Accounting and Financial Reporting Case Study on Grandmas Kitchen

Question: Discuss about the Accounting and Financial Reporting for Case Study on Grandmas Kitchen. Answer: Introduction The main purpose of this assignment is to bring out issues relating to case study on Grandmas Kitchen. It aims at developing various research and communication strategies in case of provision in an overall manner (Wahlen et al. 2011). It should provide adequate professional advice to clients in the near future. Graduate accountant working for Cameron and Associates involves in public accounting firm. As far as Grandmas Kitchen is concerned, it resolves issues in business operations in the most appropriate way. It requires managers for involving in taking decisions as far as possible. It should draft letter in indicating issues in an effective manner. John Evans is the manager of firm as well as following up mail as per professional clients (Spiceland, Thomas and Herrmann 2011). Issue 1 In accordance with case study on Grandmas Kitchens Ltd, it raises issues by Board of Directors. It requires urgent attention as and by financial accountants for the same (Ryan 2012). This issue on Grandmas Kitchens Ltd relates in providing products to customers on whole basis. It gives credit facilities in recording sales receipt of money for future analysis purpose. It affects the relation with customers in consistent attitude in business operations in the most appropriate way. Finance Director should address with changed accounts in case of sales revenue i form of future accounting treatment of Grandmas Kitchens Ltd (Revsine 2012). Business Letter To, Peter Kitchener, Managing Director, Grandmas Kitchens Ltd Subject: Problem Relating Sales Treatment and Sales Invoices Respected Sir, I would like to address certain issues faced by Grandmas Kitchens Ltd and with proper justification for the same. It is important to understand the fact that sales treatment based upon receipt in various books of accounts. It includes revenue in gross inflow based upon economic benefits in particular period for proper course of action (Mackenzie et al. 2012). Grandmas Kitchens Ltd need to adopt sales revenue treatment in equity valuation by equity participants in an overall manner. Grandmas Kitchens Ltd ensures rendering credit facilities by the existing customer on wholesale basis in recording books of accounts (Mackenzie 2011). It helps in preparing financial statement for specified time. Treatment in Credit Sale Entry Receivable Account Debit To Sales revenue Credit It involves sales revenue in the income statement accounts. As far as payment receivable is concerned, it balances with receivable balances reduces to nil (Libby, Libby and Short 2011). Cash Account Debit To Receivable Account Credit Grandmas Kitchens Ltd involves in identification of sales occurrence in case of future accounting treatment in the near future (Libby, Libby and Short 2011). It helps in recognizing ways for dispatching goods to the customers in the most appropriate way. It requires accounts receivable in payment receivable in accordance with good acquisition. Sale of goods of Grandmas Kitchens Ltd generates risks and reward in acquisition of assets in proper ways. It reveals case relating assets of Grandmas Kitchens Ltd (Leung 2011). It revolves sales recognition for future analysis purpose. It needs recording of income based on accrual accounting in the most appropriate way. It engages in sales results in case of increased income and assets for proper course of action (Libby, Libby and Short 2011). It is noticed crediting asset income for future analysis purpose. It involves in sales revenue in dealing with gross inflow of economic benefits as far as possible. It reveals ways for netting expenses e specially by Grandmas Kitchens Ltd (Horngren 2013). It is noticed that sales generation revolves around ordinary course of business analysis in the near future. Income generation reveals around understanding business operations in an effective way (Elliott and Elliott 2011). I believe that the above solution benefits smooth functioning of Grandmas Kitchens Ltd in the near future. From, John (Graduate Accountant) Issue 2 The case involves issues on Jonny Appleton that acts as manufacturing design in machinery in an overall manner. It desires using holding fresh in case of picking plant in the most appropriate way. Plants manufacturers include in-cost and additional materials for future analysis purpose (Harrison 2011). It needs to decide on goodwill treatment at fair values in accounting transactions in the most appropriate way. It includes additional materials in case of purchasing of machine around $80000. It indulges in making correction by engineer in proper ways. It uses fair value method for Granny Jam and Martha (Libby, Libby and Short 2011). Business Letter To, Jonny Appleton, Manufacturing engineer Subject: Problem Relating Goodwill Treatment Respected Sir, I would like to address certain issues faced by manufacturing field and with proper justification for the same. It is important to solve the above issue faced by Jonny Appleton for goodwill treatment in an overall manner. It indicates asset side of balance sheet in case of business enterprise. It needs estimation of useful like of assets in determining written off values for future analysis purpose (Elliott and Elliott 2011). It needs conduction of estimating life of assets as stated in the profit and loss statement. It ensures treating assets amortization in case of future accounting treatment as far as possible. It involves writing off