In this project, you will demonstrate your mastery of the

following competencies:

• Record and present financial information by applying

the appropriate framework and guidelines of

accounting for business transactions

• Determine asset accounts and their disclosure in the

financial statements

• Determine liability and equity accounts and their

disclosure in the financial statements

Scenario

You were recently hired as an entry-level bookkeeper for

a service business that recently opened. This is the first

month in operation for the business and your first task is

to record business transactions for their first month using

the source documents and transaction data the owner

will provide to you. Because this is a small business that

does not use computerized accounting, you will apply the

accounting cycle in Excel to record transactions and

generate financial reporting results for the owner./nyour business transactions for a one-month period from

the first step of the accounting cycle through the

reporting process. You will build on the workbook you

created in Milestones One and Two, or you may start over

with the blank Company Accounting Workbook Template

(linked below in the What to Submit section),

incorporating instructor feedback where applicable.

After you complete your workbook, you will prepare a

summary report of your work.

Your completed accounting workbook will consist of

journal entries for each transaction and postings of

transactions to account ledgers. You will develop a trial

balance from the ledger balances, and use these balances

to prepare the income statement, statement of owner's

equity, and the balance sheet. 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.

Use the instructions below to complete your workbook.

Specifically, you must address the following rubric

criteria:

1. Record Financial Data: Use accepted accounting

principles to accurately capture business

transactions for the month using the data provided in/naddress the following:

A. Accuracy: Prepare entries that are accurate in

that they fully reflect the appropriate

information.

B. Completeness: Prepare entries that are

complete for the month, including transferring

posted entries to T accounts.

C. Unadjusted Trial Balance: Prepare the

unadjusted trial balance portion of the "Trial

Balance" tab of the company accounting

workbook, ensuring that the total debits and

credits match.

2. Financial Statements: Create financial statements

using appropriate methods based on accepted

accounting principles. Be sure to prepare these

financial statements in the order listed, as there are

important interdependencies among them. Finalize

the process by closing temporary accounts.

A. Income Statement: Prepare the income

statement using the adjusted trial balance.

B. Statement of Owner's Equity: Prepare the

statement of owner's equity using the adjusted

trial balance.

C. Balance Sheet Assets: Prepare the balance

sheet asset entries using the adjusted trial

balance.

D. Balance Sheet Liabilities: Prepare the

balance sheet liabilities entries using the

adjusted trial balance.

E. Closing Entries: Complete the "Closing

Entries" tab of the company accounting

workbook by closing all temporary income

learn.snhu.edu/nE. Recommendations: Recommend a simple

system of controls that can be implemented to

ensure protection of company assets and the

accuracy and integrity of their financial data as

they anticipate further growth.

i. Consider additional controls that will

support the potential for adding

merchandise and additional assets with

business growth/expansion.

F. Asset Valuation: Discuss the treatment of

current and long-term assets on the balance

sheet.

i. Discuss at least two different methods of

depreciation. Consider how the methods of

depreciation will be determined.

ii. Discuss how LIFO, FIFO, and average

methods will differ and provide examples of

types of applicable merchandising.

iii. Consider how accounting will change with

the addition of merchandise inventory.

What to Submit

To complete this project, you must submit the following:

Company Accounting Workbook

Your workbook should be completed and submitted as a

Microsoft Excel file based on the template provided.

Project Summary Report

Use this template to submit a 1- to 2-page Word

learn.snhu.edu