1. Professor Kris Friestad
AC 298 Unit 6 Seminar
Professor
Kris Friestad

2. In Unit 6 we will…
Develop solutions to various accounting business demands (AASBAA-5)
Review financial statements
Make corrections for errors

3. Unit 6 Project
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)

4. Unit 6 Project
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.

5. Unit 6 Project
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.

6. Assignment Checklist Report 2 balance sheet errors
Produces 1 statement of owner’s equity errors
Report 2 errors on the statement of cash
Prepare corrected financial statements

7. Review Income Statement
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?

8. Review Statement of Owner’s Equity
What information is in the title?
What other items are included?
What information is needed for other statements?
Other important information?

9. Review Balance Sheet What’s unique about the title?
Which accounts are represented?
Which form do we use? Account form? Report form?
Other important information?

10. Review Statement of Cash Flows
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?

15. Suggestions for Sheila
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?

16. Suggestions for Sheila
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?

17. You the Accountant… 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

18. Tim’s Coffee Shop
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?

19. Tim’s Coffee Shop How does this affect Mike’s decisions to:
Expand the business
Make changes
What suggestions for improvement can you make to Mike?

20. Unit 6 Project Due: TUESDAY at 11:59 PM ET Before 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! :)

21. Questions? Good luck with Week 6!!