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acct504_case_study_1_the_complete_accounting_cycle.xlsx
ACCT504 case study
Instructions
0 points or 10% of your final course grade.
Requirement 1 – Prepare the
Journal Entries
in the
Journal Entries
Requirement 2 – Post Journal Entries to the
General Ledger
General Ledger
Requirement 3 – Prepare a
Trial Balance
Requirement 4 – Prepare the
Adjusting Entries
Adjusting Entries
General Ledger
– Prepare an
Adjusted TB
Requirement 7 – Prepare the
Financial Statements
Financial Statements
Requirement
– Prepare the
Closing Entries
Closing Entries
General Ledger
Post Closing TB
for the
on the Financial Statements tab
on the Financial Statements tab
on the Financial Statements tab
tab
Journal Entries
| REQUIREMENT #1: | ||||||||||
| During its first month of operation, the | Flower Landscaping Corporation | |||||||||
| completed the following transactions: | ||||||||||
| March 1 | Began business by making a deposit in a company bank account of $72,000, in exchange | |||||||||
| for 7,200 shares of $10 par value common stock. | ||||||||||
| Paid the current month’s rent, $4,500. | ||||||||||
| Paid the premium on a one-year insurance policy, $3,300. | ||||||||||
| March 7 | Purchased supplies on account from Parkview Company, $900. | |||||||||
| March 10 | Paid employee salaries, $2,200. | |||||||||
| March 14 | Purchased equipment from Hammond Company, $9,000. Paid $1,500 down and the balance was | |||||||||
| placed on account. Payments will be $375.00 per month for twenty months. The first payment is due 4/1. | ||||||||||
| Note: Use | Accounts Payable | |||||||||
| March 15 | Received cash for landscaping revenue for the first half of March, $4,896. | |||||||||
| March 19 | Made payment on account to Parkview Company, $450. | |||||||||
| Received cash for landscaping revenue for the last half of March, $5,304. | ||||||||||
| Declared and paid cash dividend of $1,000. | ||||||||||
| Prepare journal entries to record the March transactions in the General Journal below. | Use the following account names for journal entries. | |||||||||
| Chart of Accounts: Account Title (Normal Balance) | ||||||||||
| Date | Description(Account Name) | Debit | Credit | |||||||
| Assets | ||||||||||
| Cash | ||||||||||
| Prepaid Insurance | ||||||||||
| Supplies | ||||||||||
| Equipment | ||||||||||
| Accumulated Depreciation -Equipment (Credit) | ||||||||||
| Liabilities | ||||||||||
| Accounts Payable (Credit) | ||||||||||
| Income Tax Payable | ||||||||||
| Stockholders Equity | ||||||||||
| Common Stock | ||||||||||
| Retained Earnings | ||||||||||
| Dividends (Debit) | ||||||||||
| Revenue | ||||||||||
| Landscaping Revenue | ||||||||||
| Expenses | ||||||||||
| Rent Expense | ||||||||||
| Salaries Expense | ||||||||||
| Insurance Expense | ||||||||||
| Supplies Expense | ||||||||||
| Depreciation Expense | ||||||||||
| Income Tax Expense | ||||||||||
| Clearing Account | ||||||||||
| Income Summary | ||||||||||
| 0 DeVry: Debits equal $103,550 |
0 DeVry: Credits equal $103,550 |
|||||||||
| Note: Remember that Debits must equal Credits – All of your Journal Entries should balance. |
General Ledger
| This Sheet will be used for Requirements 2, 5, and 9 | |
| REQUIREMENT #2: | |
| Post the March journal entries to the following T-Accounts and compute ending balances. | |
| Cash (111) DeVry: The balance of the Cash account after posting all journal entries should be $69,250. |
Landscaping Revenue (411) |
| Prepaid Insurance (117) | Rent Expense (511) |
| Supplies (119) | Salaries Expense (512) |
| Equipment (144) | Insurance Expense (513) |
| Accumulated Depreciation-Equipment (145) | Supplies Expense (514) |
| Accounts Payable (212) | Depreciation Expense (515) |
| Income Tax Payable (213) | Income Tax Expense (516) |
| Common Stock (311) | |
| Income Summary (517) | |
| Retained Earnings (312) | |
| Dividends (313) |
Trial Balance
| REQUIREMENT #3: | |
| Prepare a trial balance for March in the space below. | |
| 0 DeVry: Debits equal $90,150 |
0 DeVry: Credits equal $90,150 |
Adjusting Entries
| Requirement #4: |
| Prepare adjusting entries using the following information in the General Journal |
| below. Show your calculations! |
| a) One month’s insurance has expired. |
| b) The remaining inventory of supplies is $475. |
| c) The estimated depreciation on equipment is $150. |
| d) The estimated income taxes are $795. |
| Requirement #5: |
| Post the adjusting entries to the General Ledger T-accounts and compute adjusted balances. |
| Just add to the balances that are already listed. |
Adjusted TB
| Requirement #6: | |
| Prepare an Adjusted Trial Balance in the space below. | |
