Accounting Cycle & Transaction Analysis Final Assessment: Outline and Ru
ic
Final Assessment: Outline and Ru
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1
Purpose of this Assessment
The Accounting Cycle & Transaction Analysis final assessment involves analyzing and recording business
transactions via journal entries, posting these journal entries to T-accounts, preparing a trial balance,
journalizing and posting adjusting entries, and preparing an adjusted trial balance. In completing these
tasks, you will demonstrate an understanding of the accounting cycle, accounting process and accrual
concept, double-entry accounting, and the importance of GAAP.
Items Required for Submission
The item required for submission is a portfolio (titled: Preparing an Adjusted Trial Balance) of accounting
cycle steps detailed in the following steps.
Step ONE: Analyze and Record Business Transactions
Use the information provided in Appendix A (Trial Balance for Purity Inc. and the list of the transactions
that occu
ed during the month of June) to complete the following steps. The diagrams here are for
illustration purposes only; use the Excel template to actually record the entries.
1) Journalize the transactions that occu
ed in June. Do not include explanations.
Journal
DATE
ACCOUNTS
POST.
REF.
Dr.
Cr.
Jun 1
Competency Name: Accounting Cycle & Transaction Analysis
Competency Statement: Demonstrate an understanding of the accounting cycle and the analysis
of accounting transactions.
Final Assessment Title: Preparing an Adjusted Trial Balance
Competency Objectives:
1. Demonstrate an understanding of the accounting process and accrual concept.
2. Demonstrate an understanding of double entry accounting.
3. Demonstrate knowledge of generally accepted accounting principles and practices (GAAP).
4. Demonstrate an understanding of the accounting cycle.
5. Prepare an adjusted trial balance.
Program Learning Outcome(s): N/A
Institutional Learning Outcome(s): N/A
Accounting Cycle & Transaction Analysis Final Assessment: Outline and Ru
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2) Open the ledger accounts listed in the trial balance together with their beginning balances at
May 31. Use the four-column account format as illustrated below. Enter "Bal" for the May 31
alance in the Item column. Post the journal entries to the ledger, create new ledger accounts
as necessary, and omit posting references. Calculate the new account balances at June 30, 2014.
Cash
DATE
ITEM
POST.
REF.
DEBIT
CREDIT
BALANCE
DEBIT CREDIT
3) Prepare the trial balance for Purity Water, Inc., at June 30, 2014.
??
Trial Balance
June 30, 2014
ACCOUNT
DEBIT
CREDIT
Accounting Cycle & Transaction Analysis Final Assessment: Outline and Ru
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Step TWO: Prepare the Adjusted Trial Balance
Use the templates in the Excel document to prepare the unadjusted trial balance for Purity Water, Inc.,
at June 30.
Journalize and post the adjusting entries for June based on the following adjustment
information.
a) Supplies on hand, $200.
) Depreciation, $100 equipment, $75 furniture, $330 vehicles.
c) Services performed but unbilled, $1,900.
d) Accrued salaries, $550.
DATE
ACCOUNTS
POST.
REF.
Dr.
Cr.
June 30
Prepare an adjusted trial balance for Purity Water, Inc., at the end of June.
??
Adjusted Trial Balance
June 30, 2014
ACCOUNT
Unadjusted
Adjustments
Trial Balance
DEBIT
CREDIT
DEBIT
CREDIT
DEBIT
CREDIT
Accounting Cycle & Transaction Analysis Final Assessment: Outline and Ru
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Step THREE: Understanding GAAP
Answer the following questions using two real company examples. Record your responses in the same
Excel document you used for Steps ONE and TWO.
Why is U.S. GAAP so important to the capital market system in the United States? Use two real
company examples in your answer.
Why is there a push to accept International Financial Reporting Standards (IFRS) as the universal
standards for financial accounting? Use a U.S. company and a non-U.S. company as examples in
your answer and describe how they would feel about this move.
Step FOUR: Complete Checklist for Submission
Before you submit your work, check to see if you have met the criteria noted below. Did you:
Clearly and accurately analyze accounting transactions with balanced journal entries?
Clearly and accurately analyze T-accounts?
Create an accurate and appropriately organized trial balance?
Clearly and accurately analyze the transaction for the appropriate adjusting entry?
Create an accurate and appropriately organized adjusted trial balance?
Clearly and concisely analyze GAAP and tie your explanations to two real world companies?
Ensure that each component of your portfolio is clearly constructed, well organized and
presented, and facilitates viewer understanding?
Do all of your entries contain the co
ect account titles, amounts, and appropriate debits and
credits?
