FYI - workbook is not needed, already done. Did attach the file for assignment purposes. I need a Financial statement analysis paper. Guidelines and rubric pdf is attached for more information.

This is due 12/10/2016.

Asset Accounts Acct # Cash Baking Supplies Prepaid Rent Prepaid Insurance Baking Equipment Misc. Supplies Accounts Receivable Accumulated Depreciation 101 102 103 104 105 106 107 108 This chart of accounts should help you identify the appropriate accounts to record to as you are analyzing and journaling transactions for this workbook. There is nothing to complete on this page; this is simply a resource for you. Liability Accounts Equity Accounts Acct # Notes Payable Accounts Payable Wages Payable Interest Payable he appropriate accounts to record to as you are analyzing and is nothing to complete on this page; this is simply a resource for you. 201 Common Stock 202 Dividends 203 204 Revenue Accounts Bakery Sales Merchandise Sales Expense Accounts Baking Supplies Expense Rent Expense Insurance Expense Misc. Expense Business License Expense Advertising Expense Wages Expense Telephone Expense Interest Expense Depreciation Expense Misc. Supplies Expense s Acct # 301 302 ts Acct # 401 402 ts Acct # 501 502 503 504 505 506 507 508 509 510 511 Peyton Approved General Journal Entries Jul-14 Date Accounts 1-Jul Cash Common Stock Contributed cash for common stock 1-Jul Baking Supplies Accounts Payable Purchased baking supplies on account 3-Jul Cash Notes Payable Received cash in exchange for Note Payable 7-Jul Prepaid Rent Cash Paid 3000 towards lease agreement 7-Jul Rent Expense Cash Debit 15,000.00 Credit 15,000.00 8,500.00 8,500.00 10,000.00 10,000.00 1,500.00 1,500.00 1,500 1500 10-Jul Business Lisence Expense Cash Paid 375 for business lisence 375.00 11-Jul Misc Expense Cash Purchased cash register 250.00 375.00 250.00 13-Jul Baking Equipment 5,000.00 Common Stock Equipment transfer in exchange for Common Stock 13-Jul Advertising Expense Cash Purchased advertising materials 200.00 14-Jul Misc. Supplies Cash 300.00 5,000.00 200.00 300.00 Paid 300 for miscellanous 30-Jul Telephone Expense Accounts Payable Received telephone bill for July 31-Jul Prepaid Insurance Cash Paid 1200 for 12-month insurance policy 31-Jul Wages Expense Wages Payable Accrue wages for period ending Jul 31 31-Jul Accounts Receivable Bakery Sales Collected Cash for future services 31-Jul Cash Bakery Sales Collected cash from bakery sales 45.00 45.00 1,200.00 1,200.00 120.00 120.00 5,000.00 5,000.00 10,000.00 10,000.00 Peyton Approved General Journal Entries Aug-14 Date Accounts 5-Aug Wages Payable Cash Paid employee for period ending 7/31 8-Aug Cash Accounts Receivable Receive payment towards accounts receivable 10-Aug Accounts Payable Cash Paid July telephone bill 15-Aug Baking Supplies Accounts Payable Purchased supplies from vendor on account 15-Aug Wages Expense Wages Payable Accrue wages for period ending 15-Aug Debit 120.00 3,200.00 45.00 5,000.00 480.00 15-Aug Rent Expense Cash Paid rent on bakery space 1,500.00 18-Aug Cash Accounts Receivable Received payments from customers 1,000.00 20-Aug Accounts Payable Cash Paid towards baking supplies 8,500.00 20-Aug Wages Payable Cash Paid employee for period ending 15-Aug 480.00 22-Aug Misc. Supplies 300.00 Cash Paid cash for misc. supplies 31-Aug Telephone Expense Accounts Payable Received telephone bill for August 31-Aug Wages Expense Wages Payable Accrue wages for period ending 31-Aug 45.00 420.00 31-Aug Cash Bakery Sales Collected Cash from bakery sales 12,500.00 31-Aug Accounts Receivable Bakery Sales Collected Cash for future services 