Please review the attachment and only need answers to questions 2 and 3. Also the answers must be given in Microsoft excel spreadsheets.

ACCT215 - Intermediate Accounting Midterm Directions and Rubric This Assessment is worth 15% of your overall grade. Completing this Assessment will help you to: Course Outcomes: Describe and apply generally accepted accounting principles and prepare a worksheet that includes the journal entries and statements. Create a classified balance sheet and cash flow statement that differentiates direct and indirect methods. Prepare a multiple-step income statement and comprehensive retained earnings statement that includes earnings per share and prior period adjustments. Program Outcomes: Solve technology challenges, maintain systems, analyze data, and communicate results using business related computer applications. Judge appropriate ethical behaviors that follow the laws and regulations applicable to accounting practice. Integrate theory, knowledge and technology to interpret financial and non-financial information to aid decision makers within an organization. Institutional Outcomes: Information Literacy and Communication - Utilize appropriate current technology and resources to locate and evaluate information needed to accomplish a goal, and then communicate findings in visual, written and/or oral formats. Relational Learning - Transfer knowledge, skills and behaviors acquired through formal and informal learning and life experiences to new situations. Thinking Abilities - Employ strategies for reflection on learning and practice in order to adjust learning processes for continual improvement Quantitative and Scientific Reasoning - Follow established methods of inquiry and mathematical reasoning to form conclusions and make decisions. Deadline Due by the end of Week 4 at 11:59 pm, ET. Directions: Complete this three-part assessment in which you respond to questions and complete two balance sheets. Part I is worth 30 point and Parts II and III are worth 70 points. Part I: Respond to the following questions in one to two paragraphs each. Submit your response in a separate Word document. 1. Explain and show an example of how the FASB's conceptual framework is needed in formulating standards on controversial topics. 2. The process of setting accounting standards has been characterized as a political process. Evaluate this process, citing an example. 3. Accounting standards have developed over time to reflect changes in the business world as well as changes in our ability to account for such changes. Using the example of marking assets and liabilities to their fair value, explain why you would expect accounting standards to change. Part II: Adjusting Entries Complete the following tasks in an Excel workbook and submit it: Create a 10-column worksheet and enter the unadjusted balances from the trial balance. Prepare the necessary December 31, 2011, adjusting journal entries. Enter them into the worksheet using proper journal entry format. Prepare an adjusted trial balance. Prepare a multi-step income statement and a statement of shareholders' equity for the year ended December 31, 2011, and a classified balance sheet as of December 31, 2011. Assume that no common stock was issued during the year and that $4,000 in cash dividends were paid to shareholders during the year. Prepare closing entries. Prepare a post-closing trial balance. Pastina Company manufactures and sells various types of pasta to grocery chains as private-label brands. The company's fiscal year-end is December 31. The unadjusted trial balance as of December 31, 2011, appears below. Information necessary to prepare the year-end adjusting entries appears below: Depreciation on the equipment for the year is $10,000. The company estimates that of the $40,000 in accounts receivable outstanding at yearend, $5,500 probably will not be collected. Employee wages are paid twice a month, on the 22nd for wages earned from the 1st through the 15th, and on the 7th of the following month for wages earned from the 16th through the end of the month. Wages earned from December 16 through December 31, 2011, were $1,500. On October 1, 2011, Pastina borrowed $50,000 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 10 years. On March 1, 2011, the company lent a supplier $20,000 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2012. On April 1, 2011, the company paid an insurance company $6,000 for a two-year fire insurance policy. The entire $6,000 was debited to insurance expense. $800 of supplies remained on hand at December 31, 2011. A customer paid Pastina $2,000 in December for 1,500 pounds of spaghetti to be manufactured and delivered in January 2012. Pastina credited sales revenue. On December 1, 2011, $2,000 rent was paid to the owner of the building. The payment represented rent for December and January 2012, at $1,000 per month. Part III You are required to complete the following: Prepare Tiger Enterprises' statement of cash flows, using the indirect method to present cash flows from operating activities. (Hint: You will have to calculate dividend payments.) Prepare the cash flows from operating activities section of Tiger Enterprises' 2011 statement of cash flows using the direct method. Assume that all purchases and sales of inventory are on account, and that there are no anticipated bad debts for accounts receivable. (Hint: Use T-accounts for the pertinent items to isolate the information needed for the statement.) Below is the 2011 income statement and comparative balance sheet information for Tiger Enterprises. ACCT215 - Midterm Rubric (Parts II and III: 70 points) Criteria 20 pts. Balance Sheet 20 pts. Income Statement 20 pts. Statement of Cash Flows 10 pts. Grammar, Spelling, and Punctuation Superior Above Average Average Below Average 20 pts. Student submits Balance Sheet with all correct accounts and balances. Assets equal Liabilities and Equity. Statement follows proper format and is neat. 19-17 pts. Student submits Balance Sheet with 1-3 incorrect accounts or balances. Assets equal Liabilities and Equity. Statement follows proper format and is neat. 16-14 pts. Student submits Balance Sheet with 4-8 incorrect accounts or balances. Assets do not equal Liabilities and Equity. Statement does not follow proper format. 13-0 pts. Student does not submit a Balance Sheet, or is submitted with multiple errors, out of balance, and does not follow good format. 20 pts. Student submits Income Statement with all correct accounts and balances. Statement arrives at proper Net Income. Statement follows proper format and is neat. 19-17 pts. Student submits Income Statement with 1-3 incorrect accounts or balances. Statement does not arrive at proper Net Income. Statement follows proper format and is neat. 16-14 pts. Student submits Income Statement with 4-8 incorrect accounts or balances. Statement does not arrive at proper Net Income. Statement does not follow proper format. 13-0 pts. Student does not submit an Income Statement, or is submitted with multiple errors, arrives at incorrect Net Income, and does not follow good format. 20 pts. Student submits Statement of Cash Flows with all correct accounts and balances. Statement arrives at proper increase or decrease in cash flow. Statement contains three sections (Operations, Investing, and Financing), and follows proper format and is neat. 19-17 pts. Student submits Statement of Cash Flows with 1-3 incorrect entries for accounts and balances. Statement does not arrive at proper increase or decrease in cash flow. Statement contains three sections (Operations, Investing, and Financing), and follows proper format and is neat. 16-14 pts. Student submits Statement of Cash Flows with 4-8 incorrect entries for accounts and balances. Statement does not arrive at proper increase or decrease in cash flow. Statement does not contain three sections (Operations, Investing, and Financing). Does not follow proper format. 13-0 pts. Student submits Statement of Cash Flows with multiple incorrect entries for accounts and balances. Statement does not arrive at proper increase or decrease in cash flow. Statement does not contain three sections (Operations, Investing, and Financing). Does not follow proper format. 10 pts. Used proper grammar, spelling and punctuation. Report is neat and has professional look with 02 errors. 9-8 pts. Some grammar and spelling errors (3-5). However, Report is neat and has professional look. 7 pts. Contains multiple grammar and spelling errors (more than 5). Report is still neat and has professional look. 6-0 pts. Student does not submit, or contains multiple grammar and spelling errors (more than 5). Report is not professional in setup. Pts