ACC201 business Transactions and Financial Statements Assignment
ACC201 business Transactions and Financial Statements Assignment
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]
D. Step Four: Transfer posted entries to T accounts.
Apply the accrual basis of accounting to correctly 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 arrive at the adjusted trial balance. [ACC-201-02]
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]
