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Instructions CASE STUDY - THE COMPLETE ACCOUNTING CYCLE Name: ___________________________________ This Case Study is worth 100 points, or 10% of your final course grade. This Case Study...

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Instructions
    CASE STUDY - THE COMPLETE ACCOUNTING CYCLE
    Name: ___________________________________
    This Case Study is worth 100 points, or 10% of your final course grade.
    This Case Study relates to TCOs E and F, and Chapters 3 and 4.
    MAKE SURE TO COMPLETE ALL REQUIREMENTS WHICH ARE LISTED BELOW.
    There are 10 sheets in the Workbook, including this one.
    All of the information that you need for the project is located in this Workbook.
    Requirements    Sheet in Workbook
    Requirement 1—Prepare the Journal Entries in the General Journal    Journal Entries
    Requirement 2—Post Journal Entries to the General Ledger    General Ledge
    Requirement 3—Prepare a Trial Balance    Trial Balance
    Requirement 4—Prepare the Adjusting Entries    Adjusting Entries
    Requirement 5—Post Adjusting Entries to the General Ledger    General Ledge
    Requirement 6—Prepare an Adjusted Trial Balance    Adjusted Trial Balance
    Requirement 7—Prepare the Financial Statements    Financial Statements
    Requirement 8—Prepare the Closing Entries    Closing Entries
    Requirement 9—Post Closing Entries to the General Ledger    General Ledge
    Requirement 10—Prepare the Post Closing Trial Balance    Post-Closing Trial Balance
    Hint for success: Review the Week 2 and 3 Activities prior to starting this project.
    
