Accounting Process Review

Assignment #1

Some accounting students feel that the mechanics of accounting (journal entries and T-accounts) are for bookkeepers.  Because these students are training to be accountants, they see no need to spend a great deal of time studying these mechanics.  Do you agree or disagree with this position?  Explain.

Student 1:

I disagree with this position. It is important for accountants to know how to deal with journal entries and T-accounts. These are the basics and helps build the foundation for financial statements and other accounting areas. I am an accounting manager and I still deal with journal entries and T-accounts all the time. Journal entries are necessary for recording any kind of financial activity and if you don't know how to record journal entries, when it comes time to reconcile an account or produce the financial statements, it can be difficult to track down any errors or issues if you do not understand the mechanics of accounting. When I am reviewing the work of my team, I have to know which accounts must be debited and which accounts must be credited and how to review journal entries for errors prior to posting. Without understanding the mechanics of accounting, it is very likely that any type of reporting you create can be inaccurate.

· Please reply to his comment

Assignment #2

Exercise

E3.17 (LO 2) (Transactions of a Corporation, Including Investment and Dividend) Scratch Miniature Golf and Driving Range Inc. was opened on March 1 by Rick Fowler. The following selected events and transactions occurred during March.

Mar.   1

  Invested $50,000 cash in the business in exchange for common stock.

3

Purchased Michelle Wie's Golf Land for $38,000 cash. The price consists of land $10,000, building $22,000, and equipment $6,000. (Make one compound entry.)

5

Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $1,600.

6

Paid cash $1,480 for a one‐year insurance policy.

10

Purchased golf equipment for $2,500 from Singh Company, payable in 30 days.

18

Received golf fees of $1,200 in cash.

25

Declared and paid a $500 cash dividend.

30

Paid wages of $900.

30

Paid Singh Company in full.

31

Received $750 of fees in cash.

Scratch uses the following accounts: Cash, Prepaid Insurance, Land, Buildings, Equipment, Accounts Payable, Common Stock, Dividends, Service Revenue, Advertising Expense, and Salaries and Wages Expense.

Instructions

Journalize the March transactions. (Provide explanations for the journal entries.)

Assignment #3

Exercise

P3.4 (LO 3, 4, 5) (Financial Statements, Adjusting and Closing Entries) The trial balance of Bellemy Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year.

Adjustment data:

1.   Supplies on hand totaled $1,500.

2.   Depreciation is $15,000 on the equipment.

3.   Interest of $11,000 is accrued on notes payable at November 30.

Other data:

1.   Salaries expense is 70% selling and 30% administrative.

2.   Rent expense and utilities expenses are 80% selling and 20% administrative.

3.   $30,000 of notes payable are due for payment next year.

4.   Maintenance and repairs expense is 100% administrative.

Instructions

a.   Journalize the adjusting entries.

b.   Prepare an adjusted trial balance.

c.   Prepare a multiple-step income statement (ignore taxes) and retained earnings statement for the year and a classified balance sheet as of November 30, 2020.

d.   Journalize the closing entries.

e.   Prepare a post-closing trial balance.

Assignment #4

Reconstruct the adjusted trial balance for Walmart for the current fiscal period. Prove out that debits = credits. (you did the Walmart assignment last week). Use same data

Instructions:

https://elearning.ggu.edu/mod/page/view.php?id=1845361