1)Summarize the issues specifically related to accounting that are found in this case.

2)Providing relevant support from the FASB ASC, discuss the proper accounting treatment for the revenue generating activities.More specifically, at what point(s) in time should revenue be recognized, for what amount(s), to which accounts, and why?

3)Find, cite, and summarize the relevant IAS applicable to this case.Compare and contrast relevant U.S. GAAP and IFRS standards.

Case 1 Jade Aquarium, Inc., is a multimedia company with business interests in music, videos, and video games. The company needs help booking the licensing agreements it has entered into during the past year. Jade Aquarium, Inc., has entered into the following licensing agreements: 1) In January, Jade Aquarium, Inc., purchased the intellectual property rights to the music created by Jade MacIntire to date of the contract, for $20,000. Under the terms of the contract has additionally acquired the right to purchase future compositions created by the artist, for $500 per composition, within five-years from the date of the contract. The corporation can legally sell to another party the compositions it has purchased from the artist. 2) This year, Jade Aquarium has entered into an agreement with the producers of a Broadway musical, giving them the exclusive right to use a song that Jade MacIntire wrote, for a $10,000 consideration. It is not a song Jade MacIntire will ever personally perform. 3) Jade Aquarium, Inc., has also entered into a licensing agreement with a movie company allowing it to use two of the artist's most popular compositions in future movies over the next two years. The movie company paid $2,000 for the option to use the songs and will pay an additional $1,500 each time the songs are used in a movie. It is expected that the use of the songs in the movies will bolster the artist's popularity, increasing the demand for her albums. 4) Jade Aquarium, Inc., also collects royalties for songs written by Jade MacIntire and played on air. On average the company collects for 3500 songs played each month. Each song played earns the company 9.1 cents in royalties. 5) Jade Aquarium produced a guitar music app that individuals can download for $2.99, with 20,000 apps downloaded this year. The app is fully functional, but the company anticipates needing to provide software updates twice a year for the next five years, these costs are expected to equal $3,000 and are considered immaterial to the total app developmental cost of $60,000. 6) At the end of June, Jade Aquarium sold the rights to the use of the Jade MacIntire's album cover images for tshirts and mugs to Music Outfitters-R-Us for two years. Music Outfitters-R-Us paid Jade Aquarium $20,000 for the rights. Music Outfitters-R-Us has offered Jade Aquarium a bonus of $10,000 if Jade MacIntire averages at least 50 shows per year over the next two years. By the end of the year Jade MacIntire had performed 20 shows. The t-shirt sales are believed to be dependent on Jade MacIntire's public image and concert offerings. Specifically, it is expected that the average t-shirt and mug sales will vary depending on how many concerts the artist plays. It is estimated that an average of 10,000 customers will purchase an item per month for the remainder of the contract if the artist plays 20-29 concerts. This number will increase to 15,000 purchases per month if the artist plays 30-59 concerts, and further increases to 25,000 purchases per month if the artist plays 60 or more concerts. The probability of Jade MacIntire playing 20-29 shows is 25%, 30-39 shows is 15%, 40-49 shows is 20%, 50-59 shows is 10%, and 60+ shows is 30%. Case Questions 1) Summarize the issues specifically related to accounting that are found in this case. 2) Providing relevant support from the FASB ASC, discuss the proper accounting treatment for the revenue generating activities. More specifically, at what point(s) in time should revenue be recognized, for what amount(s), to which accounts, and why? 3) Find, cite, and summarize the relevant IAS applicable to this case. Compare and contrast relevant U.S. GAAP and IFRS standards. Case 2 Summary Congratulations! You have recently been hired as an accountant for Racey Ladies, a new business established by Danika Patrick and Cristina Nielsen, during their off-season. Your first major assignment is related to the company's proposed Track Your Car Program. Under this program, which is seasonal, Danika and Cristina's racing teams will provide a bundled product and service package for drivers of sports cars who want to experience performance driving with their own vehicles. They will begin with Corvette owners, but expect to roll out to Ferrari, and Porsche if the initial program is successful. Their introductory package will consist of three things: a set of four Pilot Sport Cup 2 tires, a one time On/Off Track Alignment, and a one day performance driving clinic. See pricing information below: Michelin Sport Cup 2 (two 19\" front tires, $598. each) Michelin Sport Cup 2 (two 20\" rear tires, $725. each) Track alignment/street realignment One day performance driving clinic (Level 1) Total (if priced separately) Introductory Track Your Car Program price $1196. 1450. 160. 