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ACC 201 Final Project I Guidelines and Ru
ic
Overview
One of the measures of success for any business is profitability. Managers and business owners must be able to assess the profitability of a company using
information about its financial transactions: This is done through accounting. By working through the accounting cycle, you will understand how to organize
transactions in a way that communicates the financial position of a company. This information is critical for external stakeholders who may be interested in
working for or investing in the business. This process also helps you understand the level of attention to detail that is required in a successful business venture.
The final project for this course consists of two major parts: an accounting workbook (Final Project I) and a professional relevance essay (Final Project II). In the
accounting workbook, you will use provided information to record journal entries that document financial transactions in a business. To do this, you will follow
the business transactions for a three-month period, starting from the first step of the accounting cycle through the reporting process. These transactions include
the initial setup of the business, sales, and purchases, payments made to vendors, payments made to store employees, and debt management. In the second
part of the final project, you will create a well-crafted essay in which you draw connections between your accounting exercises and their practical applications
for furthering your own professional practice.
The project is divided into two milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final
submissions. These milestones will be submitted in Modules Three and Five. The final products will be submitted in Modules Seven and Eight.
In this assignment, you will demonstrate your mastery of the following course outcomes:
ACC-201-01: Record financial data that accurately captures business transactions according to accepted accounting principles
ACC-201-02: Apply the accrual basis of accounting to co
ectly create adjusting entries in the preparation of financial statements
ACC-201-03: Create financial statements by properly employing prescribed methods in accordance with generally accepted accounting principles
Prompt
Your dog, Peyton, has severe allergies and cannot have the usual store-bought dog treats. You have been making homemade treats for him that are all-natural
and hypoallergenic. Over the past year, you have been making and selling these treats out of your home, and you have been quite successful. You now have an
opportunity to open your own dog treat bakery. You have decided on a corporate form of business and have named your company “Peyton Approved.”
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Use accepted accounting principles to follow and record your business transactions for a three-month period from the first step of the accounting cycle through
the reporting process. Enter your transactions in the workbook provided. Your completed workbook will consist of journal entries for each transaction, and
postings of transactions 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 accounting method. The adjusted trial balance will be used to
prepare the income statement, the statement of owner’s equity, the balance sheet, and the statement of cash flows. After the preparation of the financial
statements, closing entries will be entered to transfer earnings to equity and prepare temporary accounts for the new accounting period.
You will find the provided data for your workbook in the appendix at the end of this document. The data have been separated from the prompt so that you can
more easily view the full scope of the project. Links have been provided to help you locate the information you need for each step.
Specifically, you must address the critical elements listed below. Most of the critical elements align with a particular course outcome (shown in
ackets).
I. Record financial data that accurately captures business transactions according to accepted accounting principles:
A. Step One: Complete the “July Journal Entries” tab in your workbook using the Step One data in the appendix. [ACC-201-01]
B. Step Two: Complete the “August Journal Entries” tab in your workbook using the Step Two data in the appendix. [ACC-201-01]
C. Step Three: Complete the “September Journal Entries” tab in your workbook using the Step Three data and updated scenario information in the
appendix. Note that there was an additional line of products added this month, so you must first complete the “Inventory Valuation” tab in your
workbook and copy the journal entries from the inventory evaluation page into your journal for this month to ensure the impact of
merchandising is reflected in your reporting. [ACC-201-01]
The following critical element is not graded:
D. Step Four: Transfer posted entries to T accounts.
II. Apply the accrual basis of accounting to co
ectly create adjusting entries in the preparation of financial statements:
A. Step Five: Prepare the unadjusted trial balance. Note that you should use the T account balances completed in Step Four to prepare the
unadjusted trial balance portion of the “Trial Balance” tab in your workbook. [ACC-201-02]
B. Step Six: Complete the “Adjusting Entries” tab in your workbook using the Step Six data in the appendix. Note that you should take the adjusting
entries from this worksheet and enter them into the “Trial Balance” tab in your workbook. [ACC-201-02]
C. Step Seven: Apply adjusting entries to create the adjusted trial balance. Note that the adjusting entries from Step Six will apply to affected
accounts in the unadjusted trial balance to a
ive at the adjusted trial balance. [ACC-201-02]
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III. Create financial statements by properly employing prescribed methods in accordance with generally accepted accounting principles:
A. Step Eight: Prepare the financial statements. Note that you must use your adjusted trial balance to prepare the income statement, statement of
owner’s equity, and balance sheet. You must complete these statements in this order, as there are interdependencies among them. [ACC-201-
03]
B. Step Nine: Complete the “Closing Entries” tab in your workbook by closing all temporary income statement amounts to create closing entries.
