Ac551

Daisy Corporation

Notes to Financial Statements

For the Year Ended 20XX

Note 1: Summary of Significant Accounting Policies

These notes are for the Daisy Corporation. (us and we used interchangeable refers to the company)

Financial statements are prepared in conformity with the generally accepted accounting principles (GAAP). Management is required to make assumptions and estimates to determine amounts reported and disclosed. Actual results could vary based on the estimates. All reporting rules and regulations have been followed in the Daisy Corp.

The consolidated financial statements include those of Daisy Corp. and all of its owned subsidiaries. All material and intercompany transactions have been removed. All accounting methods are the same.

Revenue is recognized when inventory has been sold. The date of record is determined by date of shipment or date received by customer. Sale prices and coupons are offered to consumers. Allowances for payment discounts is also offered and recorded in the same period of occurrence.

Inventories are stated at the lower of cost or market value. The cost of finished goods, work in process and raw materials is determined using average actual cost. Daisy Corp uses the LIFO method.

Daisy Corp. includes cash, accounts receivables, assets and account payables as financial instruments. These accounts are based on fair market value.

Depreciation on any equipment uses the straight line method based on useful life of 5-10 years. Equipment is valued at fair value cost.

Note 2: Lease Obligations

Daisy Corp. currently has 1 lease obligation. It is a current operating lease and it is recognized as such in the financial statements as a capital lease. The lease agreement requires Daisy Corp. to pay property taxes, insurance, common area expenses and maintenance costs. Any related assets to the lease are also expensed and treated as asset purchases. Lease expense for the year ended 20XX is $XXXX.

Note 3: Property, Plant...