ACCT504 Case Study 1 the Complete Accounting Cycle(1)
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CASE STUDY 1 -THE COMPLETE ACCOUNTING Name: ______________________________ The Entire Case Study is due Sunday at Midnight Mountain ti This Case Study is worth 100 points or 10% of your final co This Case Study relates to TCO's D and E and Chapters 3 and MAKE SURE TO COMPLETE ALL REQUIREMENTS WHICH ARE LISTED BEL There are 10 Sheets in the Workbook including this one. All of the Information you need for the Project is located Requirements Requirement 1 - Prepare the Journal Entries in the General Requirement 2 - Post Journal Entries to the General Ledger Requirement 3 - Prepare a Trial Balance Requirement 4 - Prepare the Adjusting Entries Requirement 5 - Post Adjusting Entries to the General Ledge Requirement 6 - Prepare an Adjusted Trial Balance Requirement 7 - Prepare the Financial Statements Requirement 8 - Prepare the Closing Entries Requirement 9 - Post Closing Entries to the General Ledger Requirement 10 - Prepare the Post Closing Trial Balance Hint for success: review the Week 2 Lectur There are also hints contained within cert You can hover over the red pointer at the Hints are provided for the following balances: 1) The debits for the journal entries on the Journal Entrie 2) The credits for the journal entries on the Journal Entri 3) The cash balance on the General Ledger tab 4) The debits for the trial balance on the Trial Balance ta 5) The credits for the trial balance on the Trial Balance t 6) The debits for the adjusted trial balance on the Adjuste 7) The credits for the adjusted trial balance on the Adjust 8) Net Income for the Income Statement on the Financial Sta 9) Retained earnings as of March 31 on the Financial Statem 10) Total assets for the Balance Sheet on the Financial Sta 11) Total liabilities and shareholders' equity for the Bala 12) The debits for the post-closing trial balance on the Po 13) The credits for the post-closing trial balance on the P
Transcript of ACCT504 Case Study 1 the Complete Accounting Cycle(1)
CASE STUDY 1 -THE COMPLETE ACCOUNTING CYCLE
Name: ___________________________________
The Entire Case Study is due Sunday at Midnight Mountain time at the end of Week 3.This Case Study is worth 100 points or 10% of your final course grade.
This Case Study relates to TCO's D and E and Chapters 3 and 4.
MAKE SURE TO COMPLETE ALL REQUIREMENTS WHICH ARE LISTED BELOW.
There are 10 Sheets in the Workbook including this one.All of the Information you need for the Project is located in this Workbook.
Requirements Sheet in WorkbookRequirement 1 - Prepare the Journal Entries in the General Journal Journal EntriesRequirement 2 - Post Journal Entries to the General Ledger General LedgerRequirement 3 - Prepare a Trial Balance Trial BalanceRequirement 4 - Prepare the Adjusting Entries Adjusting EntriesRequirement 5 - Post Adjusting Entries to the General Ledger General LedgerRequirement 6 - Prepare an Adjusted Trial Balance Adjusted TBRequirement 7 - Prepare the Financial Statements Financial StatementsRequirement 8 - Prepare the Closing Entries Closing EntriesRequirement 9 - Post Closing Entries to the General Ledger General LedgerRequirement 10 - Prepare the Post Closing Trial Balance Post Closing TB
Hint for success: review the Week 2 Lecture prior to starting this project.There are also hints contained within certain cells on some of the worksheet tabs. You can hover over the red pointer at the top right-hand corner of the cell to read the hint.Hints are provided for the following balances:1) The debits for the journal entries on the Journal Entries tab2) The credits for the journal entries on the Journal Entries tab3) The cash balance on the General Ledger tab4) The debits for the trial balance on the Trial Balance tab5) The credits for the trial balance on the Trial Balance tab6) The debits for the adjusted trial balance on the Adjusted Trial Balance tab7) The credits for the adjusted trial balance on the Adjusted Trial Balance tab8) Net Income for the Income Statement on the Financial Statements tab9) Retained earnings as of March 31 on the Financial Statements tab10) Total assets for the Balance Sheet on the Financial Statements tab11) Total liabilities and shareholders' equity for the Balance Sheet on the Financial Statements tab12) The debits for the post-closing trial balance on the Post-Closing Trial Balance tab13) The credits for the post-closing trial balance on the Post-Closing Trial Balance tab
Hint for success: review the Week 2 Lecture prior to starting this project.There are also hints contained within certain cells on some of the worksheet tabs. You can hover over the red pointer at the top right-hand corner of the cell to read the hint.
