Each mini-case is independent of the others. For each mini-case you should do Steps One – Five on pages 64-65 of the c...

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Each mini-case is independent of the others.

April 14, 2018

Each mini-case is independent of the others. For each mini-case you should do Steps One – Five on pages 64-65 of the course textbook, but only turn in Step Five. Upload your responses to the appropriate Dropbox in eCollege no later than 11:59 p.m. central time on November 1ST. Step Two is done for you because the only allowed source is the FASB Codification. Steps One and Three are important; if you skip ahead to Step Five it will show in your write-up.

Type your answer in memo format. Your response should be a maximum of two paragraphs per mini-case (½ to ¾ of a page). Use the following rules: double-space, 1” margins, Times New Roman. You must cite the appropriate source from the FASB Codification in your response. Citing complete sentences out of the Codification will hurt your grade. Please use your own words in your response.


Mini-case #2

Jane Construction Company is building an office building for speculative purposes. That is, the Company has not yet found a buyer for the building, but expects to do so within a few months. Jane, who expects to spend about another two years to complete construction of the building, asks you, his accountant, if interest and property taxes associated with this construction site should be capitalized or expensed. At what rate of interest should Jane use, if any, to capitalize any interest costs?

Mini-Case # 3

The Justin Company’s fiscal year ends on June 30. Its employees (with at least three months of experience) are entitled to 12 paid sick days annually for each calendar year beginning on January 1. An employee not taking his/her earned sick days would receive payment thereon on December 31 of that year. How should Justin record and measure such a liability as of June 30th?











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