    You can hover over the red pointer at the top right-hand corner of the cell to read the hint.
    Hints are provided for the following balances:
    1) The debits for the journal entries are on the Journal Entries tab.
    2) The credits for the journal entries are on the Journal Entries tab.
    3) The cash balance is on the General Ledger tab.
    4) The debits for the trial balance are on the Trial Balance tab.
    5) The credits for the trial balance are on the Trial Balance tab.
    6) The debits for the adjusted trial balance are on the Adjusted Trial Balance tab.
    7) The credits for the adjusted trial balance are on the Adjusted Trial Balance tab.
    8) Net income for the income statement is on the Financial Statements tab.
    9) Retained earnings as of July 31 are on the Financial Statements tab.
    10) Total assets for the balance sheet are on the Financial Statements tab.
    11) Total liabilities and shareholders' equity for the balance sheet are on the Financial Statements tab.
    12) The debits for the post-closing trial balance are on the Post-Closing Trial Balance tab.
    13) The credits for the post-closing trial balance are on the Post-Closing Trial Balance tab.
Journal Entries
    Requirement #1:
    During its first month of operation, the True Consulting Corporation, which specializes in management consulting,
    completed the following transactions.
    July 1    Issued 15,000 shares of the company's common stock in exchange for $15,000.
    July 3    Purchased a truck for $8,000. A down payment of $3,000 was made, with the balance on account.
    July 5    Paid $1,200 to cover rent from July 1 through September 30.
    July 7    Purchased $2,000 of supplies on account.
    July 10    Billed customers for consulting services performed, $3,700.
    July 14    Paid $500 toward the amount owed for the supplies purchased on July 7.
    July 15    Paid $1750 in cash for employee wages.
    July 19    Collected $1600 in cash from customers that were billed on July 10.
    July 21    Received $4,200 cash from customers for services performed.
    July 31    Paid $350 in cash for truck repairs.
    July 31    Declared and Paid $700 in cash dividends.
    Prepare journal entries to record the July transactions in the General Journal below.                                            Use the following account names for journal entries.
                General Journal                                Chart of Accounts
    Date    Description(Account Name)            Debit    Credit                        Category    Account Title    Normal Balance
    1-Jul    Cash            15,000                            Assets
        Common Stock                15,000                            Cash    Debit
                                                    Accounts Receivable    Debit
    3-Jul    Equipment             8,000                                Supplies    Debit
        Cash                3,000                            Prepaid Rent    Debit
        Accounts Payable                5,000                            Equipment    Debit
                                                    Accumulated Depreciation - Equipment    Credit
    5-Jul    Prepaid Rent            1,200
        Cash                1,200                        Liabilities
                                                    Accounts Payable    Credit
    7-Jul    Supplies            2,000                                Income Tax Payable    Credit
        Accounts Payable                2,000
                                                Stockholders' Equity
    10-Jul    Accounts Receivable            3,700                                Common Stock    Credit
        Services Revenue                3,700                            Retained Earnings     Credit
                                                    Dividends    Debit
    14-Jul    Accounts Payable            500
        Cash                500                        Revenue
                                                    Service Revenue    Credit
    15-Jul    Wages Expense            1,750
        Cash                1,750                        Expenses
                                                    Rent Expense    Debit
    19-Jul    Cash            1,600                                Wages Expense    Debit
        Accounts Receivable                1,600                            Repairs & Maintenance Expense    Debit
                                                    Supplies Expense    Debit
    21-Jul    Cash                                            Depreciation Expense    Debit
        Service Revenue            4,200                                Income Tax Expense    Debit
                        4,200
                                                Clearing Account
    31-Jul    Repair and Maintenance Expense            350                                Income Summary
        Cash                350
    31-Jul    Dividends            700
        Cash                700
                    39,000
DeVry: Debits equal $39,000
    39,000
DeVry: Credits equal $39,000
    Note: Remember that debits must equal credits—All of your journal entries should balance.
General Ledge
    This Sheet will be used for Requirements 2, 5, and 9.
    Requirement #2:
    Post the July journal entries to the following T-accounts and compute ending balances.
    Cash
DeVry: The balance of the Cash account after posting all journal entries should be $13300.
            Service Revenue
    15,000    3,000            3,700
    1,600    1,200            4,200
    4,200    500
        1,750
        350
        700            Bal 7,900
    Bal. 13,300
    Accounts Receivable            Rent Expense
    3,700    1,600        1,200
    Bal. 2,100
                bal. 1,200
    Supplies
    2,000            Wages Expense
                1,750
    Bal. 2,000
                Bal 1,750
    Prepaid Rent
    400            Repairs & Maintenance Expense
                350
    Bal 400
                Bal 350
    Equipment
    8,000    3000        Supplies Expense
                2000
        Bal 5000
    Accumulated Depreciation-Equipment            Bal 2000
        100
                Depreciation Expense
                1200
        bal. 100
                bal. 1200
    Accounts Payable
    500    5,000        Income Tax Expense
        2,000        1,200
        Bal 6,500
                bal 1,200
    Income Tax Payable
        1,200
                Retained Earnings
                700    4700
    Common Stock                bal 5400
        15,000
                Income Summary
        bal. 15,000        400
                1,750
    Dividends            350
    700            5,400
                7,900
                bal. 7,900
    Bal 700
Trial Balance
    Requirement #3:
    Prepare a trial balance for July in the space below.
    True Consulting Corporation
    Trial Balance
    July 31
    Accounts    Debit    Credit
    Cash    13,300
    Account Receivable    2,100
    Prepaid Rent    1,200
    Supplies    2,000
    Equipment (truck)    8,000
    Account Payable        6,500
    Common Stuck        15,000
    Dividends    700
    Service revenue        7,900
    wages expense    1,750
    Repair & maintence expense    350
    Totals     29,400
DeVry: Debits equal $29,400
    29,400
DeVry: Credits equal $29,400
Adjusting Entries
    Requirement #4:
    Prepare adjusting entries using the following information in the General Journal
    below. Show your calculations!
    a) One month's rent has expired
    b) The remaining inventory of supplies is $600.
    c) The estimated depreciation on equipment is $100.
    d) The estimated income taxes are $1,200.
            General Journal
    Date    Description (Account Name)            Debit    Credit
    31-Jul    Rent Expense            400
        Prepaid Rent                400
    31-Jul    Supplies Expenses            1,400
        Supplies                 1,400
    31-Jul    Depreciatio Expense            100
        Accumulated Depreciation                100
    31-Jul    Income Tax Expense            1,200
        Income tax payble                 1,200
    Requirement #5:
    Post the adjusting entries to the General Ledger T-accounts and compute adjusted balances.
    Just add to the balances that are already listed.
    Rent Expense            Prepaid Rent
    1,200            400            400
    bal. 1,200            Bal 400
Adjusted Trial Balance
    Requirement #6:
    Prepare an adjusted trial balance in the space below.
    True Consulting Corporation
    Adjusted Trial Balance
    July 31
        0
DeVry: Debits equal $30,700
    0
DeVry: Credits equal $30.700
Financial Statements
    Requirement #7:
    Prepare the financial statements for True Consulting Corporation as of July 31 in the space below.
    You will only be preparing the income statement, statement of retained earnings, and the balance sheet.
    The statement of cash flows is a required financial statement, but is not required for this case study.
    True Consulting Corporation                True Consulting Corporation            True Consulting Corporation
    Income Statement                Statement of Retained Earnings            Balance Sheet
    For the Month Ending July 31                For the Month Ending July 31            July 31
    Revenues:                Retained Earnings, July 1            Assets:
    Service Revenue                Add: Net Income            Cash
                    Subtotal            Accounts Receivable
    Expenses:                Less: Dividends            Supplies
    Rent Expense                Retained Earnings, July 31    
DeVry: Retained Earnings equals $2,000
        Prepaid Rent
    Wages Expense                            Equipment
    Repairs & Maintenance Expense                            Less: Accum. Depr.
    Supplies Expense                            Total Assets
    Depreciation Expense
    Income Tax Expense                            Liabilities:
     Total Expenses                            Accounts Payable
    Net Income                            Income Tax Payable
                                Total Liabilities
                                Stockholders' Equity:
                                Common Stock
                                Retained Earnings
                                Total Stockholders' Equity
                                Total Liabilities and
                                 Stockholders' Equity
                                        
