MILESTONE ONE ----
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milestone_one_----.docx
ACC 690 Milestone One Guidelines and Rubric
Prompt: In Milestone One, you will complete a report covering Section I and Part A of Section II of the final project. In the report you will discuss the key issues of partnership, such as formation, splitting profits/losses, dissolution, and a cash distribution schedules. You will also discuss the issue of bankruptcy, both voluntary and forced, as well as liquidation.
Specifically, the following critical elements must be addressed:
I. Partnership: The company is considering forming a partnership and wants to be sure it understands the key issues regarding partnership formation, income distribution, and liquidation.
A. Explain the process and methods used to account for partnership formation. How do these methods impact the firm’s balance sheet?
B. Illustrate how the company could split profits and losses.
C. Describe what happens if the partnership doesn’t do well and the company has to dissolve it, or one of the partners becomes insolvent.
D. Illustrate the dissolution process by creating a hypothetical cash distribution schedule. Ensure all information is entered accurately.
II. Corporation: The company is also considering structuring its business as a corporation, but is aware that there are a lot of complex issues to consider when accounting for an incorporated entity. The company is concerned about the following key areas:
A. Differentiate between various forms of bankruptcy and restructuring that the firm should understand.
1. Summarize the key points of interest if the firm fell on hard times and had to file voluntary bankruptcy. What ethical implications should be considered when debating whether or not to file bankruptcy?
2. Identify the key areas of concern if the firm fell on hard times and their creditors forced them into bankruptcy. What defenses are available in this situation?
3. Illustrate hypothetical calculations that would be done to help creditors understand how much money they might receive if the company were to liquidate. Ensure all information is entered accurately. Please refer to the illustration (Exhibit 13.2) on page 592 from your textbook to view potential calculations.
Guidelines for Submission: Your report must be submitted as a 2- to 3-page Word document with double spacing, 12-point Times New Roman font, one-inch margins, and at least two sources (in addition to your textbook) cited in APA format. Your accompanying spreadsheets must be submitted as Microsoft Excel files.
|
Critical Elements |
Proficient (100%) |
Needs Improvement (75%) |
Not Evident (0%) |
Value |
|
Partnership: Formation |
Explains the process and methods used to account for partnership formation and how they impact the firm’s balance sheet |
Explains the process and methods used to account for partnership formation but does not explain how they impact the firm’s balance sheet or explanation is cursory or has inaccuracies |
Does not explain the process and methods used to account for partnership foundation |
12.86 |
|
Partnership: Split |
Illustrates the options for distribution of profits and ensures all information is entered accurately |
Illustrate the options for distribution of profits and losses but there are inaccuracies |
Does not illustrate the options for distribution of profits and losses |
12.86 |
|
Partnership: Dissolve |
Describes what happens in partnership dissolution or partner insolvency |
Describes what happens in partnership dissolution or partner insolvency but description is cursory or has inaccuracies |
Does not describe what happens in partnership dissolution or partner insolvency |
12.86 |
|
Partnership: Cash Distribution Schedule |
Illustrates the dissolution process by providing an example of a cash distribution schedule, ensuring accuracy |
Illustrates the dissolution process by providing an example of a cash distribution schedule, but there are inaccuracies |
Does not provide an example of a cash distribution schedule |
12.86 |
|
Corporation: Voluntary Bankruptcy |
Summarizes the key points of interest if the firm had to file voluntary bankruptcy and discusses the ethical implications that should be considered |
Summarizes the key points of interest if the firm had to file voluntary bankruptcy but does not discuss the ethical implications that should be considered, or discussion is cursory or has inaccuracies |
Does not summarize the key points of interest if the firm had to file voluntary bankruptcy |
12.86 |
|
Corporation: Forced Bankruptcy |
Identifies the key areas of concern if the firm was forced into bankruptcy and the defenses available in this situation |
Identifies the key areas of concern if the firm was forced into bankruptcy but does not identify defenses available, or identification is cursory or has inaccuracies |
Does not identify the key areas of concern if the firm was forced into bankruptcy |
12.86 |
|
Corporation: Liquidate |
Illustrates calculations and ensures all information is entered accurately |
Illustrates calculations but there are inaccuracies |
Does not illustrate calculations |
12.86 |
|
Articulation of Response |
Submission has no major errors related to citations, grammar, spelling, syntax, or organization |
Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas |
Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas |
9.98 |
|
Total |
100% |
