excel worksheet attached
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. RequirementsSheet in Workbook Requirement 1—Prepare the Journal Entries in the General JournalJournal Entries Requirement 2—Post Journal Entries to the General LedgerGeneral Ledger Requirement 3—Prepare a Trial BalanceTrial Balance Requirement 4—Prepare the Adjusting EntriesAdjusting Entries Requirement 5—Post Adjusting Entries to the General LedgerGeneral Ledger Requirement 6—Prepare an Adjusted Trial BalanceAdjusted Trial Balance Requirement 7—Prepare the Financial StatementsFinancial Statements Requirement 8—Prepare the Closing EntriesClosing Entries Requirement 9—Post Closing Entries to the General LedgerGeneral Ledger Requirement 10—Prepare the Post Closing Trial BalancePost-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 1Issued 15,000 shares of the company's common stock in exchange for $15,000. July 3Purchased a truck for $8,000. A down payment of $3,000 was made, with the balance on account. July 5Paid $1,200 to cover rent from July 1 through September 30. July 7Purchased $2,000 of supplies on account. July 10Billed customers for consulting services performed, $3,700. July 14Paid $500 toward the amount owed for the supplies purchased on July 7. July 15Paid $1750 in cash for employee wages. July 19Collected $1600 in cash from customers that were billed on July 10. July 21Received $4,200 cash from customers for services performed. July 31Paid $350 in cash for truck repairs. July 31Declared 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 JournalChart of Accounts DateDescription(Account Name)DebitCreditCategoryAccount TitleNormal Balance 1-JulCash15,000Assets Common Stock15,000CashDebit Accounts ReceivableDebit 3-JulEquipment 8,000SuppliesDebit Cash3,000Prepaid RentDebit Accounts Payable5,000EquipmentDebit Accumulated Depreciation - EquipmentCredit 5-JulPrepaid Rent1,200 Cash1,200Liabilities Accounts PayableCredit 7-JulSupplies2,000Income Tax PayableCredit Accounts Payable2,000 Stockholders' Equity 10-JulAccounts Receivable3,700Common StockCredit Services Revenue3,700Retained Earnings Credit DividendsDebit 14-JulAccounts Payable500 Cash500Revenue Service RevenueCredit 15-JulWages Expense1,750 Cash1,750Expenses Rent ExpenseDebit 19-JulCash1,600Wages ExpenseDebit Accounts Receivable1,600Repairs & Maintenance ExpenseDebit Supplies ExpenseDebit 21-JulCashDepreciation ExpenseDebit Service Revenue4,200Income Tax ExpenseDebit 4,200 Clearing Account 31-JulRepair and Maintenance Expense350Income Summary Cash350 31-JulDividends700 Cash700 39,000 DeVry: Debits equal $39,000 39,000 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 15,0003,0003,700 1,6001,2004,200 4,200500 1,750 350 700Bal 7,900 Bal. 13,300 Accounts ReceivableRent Expense 3,7001,6001,200 Bal. 2,100 bal. 1,200 Supplies 2,000Wages Expense 1,750 Bal. 2,000 Bal 1,750 Prepaid Rent 400Repairs & Maintenance Expense 350 Bal 400 Bal 350 Equipment 8,0003000Supplies Expense 2000 Bal 5000 Accumulated Depreciation-EquipmentBal 2000 100 Depreciation Expense 1200 bal. 100 bal. 1200 Accounts Payable 5005,000Income Tax Expense 2,0001,200 Bal 6,500 bal 1,200 Income Tax Payable 1,200 Retained Earnings 7004700 Common Stockbal 5400 15,000 Income Summary bal. 15,000400 1,750 Dividends350 7005,400 7,900 bal. 7,900 Bal 700 Trial Balance Requirement #3: Prepare a trial balance for July in the space below. True Consulting Corporation Trial Balance July 31 AccountsDebitCredit Cash13,300 Account Receivable2,100 Prepaid Rent1,200 Supplies2,000 Equipment (truck)8,000 Account Payable6,500 Common Stuck15,000 Dividends700 Service revenue7,900 wages expense1,750 Repair & maintence expense350 Totals 29,400 DeVry: Debits equal $29,400 29,400 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 DateDescription (Account Name)DebitCredit 31-JulRent Expense400 Prepaid Rent400 31-JulSupplies Expenses1,400 Supplies 1,400 31-JulDepreciatio Expense100 Accumulated Depreciation100 31-JulIncome Tax Expense1,200 Income tax payble 1,200 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. Rent ExpensePrepaid Rent 1,200400400 bal. 1,200Bal 400 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 CorporationTrue Consulting CorporationTrue Consulting Corporation Income StatementStatement of Retained EarningsBalance Sheet For the Month Ending July 31For the Month Ending July 31July 31 Revenues:Retained Earnings, July 1Assets: Service RevenueAdd: Net IncomeCash SubtotalAccounts Receivable Expenses:Less: DividendsSupplies Rent ExpenseRetained Earnings, July 31 DeVry: Retained Earnings equals $2,000 Prepaid Rent Wages ExpenseEquipment Repairs & Maintenance ExpenseLess: Accum. Depr. Supplies ExpenseTotal Assets Depreciation Expense Income Tax ExpenseLiabilities: Total ExpensesAccounts Payable Net IncomeIncome 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 DateDescription (Account Name)DebitCredit 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. CriteriaOutstandingGoodPoorVery PoorPoints 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 points16 points12 points8 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 points8 points6 points4 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 points8 points6 points4 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 points8 points6 points4 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 points8 points6 points4 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 points16 points12 points8 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 points8 points6 points4 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 points8 points6 points4 points Total Points Earned Out of 100 Points0 Some of the postings to the general ledger accounts are incorrect. Temporary accounts should have a zero ending balance after closing journal entries have been posted to the general leger. Please double check your spelling for account names. Only accounts in the chart of accounts should be used to prepare journal entries and the trial balances. For example, Consulting Service Revenue is not in the chart of accounts. Abbreviations for account names should be avoided when preparing journal entries. Order of accounts in the trial balances should be similar to that of the chart of accounts. Amount for Wages Expense is incorrect in the income statement. There should be a zero for beginning retained earnings in the statement of retained earnings. Temporary accounts should not appear in the post-closing trial balance. Amounts for Accumulated Depreciation-Equipment and Retained Earnings are missing in the post-closing trial balance. 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. RequirementsSheet in Workbook Requirement 1—Prepare the Journal Entries in the General JournalJournal Entries Requirement 2—Post Journal Entries to the General LedgerGeneral Ledger Requirement 3—Prepare a Trial BalanceTrial Balance Requirement 4—Prepare the Adjusting EntriesAdjusting Entries Requirement 5—Post Adjusting Entries to the General