DeVry: Total Liabilities & Stockholders' Equity equals $24,700
    
DeVry: Net Income equals $2,700
                            
DeVry: Total assets equals $24.700
Closing Entries
    Requirement #8:
    Prepare the closing entries at July 31 in the General Journal below.
            General Journal
    Date    Description (Account Name)            Debit    Credit
    Requirement #9:
    Post the closing entries to the General Ledger T-accounts and compute ending balances.
    Just add to the adjusted balances already listed.
Post-Closing Trial Balance
    Requirement #10:
    Prepare a post-closing trial balance as of July 31 in the space below.
    True Consulting Corporation
    Post-Closing Trial Balance
    July 31
        0
DeVry: Debits equal $24,800
    0
DeVry: Credits equal $24,800
Grading Ru
ic
    Case Study 1 Ru
ic
    Please note that this ru
ic provides a general guideline, but you can score anywhere between 0
    and the maximum number of points for that step, depending on the accuracy and completeness
    of your work.
    Criteria        Outstanding    Good    Poor    Very Poor    Points Awarded
        Step 1 XXXXXXXXXXPrepared Journal Entries (20 points)    Journal entries use accurate accounts and amounts; and debits and credits are used co
ectly.     Minor e
ors such as inco
ect account names or credits listed prior to debits.    E
ors in computations that resulted in inco
ect amounts to be debited and credited.    Evidence of an attempt to complete the journal entries.
            20 points    16 points    12 points    8 points
        Step 2 XXXXXXXXXXPosted to the General Ledger (10 points)    Posting is co
ect, leading to accurate account balances.    Posting is mostly co
ect, but minor e
ors are evident.    Posting has several e
ors that resulted in inco
ect account balances.    Posting is done poorly, but does show evidence of an attempt to complete.
            10 points    8 points    6 points    4 points
        Step 3 XXXXXXXXXXPrepared a Trial Balance (10 points)    Co
ect account names and balances so to a
ive at a co
ect trial balance.     Some minor e
ors such as inco
ect account names or inco
ect totals due to e
ors in prior steps.    E
ors in computations that resulted in inco
ect amounts to be debited and credited.    Evidence of an attempt to complete the trial balance.
            10 points    8 points    6 points    4 points
        Step 4 XXXXXXXXXXPrepared Adjusting Journal Entries (10 points)    Journal entries use accurate accounts and amounts; and debits and credits are used co
ectly.     Journal entries mostly use accurate accounts and amounts; and debits and credits are used co
ectly.    Journal entries have some e
ors in use of accounts and amounts; and debits and credits are only used somewhat co
ectly.    Journal entries have some e
ors in use of accounts and amounts; and debits and credits are not used co
ectly.
            10 points    8 points    6 points    4 points
        Steps 5 and 6 XXXXXXXXXXPosted and Prepared an Unadjusted Trial Balance (10 points)    Posting is co
ect, leading to an accurate trial balance.    Posting is mostly co
ect, leading to a mostly co
ect trial balance.    Posting has several e
ors, leading to a trial balance with several e
ors.    Posting is done poorly or not at all, leading to inaccurate or no trial balance.
            10 points    8 points    6 points    4 points
        Step 7 XXXXXXXXXXPrepared Financial Statements (20 points)    All three Financial Statements are prepared accurately and in an appropriate format.    Two of the three financial Statements are prepared accurately, and mostly in an appropriate format. One statement has some e
ors.    One of the three Financial Statements is prepared accurately and mostly in an appropriate format. Two statements have some e
ors.    One or fewer of four Financial Statements are prepared accurately and mostly in an appropriate format. Three or all statements have some e
ors.
            20 points    16 points    12 points    8 points
        Step 8 XXXXXXXXXXPrepared Closing Journal Entries (10 points)    Journal entries use accurate accounts and amounts; and debits and credits are used co
ectly.     Journal entries mostly use accurate accounts and amounts; and debits and credits are used co
ectly.    Journal entries have some e
ors in use of accounts and amounts; and debits and credits are only somewhat used co
ectly.    Journal entries have some e
ors in use of accounts and amounts; and debits and credits are not used co
ectly.
            10 points    8 points    6 points    4 points
        Steps 9 and 10 XXXXXXXXXXPosted and Prepared Post-Closing Trial Balance (10 points)    Posting is co
ect, leading to an accurate trial balance.    Posting is mostly co
ect, leading to a mostly co
ect trial balance.    Posting has several e
ors, leading to a trial balance with several e
ors.    Posting is done poorly or not at all, leading to inaccurate or no trial balance.
            10 points    8 points    6 points    4 points
                        Total Points Earned Out of 100 Points    0

