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ACC B202 Accounting Cycle Problem Project

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Question;ACC B202 Accounting Cycle Problem ProjectACC B202 Accounting Cycle;Problem Project;Worth;50 points.;?;In grading this, I will be;looking for whether you approached the problem appropriately (check figures are;provided so you will know if you are on the right track) and if you followed;directions.;?;You will only obtain the;maximum points IF you get the correct answers, since after all, you have check;figures!;?;I will also check to see if;your worksheet, journal, ledger and financial statements hang together (i.e.;have the same amounts on each, and that the financial statements articulate).;This problem;will take some time, so start early so that if you run into problems, you can;get help. You will regret it if you wait;until the night before it is due!!! You should be able to earn ALL the;available points on this project!!!;On January1, 2009, owned;entirely by Janis Hoplin had the following account balances in their general;ledger (see attached page of T-accounts);During the month of January, the company;engaged in the following transactions;Jan;2;Received $3,600 cash from customers as;payment on account.;3;Paid $5,000 towards some new equipment;that costs $25,000. The remainder was;borrowed from the bank.;9;Payday---employees are paid a total of;$3,200 for a two-week, 8 hours a day, 5 days a week work schedule, some of;which is for work performed in December. (HINT: Look in the General Ledger);12;Wolfpack Spirit received $12,000 cash;from customers for services rendered.;13;Paid $600 for six months of ads in the;Maroon, with ads to be run monthly, starting this month;14;Purchased an insurance policy that;covered the company for three years, $7,200.;15;Purchased supplies on account, $4,000.;16;Recorded serviced rendered on account of;$13,000.;20;Received $6,000 from Mardi Gras Parties;Inc. for services to be rendered in February 2009.;21;Paid for 80% of the CURRENT balance in;Accounts Payable.;22;Received $10,000 from customers on;account.;23;Payday?employees are paid a total of $3,200.;29;Paid $300 utility bill for January, Paid;landlord, who raised the rent starting February 1 to $750.;30;Janis withdrew $4,000 for personal use.;Step-by-step through the accounting cycle;a.;Write journal entries for each;transaction listed above on notebook paper: This is your General Journal.;b.;Posteach transaction to the ledger;checking off each entry as you enter it into the ledger.;c.;After all entries are posted;then strike a balance in each;account. Each one should have its normal balance.;d.;Prepare an unadjusted trial balance on the worksheet provided to test DR = CR;(follow model in Chapter 4 or in lecture notes) recording only the DR or CR;balances for each account. If DR don?t = CR, find your errors. This should;total $124,546 and the Cash balance should be $12,456.;e.;Prepare adjusting entries in the General Journal at the end of January.;Note that the problem is based on the actual calendar for January 2009. Some;useful information follows;1) Depreciation is for the month is $767.;2) Supplies on hand at the end of January total $2,200.;3) The balance in Unearned Fees on January 31 should be the amount paid;by Mardi Gras Parties.;4) Record accrued salaries as of January 30.;5) Record the expiration of one month of insurance.;6) Accrue interest on the note payable of $250.;7) Adjust for expired rent;8) Adjust for advertising services received.;Be sure to SHOW;CALCULATIONS for these!!! Round to nearest dollar!;f.;Record the adjusting entries in the;adjustments columns on the worksheet and also post them to the General Ledger. Strike new balances in the;accounts in the GL.;g.;Then add/subtract the;adjustments as appropriate from the unadjusted trial balance to the adjusted;trial balance (are these amounts the same as the balances you found in the;ledger in part f.?) Follow model provided in the text.;h.;Test to see if DR = CR in the Adjusted Trial Balance columns on the;worksheet. If not, find your errors.;i.;Sort amounts out from the;adjusted TB to appropriate columns (Income Statement and Balance Sheet) on the;worksheet. Find balances in each column. Do DR = CR here? And why not???;However, is the difference between the two sets of columns the same? (It should;be equal to $15,743).;j.;Prepare three financial statements: Income, Statement of Owner?s Equity;and Balance Sheet in GOOD FORM. Use page 164 in text as a model.;k.;Now write all necessary closing entries in your General Journal;and post them to the General Ledger.;l.;Finally prepare a Post-Closing Trial Balance (see example;on Blackboard) to test the accuracy of the journalizing/posting of the closing;entries.;m.;Staple the project together in;the following order;1. Worksheet;2. General Ledger;3. General Journal;4. Income Statement, Statement of Owners? Equity, Balance Sheet;5. Post-closing Trial Balance;n.;Put your last name on each page!;If you hand it in late, points will be deducted from your final score---5% for;each 24-hour period it is late. This assignment is due at the beginning of;class, thus, once I have collected papers on the due date, all papers received;after that time will be considered as late and the penalty will be assessed.

 

Paper#37516 | Written in 18-Jul-2015

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