professor kris friestad. i. develop solutions to various accounting business demands (aasbaa-5) ii....

Professor Kris Friestad

I. Develop solutions to various accounting business demands (AASBAA-5)

II. Review financial statementsA. Make corrections for errors

You have accepted a job as the controller of a start-up company's consulting firm, called Sheila Shaw Consulting. Sheila is an excellent consultant, but not a good accountant. She has attempted to prepare the first month's financial statements, however, the statements do not balance. Her financial statements are a good starting point, but your job is to correct the errors. The statements are presented here. (on the following slides)

Sheila is grateful to have you on board as her controller, and you are eager to make a good impression on her by finding the errors in her statements. Download Sheila's statements and make the changes to them. All the information you need to find the errors is contained in these statements.

Hint: There are 2 errors in the Balance Sheet 1 error in the Income Statement 1 error in the Statement of Owner's Equity 2 errors in the Statement of Cash Flows.

You will want to keep in mind all that you have learned in terms of the items on financial statements which are duplicated and flow from one statement to another.

1. Report 2 balance sheet errors2. Produces 1 statement of owner’s

equity errors3. Report 2 errors on the statement of

cash4. Prepare corrected financial

statements

Starts with?What items are included?How do we calculate net income? Net

loss?Which financial statement does the net

income “flow to”?Other important information?

What information is in the title?What other items are included?What information is needed for other

statements?Other important information?

What’s unique about the title?Which accounts are represented?Which form do we use? Account form?

Report form? Other important information?

Does it have a title?How many sections? What are they?What do we record in each section?The ending cash balance should match

what?Other important information?

How can she use her financial information to make decisions for her company?

Should she expand her business? If she wanted to expand, what

information might she need for lenders?

Other ideas?

Are the calculations done correctly?Are account amounts recorded

correctly?Has information been transferred

properly?Are increases and decreases done

correctly?Are all accounts recorded under the

proper heading?

How does this situation apply to you…Right now? In the future?

Is this a REAL scenario for accountants?Also feel free to share any personal

experiences

Have you reviewed any financial statements for the coffee shop?

Is the information accurate? How do you know? What can you check?

Are there missing pieces?

How does this affect Mike’s decisions to: Expand the business Make changes

What suggestions for improvement can you make to Mike?

Due: TUESDAY at 11:59 PM ETBefore you submit:

Spelling and grammar checked? Correct APA format used?

Cover page Spacing Page #s Reference page These are just a few items to

check! :)