Each week, the course project assignment will approach a different piece of Pana

Question

Each week, the course project assignment will approach a different piece of Panache Inc. and will use the concepts covered during the week. At the end of the five weeks, the entire analysis will be due and will be a compilation of what was accomplished during the prior weeks.

Course Project Scenario

Panache Inc. is a small specialty automobile manufacturer. The company's long-time controller, Celia Brown, retired on January 10, 2016, at the age of eighty-eight years, and the president of the company, Andrew Cartwright, has hired you to be the company's new controller.

Andrew would like to take Panache public in the near future, which will require audited financial statements. He has retained the public accounting firm of Booker and Helwig to audit the 2015 financial statements as a preliminary step. He knows that Celia was not always up to date on current issues, and he has asked you to review all of the company's accounting policies and procedures. Your first task is to identify problem areas and make any corrections needed before the audit begins.

Andrew wants to be kept informed at all times, and when any problems are identified, he wants to be made aware of the problem as well as your solution.

You've spent your first week on the job getting familiar with the company's products and processes. It's time to dig into the company's financial statements, and you decide to look at the company's investment accounting first.

The company purchased several securities in 2014, including 30,000 of the 100,000 outstanding shares of Lion Tire. Lion Tire supplies the tires used on all of Panache's vehicles. Mr. Cartwright was asked and agreed to become a member of Lion Tire's board. You find the detailed records for the investment transactions and the financial statements in the Lion Tire file. During your review, you find that all of the investment transactions were properly recorded and reported except for the investment in Lion Tire.

Click here to view the Lion Tire file.

This Week's Task:

Based on your analysis of the Lion Tire transactions, draft the journal entries that should have been made in an Excel spreadsheet. Then, write a memo to Andrew explaining the accounting principles that should have been followed for Panache's investment in Lion Tire. In your memo:

Illustrate how the investment will be reported in the company's balance sheet and income statement.

Summarize how and why the accounting for this investment is different from the accounting for Panache's other investment securities.

Devise three ways, based on past practices, that Panache can improve its future accounting principles for the Lion Tire transactions. Use examples from the Excel spreadsheet when necessary.

Panache, Inc. The Lion Tire file contained the following: 1/2/2007 Purchase advice for the purchase of 30,000 shares of Lion Tire at $12 per share The following balance sheet was also in the file, with a notation that the carrying values and fair values of Lion's assets were the same. Lion Tire, Inc. Balance Sheet As of December 31, 2006 (in thousands) Assets Current Assets Property, Plant & Equipment,t 600,000 Other Assets Liabilities and Stockholders' Equity $60,000 Liabilities $300,000 180,000 420,000 600,000 $900,000 Total Liabilities and Stockholders' Equity $900,000 240,000 Common Stock, no par Retained Earnings Total Stockholders' Equity Total Assets 4/1/2007 Check stub and copy of deposit ticket with the notation "Dividend received from Lion Tire $.50 per share"

Explanation / Answer

State of affairs centered learning (SBL) in eLearning makes use of actual-existence circumstances to validate the training comprehension and extra significantly its eventual utility.

It offers a totally interactive and immersive approach that can be used effortlessly through companies to:

determine-factor learner expertise
assess if newcomers might be equipped to use the learning on the job
From a learners standpoint, it provides:

situation fixing environment that is relatable (as it depicts real existence instances)
riskless mode to follow
understand the affect/penalties of their selections and selections
Why is situation headquartered studying (SBL) a popular choice for tutorial designers?
You need to use several design procedures to craft scenario headquartered learning. These would variety from simple pictures and animations to videos and interactive movies and build up actual-lifestyles circumstances. It may be used to check the comprehension as well as application across most of the company coaching needs.

That you would be able to craft situations at two phases:

Mini or basic state of affairs situated studying: that is used to validate learners keep in mind and common comprehension (excellent for basic trouble fixing)
tricky or Branching scenario based finding out: that is used to validate learners talent to use the learning.
It is a bendy tutorial method and you can use it:

within a common eLearning course at suitable junctures (such as Pause and reflect or in a investigate Your working out assessment).
Alternatively, that you could drive the whole course via a narrative/a grasp situation/story with a forged of characters and have a combo of scenarios inside the training path.
That you would be able to weave Gamification and Microlearning factors additionally with state of affairs founded studying.
What are the key advantages of scenario based finding out (SBL)?
You should utilize scenario founded finding out to create each formal and informal training solutions. The important thing advantages you'll see are:

Sticky studying experiences
Facilitate concern fixing in novices
furnish guided exploration to learners
safe apply zone and obtain proficiency and mastery
allow novices to make errors and by way of suggestions re-inforce the correct strategy
Re-inforce important messaging
how are you going to use state of affairs founded finding out (SBL)?
At EI Design, we have efficiently used this strategy for corporate coaching wants including:

Compliance
tender competencies
official expertise
application simulations
Examples for Formal finding out
illustration 1: Compliance
This path makes use of a common scenario-established method with valuable imagery as a backdrop overlaid with text and characters. Furthermore, it has intuitive layouts to make studying easy, amazing, and scalable for rapid development.

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.