| 0 DeVry: Debits equal $91,095 |
0 DeVry: Credits equal $91,095 |
Financial Statements
| Requirement #7: | ||
| Prepare the financial statements for Flower Landscaping Corporation as of March 31 in the space below. | ||
| You will only be preparing the Income Statement, | Statement of Retained Earnings | |
| The Statement of Cash Flows is a required Financial Statement, but is not required for this Project. | ||
| For the Month Ending March 31 | ||
| Revenues: | Retained Earnings, March 1 | Assets: |
| Add: Net Income | ||
| Subtotal | ||
| Expenses: | Less: Dividends | |
| Retained Earnings, March 31 | DeVry: Retained Earnings equals $855 | |
| Less: Accum. Depr. | ||
| Total Assets | ||
| Liabilities: | ||
| Total Expenses | ||
| Total Liabilities | ||
| Stockholders’ Equity: | ||
| Total Stockholders’ Equity | ||
| Total Liabilities & | ||
| Stockholders’ Equity | ||
| DeVry: Total Liabilities & Stockholders’ Equity equals $81,600 | DeVry: Net Income equals $1,855 | DeVry: Total assets equals $81,600 |
Closing Entries
| Requirement #8: |
| Prepare the closing entries at March 31 in the General Journal below. |
| Hint: use the balances for each account which appear on the Adjusted |
| Trial Balance for your closing entries. |
| Description (Account Name) |
| Requirement #9: |
| Post the closing entries to the General Ledger T-accounts and compute ending balances. |
| Just add to the adjusted balances already listed. |
Post Closing TB
| Requirement #10: | |
| Prepare a post-closing trial balance as of March 31 in the space below. | |
| 0 DeVry: Debits equal $81,750 |
0 DeVry: Credits equal $81,750 |
Grading Rubric
| Case Study 1 Rubric | ||||||||||||||
| Please note that this rubric provides a general guideline but you can score anywhere between 0 | ||||||||||||||
| and the maximum number of points for that step depending on the accuracy and completeness | ||||||||||||||
| of your work. | ||||||||||||||
| Criteria | Outstanding | Good | Poor | Very Poor | Points Awarded | |||||||||
| Step 1 – Prepared Journal Entries ( | 20 pts | Journal Entries use accurate accounts and amounts; and debits and credits are used correctly. | Minor errors such as incorrect account names or credits listed prior to debits. | Errors in computations that resulted in incorrect amounts to be debited and credited. | Evidence of an attempt to complete the journal entries. | |||||||||
| 1 | 6 pts | 12 pts | 8 pts | |||||||||||
| Step 2 -Posted to the General Ledger. ( | 10 pts | Posting is correct leading to accurate account balances. | Posting is mostly correct but minor errors are evident. | Posting has several errors that resulted in incorrect account balances. | Posting is done poorly but does show evidence of an attempt to complete. | |||||||||
| 4 pts | ||||||||||||||
| Step 3 -Prepared a Trial Balance (10 pts) | Correct account names and balances so to arrive at a correct trial balance. | Some minor errors such as incorrect account names or incorrect totals due to errors in prior steps. | Evidence of an attempt to complete the trial balance. | |||||||||||
| Step 4 -Prepared Adjusting Journal Entries (10 pts) | Journal Entries mostly use accurate accounts and amounts; and debits and credits are used correctly. | Journal Entries have some errors in use of accounts and amounts; and debits and credits are only somewhat used correctly. | Journal Entries have some errors in use of accounts and amounts; and debits and credits are not used correctly. | |||||||||||
| Step 5&6 -Posted and Prepared an Unadjusted Trial Balance. (10 pts) | Posting is correct leading to an accurate trial balance. | Posting is mostly correct leading to a mostly correct trial balance. | Posting has several errors leading to a trial balance with several errors. | Posting is done poorly or not at all, leading to inaccurate or no trial balance. | ||||||||||
| Step 7 -Prepared Financial Statements (20 pts) | All three Financial Statements are prepared accurately and in an appropriate format. | Two of the three financial Statements are prepared accurately and mostly in an appropriate format, one statement has some errors. | One of the three Financial Statements are prepared accurately and mostly in an appropriate format, two statements have some errors. | One or fewer of four Financial Statements are prepared accurately and mostly in an appropriate format, three or all statements have some errors. | 16 pts | |||||||||
| Step 8 -Prepared Closing Journal Entries (10 pts) | ||||||||||||||
| Step 9&10 -Posted and Prepared post-closingTrial Balance. (10 pts) | ||||||||||||||
| Total Points Earned Out of 100 Points |
