Chart of AccountsThis chart of accounts should help you identify the appropriate accounts to record to as you are analyzing and journaling transactions for this workbook. There is nothing to complete on this page; this is simply a resource for you.Asset AccountsLiability AccountsEquity AccountsAcct #Acct #Acct #Cash101Notes Payable201Owner's Capital301Accounts Receivable102Accounts Payable202Owner Draws302Prepaid Rent103Wages Payable203Office Furniture104Office Supplies105Accumulated Depreciation (contra asset)106Revenue AccountsAcct #Service Revenue401Expense AccountsAcct #Rent expense501Business License Expense502Insurance Expense503Repairs and Maintenance504Advertising Expense506Wages Expense507Utilities Expense508Depreciation Expense509CashBaking SuppliesPrepaid RentPrepaid InsuranceBaking EquipmentOffice SuppliesAccounts ReceivableAccumulated DepreciationMerchandise InventoryNotes PayableAccounts PayableWages PayableInterest Payable Common StockDividendsBakery SalesMerchandise SalesBaking Supplies ExpenseRent ExpenseInsurance ExpenseMisc. ExpenseBusiness License ExpenseAdvertising ExpenseWages ExpenseTelephone ExpenseInterest ExpenseDepreciation ExpenseOffice Supplies ExpenseCost of Goods Sold
General JournalA CompanyGeneral Journal Entries Journal Entry TipsThe debited account is recorded first, credited account recorded second.Debits and credits must always equal!DateAccountsDebitCreditThere can be compound entries in which two accounts receive a debt to an equivalent credited amount to one account.Mar 1.Cash125,000.00Be sure to use your chart of accounts (the first page of this workbook). Notes Payable125,000.00Each account you will record to is already listed and organized by classification of the account.(To record amount borrowed)Mar 1.License Expense250.00Cash250.00(To record license expense paid)Mar 2.Rent Expense950.00Cash950.00(To record rent expense incurred)Mar 5.Office Furniture2,750.00Cash15,000.00Owner's Capital17,750.00(To record furniture & Cash Contributed)Mar 6.Cash 650.00Service Revenue650.00(To record service revenue earned)Mar 8.Advertising Expense500.00Accounts Payable500.00(To record advertising expense incurred)Mar 10.Accounts Receivable 1,725.00Service Revenue1,725.00(To record service revenue earned on account)Mar 15.Insurance750.00Cash750.00(To record insurance expense incurred)Mar 20.Utilities Expense135.00Accounts Payable135.00(To record utilities expense incurred)Mar 22.Owner's Withdrawal500.00Cash500.00(To record amount withdrawn for personal use)Mar 25. Office Supplies215.00Cash215.00(To record supplies purchsed)Mar 25.Cash 350.00Service Revenue350.00(To record service revenue earned)Mar 30.Accounts Payable500.00Cash500.00(To record payment made on account)Mar 30.Cash1,725.00Accounts Receivable 1,725.00(To record amount received on account)Mar 31.Salaries Expense275.00Salaries Payable 275.00(To record salaries expense incurred)Mar 31.Accounts Receivable 3,500.00Service Revenue3,500.00(To record service r.
ICT Role in 21st Century Education & its Challenges.pptx
Chart of AccountsThis chart of accounts should help you identify t.docx
1. Chart of AccountsThis chart of accounts should help you
identify the appropriate accounts to record to as you are
analyzing and journaling transactions for this workbook. There
is nothing to complete on this page; this is simply a resource for
you.Asset AccountsLiability AccountsEquity AccountsAcct
#Acct #Acct #Cash101Notes Payable201Owner's
Capital301Accounts Receivable102Accounts Payable202Owner
Draws302Prepaid Rent103Wages Payable203Office
Furniture104Office Supplies105Accumulated Depreciation
(contra asset)106Revenue AccountsAcct #Service
Revenue401Expense AccountsAcct #Rent expense501Business
License Expense502Insurance Expense503Repairs and
Maintenance504Advertising Expense506Wages
Expense507Utilities Expense508Depreciation
Expense509CashBaking SuppliesPrepaid RentPrepaid
InsuranceBaking EquipmentOffice SuppliesAccounts
ReceivableAccumulated DepreciationMerchandise
InventoryNotes PayableAccounts PayableWages PayableInterest
Payable Common StockDividendsBakery SalesMerchandise
SalesBaking Supplies ExpenseRent ExpenseInsurance
ExpenseMisc. ExpenseBusiness License ExpenseAdvertising
