Course	ACC1003-FUNDAMENTALSOF FINANCIALACCOUNTING
Learning Outcome scovered	CLO2: Apply double entry principles to financial transactionsCLO3:Carry out procedures to complete the accounting cycle CLO4:Prepare adjusting entries attheend of they earand adjusted trial balance CLO5:Prepare accurate business financial statements
InstructionstoCandidates The project is a group activity on Adjusting entries, Adjusted Trial balance and Financial Statements. Students have been assigned a case and required to be solveding roup where a trial balance for their business firm has to be assumed and constructed along with application of adjustment entries. This will be followed by constructing adjusted trial balance and financial Statements using EXCEL.

Part 1:GroupProject,20%)

• Companydescription
  • Assumeaservicecompanyofyourown
  • Giveasuitablename toyourcompany,
  • Describethenatureofserviceitprovides
  • Datewhenbusinesswasstarted
  • Locationofbusiness
  • Owners-names
  • Capitalinvestmentinthebusiness

• Prepare an Unadjusted Trial Balance of xxx Company for the month or year using properformat in EXCEL.
• Transactions for making Adjustment entries

Mention required transactions for adjusting entries-transactions that have occurred but no entry was made. Therefore, your company need store cord adjusting entries for these transactions.

Listed below are a number of Adjusting entries that need to be taken into account before preparing the Financial Statements for a service Company:

1. Service provided on credit to a customer but not recorded anywhere in the books (AccountreceivableorAccruedrevenue)
2. Supplies at hand and used at the end of year
3. At least 2Prepaidexpensesexpired
4. Depreciation expense one equipment using straight-line method
5. Atleast2Accruedexpense (Interest payable and any other payable)
6. Portion of Unearned service revenue expired (revenue earned)Note-Total8 transactions

• Record Adjustment entries

Using proper templates for all the schedules, prepare record the adjusting entries for the transactions selected in the previous section.

• Adjusted Trial Balance

Prepare an adjusted trial balance to reflect the above adjustments in EXCEL

Financial statements(EXCEL)

• Prepare the following financial statements for your Company at the end of the month or year:
  1. Income statement
  2. Statement of change sinequity
  3. Classified balance sheet

• Conclusion

Comment on the financial performance of the company after analyzing the results in the previous section

• Is the company profitable? What is the reason the company is profitable/not profitable.
• Has the owner equity increased compared to the starting capital invested? Give reason for your answer.
• What are the main requirements for constructing a classified balance sheet?
• Does the balance sheet prepared in previous section satisfy the balance sheet equation? Explain.

ACC 1003 PROJECT scaffolding steps for students for students Step1:INTRODUCTION:

• Name of company/Owners names
• Location of the company
• DESCRIPTION of the business/service-hospitality,hospital ,travel agency, gym etc.
• Starting date of the business
• Capital invested by the owner- cash/equipments/PC

Step2:Prepare a Trial balance(Unadjusted trial balances)-must include all 5 types of Accounts

• Can have 1 revenue account
• Atleast3-4expenses(no need to included epreciation)
• 2 fixed assets,3 current assets
• Atleast 1 long term liability,2 current liabilities
• Owner capital and drawings

Step 3: Mention the transactions for adjustment entries as given in the project requirementStep4:Record the adjusting entries

Step5:Prepare Adjusted Trial balance(using the Unadjusted Trial balance and adjusted entries)

Step6: Prepare the 3 financial statements (usingAdjustedTrialbalance)