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ACC - ABC Corporation is a new company that buys and sells office supplies




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 16 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 UNADJUSTED BALANCES AS OF 12/31/12.;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 (some blank T-Accounts have already been provided for you). 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 being mindful of the four closing entries you've learned.;6. When closing entries have been made, post the entries to the general ledger on the "Post-Close T-Accounts" tab. Make sure your adjusting;journal entries are also posted on your Post-Close T-Accounts. They will not automatically flow from tab-to-tab. Suggestion: As an alternative, after you've;finished posting your adjusting journal entries to the accounts in the "12-31-12 T Accounts" tab, make a duplicate of this worksheet to use for posting your;closing entries and then just relabel the tab as "Post-Close T-Accounts." Just be sure to delete the original "Post-Close T-Accounts" tab already in the;workbook before you do this since you can't have two worksheets with the same name.;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, loss, or other temporary accounts.;-Check figure 1: Income from operations = $251,056.;-Check figure 2: Income before income taxes = $221,477.;-Check figure 3: Total Assets = $1,719,716.;-Check figure 4: Cash flow used by operating activities = $36,860.;-Check figure 5: Adjusted Trial Balance debit and credit columns total $2,364,180.;-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#81793 | Written in 18-Jul-2015

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