The project is graded for completeness, professionalism, and accuracy (as well as the usual elements ofgrammar and style).Be sure to thoroughlyaddress all of the requirements outlined and offer...

The project is graded for completeness, professionalism, and accuracy (as well as the usual elements of






grammar and style).








Be sure to thoroughly








address all of the requirements outlined and offer complete






support for your discussion. Total points for this project are 180


ACCT 4023 –Advanced Accounting Fall 2023 Individual Project - information The individual project is designed to allow you to demonstrate your knowledge of advanced accounting and conducting research related to consolidation topics. The project will require organization, critical thinking, good written communication skills, and an understanding of financial accounting concepts. This project is consistent with the following objectives. • Course objective: Students will be able to demonstrate accounting treatment for partnerships. • Program objective: Students will demonstrate ethical reasoning The project is graded for completeness, professionalism, and accuracy (as well as the usual elements of grammar and style). Be sure to thoroughly address all of the requirements outlined and offer complete support for your discussion. Total points for this project are 180. This is an individual project and the final product is your individual responsibility. To avoid plagiarism: • Always make note of the source used. • Use quotations when text is directly excerpted from a source. • When paraphrasing read the original passage several times. Get a complete understanding of the content and the context of the passage. Use your own words to reflect the idea of the passage (still cite the source). • Ask a friend or family member to proofread your work and the sources used. DUE DATE: This paper cannot be completed in one evening. Plan your time accordingly. Having a plan will help to ensure that the research paper is completed on time with thoughtful professional quality. Your completed paper must be submitted to the dropbox in our Canvas course on or before 11:59p, December 13th. Note that this project cannot be successfully completed the night before it is due! Late papers will not be accepted. Partners Pat and Stacy have a coin-operated laundry business in a retail shopping center, PS-2 Laundry. The business has operated for several years with the partners sharing income equally. They employ two part-time workers to assist with routine operations. The part-time employees work alternating shifts and are only there if either Pat or Stacy is present. The laundry business is primarily a cash business. On alternate days each partner empties the coins from the laundromat’s machines and deposits the money in the bank. The business was generating a healthy cash flow for several years. However, in the last 18 months, cash flow declined precipitously. Stacy believes that the decline in cash is a result of collusion between the two part-time workers. Stacy assumes that the workers are somehow rigging the machines and requiring the customers to pay them directly. When Stacy shares these concerns with Pat, Pat assures Stacy that the part-time workers are not stealing money. Pat has been pocketing cash because of some personal financial problems related to a messy divorce and several failed investments. Pat is urging Stacy to sell out and liquidate their partnership. Pat believes that upon liquidation there will be enough cash to overcome the personal financial crisis and repay the cash that has been taken from the business. Stacy is not aware of Pat’s financial problems. The following trial balance is prepared by the partners’ accountant. Dr (Cr) Cash $37,800 Supplies and prepayments 2,500 Equipment 62,000 Accumulated depreciation (33,583) Accounts payable (4,950) Loan payable—Stacy (22,000) Sales (23,620) Operating expenses 18,700 Depreciation expense 2,583 Capital—Pat (14,680) Capital—Stacy (24,750) Totals $0 In addition, the partnership has a contractual lease on the building where the laundromat is located. The lease expires five years from now. The monthly payments of $500 are consistently made on time and recorded as part of operating expense. If the lease is terminated early, the lessor requires a $2,000 payment for early lease termination. Required: 1. Identify the weakness in the partnership’s internal control which could produce the pattern of declining cash flows. How (what actions) could the partnership correct the internal control weakness? Explain. 2. Do you think fraud has occurred? Or an ethical breach? Explain. 3. What are the various ways of resolving the ethical issues? What actions can be implemented, stopped, revised, etc.? There must be at least two distinct recommendations (more than 2 is fine). Discuss each. 4. Which one of the recommendations is the best resolution for the ethical issues or internal control weaknesses? Why? Explain. 5. Using Excel: Determine the ending capital balances and prepare a cash distribution plan for the liquidation. An excel file must be submitted. 6. Show the calculations in the cell(s). An excel file must be submitted. 7. How much must be realized on the sale of the non-cash assets before Pat receives any of the liquidation proceeds? Do you think it is likely that Pat will receive any proceeds? Do you think Pat will be able to repay the cash that has been taken? Consider the best- and worst-case scenarios. Explain.