ACC-201-R6865 Financial Accoun!

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Table of Contents Assignment Informa!on Project Guidelines and Rubric

Project Guidelines and Rubric

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Competencies
In this project, you will demonstrate your mastery of the following competencies:

Record and present financial informa!on by applying the appropriate framework and guidelines of accoun!ng for business transac!ons
Determine asset accounts and their disclosure in the financial statements
Determine liability and equity accounts and their disclosure in the financial statements

Scenario
You are a cer!fied public accountant (CPA) who is working with a small bakery to prepare their financial statements for three months of the current
fiscal year. Because the company is a startup and so small, the accoun!ng is done manually in Microso" Excel. You have been given the accounts
and informa!on you need to prepare their financial statements, but you will need to use the accoun!ng cycle to report accurate informa!on to the
finance department. The business owners have also asked you to summarize the company’s performance based on the financial statements.

Direc!ons

Company Accoun!ng Workbook

Use accepted accoun!ng principles to follow and record your business transac!ons for a three-month period from the first step of the accoun!ng
cycle through the repor!ng process. You will build on your work from Milestones One and Two to complete your workbook using the Company
Accoun!ng Workbook Template (linked in the What to Submit sec!on).

Your completed accoun!ng workbook will consist of journal entries for each transac!on and pos!ngs of transac!ons to account ledgers. You will
develop a trial balance from ledger balances and adjust revenue and expense accounts, as necessary, to ensure that revenues and expenses are
reported in the appropriate period under the accrual accoun!ng method. The adjusted trial balance will be used to prepare the income statement,
the statement of owner’s equity, and the balance sheet. A"er the prepara!on of the financial statements, closing entries will be entered to transfer
earnings to equity and prepare temporary accounts for the new accoun!ng period.

Use the instruc!ons below to complete your workbook.

1. Record Financial Data: Use accepted accoun!ng principles to accurately capture business transac!ons for October, November, and
December using the data provided in the accoun!ng data appendix (linked in the Suppor!ng Materials sec!on). You will need to address the
following:
A. Accuracy: Prepare entries that are accurate in that they fully reflect the appropriate informa!on.
B. Completeness: Prepare entries that are complete for each month, including transferring posted entries to T accounts.
C. Inventory Valua!on: Prepare entries for the month of December to reflect the new line of products offered by the company, which
includes using the data from the “Inventory Valua!on” tab of the company accoun!ng workbook.
2. Accrual Basis: Apply the accrual basis of accoun!ng and prepare adjus!ng entries to ensure accurate accoun!ng for expenses that lack
transac!ons in the current period.
A. Unadjusted Trial Balance: Prepare the unadjusted trial balance por!on of the “Trial Balance” tab of the company accoun!ng workbook,
ensuring that the total debits and credits match.
B. Adjus!ng Entries: Prepare the “Adjus!ng Entries” tab of the company accoun!ng workbook.
C. Adjusted Trial Balance: Prepare the adjusted trial balance on the “Trial Balance” tab, ensuring that the debit and credit totals match.
3. Financial Statements: Create financial statements using appropriate methods based on accepted accoun!ng principles. Be sure to prepare
these financial statements in the order listed, as there are important interdependencies among them.
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: Prepare the balance sheet using the adjusted trial balance.
D. Closing Entries: Complete the “Closing Entries” tab of the company accoun!ng workbook by closing all temporary income statement
amounts to create closing entries.
E. Post-Closing Trial Balance: Prepare the “Post-Closing Trial Balance” tab of the company accoun!ng workbook in prepara!on for the next
accoun!ng period.

Summary Report

A"er you have completed 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 sec!on to complete your report.

4. Summary: Write a summary of what the financial statements indicate about the company’s financial health and performance.
A. Purpose: What kind of informa!on would these financial statements provide to various aspects of the business?
B. Analysis: What is the company’s cash posi!on, its net income as a percentage of sales, and its current liabili!es to current assets
posi!on?

What to Submit
To complete this project, you must submit the following:

Company Accoun!ng Workbook Spreadsheet

Your workbook should be completed and submi$ed as a Microso" Excel file based on the template provided.

Project Summary Report Word Document

Use this template to submit a 1- to 2-page Word document summarizing the financial statements you created.

