CASE STUDY 1 THE COMPLETE ACCOUNTING CYCLE Name Jutin Noel The Entire Case Study is due Sunday at Midnight Mountain time at the end of Week 3 This Case Study is worth 100 points or 10 of your final course grade This Case Study relates to TCO s D and E 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 you need for the Project is located in this Workbook Requirements Sheet in Workbook Requirement 1 Prepare the Journal Entries in the General Journal Requirement 2 Post Journal Entries to the General Ledger Requirement 3 Prepare a Trial Balance Requirement 4 Prepare the Adjusting Entries Requirement 5 Post Adjusting Entries to the General Ledger Requirement 6 Prepare an Adjusted Trial Balance Requirement 7 Prepare the Financial Statements Requirement 8 Prepare the Closing Entries Requirement 9 Post Closing Entries to the General Ledger Requirement 10 Prepare the Post Closing Trial Balance Journal Entries General Ledger Trial Balance Adjusting Entries General Ledger Adjusted TB Financial Statements Closing Entries General Ledger Post Closing TB Hint for success review the Week 2 Lecture prior to starting this project There are also hints contained within certain cells on some of the worksheet tabs 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 on the Journal Entries tab 2 The credits for the journal entries on the Journal Entries tab 3 The cash balance on the General Ledger tab 4 The debits for the trial balance on the Trial Balance tab 5 The credits for the trial balance on the Trial Balance tab 6 The debits for the adjusted trial balance on the Adjusted Trial Balance tab 7 The credits for the adjusted trial balance on the Adjusted Trial Balance tab 8 Net Income for the Income Statement on the Financial Statements tab 9 Retained earnings as of March 31 on the Financial Statements tab 10 Total assets for the Balance Sheet on the Financial Statements tab 11 Total liabilities and shareholders equity for the Balance Sheet on the Financial Statements tab 12 The debits for the post closing trial balance on the Post Closing Trial Balance tab 13 The credits for the post closing trial balance on the Post Closing Trial Balance tab Hint for success review the Week 2 Lecture prior to starting this project There are also hints contained within certain cells on some of the worksheet tabs You can hover over the red pointer at the top right hand corner of the cell to read the hint During its first month of operation the Flower Landscaping Corporation which specializes in residential landscaping completed the following transactions March 1 Began business by making a deposit in a company bank account of 72 000 in exchange for 7 200 shares of 10 par value common stock March 1 Paid the current month s rent 4 500 March 1 Paid the premium on a one year insurance policy 3 300 March 7 Purchased supplies on account from Parkview Company 900 March 10 Paid employee salaries 2 200 March 14 Purchased equipment from Hammond Company 9 000 Paid 1 500 down and the balance was placed on account Payments will be 375 00 per month for twenty months The first payment is due 4 1 Note Use Accounts Payable for the Balance Due March 15 Received cash for landscaping revenue for the first half of March 4 896 March 19 Made payment on account to Parkview Company 450 March 31 Received cash for landscaping revenue for the last half of March 5 304 March 31 Declared and paid cash dividend of 1 000 Prepare journal entries to record the March transactions in the General Journal below Date March 1 March 1 March 7 General Journal Description Account Name Debit Credit Cash A c To Common Stock 72 000 72 000 March 1 Insurnace Expense Rent Expenses To Cash To Accounts Payable To Cash Supplies To cash 4 500 3 300 900 4 500 3 300 900 2 200 March 10 Salaries Expenses 2 200 Requirement 4 Prepare adjusting entries using the following information in the General Journal below Show your calculations a One month s insurance has expired b The remaining inventory of supplies is 475 c The estimated depreciation on equipment is 150 d The estimated income taxes are 795 Date Description Account Name Debit Credit General Journal 31 Mar 31 Mar Prepaid Insurance To Insurance Expense 3 025 3 025 Supplies Expense To supplies 31 Mar Depreciation To Accumulated depreciation 31 Mar Income Taxes To Income Taxes Payable 425 150 795 425 150 795 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 This Sheet will be used for Requirements 2 5 and 9 REQUIREMENT 2 Post the March journal entries to the following T Accounts and compute ending balances debit Cash 111 credit To common stock 72000 By Rent Expense 4500 To Landscaping revenues 4896 To Landscaping revenues 5304 By Insurance Expense 3300 By Salaries Expense 2200 By Accounts Payable 450 By Retained earnings 1000 By Equipment 1500 By Bal c d 69250 Prepaid Insurance 117 To Insurance Expense 3025 By bal c d 3025 Supplies 119 To Accounts Payable 900 By supplies expense 425 By Bal c d 475 Equipment 144 To Cash 1500 To Accounts Payable 7500 By Bal c d 9000 Accumulated Depreciation Equipment 145 By Depreciation 150 To Bal c d 150 Accounts Payable 212 By Equipment 7500 By supplies 900 To Cash 450 To bal c d 7950 Income Tax Payable 213 By Income Tax expense 795 To Bal C d 795 Common Stock 311 By cash 72000 Retained Earnings 312 To Cash 1000 By Bal c d 1000 Dividends 313 Post the March journal entries to the following T Accounts and compute ending balances Landscaping Revenue 411 By cash 4 896 By cash 5304 To Bal c d 10200 Rent Expense 511 To Cash 4500 By Bal c d 4500 Salaries Expense 512 To cash 2200 By Bal c d 2200 Insurance Expense 513 To Cash 3300 By Prepaid Insurance 3025 By Bal c d 275 Supplies Expense 514 To Supplies 425 By Bal c d 425 Depreciation Expense 515 To Accumulated depreciation 150 By Bal c d 150 Income Tax Expense 516 To Income Tax Payable 795 By Bal C d 795 Income Summary 517 REQUIREMENT 3 Prepare a trial balance for March in the space below Flower Landscaping Corporation Trial Balance March 31 Debit Credit Cash Equipment Landscaping Revenue Rent Expense Salaries Expense Insurnace Expense Supplies Accounts Payable Common Stock Retained Earnings 69 250 9 000 4 500 2 200