Notes to Financial Statements

1459 words 6 pages
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Keller Graduate School of Management
ACCT 551 Course Project
Notes to Financial Statements

Table of Contents

I. Cover Page 1 II. Table of Contents Page 2 III. Tropical Pool Cleaning Income Statement Page 3 IV. Tropical Pool Cleaning Balance Sheet Page 4 V. Notes to Financial Statements Page 5 VI. Reference Page 9

Notes to Consolidated Financial Statements

NOTE 1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. Nature of Operations
Tropical Pool Cleaning Corporation (henceforth refer to as the “Company,” “we” or “us”) provides pool cleaning, maintenance and repair services to individuals and corporations nationwide. Our headquarters are in New …show more content…

We experience a large decrease in depreciation as we have sold our property in Chicago.

NOTE 4

CONTINGENCIES AND LIABILITIES
We are currently in the mist of several lawsuits and thus have accounted for this with contingent liability. The plaintiff alleges that through installation of a faulty valve purchased and installed by Tropical Pool Cleaning Corp their facility thus suffered a flood when the adjoining pipe ruptured. It is not probable that we will be found guilty and liable for damages. However, we have set aside 300,000 in the other category of our liabilities.

NOTE 5

CHANGES IN ACCOUNTING PRINCIPLES OR ESTIMATES
Our depreciation expense has been adjusted to include an additional $6,000 as it has been calculated that some of our corporate vehicles will last two years longer than our original estimate of 5 years. This recalculation is based on an extended maintenance warranty package agreement we have entered into with Enterprise Inc.

NOTE 6

POST BALANCE SHEET EVENTS
Our fiscal year ends March 31 and our financial statements are issued on May 15. As of May 15, 2013 there were no significant changes, which require adjustments to our financial statements.

NOTE 7

MERGERS AND ACQUISITIONS
In June 2012 we acquired Aquatic Care, a research laboratory that provides cleaning chemical such as chlorine and have included their financial information in our statements. Based on fair value calculations we have

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