Some of the postings to the general ledger accounts are inco
ect.  Temporary accounts should have a zero ending balance after closing journal entries have been posted to the general leger.  
Please double check your spelling for account names.
Only accounts in the chart of accounts should be used to prepare journal entries and the trial balances.  For example, Consulting Service Revenue is not in the chart of accounts.
A
eviations for account names should be avoided when preparing journal entries.
Order of accounts in the trial balances should be similar to that of the chart of accounts.
Amount for Wages Expense is inco
ect in the income statement.
There should be a zero for beginning retained earnings in the statement of retained earnings.
Temporary accounts should not appear in the post-closing trial balance.  Amounts for Accumulated Depreciation-Equipment and Retained Earnings are missing in the post-closing trial balance.

Instructions
    CASE STUDY - THE COMPLETE ACCOUNTING CYCLE
    Name: ___________________________________
    This Case Study is worth 100 points, or 10% of your final course grade.
    This Case Study relates to TCOs E and F, and Chapters 3 and 4.
    MAKE SURE TO COMPLETE ALL REQUIREMENTS WHICH ARE LISTED BELOW.
    There are 10 sheets in the Workbook, including this one.
    All of the information that you need for the project is located in this Workbook.
    Requirements    Sheet in Workbook
    Requirement 1—Prepare the Journal Entries in the General Journal    Journal Entries
    Requirement 2—Post Journal Entries to the General Ledger    General Ledge
    Requirement 3—Prepare a Trial Balance    Trial Balance
    Requirement 4—Prepare the Adjusting Entries    Adjusting Entries
    Requirement 5—Post Adjusting Entries to the General
Answered 1 days After Mar 23, 2023