expenses in the profit and loss statement as per the accounting period in form of accounting acquisition in an overall manner. Jonny Appleton needs to record goodwill and paying off money matters. Accounting Standard 10 reveals ways for dealing fixed assets for acquisition in the near future (Dyckman, Magee and Pfeiffer 2011). Business entity needs to involve in acquisition by Jonny Appleton in paying prices in the most appropriate way. It involves in exceeding with price in valuation for net assets and difference in goodwill purchasing for proper course of action. It is one of the tangible assets involving in acquisition in case of building reputation for specified period (Chand and Patel 2011). It designs ways for increased values in case of business combination in an effective way. It requires dealing with purchase price and book values in acquisition of fixed assets for future analysis purpose. Jonny Appleton aims at collecting information in case of viewing at foreseeable life of business and industry in an overall manner (Bonham 2011). It requires products obsolescence that brings demand changes and other related economic factors in the near future. It ensures service life expectancies for key individuals in group of employees in proper course of action. It ensures legal, contractual and related regulatory attributes in case useful life of assets accounting treatment in an effective way (Alexander, Britton and Jorissen 2011). I believe that the above solution benefits smooth functioning of organization in the near future. From, John (Graduate Accountant) Issue 3 Issues related with doubtful debts calculation in the most appropriate way. It specifies date as per 30th June, 2014 as an accounting clerk. It generally undertakes big error for calculation on provision of doubtful debts in excel sheet. It ensures allowing 2% revenues for accounting policies in proper course of action (Albrecht, Stice and Stice 2011). It relates with sales revenue treatment in accordance with current financial statements in an overall manner. Board requires justification on Charade problem. It depicts 5% revenues in case of accounting treatment in the near future. Business Letter To, Elizabeth, Subject: Problem Relating Allowance of Doubtful Debts Respected Sir, I would like to address certain issues faced by organization and with proper justification for the same. The above problem reveals facts on allowance of doubtful accounts in the near future. It deals with reduced amount of accounts receivable in case of balance sheet figures accounts for future analysis purpose (Spiceland, Thomas and Herrmann 2011). It list down the deductions in case of accounts receivable line item in indulging in proper course of action. It needs deductions from assets account contra classification for proper course of action. It gives rise to allowance of doubtful accounts for representing ways for estimating management practices. It reflects subsequent experiences in accordance with estimated methodology in an effective way. It indulges ways in cash reserves for gaining actual results (Libby, Libby and Short 2011). It is necessary to undertake techniques for solving the issues as far as possible. It needs estimation on doubtful accounts allowance in the most appropriate way. Risk clarification engages in assigning ways for risk score and higher risk allocation at default. High scoring risk involves in treatment provision for doubtful debts for future analysis purpose. It ensures measuring at historical percentages for accounts receivable for the same. It indulges in past bas debts as well as related percentages for small balances (Spiceland, Thomas and Herrmann 2011). In case of Pareto analysis, it engages in large accounts receivable for indulging in 80% total receivable as far as possible. Most of the companies use accrual-based accounting in recording of allowances in doubtful debts in the near future. It needs to record bad debt expenses for various sale activities in case of future accounting treatment (Libby, Libby and Short 2011). It requires comparison with future bad debts for maintain ing accuracy level for future business activities. It engages in providing ways in case of allowance of doubtful debts for the same. It requires comparison with total amount in accounts receivable. It is overdue in terms of month-end closing balances in an overall manner. It ensures forecasting debt activities for future analysis purpose (Libby, Libby and Short 2011). I believe that the above solution benefits smooth functioning of company in the near future. From, John (Graduate Accountant) Conclusion At the end of the study, it reveals facts on Grandma Kitchen case study. Grandmas Kitchens Ltd revolves in facing issues relating with sales revenue transactions, treatment of goodwill and doubtful debts allowance in the near future. Issues need proper identification with justified solution in proper course of action. Accounting treatment reveals importance in final decision-making process in the most appropriate way. It is required in understanding the directors issues raised as per financial statements for the same. It needs to follow with accounting standards in accordance with acquisition of assets for future analysis purpose. Reference List Albrecht, W., Stice, E. and Stice, J. (2011).Financial accounting. Mason, OH: Thomson/South-Western. Alexander, D., Britton, A. and Jorissen, A. (2011).International financial reporting and analysis. Andover: South-Western/Cengage Learning. Bonham, M. (2011).International GAAP 2011. 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