ABC Corporation is a new company that buys and sells office supplies. Business began on January 1, 2012.
Question;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;= $2,840.;-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#51066 | Written in 18-Jul-2015Price : $52