During its first month of operation, the Flower Landscaping Corporation, which specializes in residential landscaping,completed the following transactions:
March 1 Began business by making a deposit in a company bank account of $72,000, in exchangefor 7,200 shares of $10 par value common stock.
March 1 Paid the current month's rent, $4,500.
March 1 Paid the premium on a one-year insurance policy, $3,300.
March 7 Purchased supplies on account from Parkview Company, $900.
March 10 Paid employee salaries, $2,200.
March 14 Purchased equipment from Hammond Company, $9,000. Paid $1,500 down and the balance wasplaced on account. Payments will be $375.00 per month for twenty months. The first payment is due 4/1.Note: Use Accounts Payable for the Balance Due.
March 15 Received cash for landscaping revenue for the first half of March, $4,896.
March 19 Made payment on account to Parkview Company, $450.
March 31 Received cash for landscaping revenue for the last half of March, $5,304.
March 31 Declared and paid cash dividend of $1,000.
Prepare journal entries to record the March transactions in the General Journal below.
General JournalDate Description(Account Name) Debit Credit
This Sheet will be used for Requirements 2, 5, and 9
REQUIREMENT #2:
Post the March journal entries to the following T-Accounts and compute ending balances.
Columns A, C, F, and H are for the datesColumns B, D, G, and I are for the amounts
Cash (111) Landscaping Revenue (411)
Prepaid Insurance (117) Rent Expense (511)
Supplies (119) Salaries Expense (512)
Equipment (144) Insurance Expense (513)
Accumulated Depreciation-Equipment (145) Supplies Expense (514)
Accounts Payable (212) Depreciation Expense (515)
Income Tax Payable (213) Income Tax Expense (516)
A10
The balance of the Cash account after posting all journal entries should be $69,250.
Common Stock (311)Income Summary (517)
Retained Earnings (312)
Dividends (313)
Post the March journal entries to the following T-Accounts and compute ending balances.
Landscaping Revenue (411)
Rent Expense (511)
Salaries Expense (512)
Insurance Expense (513)
Supplies Expense (514)
Depreciation Expense (515)
Income Tax Expense (516)
Income Summary (517)
REQUIREMENT #3:
Prepare a trial balance for March in the space below.
Flower Landscaping CorporationTrial Balance
March 31
0 0
B26
Debits equal $90,150
C26
Credits equal $90,150
Requirement #4:
Prepare adjusting entries using the following information in the General Journalbelow. Show your calculations!
a) One month's insurance has expired.
b) The remaining inventory of supplies is $475.
c) The estimated depreciation on equipment is $150.
d) The estimated income taxes are $795.
Date Description(Account Name) Debit Credit
Requirement #5:
Post the adjusting entries to the General Ledger T-accounts and compute adjusted balances.Just add to the balances that are already listed.
Requirement #6:
Prepare an Adjusted Trial Balance in the space below.
Flower Landscaping CorporationAdjusted Trial Balance
March 31
0 0
B27
Debits equal $91,095
C27
Credits equal $91,095
Requirement #7:
Prepare the financial statements for Flower Landscaping Corporation as of March 31 in the space below.You will only be preparing the Income Statement, Statement of Retained Earnings and the Balance Sheet.The Statement of Cash Flows is a required Financial Statement, but is not required for this Project.
Flower Landscaping Corporation Flower Landscaping CorporationIncome Statement Statement of Retained Earnings
For the Month Ending March 31 For the Month Ending March 31
Revenues: Retained Earnings, March 1Landscaping Revenue Add: Net Income
SubtotalExpenses: Less: DividendsRent Expense Retained Earnings, March 31Salaries ExpenseInsurance ExpenseSupplies ExpenseDepreciation ExpenseIncome Tax Expense Total Expenses
Net Income
F15
Retained Earnings equals $855
C23
Net Income equals $1,855
Prepare the financial statements for Flower Landscaping Corporation as of March 31 in the space below.You will only be preparing the Income Statement, Statement of Retained Earnings and the Balance Sheet.
