WorldCom Harvard Business Case Please address the following requirements using complete sentences unless otherwise noted. The use of appropriate spelling, grammar, sentence structure, formatting and punctuation is required, and will be considered as part of the grade for this assignment. You may work on this project with other students; one write-up will be submitted for each student, in his or her own words. 1. a. One of the ways that WorldCom misstated their earnings as part of this fraud was through the reversal of previously recorded accruals for expected future line costs. Using generic, yet descriptive, account titles, provide the journal entry that WorldCom would have recorded to reverse these accruals. In parentheses, after the account name, please identify the financial statement category (A,L,SE,R, or E) to which each account belongs. You may ignore the dollar amount component of the journal entry. For this particular question you may also ignore the "complete sentences" rule and depict your answer in journal entry format. b. Assuming the bills received for actual line costs were of a dollar value that was larger than the amount remaining (assume something still remains) in the previously recorded accrual for future line costs (after the inappropriate reversals were recorded), provide the journal entry that WorldCom would have recorded at the time of payment of those bills (once again using generic, yet descriptive, account titles). In parentheses, after the account name, please identify the financial statement category (A, L, SE, R, or E) to which each account belongs. You may ignore the dollar amount component of the journal entry. For this particular question you may also ignore the "complete sentences" rule and depict your answer in journal entry format. c. What basic, fundamental principle of accounting was MOST LIKELY violated by WorldCom through their process of reversing previously recorded accruals for expected future line costs? Please provide a written description of exactly which stage/component of the process could have caused the violation to occur. 2. a. One of the other significant ways that WorldCom misstated their earnings as part of this fraud was through the capitalization of excess network capacity. Provide the journal entry that WorldCom would have recorded to capitalize this excess network capacity. In parentheses, after the account name, please identify the financial statement category (A, L, SE, R, or E) to which each account belongs. You may ignore the dollar amount component of the journal entry. For this particular question you may also ignore the "complete sentences" rule and depict your answer in journal entry format. WorldCom Harvard Business Case Please address the following requirements using complete sentences unless otherwise noted. The use of appropriate spelling, grammar, sentence structure, formatting and punctuation is required, and will be considered as part of the grade for this assignment. You may work on this project with other students; one write-up will be submitted for each student, in his or her own words. 1. a. One of the ways that WorldCom misstated their earnings as part of this fraud was through the reversal of previously recorded accruals for expected future line costs. Using generic, yet descriptive, account titles, provide the journal entry that WorldCom would have recorded to reverse these accruals. In parentheses, after the account name, please identify the financial statement category (A,L,SE,R, or E) to which each account belongs. You may ignore the dollar amount component of the journal entry. For this particular question you may also ignore the "complete sentences" rule and depict your answer in journal entry format. b. Assuming the bills received for actual line costs were of a dollar value that was larger than the amount remaining (assume something still remains) in the previously recorded accrual for future line costs (after the inappropriate reversals were recorded), provide the journal entry that WorldCom would have recorded at the time of payment of those bills (once again using generic, yet descriptive, account titles). In parentheses, after the account name, please identify the financial statement category (A, L, SE, R, or E) to which each account belongs. You may ignore the dollar amount component of the journal entry. For this particular question you may also ignore the "complete sentences" rule and depict your answer in journal entry format. c. What basic, fundamental principle of accounting was MOST LIKELY violated by WorldCom through their process of reversing previously recorded accruals for expected future line costs? Please provide a written description of exactly which stage/component of the process could have caused the violation to occur. 2. a. One of the other significant ways that WorldCom misstated their earnings as part of this fraud was through the capitalization of excess network capacity. Provide the journal entry that WorldCom would have recorded to capitalize this excess network capacity. In parentheses, after the account name, please identify the financial statement category (A, L, SE, R, or E) to which each account belongs. You may ignore the dollar amount component of the journal entry. For this particular question you may also ignore the "complete sentences" rule and depict your answer in journal entry format
