1 ACCT 207 TEAM PROJECT Adjusting Journal Entries and Financial Statements Purpose Improve your understanding of the relationships between the financial statements; increase your confidence in preparing and recording accounting entries; increase your ability to understand the preparation of formal financial statements. Instructions Included are the unadjusted trial balance for Sinfully Sweet Desserts at December 31, 2016, and a list of adjusting journal entries required at year-end. • First, enter the December 31, 2016, unadjusted trial balance into the electronic spreadsheet I have posted on Sakai (You MUST use this spreadsheet – it includes all necessary formulas to transfer amounts through the spreadsheet and into the financial statements. Thus, as you prepare the required adjusting entries, you will see the numbers “flowing through” the spreadsheet to the financial statements [which also include the necessary accounting formulas], similar to an actual accounting system!). • Second, record each of the adjusting entries from page three directly to the worksheet in the “Adjustments” columns. I recommend writing out the adjusting entries on a separate piece of paper before recording them in the spreadsheet. This way you can fill out the blank account spaces (highlighted in yellow) with the remaining account names. All of the other accounts you need are already included in the spreadsheet. [NOTE: When you fill in an account name under the “Accounts” column, it will automatically transfer into the relevant financial statement space, which is also highlighted in yellow – thus, only enter new account names under the “Accounts” column, DO NOT enter new account names directly into the financial statements.] • From the Adjusted Trial Balance, your accounting “system” will prepare a multiple-step income statement and statement of retained earnings for the year ended December 31, 2016, and a classified balance sheet as of December 31, 2016. • Once the financial statements have been completed, then your system will automatically post the necessary closing entries to the “Closing Entries” columns • As a reminder, the necessary formulas are also included the “Post-closing Trial Balance” columns to calculate the final balances for each account. • Appropriate formulas are also included to provide totals at the bottom of each column to ensure that debits equal credits as you are working through the project. 2 Expectations Each student team will turn in the following: • One hard copy of the spreadsheet, which should include all the columns discussed above. Accounts should remain in the proper order – one copy per team. o Even though they are included in the spreadsheet, make sure that the entire spreadsheet is turned in – i.e., both the spreadsheet and all financial statements in proper form. • Also, you or your team must email me the electronic copy of the spreadsheet at [email protected] • In addition to turning in a completed spreadsheet, you must also turn in a separate sheet explaining the steps that your accounting system went through in preparing the financial statements, preparing closing entries, etc. Your explanation should address the entire accounting cycle and address questions such as the following: After recording the necessary adjusting entries, where are the final, adjusted balances located? From where (on the spreadsheet) did the accounting system pull information to prepare the financial statements? Briefly, what is each financial statement “telling” us? Once the financial statements were completed, what did the system do in the “Closing Entries” column and what is the purpose of preparing closing entries? What is the “Post-Closing Trial Balance and why does it only contain balance sheet accounts? Student Teams You are allowed to form teams of two people (Note: You may work alone on this project, if you choose). You may work with students from my other ACCT 207 section(s). However, when you turn in the project, clearly indicate the time/section of each team member. Each person on the team will earn the same grade, so I recommend that you ensure that both members actively participate in the project. Students are encouraged to help each other. However, each student team must turn in their own work. Due Date All materials must be submitted/emailed to me by Thursday, December 7th. If you do not turn in the project by December 7th, you or your team will receive a zero – no exceptions. Further, if your team decides that it wants to turn in the project before the deadline, that’s fine by me! In fact, I encourage you to do so! ADDITIONAL TIPS • Do not wait until the last minute to do this project – things always take longer than you expect them to. I suggest you knock this project out in one shot – i.e., set aside a block of time and complete it. • For assistance with this project, I would refer to Chapter 4 in your textbook. • When you are ready to print out the project, please note that everything in the spreadsheet has already been formatted for printing (i.e., when printed, the spreadsheet and financial statements should appear on their own pages). 3 Sinfully Sweet Desserts Trial Balance December 31, 2016 Accounts Debit Credit Cash 105,800 Accounts Receivable 14,600 Allowance for Doubtful Accounts 1,900 Inventory 10,000 Prepaid Rent 1,300 Supplies 2,200 Accounts Payable 14,200 Unearned Revenue 4,000 Long-Term Note Payable 7,000 Common Stock 71,000 Retained Earnings 28,800 Sales Revenue 74,200 Cost of Goods Sold 34,200 Wages Expense 8,700 Utility Expense 3,400 Rent Expense 20,900 Adjusting Entries: December 31: While reviewing the bank statement, determined that during December, $900 in revenue had been incorrectly debited to accounts receivable instead of cash (the credit was correct). December 31: Determined that we earned $1,333 in interest on our savings account during the year. December 31: We earned $3,650 of revenue from sweets sales during December 2016 that had been paid for in advance by our customers. The cost of those sweets was $1,100. December 31: The entire year’s rent ($1,300 per month) was paid in advance on January 1, 2016 (recorded in January). December 31: Determined that there was $150 of supplies left. December 31: December utilities are $1,900. The bill will be paid in January. December 31: Unrecorded bad debt expense for the year has been estimated at $2,900. December 31: The long term note was received on August 1, 2016. The interest and the note are due on July 31, 2019. The interest rate is 12%. December 31: Calculate net income (after all of your adjustments) and then record income taxes as 35% of net income. The taxes will be paid in March 2017. [Note: your system will automatically calculate the proper tax expense amount in the income statement – take this amount and make sure the proper tax adjusting entry is entered in the “Adjustments” column]
Why Work with Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
Free Unlimited Revisions
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.
24/7 Customer Support
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admission Essays & Business Writing Help
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.