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ACC 545 Week 2 Income Statement and Balance Sheet Preparation

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Resource: ABC Company History, ABC Financial and Supplemental Data Excel® spreadsheets, and footnotes from the Week 2 Learning Team assignment

Calculate the deferred tax asset or liability of an error for the scenario provided.

Calculate inventory calculation average cost, first-in-first-out (FIFO), and last-in-first-out (LIFO). Record the calculated average cost in the financial statement.

Calculate the straight-line depreciation.

Create an income statement using the results calculated above.

Create a balance sheet using the results calculated above. Insert your Learning Team's footnotes into the balance sheet and income statement. Identify in the footnotes the depreciation methods being used for the fixed assets. Also identify the footnotes the methodology used to determine deferred taxes.

Submit the Income Statement and Balance Sheet in a Microsoft® Excel®spreadsheet that includes the required calculations.

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