GAAP Constraint of Muskoka Accounting, Finance, SPSS Case Study

A 12-point double space page is required to write only the GAAP Constraint part in the file I sent.

6:19-7Required:
Research CPA Handbook Part II:
• Section 3400 Revenue Recognition
• Section 3031 Inventories
• Draft a memo (maximum 10 pages including citations, size 12 font, double spaced) to Rolande. Note to Student: Refer to Case Framework and Rubric below: Rubric:
Environment/Framework for Analysis (20%)
• Identify stakeholders and their needs
• GAAP constraint
Identification and analysis of financial reporting issues (80%)
• Identification of issues (show proper ranking)
• Research of proper application of issues using CPA Canada Handbook and demonstration of understanding of foundational accounting principles
• Use case facts to support
• Conclusion/

6:19*7
+ Gmail• Purchase price $35,000.
• Delivery date June 30, 2020 (approximately 2 years).
• Downpayment of 10%; 20% on June 30, 2019; rest on delivery.
• Purchaser has the right to try the snowmobile out before last payment made; right to refuse to accept it if not satisfied.
• Rolande to cover the cost of insurance while being built (Rolande just included this as a cost of building the snowmobile and passed it on to the customer anyway).
At December 31, 2019, Rolande had completed about 2/3 of the work on the snowmobile and was ahead of schedule. However, on the other snowmobile contracts, work was behind and they were only 10% complete.
Rolande has come to you, his friend, a chartered public
accountant, for advice on how to prepare the financial
statements for the year ended December 31, 2019.
Required:
Research CPA Handbook Part II:
• Section 3400 Revenue Recognition
• Section 3031 Inventories
• Draft a memo (maximum 10 pages including citations, size 12 font, double spaced) to Rolande.
Note to Student: Refer to Case Framework and
Rubric below:
Rubric:
Environment/Framework for Analysis (20%)
• Identify stakeholders and their needs
• GAAP constraint

6:19*7
+ GmailAs a result of this, Rolande found that he did not have enough cash to finance the construction of the next snowmobile to be built and had to go to the bank for a loan. The bank told Rolande that it would be happy to lend him the money as long as it could take his cottage as security. Also, the bank informed Rolande that it wanted GAAP financial statements (accrual based). Rolande reluctantly agreed to pledge his cottage as security and promised GAAP financial statements. Rolande was not very worried about repayment of the loan since he had just received some very large orders. As a matter of fact, he had to hire additional contract mechanics to help him get the snowmobile built on time. Rolande also rented an additional barn in the local area so that he could work on the snowmobile at the same time. The barn that he normally rented was not big enough to house all the snowmobile. Rolande also hired a secretary to help keep up with the filing and the paper work.
For the first time, Rolande had the customer who placed the largest order sign a written contract due to the size of the custom snowmobile and the expensive special materials that had to be ordered. All other agreements were verbal, although the terms of the contracts were similar except for price and delivery date. The key terms of the contract were as follows:• Purchase price $35,000.
• Delivery date June 30, 2020 (approximately 2 years).
• Downpayment of 10%; 20% on June 30, 2019; rest on delivery.
• Purchaser has the right to try the snowmobile out before last payment made; right to refuse to accept it if not satisfied.
• Rolande to cover the cost of insurance while being built (Rolande just included this as a cost of building the snowmobile and passed it on to the customer anyway).
At December 31, 2019, Rolande had completed about 2/3 of the work on the snowmobile and