Step FIVE: Submit Your Work
[Leave this as the last step of the instructions. No changes are necessary to the text below; just delete
these instructions.]
● Your completed files should be submitted through the Final Assessment page of your competency.
List of Templates/Resources Needed
Accounting Cycle & Transaction Analysis – Final Assessment Template
o Located in the assessment description
Accounting Cycle & Transaction Analysis Final Assessment: Outline and Ru
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Scoring Ru
ic for Final Assessment
Criterion EMERGING DEVELOPING PROFICIENT EXEMPLARY
Analyzing and
ecording
usiness
transactions
via journal
entries
Poorly analyzes
accounting
transactions with
alanced journal
entries. Entries
almost never use
the co
ect account
titles, amounts,
debits, and credits.
Partially analyzes
the accounting
transactions with
alanced journal
entries. Rarely
entries use the
co
ect amount
titles, amounts,
debits, and credits.
Accurately analyzes
accounting
transactions with
alanced journal
entries. Usually
entries use the
co
ect account
titles, amounts,
and appropriate
debits and credits.
Clearly and
accurately analyzes
accounting
transactions with
alanced journal
entries. Almost all
entries use the
co
ect account
titles, amounts,
and appropriate
debits and credits.
Posting journal
entries to
ledger
accounts
Creates inaccurate
and disorganized
ledger balances.
Entries almost
never use the
co
ect account
titles, amounts,
and debits and
credits.
Partially presented
an appropriately
organized ledger
alances. Rarely
entries uses the
co
ect account
titles, amounts,
and debits and
credits.
Accurately presents
the ledger
alances. Usually
entries use the
co
ect account
titles, amounts,
and appropriate
debits and credits.
Clearly and
accurately presents
the ledger
alances. Almost all
entries use the
co
ect account
titles, amounts,
and appropriate
debits and credits.
Preparing a
trial balance
Creates an
inaccurate and
disorganized trial
alance. Entries
almost never use
the co
ect account
titles, amounts,
and debits and
credits.
Creates a partially
appropriately
organized trial
alance. Rarely
entries use the
co
ect account
titles, amounts,
and appropriate
debits and credits.
Creates an accurate
and appropriately
organized trial
alance. Usually
entries use the
co
ect account
titles, amounts,
and appropriate
debits and credits.
Creates an accurate
and appropriately
organized trial
alance. Almost all
entries use the
co
ect account
titles, amounts,
and appropriate
debits and credits.
Journalizing
and posting
adjusting
entries
Does not
appropriately
analyze the
transaction for the
appropriate
adjusting entry.
Entries almost
never use the
co
ect account
titles, amounts,
and debits and
credits.
Partially analyzes
the transaction for
the appropriate
adjusting entry.
Rarely entries use
the co
ect account
titles, amounts,
and appropriate
debits and credits.
Somewhat analyzes
the transaction for
the appropriate
adjusting entry.
Usually entries use
the co
ect account
titles, amounts,
and appropriate
debits and credits.
Clearly and
accurately analyzes
the transactions for
the appropriate
adjusting entries.
Almost all entries
use the co
ect
account titles,
amounts, and
appropriate debits
and credits.
Accounting Cycle & Transaction Analysis Final Assessment: Outline and Ru
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Preparing an
adjusted trial
alance
Does not create an
accurate and
appropriately
organized adjusted
trial balance.
Entries almost
never use the
co
ect account
titles, amounts,
and debits and
credits.
Creates an
appropriately
organized adjusted
trial balance. Rarely
entries use the
co
ect account
titles, amounts,
and appropriate
debits and credits.
Creates an accurate
and appropriately
organized adjusted
trial balance.
Usually entries use
the co
ect account
titles, amounts,
and appropriate
debits and credits.
Creates an accurate
and appropriately
organized adjusted
trial balance.
Almost all entries
use the co
ect
account titles,
amounts, and
appropriate debits
and credits.
Understanding
GAAP
Poorly analyzes
GAAP and IFRS and
does not tie
explanations to
two real- world
companies.
Partially analyzes
GAAP and IFRS and
ties explanations to
two real world
companies.
Adequately
analyzes GAAP and
IFRS and ties
explanations to two
eal- world
companies.
Clearly and
concisely analyzes
GAAP and IFRS and
ties explanations to
two real- world
companies.
Presentation Each component of
the portfolio is not
clearly constructed,
organized, and/or
presented.
Each component of
the portfolio is
partially
constructed and
organized and
presented well.
Each component of
the portfolio is
mostly clearly
constructed,