ACC2301 Sunshine Toy Company
cybacatxThis is a Semester Project, the requirement is in the Attachment "Semester Project", it is very clear to let you know what you need to do and how to do. And we also upload the "Beginning Balance Sheet", you need to rely on the information which already gives you in the Beginning Balance Sheet (like the Corporation Name, the Founder and so on) to continue the work.
SEMESTER PROJECT
The semester project requires (2 team member) to record and post transactions & adjusting entries, complete the accounting cycle, and prepare financial statements and footnotes for a hypothetical corporation for one calendar year.
SEMESTER PROJECT
The objective of this project is to record transactions and prepare financial statements for a hypothetical company for one fiscal year. All transactions and company information is to be generated by the student(s). Basic requirements:
1. Work in teams (2 people)
2. The final project is to be assembled into one professional, cohesive document (same font, account titles, formatting, etc.).
3. Each team creates a hypothetical company with a corporate ownership structure that has been in existence for a period of time prior to the fiscal year of the project.
4. Minimum requirements: 25 distinct(unique)transactions, exclusive of adjusting and closing entries that are carried through the accounting cycle. Routine, on-going transactions can be summarized, rather than repeated (e.g. one summary entry for the year’s payroll, rather than multiple payroll entries).
5. The company must maintain a significant inventory and derive the majority of its revenue from sales rather than be primarily a service company.
6. Transactions should be realistic, logical, and representative of material covered in Intermediate Accounting, reflecting your mastery of the subject matter.
7. In order to have complete, GAAP-based financial statements, it may be necessary to review the Intermediate Accounting.
8. All records, journals, and statements must be done using word processing and/or spreadsheet software.
· T-accounts may be used as general ledgers.
· Journals should have separate sections or pages for recording transactions versus adjusting entries versus closing entries.
· For this project ignore the fact that financial statements are generally prepared quarterly and prepare adjusting & closing entries for the YEAREND only.
· A template for the beginning balance sheet is included on the last page of this document. Non-zero balances are required for ALL accounts in the template. Additional accounts may be added but are optional.
Deliverables (items to be included in the completed project):
1. A description of the company, history, ownership structure, and business objective.
2. A numbered chart of accounts, in appropriate account order.
3. A beginning Balance Sheet (it may be adjusted based on changes made throughout the semester, Generally you need to add Accounts)
4. Descriptions of each transaction with enough detail for me to determine correctness.
5. A general journal (this can be separate from, or combined with #4) with separate sections for: * transactions,
* adjusting entries, and
* closing entries.
6. A general ledger (T-Accounts are an acceptable format).
7. A trial balance.
8. An adjusted trial balance.
9. A post-closing trial balance.
10. End of year financial statements:
· Income Statement,
· Balance Sheet,
· Cash Flow Statement, and
· Statement of Owners’ Equity (NOT a statement of retained earnings).
NOTE: Unlike ‘real’ financial statements that combine similar accounts and/or present net amounts for accounts & their contra-accounts, these financial statement represent both the company’s financial information AND your knowledge of accounting. Therefore, present all accounts individually (e.g. do not have one line for “operating expenses” on your income statement - list ALL expenses individually; similarly, do not present “net A/R”, but include A/R less Allowance for Doubtful Accounts, etc.)
11. Notes to the financial statements, including a description of significant accounting policies. This is also an appropriate place to document calculations.
GRADING
· The initial Business Description and Beginning Balance Sheet are worth 20 points and are due January 24th.
· The remaining 150 points are split equally between technical merit (75 points) and conceptual expertise (75 points) of the project as a whole.
· Technical merit refers to accuracy, completeness, professional presentation, clarity, etc.
· Conceptual expertise refers to the depth of accounting knowledge reflected in the overall project (existence of Intermediate level transactions, ‘carry through’ to appropriate adjusting entries, logic).
Beginning Balance Sheet Template
Company Name
Balance Sheet (or Statement of Position)
For the year ended (date)
ASSETS
Current
Cash $
Accounts Receivable $
Less Allowance for Doubtful Accounts __________
Inventory
Total Assets =============
LIABILITIES & OWNERS’ EQUITY
LIABILITIES
Current
Accounts Payable
OWNERS’ EQUITY
Common Stock
Additional Paid in Capital
Retained Earnings
Total Liabilities & Owners’ Equity ===============
Sunshine Toy Company
Balance Sheet
For the year ended December 31, 2012
ASSETS
Current
Cash 250,000
Accounts Receivable 238,000
Less Allowance for Doubtful Accounts 18,000 220,000
Inventory 1,200,000
Total current assets 1,670,000
Long-term investments
Notes Receivable, Long-term 60,000
Property, Plant, and Equipment
Land 120,000
Building 360,000
Less: Accumulated depreciation 40,000 320,000
Total Property, Plant, and Equipment 440,000
Total Assets =============
2,170,000
LIABILITIES & OWNERS’ EQUITY
LIABILITIES
Current
Accounts Payable 460,000
Wages Payable 90,000
Interest Payable 60,000
Total current liabilities 610,000
Long-Term
Loan 500,000
Total Liabilities 1,110,000
OWNERS’ EQUITY
Common Stock 600,000
Additional Paid in Capital 210,000
Retained Earnings 250,000
Total Stockholder’s equity 1,060,000
Total Liabilities & Owners’ Equity ===============
2,170,000
Sunshine Toy Company is a toy seller corporation, which was founded in 2010 by Fang and Shishido. This corporation collects toys from different countries and times to sell, it tries to bring people warm childhood memories for different ages. This company has a super market and it is gradually build into a toy kingdom. The motto of the company is, “Giving everyone a wonderful toy world.”
12 years ago
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acc2301_sunshine_toy_company.xlsx