195. $3,001. $2,500. Full payment must be made at the time of purchase (i.e., there is no installment plan). Purchasers usually have the track alignment done at the same time that they have the tires mounted and head right to the clinic with their cars. In addition to the bundle, first time purchasers receive a coupon that entitles them to a $100 discount for a Level 2 clinic. The discounted price of the second clinic is $95, it must be paid for at the end of the day upon completion of Level 1, and scheduled no later than 2 months following Level 1. Your task is to draft a one-page, single-spaced memo that identifies what you believe to be the proper accounting treatment for these revenue generating activities. More specifically, at what point(s) in time should revenue be recognized, for what amount(s), and why? Your memo should (1) state the accounting problem; (2) list and describe the options that you think might in some way be defensible (including providing the accounting specifics for each option); and (3) identify what you believe to be the \"best\" option, providing a clear discussion of why you believe this option dominates the others. Please format your memo with headings related to these three areas. You may use bullet points in the second requirement to separate the different options you identify. You will be graded on content as well as on structure, grammar, and clarity of thought. Please understand that I take the mechanics of writing extremely seriously. Case 3 Facts Ever since you were young, you have wanted to start your own business. You planned on being an entrepreneur, instead of going to college. However, after many painful hours of listening to your parent's advice, you have decided to \"do the responsible thing,\" and earn a college degree. You are currently a sophomore, pursuing a bachelor degree in business. You have recently decided that you are not busy enough attending classes, studying your coursework, engaging actively in business-related clubs and associations, volunteering as an accounting tutor, and socializing with friends. You realize that now would be a great time to launch your dream business, while maintaining your active schedule. You have a great idea for your business; a new line of workout clothing for active, heath conscious people. The fabric for your clothing is a true technological innovation, never before seen in the active wear industry. It combines the safety of 50 Ultraviolet Protection Factor (UPF) clothing with state of the art, light/cool sweat-wicking technology. Your product provides a practical and stylish solution to the stifling, and often restrictive, UPF clothing currently on the market. Your mother, who already owns a successful clothing business, has offered to create your new product under her clothing label. This should help to accelerate the success of your product due to the well-established brand awareness associated with her existing products. All you have to do is provide the capital needed to bring your product to market. You cannot wait to begin manufacturing and marketing your new product. However, since you are a student that is currently on a limited budget, you do not have the funds that are needed. Then, one day, while on social media, you noticed that one of your friends had raised $10,000 over the internet, using a process called crowdfunding. You realize that this could solve your capital problem, so you create two crowdfunding sites, each using a different method of crowdfunding: Site #1, Donation-based Crowdfunding: On July 1, 20X1 you build a website explaining your innovative product idea and funding needs. You check your account on December 1, 20X1, and are happy to see that you have raised $7,250 in total pledges. Site #2, Reward-based Crowdfunding: On July 1, 20X1 you also build a second website incentivizing visitors to make contributions in return for first access to the product. Under this reward-based method, donors who contribute funds will receive a credit equal to 25% of their donation toward a one-time future purchase of the product. You log in on December 1, 20X1, and to your surprise, you see that you have raised $25,000 in total pledges. Therefore, between the two methods of crowdfunding, you have total pledges equaling $32,250. Although individual pledges were made on different dates from July through December, contributors agree to transfer their total pledged amount (in cash) on December 31, 20X1; the last day of the company's reporting period. Case 2: Requirements After celebrating your crowdfunding success, you realize that you must carefully record this information in the company's accounting records. Make sure to carefully consider all aspects of your crowdfunding experience, including the identification and proper recognition of all transactions that were generated. Use authoritative sources, such as Generally Accepted Accounting Principles (GAAP), and Securities and Exchange Commission (SEC) rulings to answer the following questions. You may also use nonauthoritative sources to help support your answers. FYI - Your mother's company estimates uncollectible receivables using the income statement approach. Based on the company's collection history, it is estimated that 6% of accounts receivables will not be collected. Required: 1. Identify all financial accounting issues associated with the crowdfunding scenarios described in the case. 2. Describe the appropriate accounting treatments for any income earned, and/or liability owed as a result of your crowdfunding endeavors. 3. Write the journal entries that are required for each transaction. Be careful to consider any differences in recognition that might be due to the type of crowdfunding used

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