Suppor!ng Materials
The following resources support your work on the project:

Resource: Accoun!ng Data Appendix Word Document

This resource includes all of the exis!ng financial informa!on needed to complete your project.

Tutorial: Infobase Microso" Excel Tutorial

This tutorial from Infobase provides helpful informa!on on how to use the basic features of Microso" Excel. Use the table of contents to select the
tutorials that best suit your needs.

Project Rubric
Needs Improvement
Criteria Exemplary (100%) Proficient (85%) Not Evident (0%) Value
(55%)

Record Financial Prepares accurate Prepares accurate Prepares entries that Does not a$empt 5
Data: Accuracy entries with no errors entries with minimal have significant criterion
errors inaccuracies

Record Financial
Data: Completeness
Prepares entries that
are complete for each
month, including
transferring posted
entries to T accounts,
with no errors
Prepares entries that Prepares entries that Does not a$empt 5
are complete for each are complete for each criterion
month, including month, including
transferring posted transferring posted
entries to T accounts, entries to T accounts,
with minimal errors with significant errors

Record Financial Prepares entries for
Data: Inventory the month of
Valua!on December that reflect
the new line of
products offered by
the company with no
errors
Prepares entries for Prepares entries for Does not a$empt 5
the month of the month of criterion
December that reflect December that reflect
the new line of the new line of
products offered by products offered by
the company with the company with
minimal errors significant errors

Accrual Basis: Prepares the Prepares the Prepares the Does not a$empt 5
Unadjusted Trial unadjusted trial unadjusted trial unadjusted trial criterion
Balance balance accurately, balance with minimal balance with
ensuring the total errors significant errors
debits and credits
match with no errors

Accrual Basis: Prepares adjus!ng Prepares adjus!ng Prepares adjus!ng Does not a$empt 10
Adjus!ng Entries entries with no errors entries with minimal entries with significant criterion
errors errors

Accrual Basis: Prepares the adjusted Prepares the adjusted Prepares the adjusted Does not a$empt 5
Adjusted Trial trial balance with no trial balance with trial balance with criterion
Balance errors minimal errors significant errors

Financial Prepares the income Prepares the income Prepares the income Does not a$empt 15
Statements: Income statement using the statement using the statement using the criterion
Statement adjusted trial balance adjusted trial balance adjusted trial balance
with no errors with minimal errors with significant errors

Financial Prepares the Prepares the Prepares the Does not a$empt 15
Statements: statement of owner’s statement of owner’s statement of owner’s criterion
Statement of equity using the equity using the equity using the
Owner’s Equity adjusted trial balance adjusted trial balance adjusted trial balance
with no errors with minimal errors with significant errors

Financial Prepares the balance Prepares the balance Prepares the balance Does not a$empt 15
Statements: Balance sheet using the sheet using the sheet using the criterion
Sheet adjusted trial balance adjusted trial balance adjusted trial balance
with no errors with minimal errors with significant errors

Financial Completes closing
Statements: Closing entries by closing all
Entries temporary income
statement amounts to
create closing entries
with no errors
Completes closing Completes closing Does not a$empt 5
entries by closing all entries by closing all criterion
temporary income temporary income
statement amounts to statement amounts to
create closing entries create closing entries,
with minimal errors but there are
significant errors

Financial Prepares the post- Prepares the post- Prepares the post- Does not a$empt 5
Statements: Post- closing trial balance in closing trial balance in closing trial balance in criterion
Closing Trial Balance prepara!on for the prepara!on for the prepara!on for the
next accoun!ng period next accoun!ng period next accoun!ng period
with no errors with minimal errors with significant errors

Summary Report Exceeds proficiency in Writes a report with a Shows progress Does not a$empt 10
an excep!onally clear, summary of what kind toward proficiency but criterion
insigh%ul, of informa!on the with errors or
sophis!cated, or financial statements omissions; areas for
crea!ve manner provide and what improvement may
these statements include describing the
indicate about the kind of informa!on the
company’s financial statements provide to
performance, including different business
the company’s cash aspects, and including
posi!on, its net all relevant details
income as a about the company’s
percentage of sales, financial performance,
and its current such as the company’s
liabili!es to current cash posi!on, its net
assets posi!on income as a
percentage of sales,
and its current
liabili!es to current
assets posi!on

Total: 100%

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