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Ac 323 Comprehesive problem




Question;Read ALL instructions before getting started!;ABC Corporation is a new company that buys and sells office;supplies. Business began on January 1;2012.;Given on the first two tabs are ABC's 12/31/12 Unadjusted;Trial Balance and a list of needed adjustments.;1. Make all 14;adjustments on the "Adjusting Journal Entries" tab. Remember to include a description under each;journal entry.;2. Post the;adjustments to the general ledger on the "12-31-12 T-Accounts;tab. You may have to add T-Accounts for;new accounts.;Link your;T-Account entries to your Journal Entries.;PLEASE NOTE THAT THE "BB" (BEGINNING BALANCES) FOR THE;T-ACCOUNTS;REPRESENT THE BALANCES AS OF 12/1/12.;3. Once the 12/31/12;T-Accounts are complete, prepare the Adjusted Trial Balance. There may be some accounts with zero dollars;and you;may have to;insert lines for new accounts. Link the;Adjusted Trial Balance to your T-Accounts.;4. Use the Adjusted;Trial Balance numbers to complete the Income Statement, Statement of Retained;Earnings, Balance Sheet, and Statement of Cash Flows.;For purposes of;the Income Statement, prepare using the multiple step format and assume that;Rent Revenue, any Unrealized Holding Gains/Losses;Interest Expense;Interest Revenue, and any other Gains/Losses are NOT part of the major central;ongoing operations of the company.;Link your;financial statements to your Adjusted Trial Balance. Use the Income Statement and Balance Sheet to;finish the partially completed Statement;of Cash;Flows. Since this is ABC's first year of;operations, several line items on the Statement of Cash Flows have already been;supplied to you.;If necessary;review financial statement preparation in Chapters 4 and 5 of your textbook for;a quick refresher. Plan on using your;knowledge gained in;completing;Chapter 23 to help with the preparation of the Statement of Cash Flows. Additionally, since this is ABC Corporation's;first year of operations;the adjusted;trial balance for all current assets and liabilities represents the change;during the year for Statement of Cash Flows analysis purposes.;5. When the Financial;Statements are complete, make the closing entries on the "Closing;Entries" tab.;6. When closing;entries have been made, post the entries to the general ledger on the;After-Close T-Accounts" tab.;Make sure your adjusting;journal entries;are also on your After-Close T-Accounts.;They will not automatically flow from tab-to-tab.;7. The final step is;the Post-Closing Trial Balance, which will use the ending balances from the;1/1/13 T-Accounts.;8. Double-check your work. Here are a few things to check for;-Adjusted Trial Balance;Make sure debit column and credit column total to the same figure at the;bottom.;-Net income from the income statement will flow through to;the Statement of Retained Earnings.;-Ending Retained Earnings from the Statement of Retained;Earnings will flow through to the Balance Sheet.;-Ending Cash balance from the Balance Sheet should match;your ending Cash balance on the Statement of Cash Flows.;-The Post-Closing Trial Balance should not have any revenue;expense, gain, or loss accounts.;-Check figure 1;Gross profit = $372,450.;-Check figure 2;Income before income taxes = $208,147.;-Check figure 3;Total Assets = $906,151.;-Check figure 4: Cash;flow provided by operating activities = $17,840.;-Check figure 5;Adjusted Trial Balance debit and credit columns total $1,520,008.;-Remember: Neatness;matters in Financial Statements. Print;or Print Preview before submitting to make sure your statements are neat.;Otherwise, management;may send back to you for revision!;-Include your work at the bottom of each tab as needed.;-Ask questions prior to the day/night before the due;date. The due date is clearly indicated;on the course schedule.;-Utilize formulas and worksheet linkings in your financial;statements to improve accuracy and save time in completing the assignment.;-Please take advantage of Excel by using formulas to;calculate groups of numbers (i.e. "Total Liabilities and Stockholders;Equity").;Final comments: This;project is intended to make sure that you understand the accounting cycle as;well as several key financial accounting transactions that you have;studied during your Intermediate Accounting series. It is very important to take the necessary;time on this project to master these concepts.;The concepts mastered in this;comprehensive problem will serve you well in Advanced;Accounting and the rest of your accounting curriculum.


Paper#45036 | Written in 18-Jul-2015

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