faced in this case	Accurately identifies some key ethical issues deriving the ethical dilemma faced in this case	Accurately identifies the key ethical issues and ethical dilemma faced in this case, generally describing its nature	Accurately identifies the key ethical issues and ethical dilemma faced in this case, clearly and thoroughly explaining the conflict present and the difficulty of considerations to be made
Explain the potential effects of a decision on any parties who could be affected (CC8)	Does not explain any potential effects on anyone who could be affected by the decision to be made in this case	Attempts but does not accurately explain the key potential effects on parties who could be affected by the decision to be made in this case	Accurately explains some key potential effects on parties who could be affected by the decision to be made in this case	Accurately explains the key potential effects on parties who could be affected by the decision to be made in this case, generally describing their nature	Accurately explains the key potential effects on parties who could be affected by the decision to be made in this case, clearly and thoroughly outlining the cause and effect relationships and related difficult considerations to be made
Recommends effective actions based on technical considerations (CC5)	Does not recommend a course of action	Recommends but does not justify a course of action	Recommends and somewhat justifies a course of action based on technical considerations made	Recommends and thoroughly justifies a course of action based on technical considerations made	Recommends and comprehensively justifies recommended course of action based on technical considerations made
Recommends effective actions based on ethical considerations (CC8)	Does not recommend a course of action	Recommends but does not justify a course of action	Recommends and somewhat justifies a course of action based on ethical considerations made	Recommends and thoroughly justifies a course of action based on ethical considerations made	Recommends and comprehensively justifies recommended course of action based on ethical considerations made
Writes at the baccalaureate level (CC7)	Does not write coherently; does not use appropriate grammar or spelling (numerous major errors).	Writes somewhat coherently; uses appropriate grammar or spelling sometimes (several major errors).	Writes somewhat clearly and consistently; coherently phrases sentences; generally uses appropriate format, grammar, and punctuation (a few major and minor errors)	Generally writes clearly and consistently; clearly phrases sentences; generally uses appropriate format, grammar, and punctuation (some minor errors)	Writes clearly and consistently throughout the document; clearly phrases sentences that flow smoothly; uses appropriate format, grammar, and punctuation, (very few minor or no errors)
CASE POINTS:
FINAL CASE GRADE (CASE POINTS/40):

Comments:

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ACCOUNTING-ACT 2200 PROJECT: CASE IN TECHNICAL AND ETHICAL ISSUES OF FINANCIAL ACCOUNTING

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