I NEED HELP

ACC B202 Accounting Cycle Problem Project

Worth 50 points.

· In grading this, I will be looking for whether you approached the problem appropriately (check figures are provided so you will know if you are on the right track) and if you followed directions.

· You will only obtain the maximum points IF you get the correct answers, since after all, you have check figures!

· I will also check to see if your worksheet, journal, ledger and financial statements hang together (i.e., have the same amounts on each, and that the financial statements articulate).

This problem will take some time, so start early so that if you run into problems, you can get help. You will regret it if you wait until the night before it is due!!! You should be able to earn ALL the available points on this project!!!

On January1, 2009, Wolfpack Spirit Company owned entirely by Janis Hoplin had the following account balances in their general ledger (see attached page of T-accounts):

During the month of January, the company engaged in the following transactions:

Jan 2	Received $3,600 cash from customers as payment on account.
3	Paid $5,000 towards some new equipment that costs $25,000. The remainder was borrowed from the bank.
9	Payday---employees are paid a total of $3,200 for a two-week, 8 hours a day, 5 days a week work schedule; some of which is for work performed in December. (HINT: Look in the General Ledger)
12	Wolfpack Spirit received $12,000 cash from customers for services rendered.
13	Paid $600 for six months of ads in the Maroon, with ads to be run monthly, starting this month
14	Purchased an insurance policy that covered the company for three years, $7,200.
15	Purchased supplies on account, $4,000.
16	Recorded serviced rendered on account of $13,000.
20	Received $6,000 from Mardi Gras Parties, Inc. for services to be rendered in February 2009.
21	Paid for 80% of the CURRENT balance in Accounts Payable.
22	Received $10,000 from customers on account.
23	Payday—employees are paid a total of $3,200.
29	Paid $300 utility bill for January; Paid landlord, who raised the rent starting February 1 to $750.
30	Janis withdrew $4,000 for personal use.

Step-by-step through the accounting cycle:

a. Write journal entries for each transaction listed above on notebook paper: This is your General Journal.

b. Post each transaction to the ledger, checking off each entry as you enter it into the ledger.

c. After all entries are posted, then strike a balance in each account. Each one should have its normal balance.

d. Prepare an unadjusted trial balance on the worksheet provided to test DR = CR (follow model in Chapter 4 or in lecture notes) recording only the DR or CR balances for each account. If DR don’t = CR, find your errors. This should total $124,546 and the Cash balance should be $12,456.

e. Prepare adjusting entries in the General Journal at the end of January. Note that the problem is based on the actual calendar for January 2009. Some useful information follows:

1) Depreciation is for the month is $767.

2) Supplies on hand at the end of January total $2,200.

3) The balance in Unearned Fees on January 31 should be the amount paid by Mardi Gras Parties.

4) Record accrued salaries as of January 30.

5) Record the expiration of one month of insurance.

6) Accrue interest on the note payable of $250.

7) Adjust for expired rent

8) Adjust for advertising services received.

Be sure to SHOW CALCULATIONS for these!!! Round to nearest dollar!

f. Record the adjusting entries in the adjustments columns on the worksheet and also post them to the General Ledger. Strike new balances in the accounts in the GL.

g. Then add/subtract the adjustments as appropriate from the unadjusted trial balance to the adjusted trial balance (are these amounts the same as the balances you found in the ledger in part f.?) Follow model provided in the text.

h. Test to see if DR = CR in the Adjusted Trial Balance columns on the worksheet. If not, find your errors.

i. Sort amounts out from the adjusted TB to appropriate columns (Income Statement and Balance Sheet) on the worksheet. Find balances in each column. Do DR = CR here? And why not??? However, is the difference between the two sets of columns the same? (It should be equal to $15,743).

j. Prepare three financial statements: Income, Statement of Owner’s Equity, and Balance Sheet in GOOD FORM. Use page 164 in text as a model.

k. Now write all necessary closing entries in your General Journal and post them to the General Ledger.

l. Finally prepare a Post-Closing Trial Balance (see example on Blackboard) to test the accuracy of the journalizing/posting of the closing entries.

m. Staple the project together in the following order:

1. Worksheet

2. General Ledger

3. General Journal

4. Income Statement, Statement of Owners’ Equity, Balance Sheet

5. Post-closing Trial Balance

n. Put your last name on each page! If you hand it in late, points will be deducted from your final score---5% for each 24-hour period it is late. This assignment is due at the beginning of class; thus, once I have collected papers on the due date, all papers received after that time will be considered as late and the penalty will be assessed.