ExpenseWages ExpenseTelephone ExpenseInterest
ExpenseDepreciation ExpenseOffice Supplies ExpenseCost of
Goods Sold
General JournalA CompanyGeneral Journal Entries Journal
Entry TipsThe debited account is recorded first, credited
account recorded second.Debits and credits must always
equal!DateAccountsDebitCreditThere can be compound entries
in which two accounts receive a debt to an equivalent credited
amount to one account.Mar 1.Cash125,000.00Be sure to use
your chart of accounts (the first page of this workbook). Notes
Payable125,000.00Each account you will record to is already
listed and organized by classification of the account.(To record
amount borrowed)Mar 1.License Expense250.00Cash250.00(To
2. record license expense paid)Mar 2.Rent
Expense950.00Cash950.00(To record rent expense incurred)Mar
5.Office Furniture2,750.00Cash15,000.00Owner's
Capital17,750.00(To record furniture & Cash Contributed)Mar
6.Cash 650.00Service Revenue650.00(To record service revenue
earned)Mar 8.Advertising Expense500.00Accounts
Payable500.00(To record advertising expense incurred)Mar
10.Accounts Receivable 1,725.00Service Revenue1,725.00(To
record service revenue earned on account)Mar
15.Insurance750.00Cash750.00(To record insurance expense
incurred)Mar 20.Utilities Expense135.00Accounts
Payable135.00(To record utilities expense incurred)Mar
22.Owner's Withdrawal500.00Cash500.00(To record amount
withdrawn for personal use)Mar 25. Office
Supplies215.00Cash215.00(To record supplies purchsed)Mar
25.Cash 350.00Service Revenue350.00(To record service
revenue earned)Mar 30.Accounts Payable500.00Cash500.00(To
record payment made on account)Mar 30.Cash1,725.00Accounts
Receivable 1,725.00(To record amount received on account)Mar
31.Salaries Expense275.00Salaries Payable 275.00(To record
salaries expense incurred)Mar 31.Accounts Receivable
3,500.00Service Revenue3,500.00(To record service revenue
earned on account)Mar 31.Depreciation 46.00Accumulated
Depreciation - Office Furniture46.00(To record depreciation
expense incurred)Total154,821.00154,821.00If Red, this means
your debits and credits do not equal. Be sure to review for
errors.
Ledger
AccountsAssetsLiabilitiesEquityRevenueExpensesCashNotes
PayableOwner's CapitalService RevenueRent Expense$
125,000.00$ 250.00$ 125,000.00$ 17,750.00$ 650.00Mar
6.Mar 2.$ 950.00$ 15,000.00$ 950.00$ 1,725.00Mar 25.$
650.00$ 750.00$ 350.00Mar 25.$ 350.00$ 500.00$
3,500.00Mar 31.$ 1,725.00$ 215.00$ 500.00$ 142,725.00$
3,165.00$ - 0$ 125,000.00$ - 0$ 17,750.00$ - 0$
6,225.00$ 950.00$ - 0End Bal$ 139,560.00End Bal$
3. 125,000.00End Bal$ 17,750.00End Bal$ 6,225.00$
950.00Accounts Rec.Accounts PayableOwner DrawsBusiness
License ExpenseMar 10.$ 1,725.00$ 1,725.00Mar 30.Mar
30.$ 500.00$ 500.00Mar 8.Mar 22.$ 500.00Mar 1.$
250.00Mar 31.$ 3,500.00$ 135.00Mar 20.$ 5,225.00$
1,725.00$ 500.00$ 635.00$ 500.00$ - 0$ 250.00$ -
0End Bal.$ 3,500.00$ 135.00End Bal$ 500.00$
250.00Prepaid RentWages PayableInsurance ExpenseMar 2.$
950.00$ 275.00Posting to the ledger/t accountsMar 15.$
750.00Don't overthink it! You are just posting each debit and
credit from the journal entries to the account you identified in
the entry.These accounts are set to calculate your balances for
you. Please be careful not to delete the running totals as those
will calculate the ending balance.The ending balance will
transfer to the Trial Balance sheet.If you have posted all entries
and your trial balance is not in balance (total debits = total
credits), $ 950.00$ - 0$ - 0$ 275.00this means that there is
an error.$ 750.00$ - 0End Bal$ 950.00End bal$ 275.00$
750.00Office FurnitureRepairs & Maint.Mar 5.$ 2,750.00$
2,750.00$ - 0$ - 0$ - 0End Bal$ 2,750.00$ - 0Office
SuppliesAdvertising ExpenseMar 25.$ 215.00$ 500.00$
215.00$ - 0$ 500.00$ - 0End bal$ 215.00$
500.00Accumulated DepreciationWages Expense$ 46.00Mar
31.$ 275.00$ - 0$ 46.00$ 275.00$ - 0End Bal$ (46.00)$
275.00Utilities Expense$ 135.00$ 135.00$ - 0$
135.00Depreciation Expense$ 46.00$ 46.00$ - 0$ 46.00
Trial BalanceTrial BalanceAs of 03/31/20XXUnadjusted trial
balanceAccountDebitCreditTrial
BalanceCash139,560.00Balances from the t accounts will
autofill your trial balance.Accounts Receivable3,500.00If total
debits do not equal total credits in the trial balance, you know