Solution

Prince answered on Mar 25 2023
27 Votes
Instructions
    CASE STUDY - THE COMPLETE ACCOUNTING CYCLE
    Name: ___________________________________
    This Case Study is worth 100 points, or 10% of your final course grade.
    This Case Study relates to TCOs E and F, and Chapters 3 and 4.
    MAKE SURE TO COMPLETE ALL REQUIREMENTS WHICH ARE LISTED BELOW.
    There are 10 sheets in the Workbook, including this one.
    All of the information that you need for the project is located in this Workbook.
    Requirements    Sheet in Workbook
    Requirement 1—Prepare the Journal Entries in the General Journal    Journal Entries
    Requirement 2—Post Journal Entries to the General Ledger    General Ledge
    Requirement 3—Prepare a Trial Balance    Trial Balance
    Requirement 4—Prepare the Adjusting Entries    Adjusting Entries
    Requirement 5—Post Adjusting Entries to the General Ledger    General Ledge
    Requirement 6—Prepare an Adjusted Trial Balance    Adjusted Trial Balance
    Requirement 7—Prepare the Financial Statements    Financial Statements
    Requirement 8—Prepare the Closing Entries    Closing Entries
    Requirement 9—Post Closing Entries to the General Ledger    General Ledge
    Requirement 10—Prepare the Post Closing Trial Balance    Post-Closing Trial Balance
    Hint for success: Review the Week 2 and 3 Activities prior to starting this project.
    
    You can hover over the red pointer at the top right-hand corner of the cell to read the hint.
    Hints are provided for the following balances:
    1) The debits for the journal entries are on the Journal Entries tab.
    2) The credits for the journal entries are on the Journal Entries tab.
    3) The cash balance is on the General Ledger tab.
    4) The debits for the trial balance are on the Trial Balance tab.
    5) The credits for the trial balance are on the Trial Balance tab.
    6) The debits for the adjusted trial balance are on the Adjusted Trial Balance tab.
    7) The credits for the adjusted trial balance are on the Adjusted Trial Balance tab.
    8) Net income for the income statement is on the Financial Statements tab.
    9) Retained earnings as of July 31 are on the Financial Statements tab.
    10) Total assets for the balance sheet are on the Financial Statements tab.
    11) Total liabilities and shareholders' equity for the balance sheet are on the Financial Statements tab.
    12) The debits for the post-closing trial balance are on the Post-Closing Trial Balance tab.
    13) The credits for the post-closing trial balance are on the Post-Closing Trial Balance tab.
Journal Entries
    Requirement #1:
    During its first month of operation, the True Consulting Corporation, which specializes in management consulting,
    completed the following transactions.
    July 1    Issued 15,000 shares of the company's common stock in exchange for $15,000.
    July 3    Purchased a truck for $8,000. A down payment of $3,000 was made, with the balance on account.
    July 5    Paid $1,200 to cover rent from July 1 through September 30.
    July 7    Purchased $2,000 of supplies on account.
    July 10    Billed customers for consulting services performed, $3,700.
    July 14    Paid $500 toward the amount owed for the supplies purchased on July 7.
    July 15    Paid $1750 in cash for employee wages.
    July 19    Collected $1600 in cash from customers that were billed on July 10.
    July 21    Received $4,200 cash from customers for services performed.
    July 31    Paid $350 in cash for truck repairs.
    July 31    Declared and Paid $700 in cash dividends.
    Prepare journal entries to record the July transactions in the General Journal below.                                            Use the following account names for journal entries.
                General Journal                                Chart of Accounts
    Date    Description(Account Name)            Debit    Credit                        Category    Account Title    Normal Balance
    1-Jul    Cash            15,000                            Assets
        Common Stock                15,000                            Cash    Debit
                                                    Accounts Receivable    Debit
    3-Jul    Equipment             8,000                                Supplies    Debit
        Cash                3,000                            Prepaid Rent    Debit
        Accounts Payable                5,000                            Equipment    Debit
                                                    Accumulated Depreciation - Equipment    Credit
    5-Jul    Prepaid Rent            1,200
        Cash                1,200                        Liabilities
                                                    Accounts Payable    Credit
    7-Jul    Supplies            2,000                                Income Tax Payable    Credit
        Accounts Payable                2,000
                                                Stockholders' Equity
    10-Jul    Accounts Receivable            3,700                                Common Stock    Credit
        Services Revenue                3,700                            Retained Earnings     Credit
                                                    Dividends    Debit
    14-Jul    Accounts Payable            500
        Cash                500                        Revenue
                                                    Service Revenue    Credit
    15-Jul    Wages Expense            1,750
        Cash                1,750                        Expenses
                                                    Rent Expense    Debit
    19-Jul    Cash            1,600                                Wages Expense    Debit
        Accounts Receivable                1,600                            Repairs & Maintenance Expense    Debit
                                                    Supplies...
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