Question: It is the end of a reporting period. Because there are more people than usual retiring this year, your manager has asked your accounting department to create 2 things:
1. A process documentation detailing the different methods of preparing income statements, specific sections of the income statement, and how to handle the special types of income statement items
2. Basic financial statements for your company
Individual Portion:
1. Visit the SEC's Web site.
• Select a company filing of your choice that contains a multiple-step income statement.
• Communicate your selection with your group (each of you should submit a different company).
• Submit the link to this filing as proof of your research.
2. Prepare a process documentation that
• is prepared in a professional manner because it will be the desktop guide used by others in the event of your absence to prepare the financial statements for Music Warehouse.
• is in the form of a memorandum or as a numbered listing of items, depending on your individual preference.
• includes the following elements:
a. a definition and description of the specific sections of the income statement
b. a description of the different methods of preparing income statements
c. an explanation of the conceptual guidelines for reporting income
d. how to handle the special types of income statement items