you have an error.Prepaid RentThese are the balances that will
be used to prepare the financial statements.Office
Furniture2,750.00Be sure to implement feedback provided by
your instructor for this Milestone One submission!Office
Supplies215.00Accumulated Depreciation46.00Notes
4. Payable125,000.00Accounts Payable135.00Wages
Payable275.00Owner's Capital17,750.00Owner
Draws500.00Service Revenue6,225.00Rent
Expense950.00Business License Expense250.00Depreciation
Expense46.00Insurance Expense750.00Repairs and Maintenance
Expense- 0Advertising Expense500.00Wages
Expense275.00Utilities Expense135.00Retained
EarningsTotal:149,431.00149,431.00Debits should equal
credits`
Income StatementA CompanyIncome StatementFor Month
ending 3/31/20XXRevenues$ 6,225.00 Total Revenues$
6,225.00Operating Expenses:Buwines License$
250.00Advertising Exp$ 500.00Insurance Exp$
750.00Maintenance Exp$ 95.00Total Operating
Expenses:1,595.00Net Income4,630.00
Statement of Stockholder EquityCompany NameStatement of
Owner's EquityPeriod Ending 03/31/20XXBeginning Capital on
3/01/20XX$ - 0 Increases to capitalNet income/loss:$
4,630.00Owner Contributions$ 17,750.00Subtotal:$
22,380.00 Decreases to capitalOwner Draws500Ending
Equity as of 03/31/20XX$ 22,380.00
Balance SheetA CompanyBalance SheetAs of March 31,
20XXAssetsLiabilities and Owners' EquityCurrent
Assets:Current Liabilities:Cash138,515.00Accounts
Payable410.00Office Supplies215.00Total Current
Liabilities410.00Accounts Receivables3,500.00Long Term
Liabilities:125,000.00Total Current Assets142,230.00Total
Long Term Liabilities:125,000.00Total
Liabilities:125,410.00Owner's EquityOwner's
Capital17,250.00Non-Current Assets:Add Net
Income2274Office Furniture2,750.00Less
Depreciation(45.88)Total Equity 19,524.00Total Non
Current/Fixed Assets2,704.17Total Assets:144,934.17Total
Liabilities & Equity 144,934.00<== Total Assets on the left
should equal Liabilities + Owner's Equity on the right.
Closing EntriesA CompanyClosing Entries Month ending
5. 03/31/20XXDateAccountsDebitCredit31-
MarRevenues6,225.00Income Summary6,225.00Close revenues
31-MarIncome Summary3,951.00Business
License250.00Advertising Exp500.00Insurance
Exp750.00Maintenance Exop95.00Wages Exp275.00Dep.
Exp45.83Utility Exp135.00Rent Exp1,900.00Close Expenses31-
MarOwner's Capital2,274.00Close Income Summary2,274.0031-
MarClose Dividends22,544.002,355.83
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Chart of AccountsThis chart of accounts should help you
identify the appropriate accounts to record to as you are
analyzing and journaling transactions for this workbook. There
is nothing to complete on this page; this is simply a resource for
you.Asset AccountsLiability AccountsEquity AccountsAcct
#Acct #Acct #Cash101Notes Payable201Owner's
Capital301Accounts Receivable102Accounts Payable202Owner
Draws302Prepaid Rent103Wages Payable203Office
Furniture104Office Supplies105Accumulated Depreciation
(contra asset)106Revenue AccountsAcct #Service
Revenue401Expense AccountsAcct #Rent expense501Business
License Expense502Insurance Expense503Repairs and
Maintenance504Advertising Expense506Wages
Expense507Utilities Expense508Depreciation
Expense509CashBaking SuppliesPrepaid RentPrepaid
InsuranceBaking EquipmentOffice SuppliesAccounts
ReceivableAccumulated DepreciationMerchandise
InventoryNotes PayableAccounts PayableWages PayableInterest
Payable Common StockDividendsBakery SalesMerchandise
SalesBaking Supplies ExpenseRent ExpenseInsurance
ExpenseMisc. ExpenseBusiness License ExpenseAdvertising
ExpenseWages ExpenseTelephone ExpenseInterest
ExpenseDepreciation ExpenseOffice Supplies ExpenseCost of
Goods Sold
General JournalA CompanyGeneral Journal Entries Journal
6. Entry TipsThe debited account is recorded first, credited
account recorded second.Debits and credits must always
equal!DateAccountsDebitCreditThere can be compound entries
in which two accounts receive a debt to an equivalent credited
amount to one account.Be sure to use your chart of accounts
(the first page of this workbook). Each account you will record
to is already listed and organized by classification of the
account.Total- 0- 0If Red, this means your debits and credits do
not equal. Be sure to review for errors.