Flower Landscaping CorporationBalance Sheet
March 31
Assets:CashPrepaid InsuranceSuppliesEquipmentLess: Accum. Depr.Total Assets
Liabilities:Accounts PayableIncome Tax PayableTotal LiabilitiesStockholders' Equity:Common StockRetained EarningsTotal Stockholders' EquityTotal Liabilities & Stockholders' Equity
J17
Total assets equals $81,600
J28
Total Liabilities & Stockholders' Equity equals $81,600
Requirement #8:
Prepare the closing entries at March 31 in the General Journal below.Hint: use the balances for each account which appear on the AdjustedTrial Balance for your closing entries.
Date Description (Account Name) Debit Credit
Requirement #9:
Post the closing entries to the General Ledger T-accounts and compute ending balances.Just add to the adjusted balances already listed.
Requirement #10:
Prepare a post-closing trial balance as of March 31 in the space below.
Flower Landscaping CorporationPost-Closing Trial Balance
March 31
0 0
B20
Debits equal $81,750
C20
Credits equal $81,750
Case Study 1 Rubric Please note that this rubric provides a general guideline but you can score anywhere between 0 and the maximum number of points for that step depending on the accuracy and completenessof your work.
Criteria Outstanding Good Poor
20 pts 16 pts 12 pts
10 pts 8 pts 6 pts
10 pts 8 pts 6 pts
10 pts 8 6
10 pts 8 pts 6 pts
Step 1 - Prepared Journal Entries (20 pts)
Journal Entries use accurate accounts and amounts; and debits and credits are used correctly.
Minor errors such as incorrect account names or credits listed prior to debits.
Errors in computations that resulted in incorrect amounts to be debited and credited.
Step 2 -Posted to the General Ledger. (10 pts)
Posting is correct leading to accurate account balances.
Posting is mostly correct but minor errors are evident.
Posting has several errors that resulted in incorrect account balances.
Step 3 -Prepared a Trial Balance (10 pts)
Correct account names and balances so to arrive at a correct trial balance.
Some minor errors such as incorrect account names or incorrect totals due to errors in prior steps.
Errors in computations that resulted in incorrect amounts to be debited and credited.
Step 4 -Prepared Adjusting Journal Entries (10 pts)
Journal Entries use accurate accounts and amounts; and debits and credits are used correctly.
Journal Entries mostly use accurate accounts and amounts; and debits and credits are used correctly.
Journal Entries have some errors in use of accounts and amounts; and debits and credits are only somewhat used correctly.
Step 5&6 -Posted and Prepared an Unadjusted Trial Balance. (10 pts)
Posting is correct leading to an accurate trial balance.
Posting is mostly correct leading to a mostly correct trial balance.
Posting has several errors leading to a trial balance with several errors.
20 pts 16 pts 12 pts
10 pts 8 pts 6 pts
10 pts 8 pts 6 pts
Step 7 -Prepared Financial Statements (20 pts)
All three Financial Statements are prepared accurately and in an appropriate format.
Two of the three financial Statements are prepared accurately and mostly in an appropriate format, one statement has some errors.
One of the three Financial Statements are prepared accurately and mostly in an appropriate format, two statements have some errors.
Step 8 -Prepared Closing Journal Entries (10 pts)
Journal Entries use accurate accounts and amounts; and debits and credits are used correctly.
Journal Entries mostly use accurate accounts and amounts; and debits and credits are used correctly.
Journal Entries have some errors in use of accounts and amounts; and debits and credits are only somewhat used correctly.
Step 9&10 -Posted and Prepared post-closingTrial Balance. (10 pts)
Posting is correct leading to an accurate trial balance.
Posting is mostly correct leading to a mostly correct trial balance.
Posting has several errors leading to a trial balance with several errors.
Please note that this rubric provides a general guideline but you can score anywhere between 0 and the maximum number of points for that step depending on the accuracy and completeness
Very Poor
8 pts
4 pts
4 pts
4 pts
4 pts
Points Awarded
Evidence of an attempt to complete the journal entries.
Posting is done poorly but does show evidence of an attempt to complete.
Evidence of an attempt to complete the trial balance.
Journal Entries have some errors in use of accounts and amounts; and debits and credits are not used correctly.
Posting is done poorly or not at all, leading to inaccurate or no trial balance.
8 pts
4 pts
4 pts0
One or fewer of four Financial Statements are prepared accurately and mostly in an appropriate format, three or all statements have some errors.
Journal Entries have some errors in use of accounts and amounts; and debits and credits are not used correctly.
Posting is done poorly or not at all, leading to inaccurate or no trial balance.
Total Points Earned Out of 100 Points
