Question: a. Enter the following headings for the
a. Enter the following headings for the horizontal statements model onto a blank spreadsheet.
b. Under the appropriate headings, record the effects of each of the following accounting events for the first month of operations. The first event has been recorded as an example.
(1) Acquired $6,100 from the issue of common stock.
(2) Paid $4,400 to purchase land.
(3) Borrowed $3,000 cash.
(4) Provided services to customers and received $700 in cash.
(5) Paid $300 for expenses.
(6) Paid a $100 dividend to the stockholders.
Note: The amounts on the statement of cash flows can be referenced to the Cash account on the balance sheet. In other words, recording the cash amounts twice is not necessary. Instead, enter formulas in the Statement of Cash Flows column equating those cell addresses to the respective cell in the Cash column. Notice that the formula in cell O6 (statement of cash flows) is set equal to cell B6 (cash on the balance sheet). Once the formula is completed for cell O6, it can be easily copied to cells O7 through O11.
c. Using formulas, sum each of the quantitative columns to arrive at the end-of-month amounts reported on the financial statements.
Spreadsheet Tips:
(1) Center the heading Balance Sheet across columns by entering the entire heading in cell B1. Position the cursor on B1 until a fat cross appears. Click and drag the cursor across B1 through G1. Click on the Merge and Center icon (it is highlighted in the screen in the toolbar).
(2) Enter arithmetic signs as headings by placing an apostrophe in front of the sign. For example, to enter the equal sign in cell D4, enter ‘=.
(3) Copy cells by positioning the cursor in the bottom right corner of the cell to copy from (such as cell O6) until a thin cross appears. Click and drag the cursor down through the desired locations to copy to (through cell O11).
(4) To enter the dollar sign, choose Format, Cells, and Currency.
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> Is it easier to reach agreement on international standards on auditing than on international accounting standards? If so, why?
> Is there a single best method of currency translation?
> Are gains on unsettled foreign currency balances realized? When should they be recognized as income?
> Discuss how different attitudes to prudence can affect foreign currency translation policies.
> Does accounting translation exposure matter? Explain your reasoning.
> Discuss the view that the individual company financial statements in Germany are useful only for tax purposes.
> Compare the influence of tax law on financial reporting in the United Kingdom with its influence in Germany.
> Using the numerical reconciliation shown in this chapter and the information in Chapter 2, comment on the adjustments necessary when moving from German accounting to US or IFRS accounting.
> ‘German accounting rules for individual companies are ideal for domestic companies with no international connections.’ Discuss.
> The formats in the appendices to this chapter, relating to three EU countries, all comply with the EU Fourth Directive. Comment on the differences between them.
> Explain how international differences in the ownership and financing of companies could lead to differences in financial reporting.
> Why are leased assets accounted for differently in individual company financial statements in the United Kingdom and France?
> Is it useful to regulate, as for example in France, the keeping of accounting records, as well as the preparation of financial statements?
> Why has the FRC in the United Kingdom decided to converge (partially but not completely) UK standards for individual companies with IFRS for SMEs?
> Compare the composition and the roles of the FRC in the United Kingdom and the ANC in France.
> ‘The UK accountancy profession no longer has any influence on the accounting rules relating to individual financial statements.’ Discuss.
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> What effect, if any, has harmonization in the European Union had on non-member states in Europe?
> Discuss the choice of national charts of accounts in post-communist Russia and Romania.
> Compare the importance of the influences of Anglo-Saxon accounting and continental European accounting in Eastern Europe during the 1990s.
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> Why, and to what extent, has post-Communist Romania adopted Anglo-Saxon rather than French-style corporate financial reporting?
> Why is auditor independence a problem in Central and Eastern Europe?
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> Why did Chinese accounting develop differently from Eastern European accounting in the 1990s?
> From your knowledge of Japanese accounting, what characteristics do you think it has in terms of Gray’s (1988) model?
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> Discuss the view that political lobbying could and should be reduced by giving preparers more say in the setting of accounting standards.
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> Why might it be expected that there would be more examples of political lobbying relating to the United States than to any other country?
> Discuss the role of a conceptual framework as a defense against political lobbying.
> Why are there more accountants per head of population in New Zealand than in France?
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> Discuss the causes of differences in financial reporting and its regulation (giving relevant examples of the effects) between your own country and the United States.
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