[ACC-201-03]
C. Step Ten: Prepare the “Post Closing Trial Balance” tab for the next accounting period. [ACC-201-03]
D. Step Eleven: Prepare the reversing entries in the “Reversing Entries” tab of your workbook. [ACC-201-03]
Milestones
Milestone One: Accounting Workbook (Steps 1–4)
In Module Three, you will submit the first part of your accounting workbook, including the monthly journal entries and general ledger accounts. This milestone
will be graded with the Milestone One Ru
ic.
Milestone Two: Accounting Workbook (Steps 1–7)
In Module Five, you will submit the second part of your accounting workbook, including the trial balance, adjusting entries, and adjusted trial balance. You
should also incorporate any feedback you received from Milestone One on your monthly journal entries and general ledger accounts. This milestone will be
graded with the Milestone Two Ru
ic.
Final Submission Part I: Final Accounting Workbook
In Module Seven, you will submit the first part of your final project. It should be a complete, polished artifact containing all of the critical elements of the
prompt. It should reflect the incorporation of feedback gained throughout the course. This submission will be graded with the Final Project I Ru
ic.
Final Project I Ru
ic
Guidelines for Submission: Your completed accounting workbook should have all tabs fully and accurately populated in the provided Excel template.
Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value
Record Financial Data:
Step One
[ACC-201-01]
Accurately completes the “July
Journal Entries” tab without
e
ors
Appropriately completes the
“July Journal Entries” tab with
minimal e
ors
Completes the “July Journal
Entries” tab, but with significant
e
ors
Does not complete the “July
Journal Entries” tab
10
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Record Financial Data:
Step Two
[ACC-201-01]
Accurately completes the
“August Journal Entries” tab
without e
ors
Appropriately completes the
“August Journal Entries” tab with
minimal e
ors
Completes the “August Journal
Entries” tab, but with significant
e
ors
Does not complete the “August
Journal Entries” tab
10
Record Financial Data:
Step Three
[ACC-201-01]
Accurately completes the
“September Journal Entries” tab
without e
ors
Appropriately completes the
“September Journal Entries” tab
with minimal e
ors
Completes the “September
Journal Entries” tab, but with
significant e
ors
Does not complete the
“September Journal Entries” tab
10
Apply Accrual Basis of
Accounting: Step Five
[ACC-201-02]
Meets “Proficient” criteria, and
all values are accurate based on
the provided data
Applies the co
ect process in
preparing the unadjusted trial
alance based on the values
from Step Four
Prepares the unadjusted trial
alance, but fails to fully or
appropriately apply the co
ect
process
Does not prepare the unadjusted
trial balance
10
Apply Accrual Basis of
Accounting: Step Six
[ACC-201-02]
Meets “Proficient” criteria, and
all values are accurate based on
the provided data
Applies the co
ect process in
preparing the adjusting entries
ased on the values
Prepares the adjusting entries,
ut fails to fully or appropriately
apply the co
ect process
Does not prepare the adjusting
entries
10
Apply Accrual Basis of
Accounting: Step
Seven
[ACC-201-02]
Meets “Proficient” criteria, and
all values are accurate based on
the provided data
Applies the co
ect process in
preparing the adjusted trial
alance based on the values
Prepares the adjusted trial
alance, but fails to fully or
appropriately apply the co
ect
process
Does not prepare the adjusted
trial balance
10
Create Financial
Statements: Step
Eight
[ACC-201-03]
Meets “Proficient” criteria, and
all values are accurate based on
the provided data
Applies the co
ect process in
preparing the financial
statements based on the values
Prepares the financial
statements, but fails to fully or
appropriately apply the co
ect
process
Does not prepare the financial
statements
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Create Financial
Statements: Step Nine
[ACC-201-03]
Meets “Proficient” criteria, and
all values are accurate based on
the provided data
Applies the co
ect process in
preparing closing entries based
on the values
Prepares the closing entries, but
fails to fully or appropriately
apply the co
ect process