Accounting Homework-Case Study DUE TODAY BEFORE 10pm

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ACCT503_W4_Case_Study3-052022a13.xlsx
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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 Ledger
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 Ledger
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 Ledger
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
Assets
Cash Debit
Accounts Receivable Debit
Supplies Debit
Prepaid Rent Debit
Equipment Debit
Accumulated Depreciation - Equipment Credit
Liabilities
Accounts Payable Credit
Income Tax Payable Credit
Stockholders' Equity
Common Stock Credit
Retained Earnings Credit
Dividends Debit
Revenue
Service Revenue Credit
Expenses
Rent Expense Debit
Wages Expense Debit
Repairs & Maintenance Expense Debit
Supplies Expense Debit
Depreciation Expense Debit
Income Tax Expense Debit
Clearing Account
Income Summary
0
DeVry: Debits equal $39,000 		0
DeVry: Credits equal $39,000
Note: Remember that debits must equal credits—All of your journal entries should balance.

General Ledger

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
Accounts Receivable Rent Expense
Supplies
Wages Expense
Prepaid Rent
Repairs & Maintenance Expense
Equipment
Supplies Expense
Accumulated Depreciation-Equipment
Depreciation Expense
Accounts Payable
Income Tax Expense
Income Tax Payable
Retained Earnings
Common Stock
Income Summary
Dividends

Trial Balance

Requirement #3:
Prepare a trial balance for July in the space below.
True Consulting Corporation
Trial Balance
July 31
0
DeVry: Debits equal $29,400 		0
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
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.

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 Rubric

Case Study 1 Rubric
Please note that this rubric 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 Prepared Journal Entries (20 points) Journal entries use accurate accounts and amounts; and debits and credits are used correctly. Minor errors such as incorrect account names or credits listed prior to debits. Errors in computations that resulted in incorrect 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 Posted to the General Ledger (10 points) Posting is correct, leading to accurate account balances. Posting is mostly correct, but minor errors are evident. Posting has several errors that resulted in incorrect 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 Prepared a Trial Balance (10 points) Correct account names and balances so to arrive at a correct trial balance. Some minor errors such as incorrect account names or incorrect totals due to errors in prior steps. Errors in computations that resulted in incorrect 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 Prepared Adjusting Journal Entries (10 points) Journal entries use accurate accounts and amounts; and debits and credits are used correctly. Journal entries mostly use accurate accounts and amounts; and debits and credits are used correctly. Journal entries have some errors in use of accounts and amounts; and debits and credits are only used somewhat correctly. Journal entries have some errors in use of accounts and amounts; and debits and credits are not used correctly.
10 points 8 points 6 points 4 points
Steps 5 and 6 Posted and Prepared an Unadjusted Trial Balance (10 points) Posting is correct, leading to an accurate trial balance. Posting is mostly correct, leading to a mostly correct trial balance. Posting has several errors, leading to a trial balance with several errors. 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 Prepared 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 errors. One of the three Financial Statements is prepared accurately and mostly in an appropriate format. Two statements have some errors. One or fewer of four Financial Statements are prepared accurately and mostly in an appropriate format. Three or all statements have some errors.
20 points 16 points 12 points 8 points
Step 8 Prepared Closing Journal Entries (10 points) Journal entries use accurate accounts and amounts; and debits and credits are used correctly. Journal entries mostly use accurate accounts and amounts; and debits and credits are used correctly. Journal entries have some errors in use of accounts and amounts; and debits and credits are only somewhat used correctly. Journal entries have some errors in use of accounts and amounts; and debits and credits are not used correctly.
10 points 8 points 6 points 4 points
Steps 9 and 10 Posted and Prepared Post-Closing Trial Balance (10 points) Posting is correct, leading to an accurate trial balance. Posting is mostly correct, leading to a mostly correct trial balance. Posting has several errors, leading to a trial balance with several errors. 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