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Project 06155200:: Graded Project Instructions & Worksheets 1 Lesson 1: Business, Accounting, and You

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;;Lesson 1: Business, Accounting, and You;The goal of this graded project is to create the following financial statements for J & L Accounting, Inc.;? Balance sheet;? Income statement;? Statement of retained earnings;? Post-closing trial balance;The financial statements must be created in one Microsoft Word document (.doc or.docx file). Alternatively, an Excel workbook may be used (.xls or.xlsx file). The Word or Excel file will be uploaded for grading.;INSTRUCTIONS;The project is to be done by hand with a pencil and paper. Use the blank forms provided. At the end of the project, you?ll be given instructions for creating and uploading the financial statements in a Word or Excel file for grading;Note: The formatting of financial statements is important. They follow Generally Accepted Accounting Principles (GAAP), which creates a uniformity of financial statements for analyz- ing. This allows for an easier comparison, as all businesses follow GAAP. Therefore, the financial statements should be created exactly the same way shown or referenced in the text- book. Failure to do so will result in a loss of points.;The project references ?debits equaling credits.? This is a fun- damental principle of accounting that can?t be violated and if so is not acceptable under any circumstance. Debits not equaling credits allows for ?cooking of the books,? which is presenting false information. It also allows for embezzlement, which is theft by management or employees. If debits don?t equal credits, the cause may be a lack of understanding of accounting principles, such as those presented in the text- book and assigned homework problems, or a lack of focus and concentration when making journal entries, posting to ledger accounts, or completing math. Remember?instructors are available to help you with material you may be struggling with. Mistakes of the lack-of-focus variety are best corrected by going back over the work until the error is found.;The accounting equation must balance on the balance sheet. This is another fundamental principle of accounting that can?t be violated and if so is completely unacceptable. When the equation doesn?t balance and the numbers are ?fudged,?;this is easily detectable by someone who knows accounting. If your debits equal your credits and you understand which general ledger accounts belong on which financial state- ments, then the accounting equation should balance. It?s really all about understanding the concepts and applying that understanding.;The following financial statements are provided from the prior accounting period for J & L Accounting, Inc.;a) Post-closing trial balance b) Balance sheet;c) Income statement;d) Statement of retained earnings;J & L Accounting, Inc. Post-Closing Trial Balance December 31, 2012;BALANCE;ACCOUNT TITLE DEBIT CREDIT;Cash, Business Checking;20,500.00;Accounts Receivable;Prepaid Rent;Vehicles;48,000.00;Accumulated Depreciation, Vehicles;12,000.00;Equipment;3,600.00;Accumulated Depreciation, Equipment;600.00;Accounts Payable;Common Stock;38,000.00;Retained Earnings;21,500.00;Dividends;Service Revenue;Advertising Expense;Rent Expense;Office Supplies Expense;Telephone Expense;Utilities Expense;Depreciation Expense;TOTALS;72,100.00;72,100.00;J & L Accounting, Inc.;Balance Sheet;As of December 31, 2012;ASSETt;Cash, Business Checking;20,500.00;Accounts Receivable;0.00;Prepaid Rent;Vehicles;48,000.00;0.00;Less: Accumulated Depreciation, Vehicles;12,000.00;36,000.00;Equipment;3,600.00

 

Paper#75991 | Written in 18-Jul-2015

Price : $27
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