Complete all of the steps of the accounting cycle

Assignment Help Accounting Basics

Reference no:

China Seas Co., Accounting Information System

Required: Complete all of the steps of the accounting cycle.
This Excel workbook has been prepared to simulate an accounting information system. You will enter the daily transactions,month end adjusting entries, and closing entries. After each journal, you will post the entries to the general ledger, prepare the appropriate trial balances and financial statements.

After you have entered the daily transactions and adjusting entries, review the general ledger, adjusted trial balance, and financial statements for accuracy. Make adjustments as necessary (to the journal entries).

When you have verified the accuracy of the financial statements, complete the closing entries and post closing trial balance. The temporary accounts on the general ledger should have zero balances.

Review of transaction analysis and accounting cycle
Steps in the accounting information system.
1. Analyze the transaction
a. Is it form the business or personal?
b. It is financial?
c. What type of account is it? (asset, lability, equity, revenue, expense, dividend)
d. Does it increase or decrease the account?
e. It is a debit or credit to the account?
2. Record the transaction in the general journal (chronological)
3. Verify the information was posted correctly from the journal to the general ledger.
4. Prepare the trial balance.
5.      Record month end adjustments in the adjusting journal. Verify the information was posted to the general ledger correctly.
a. a.       Deferrals: expenses or revenues paid or received, recorded as assets or liabilities before they are used or earned.
b.      Depreciation: allocate the cost of fixed assets over the period covered.
c.       Accruals: revenues earned, expenses incurred but not yet paid or received, not recorded.
6. Prepare the trial balance.
7.    Using the adjusted trial balance, prepare the financial statements: Income statement, balance sheet, and statement of retained earnings.
8. Record closing entries in the closing journal. Post the entries to the general ledger.
9 Prepare the post closing trial balance using the account balances from the general ledger.

Practice Set
Monthly transactions
1-Dec Issued 10,000 shares of stock at $10 per share. Raised $100,000 cash.
2-Dec Borrowed $60,000 cash at 10%. Principle and interest is due at end of 2nd year. (Month end adjustment = $500 interest/mo)
2-Dec Paid 1 month's rent, $3,000.
7-Dec Purchased supplies inventory $3,100; paid cash.
8-Dec Purchased yacht $286,000; $100,000 cash payment, financed remainder at 8%, principle and interest due at end of 4 years. (Month end adjustment = 1,240 interest/mo.)
9-Dec Purchased 1 year of insurance $1,200; paid cash
15-Dec Sold $25,000 worth of services, on accounts receivable.
29-Dec Received $13,000 from accounts receivable.
30-Dec Issued cash dividend to stockholders, $4,000.

Additional Requirements

Level of Detail: Show all work
Other Requirements: must be original

Reference no:

Questions Cloud

What are the various formes of dispute resolution : you are pleased with the service your law firm has given, but you know it has no international experience, what are the various formes of dispute resolution available to your company what are the advantages and the disadvantages of each for your c..

For what torts will driver likely be found liable : For what torts will Driver likely be found liable? Explain each, identifying the elements of the tort and how Driver's actions satisfy those elements.

What is volume of output that maximizes commodity profit : Its total cost of production is given by TC = 800 + 18 Q + 2 Q2, and thus its marginal cost is MC = 18 + 4 Q. The market price is currently P = $54. In the short run, what is the volume of output that maximizes Commodity Inc.'s profits.

What is the estimate of the mean profit : what is the estimate of the mean profit associated with the production quantity of 60,000 dolls?

Complete all of the steps of the accounting cycle : Complete all of the steps of the accounting cycle.

What are the advantages of emergent strategies : What are the advantages of emergent strategies? Are they particularly appropriate and effective in certain kinds of organizations? In certain kinds of environmental and competitive conditions? In tackling certain kinds of problems?

How do disruptive strategies impact middle managers : Is it sometimes appropriate - even necessary - to design strategies with the intention of disrupting organizations? Can implementing disruptive strategies constitute a strategy for organizational change? How do disruptive strategies impact middle ..

If firm uses strategy each customer buy how much units : A typical customer who buys from a firm has a demand given by P = 90 - 3 Q. The firm has a constant marginal cost MC = $18 and no fixed cost. It currently uses a uniform pricing strategy (i.e., it charges a single price for all the units it sells)..

Which of the following leadership theories focuses : Which of the following leadership theories focuses on the personal relationships that leaders develop with followers?

User Account

All Pages