Ledger
AccountsAssetsLiabilitiesEquityRevenueExpensesCashNotes
PayableOwner's CapitalService RevenueRent Expense$ - 0$ -
0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$
- 0$ - 0$ - 0Accounts Rec.Accounts PayableOwner
DrawsBusiness License Expense$ - 0$ - 0$ - 0$ - 0$ - 0$
- 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0Prepaid RentWages
PayableInsurance ExpensePosting to the ledger/t accountsDon't
overthink it! You are just posting each debit and credit from the
journal entries to the account you identified in the entry.These
accounts are set to calculate your balances for you. Please be
careful not to delete the running totals as those will calculate
the ending balance.The ending balance will transfer to the Trial
Balance sheet.If you have posted all entries and your trial
balance is not in balance (total debits = total credits), $ - 0$ -
0$ - 0$ - 0this means that there is an error.$ - 0$ - 0$ -
0$ - 0$ - 0Office FurnitureRepairs & Maint.$ - 0$ - 0$ -
0$ - 0$ - 0$ - 0Office SuppliesAdvertising Expense$ - 0$
- 0$ - 0$ - 0$ - 0$ - 0Accumulated DepreciationWages
Expense$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0Utilities Expense$
- 0$ - 0$ - 0Depreciation Expense$ - 0$ - 0$ - 0
Trial BalanceTrial BalanceAs of 03/31/20XXUnadjusted trial
balanceAccountDebitCreditTrial BalanceCash- 0Balances from
the t accounts will autofill your trial balance.Accounts
Receivable- 0If total debits do not equal total credits in the trial
balance, you know you have an error.Prepaid Rent- 0These are
the balances that will be used to prepare the financial
7. statements.Office Furniture- 0Be sure to implement feedback
provided by your instructor for this Milestone One
submission!Office Supplies- 0Accumulated Depreciation-
0Notes Payable- 0Accounts Payable- 0Wages Payable- 0Owner's
Capital- 0Owner Draws- 0Service Revenue- 0Rent Expense-
0Business License Expense- 0Depreciation Expense- 0Insurance
Expense- 0Repairs and Maintenance Expense- 0Advertising
Expense- 0Wages Expense- 0Utilities Expense- 0Retained
EarningsTotal:- 0- 0Debits should equal credits`
Income StatementA CompanyIncome StatementFor Month
ending 3/31/20XXRevenues Total Revenues$ - 0Operating
Expenses:Total Operating Expenses:- 0Net Income- 0
Statement of Stockholder EquityCompany NameStatement of
Owner's EquityPeriod Ending 03/31/20XXBeginning Capital on
3/01/20XX$ - 0 Increases to capitalNet income/loss:Owner
ContributionsSubtotal:$ - 0 Decreases to capitalOwner
DrawsEnding Equity as of 03/31/20XX$ - 0
Balance SheetA CompanyBalance SheetAs of March 31,
20XXAssetsLiabilities and Owners' EquityCurrent
Assets:Current Liabilities:Total Current Liabilities- 0Long
Term Liabilities:Total Current Assets- 0Total Long Term
Liabilities:- 0Total Liabilities:- 0Owner's EquityNon-Current
Assets:Total Equity - 0Total Non Current/Fixed Assets- 0Total
Assets:- 0Total Liabilities & Equity - 0<== Total Assets on the
left should equal Liabilities + Owner's Equity on the right.
