accounting

ACCT-2401: Class Project Instructions:

[Note: Basis of project is in-class Monopoly]

1] Name your company (Must be a “C” Corporation) Team members are owners/shareholders)

2] Establish a chart of accounts

3] Create a “Table of Contents” (for your paper)

4] Create Beginning balances for:

· Cash

· Assets

· Long Term Loans (liabilities)

· Common stock

· Beginning retained earnings should be zero (since this is a new company)

5] Make business assumptions, examples below:

· Types of assets, useful life and depreciation methodology used

· Number of shares and value of Common shares issued (include par value and Paid-in-capital)

· Original loan amounts, payment and interest terms

· Dividend payment dates

· Income Tax Rate (use 20% of net income)

6] Record journal entries for all transactions (include all scenarios listed above plus daily business expenses)

7] Create Ledger (for all accounts)

8] Prepare Unadjusted Trial Balance

9] Prepare adjusting journal entries

10] Prepare Adjusted Trial Balance

11] Prepare Income Statement (including calculation of Basic Earnings per Share)

12] Prepare Statement of Retained Earnings

13] Prepare Balance Sheet

14] Prepare cash Flow Statement

15] Prepare Closing Entries

16] Prepare Post-Closing Trial Balance

*******************************************************************************************

Assumptions for Property Transactions:

· Purchase Property (at least 5 separate purchases)

· Depreciate Property using either SL or UOP (must establish useful life & salvage value)

· Sell Property (at least 5 sales)

· Record gain or loss on sale of properties

Note: Your paper will be graded on the following:

Attention to detail & logical layout

Adherence to Proper Accounting Principles

Accuracy, and inclusion of, all transactions and reports