Ac 323 Comprehesive problem

$50.00

Description

Read ALL instructions before getting started!

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 14
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 BALANCES AS OF 12/1/12.

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. 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.

6. When closing
entries have been made, post the entries to the general ledger on the
“After-Close T-Accounts” tab.
Make sure your adjusting

journal entries
are also on your After-Close T-Accounts.
They will not automatically flow from tab-to-tab.

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, or loss accounts.

-Check figure 1:
Gross profit = $372,450.

-Check figure 2:
Income before income taxes = $208,147.

-Check figure 3:
Total Assets = $906,151.

-Check figure 4: Cash
flow provided by operating activities = $17,840.

-Check figure 5:
Adjusted Trial Balance debit and credit columns total $1,520,008.

-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.

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