Closing EntriesA CompanyClosing Entries Month ending
03/31/20XXDateAccountsDebitCredit31-MarClose revenues 31-
MarClose Expenses31-MarClose Income Summary31-MarClose
Dividends- 0- 0
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Summary Report: Financial Statements 2
[
Note: To complete this template, replace the bracketed
text with your own content. Remove this note before you submit
8. your report.]
Summary Report: Financial Statements
[Your Name]
Southern New Hampshire University
Summary Report: Financial Statements 1
Introduction
[In this section, include the purpose of the report. Describe the
kind of information these financial statements provide to
various aspects of the business.]
Process
[In this section you will discuss the process you used to
generate accurate financial statement results for the business
owner from the list of business transactions provided. Explain
what is being communicated through each of the financial
statements you prepared (income statement, statement of equity
and balance sheet) and how this information will be used in
business decision making and planning.]
Financial Statement Analysis
[This section should center on your analysis of the financial
performance of the company based on the statements you
prepared. Discuss key points on your observations of results: Is
the company operating profitably (what percent of revenues
result in profit/net income)? How well poised are they to meet
liabilities (discuss liquidity and current ratio)?.]
Internal Controls
[Provide suggestions for a simple system of internal controls to
assist the owners in protecting assets and ensuring accuracy in
financial data. Consider additional controls that will support the
potential for adding merchandise and additional assets with
business growth/expansion.]
9. Looking to the Future
[In response to the owner’s request for additional information
and support for future growth, discuss accounting
considerations associated with the acquisition of additional long
term/fixed assets, and the addition of merchandise inventory.
How will the company account for the costs of long-term
assets? How will the method of depreciation be determined?
(Expand on 2 different methods of depreciation to demonstrate
ideal application). How does accounting change with the
addition of merchandise inventory? How will it be determined
which inventory costing method to apply? (Discuss how the
FIFO, LIFO, and Average methods differ and provide examples
of the types of merchandising scenarios that would be ideally
applicable in each case.)]
ACC 201 Accounting Data Appendix
The following events occurred in March:
·
March 1: Owner borrowed $125,000 to fund/start the
business. The loan term is 5 years.
·
March 1: Owner paid $250 to the county for a business
license.
·
March 2: Owner signed lease on office space; paying
first (March 20XX) and last month’s rent of $950 per month.
· March 5: Owner contributed office furniture valued at $2,750
and cash in the amount of $15,000 to the business.
·
10. March 6: Owner performed service for client in the
amount of $650. Customer paid in cash.
· March 8: Owner purchased advertising services on account in
the amount of $500.
· March 10: Owner provided services to client on account, in
the amount of $1,725.
· March 15: Owner paid business insurance in the amount of
$750.
·
March 20: The owner received first utility bill in the
amount of $135, due in April.
·
March 20: Office copier required maintenance; owner
paid $95.00 for copier servicing.
·
March 22: Owner withdrew $500 cash for personal use.
·
March 25: Owner paid $215 for office supplies.
·
March 25: Owner provided service to client in the
amount of $350. Client paid at time of service.
·
March 30: Owner paid balance due for advertising
expense purchase on March 8.
·
March 30: Received payment from customer for March
10 invoice in the amount of $1,725.
·
11. March 31: Last day of pay period; owner owes part-time
worker $275 for the March 16 through March 31 pay period.
This will be paid on April 5.
·
March 31: Provided service for client on account in the
amount of $3,500.
·
March 31: Record depreciation of the office furniture at
$45.83.
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ACCT: 201 – FINANCIAL ACCOUNTING
Scenario
You were recently hired as an entry-level bookkeeper for a
service business that recently opened. This is the first month in
operation for the business and your first task is to record
business transactions for their first month using the source
documents and transaction data the owner will provide to you.
Because this is a small business that does not use computerized
accounting, you will apply the accounting cycle in Excel to
record transactions and generate financial reporting results for
the owner.
Directions
I.
Company Accounting Workbook
Use accepted accounting principles to follow and record your
business transactions for a one-month period from the first step
of the accounting cycle through the reporting process. You will
build on the workbook you created in Milestones One and Two,
or you may start over with the blank Company Accounting
Workbook Template (linked below in the What to Submit
section), incorporating instructor feedback where applicable.
12. After you complete your workbook, you will prepare a summary
report of your work.
Your completed accounting workbook will consist of journal
entries for each transaction and postings of transactions to
account ledgers. You will develop a trial balance from the
ledger balances, and use these balances to prepare the income
statement, statement of owner's equity, and the balance sheet.
After the preparation of the financial statements, closing entries
will be entered to transfer earnings to equity and prepare
temporary accounts for the new accounting period.
