ACCG 201 B

Principles of Financial Accounting

Summer 2015

Case Study

The trial balance of Bellemy Fashion Center contained the following accounts at December 31, 2015, the end of the company?s fiscal year.

Bellemy Fashion Center Trial Balance December 31, 2015
	Debit	Credit
Cash	$28,700
Accounts Receivable	21,200
Allowance for Doubtful Accounts		$ 1,700
Notes Receivable	12,500
Merchandise Inventory	45,000
Store Supplies	5,500
Prepaid Insurance	8,200
Store Equipment	85,000
Accumulated Depreciation ? Store Equipment		18,000
Delivery Equipment	48,000
Accumulated Depreciation ? Delivery Equipment		6,000
Notes Payable		51,000
Accounts Payable		48,500
Share Capital ? Ordinary		90,000
Retained Earnings		40,500
Dividends	24,300
Sales		755,100
Sales Returns and Allowances	4,200
Cost of Goods Sold	495,000
Salaries Expense	140,000
Advertising Expense	26,400
Utilities Expense	14,000
Repair Expense	12,100
Delivery Expense	16,700
Rent Expense	24,000
	$1,010,800	$1,010,800

• Post the adjusting entries to the ledger
• Prepare an adjusted trial balance
• Prepare the worksheet
• Prepare financial statements
• Journalize and post-the closing entries
• Prepare a post-closing trial balance

ACCG201 Principles of Financial Accounting Summer 2016 Case Study ACCG 201 Principles of Financial Accounting Summer 2016 Rubric Assignment 1. This project consists of solving a case study related to the accounting cycle. 2. The case, the Bellemy Company, is detailed as an attachment. 3. The results of the analysis should be presented in a soft copy and Excel. 4. The paper is due no later than June 9, 2016. 5. You can work in groups of 3 students maximum. 6. Your grade for this project is based on the following: Case Grading 1.Post adjusting entries to the ledger 2.Prepare an adjusted trial balance 3.Pepare the worksheet 4.Prepare an Income Statement 5. Prepare a Statement of Retained Earnings 6. Prepare a Statement of Financial Position 7.Journalize and post the closing entries 8.Prepare a post-closing trial balance Total Points Maximum Points 1 1 1 2 1 2 1 1 10 ACCG 201 B Principles of Financial Accounting Summer 2015 Case Study The trial balance of Bellemy Fashion Center contained the following accounts at December 31, 2015, the end of the company's fiscal year. Bellemy Fashion Center Trial Balance December 31, 2015 Debit Cash $28,700 Accounts Receivable 21,200 Allowance for Doubtful Accounts Notes Receivable Merchandise Inventory Store Supplies Prepaid Insurance Store Equipment Accumulated Depreciation - Store Equipment Delivery Equipment Accumulated Depreciation - Delivery Equipment Notes Payable Accounts Payable Share Capital - Ordinary Retained Earnings Dividends Sales Sales Returns and Allowances Cost of Goods Sold Salaries Expense Advertising Expense Utilities Expense Repair Expense Delivery Expense Rent Expense Credit $ 1,700 12,500 45,000 5,500 8,200 85,000 18,000 48,000 6,000 51,000 48,500 90,000 40,500 24,300 755,10 0 4,200 495,000 140,000 26,400 14,000 12,100 16,700 24,000 1|Page $1,010, 800 $1,010, 800 2|Page Directions Prepare the adjusting entries for these accounts: - Store supplies - Depreciation - Receivables - Payables - Salaries expense - Insurance Expense - COGS You need to set your own numbers in order to adjust the accounts. These numbers should be in consistency with your trial balance. Example The trial balance is showing the following balance for \"Store Supplies\": Dr 5,500 Store Supplies Cr Your assumption could be formulated as follows: Store Supplies: An inventory count at the end of the year reveals that $1,800 of supplies are still on hand. So the cost of supplies used = 5,500-1,800=3,700 Adjusting entry for supplies: Dr: Supplies Expense Cr: Store Supplies 3,700 3,700 You need to do same for the other adjustments. You can use the textbook for guidance. 12345- Post the adjusting entries to the ledger Prepare an adjusted trial balance Prepare the worksheet Prepare financial statements Journalize and post-the closing entries 6- Prepare a post-closing trial balance 3|Page