Built from the case trial balance, the Unit 3 statement rebuild package for AC499 corrects five items, restates the income statement and leaves tax to the brief that follows. Searches like "ac 499 unit 3 assignment example", "ac499 unit 3 sample" and "ac499 unit 3 example" land here.
What a finished AC499 Unit 3 statement rebuild package looks like
An adjustments schedule leads, one row per correction with its entry and support. One hundred eighty kayaks shipped September 29 under destination terms and delivered October 3 come out of sales at 61,200 and back into inventory at 38,520. Four hundred ten hulls in a discontinued colorway, carried at the 214-dollar standard cost, are written down to a net realizable value of 153, or 25,010 in total. The warranty reserve rises from 38,000 to a required 91,300. A trim router placed in service June 1 takes 6,000 of depreciation, and a production and sales bonus of 72,000, paid November 14, is accrued. A worksheet then carries the trial balance through the adjustments to a restated multi-step income statement, sales of 11,418,800 and gross margin of 37.8 percent, and a balance sheet with each affected line marked.
How a AC499 Unit 3 example is structured
Corrections come first because the statements are only as good as the balances under them, and each correction carries its computation on a line beneath its entry. The cutoff row cites the carrier's delivery receipts; the write-down row shows closeout price, selling cost and the 61-dollar gap per hull; the warranty row rebuilds the reserve from two years of claim history rather than accepting the ledger figure. The worksheet runs unadjusted, adjustments and adjusted columns, and only the adjusted column feeds the statements. A pretax bridge follows, five lines from 1,284,000 down to the corrected figure, so a later reader can find any single correction without rebuilding the others. Income tax appears as a labeled placeholder, because the tax brief computes it from these same balances. A closing list names the figures later units will cite, each with its row.
Cutoff by delivery date
Destination terms mean title passed on October 3, so 180 hulls leave September sales and return to inventory at standard cost, with the carrier's receipt as support.
A colorway worth less than its cost
Closeout at 165 less 12 of selling cost gives 153 against a 214-dollar standard, and 410 hulls absorb a 25,010 write-down charged to cost of goods sold.
Warranty rebuilt from claims
Two years of claims support a 91,300 reserve. The ledger's 38,000 was a running balance after claims were charged, not an estimate, and the gap goes to selling expense.
Two items the ledger never saw
Router depreciation from June 1 and a bonus earned by September 30 but paid in November both belong to this fiscal year, whatever the cash dates say.
A bridge and a placeholder
Five lines reconcile the trial balance to adjusted pretax income, and income tax stays a labeled blank until the tax brief supplies a figure built on the same balances.
Where marks go in AC499 Unit 3
Graders check this package against every later unit, so statements drawn straight from the case trial balance are the expensive mistake: each figure quoted afterward inherits the error. Unsupported corrections come close behind, a write-down with no closeout price or a warranty figure accepted from the ledger without testing it against claims. Cutoff is where many rebuilds slip, treating shipment as the sale when the terms say destination. Bonus accruals are missed often because the cash moves after year end. On presentation, a single-step income statement for a manufacturer, warranty charged to cost of sales in one unit and selling expense in another, or a balance sheet forced to agree with a plug all draw deductions. An invented tax figure that the tax brief later contradicts is marked twice, once here and once there.
Get a AC499 Unit 3 example written to your instructions
Attach the case trial balance and any supporting schedules your section released, plus the Unit 3 instructions and rubric. Corrections return computed in view, the statements drawn only from the adjusted column, and tax left open where a later unit owns it. There is no fee for the first sample, typically ready within 24-48h.
AC499 Unit 3 questions, answered
Why leave income tax as a placeholder?
Because the tax brief owns that figure in this case. Estimating it here at a flat 21 percent would give 232,052 on the corrected pretax figure, while the brief, which adds back nondeductible meals, reaches 233,984. Two numbers for one line is exactly the contradiction the capstone penalizes. If your section wants tax in Unit 3, the brief's method moves here instead.
How is net realizable value set for the discontinued colorway?
From the closeout price the case supplies, 165 a hull, less the 12 of freight and commission needed to sell it, which gives 153. The standard cost is 214, so each of the 410 hulls is written down by 61. Using a general markdown percentage instead of the case's own price is a common reason graders question the figure.
Does the package need a cash flow statement?
That depends on your prompt. Many capstone rebuilds ask only for the income statement and balance sheet at this stage and add cash flows to the integrated report. Where a statement of cash flows is required, it is drawn from the same adjusted balances, and the accrued bonus and warranty increase appear as working capital changes in the operating section.