Use the instructions below to complete your workbook.
Specifically, you must address the following
rubric criteria:
1.
Record Financial Data: Use accepted accounting
principles to accurately capture business transactions for the
month using the data provided in the accounting data appendix
(linked in the Supporting Materials section). You will need to
address the following:
A.
Accuracy: Prepare entries that are accurate in that they
fully reflect the appropriate information.
B.
Completeness: Prepare entries that are complete for the
month, including transferring posted entries to T accounts.
C.
Unadjusted Trial Balance: Prepare the unadjusted trial
balance portion of the “Trial Balance” tab of the company
accounting workbook, ensuring that the total debits and credits
match.
2.
13. Financial Statements: Create financial statements using
appropriate methods based on accepted accounting principles.
Be sure to prepare these financial statements in the order listed,
as there are important interdependencies among them. Finalize
the process by closing temporary accounts.
A.
Income Statement: Prepare the income statement using
the adjusted trial balance.
B.
Statement of Owner’s Equity: Prepare the statement of
owner’s equity using the adjusted trial balance.
C.
Balance Sheet Assets: Prepare the balance sheet asset
entries using the adjusted trial balance.
D.
Balance Sheet Liabilities: Prepare the balance sheet
liabilities entries using the adjusted trial balance.
E.
Closing Entries: Complete the “Closing Entries” tab of
the company accounting workbook by closing all temporary
income statement amounts to create closing entries.
II.
Summary Report
After you have finished preparing all the financial statements,
analyze the statements and write a short report summarizing
your findings. Use the template provided in the What to Submit
section to complete your report. There is also a Final Project
Walkthrough video available in Supporting Materials that will
provide guidance for completing your template. In addition to
the financial statement results, the owners have requested that
14. you provide them with additional information as further growth
is anticipated. They would like more input from you to support
the best possible decisions for the business.
In addition, the owners are requesting that you provide them
with some suggestions on simple internal controls they can
integrate to ensure protection of company assets, and accuracy
in the company's financial data. The owners are also
considering acquiring more long-term/fixed assets, such as
vehicles, equipment, buildings, and so on. They would like your
input on the different options available for depreciation of these
costs. Adding sales of product is also a consideration for
expansion. The owners want to know what accounting
considerations will be involved with this change.
3.
Summary: Write a summary of what the financial
statements indicate about the company’s financial health and
performance.
A.
Purpose: Discuss the accounting process and the
resulting financial statements as they relate to meeting the
informational needs of the user.
B.
Process: Explain the process used to produce accurate
account balances and financial statements from the individual
transaction data.
i. Consider what is being communicated through each of the
financial statements you prepared (income statement, statement
of equity and balance sheet) and how this information will be
used in business decision making and planning.
C.
Analysis: Explain the company’s cash position, its net
income as a percentage of sales, and its current liabilities to
current assets position.
15. D.
Results: Discuss the results regarding profitability of
the first month of operations.
i. Consider how well the company is positioned to meet current
liabilities.
ii. Be sure to include the percentage of revenues that result in
profit/net income and the current ratio when discussing
profitability and liquidity based on the recorded month’s
results.
iii. Consider key points in your observations of results: is the
company operating profitably (what percent of revenues result
in profit/net income)? How well-poised are they to meet
liabilities (discuss liquidity and current ratio)?
E.
Recommendations: Recommend a simple system of
controls that can be implemented to ensure protection of
company assets and the accuracy and integrity of their financial
data as they anticipate further growth.
i. Consider additional controls that will support the potential for
adding merchandise and additional assets with business
growth/expansion.
F.
Asset Valuation: Discuss the treatment of current and
long-term assets on the balance sheet.
i. Discuss at least two different methods of depreciation.
Consider how the methods of depreciation will be determined.
ii. Discuss how LIFO, FIFO, and average methods will differ
and provide examples of types of applicable merchandising.
iii. Consider how accounting will change with the addition of
merchandise inventory.
What to Submit
16. To complete this project, you must submit the following:
Company Accounting Workbook(I HAVE ATTACHED)
Your workbook should be completed and submitted as a
Microsoft Excel file based on the template provided.
Project Summary Report(I HAVE ATTACHED)
Use this template to submit a 1- to 2-page Word document
summarizing the financial statements you created.
Supporting Materials
The following resources support your work on the project:
Resource:
Accounting Data Appendix(I HAVE ATTACHED)
This resource includes all the existing financial information
needed to complete your project.