7500 Credit 120.00 3,200.00 45.00 5,000.00 480.00 1,500.00 1,000.00 8,500.00 480.00 $ 300.00 $ 45.00 $ 420.00 $ 12,500.00 $ 7,500.00 Peyton Approved General Journal Entries Sep-14 Date Accounts 1-Sep Dividends Cash Paid dividends to self 5-Sep Wages Payable Cash Paid employee for period ending 31-Aug 7-Sep Merchandise Inventory (10 x $6) Cash Purchased inventory 8-Sep Cash Accounts Recievable Receive payments from customers 10-Sep Accounts Payable Cash Paid August telephone bill Debit 3,000.00 3,000.00 420.00 420.00 60.00 60.00 4,000.00 4,000.00 45.00 45.00 11-Sep Baking Supplies Accounts Payable Purchased supplies on account 7,000.00 13-Sep Accounts Payable Cash Paid on supplies vendor account 5,000.00 15-Sep Wages Expense Wages Payable Accrued employee wages for period ending 15-Sep 15-Sep Rent Expense Cash Paid rent expense 15-Sep Cash (8 x $8.50) Credit 7,000.00 5,000.00 456.00 456.00 1,500.00 1,500.00 68.00 Merchandise Sales Revenue Record sale of inventory 15-Sep Cost of Goods Sold (8 X $6) Merchandise Inventory Recorded the cost of goods sold 68.00 48.00 48.00 20-Sep Wages Payable Cash Paid employee for period ending Sep-15 456.00 20-Sep Merchandise Inventory (20 x $6.10 ) Cash Purchased merchandise inventory 122.00 24-Sep Cash (18 x 8.50) Merchandise Sales Revenue Record sale of inventory 153.00 24-Sep Cost of Goods Sold (2 x $6)+(16 x $6.10) Merchandise Inventory Recorded the cost of goods sold 109.60 30-Sep Merchandise Inventory (25 x $6.05) Cash Purchased merchandise inventory 151.25 30-Sep Wages Expense Wages Payable Accure wages for period ending 30-Sep 480.00 456.00 122.00 153.00 109.60 151.25 480.00 30-Sep Cash Bakery Sales Collected Cash from bakery sales 19,000.00 30-Sep Accounts Receivable Bakery Sales Collected Cash for future services 6,000.00 19,000.00 6,000.00 Account Cash Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Peyton Approved Trial Balance 2014 Unadjusted trial balance Debit Credit 47,896.75 20,500.00 175.65 1,500.00 1,200.00 Baking Equipment Misc. Supplies Accounts Receivable Notes Payable Accounts Payable Wages Payable Common Stock Dividends Bakery Sales Merchandise Sales Baking Supplies Expense Rent Expense Prepaid Insurance 5,000.00 600.00 5,300.00 Misc. Expense Business License Expense Advertising Expense Wages Expense Telephone Expense COGS Depreciation Expense Accumulated Depreciation Misc Supplies Expense* Interest Expense* Interest Payable* 250.00 375.00 200.00 1,956.00 90.00 157.60 10,000.00 2,000.00 480.00 20,000.00 3,000.00 60,000.00 221.00 4,500.00 1,200.00 - 93,901.00 92,701.00 - *These accounts will not be utilized before the adjusting process. They should have zero balance Approved Balance 014 Adjusting entries Debit Credit 19,400.00 ### 550.00 Adjusted trial balance Debit Credit ### 1,100.00 ### ### ### 50.00 ### ### ### ### ### ### ### ### 19,400.00 500.00 550.00 ### ### 700.00 CONGRATULATIONS! YOU ARE NOW R 800.00 ### ### ### ### ### ### 208.33 208.33 150.00 WORKBOOK TO COMPLETE THE 4-3 CHECKP 208.33 ### 150.00 20,308.33 COMPLETION OF STEPS 5-7 DELIVERABLE: 22,008.33 150.00 92,559.33 93,059.33 They should have zero balance in the unadjusted trial balance. N OF STEPS 5-7 DELIVERABLE: ULATIONS! YOU ARE NOW READY TO SUBMIT YOUR TO COMPLETE THE 4-3 CHECKPOINT REQUIREMENT FIFO Date 7-Sep Purchases 10 $ 6.00 $ Sales 60.00 15-Sep 20-Sep 8 $ 6.00 $ 48.00 20 $ 6.10 $ 122.00 24-Sep 30-Sep 25 $ 6.05 $ 151.25 7-Sep $ 333.25 Purchases 10 $ 6.00 $ 24-Sep 26 $ 157.60 4 4 25 29 29 Sales 60.00 15-Sep 20-Sep 2 2 20 22 2 $ 6.00 $ 12.00 16 $ 6.10 $ 97.60 $ 109.60 55 LIFO 10 10 8 $ 6.00 $ 48.00 20 $ 6.10 $ 122.00 2 2 20 22 18 $ 6.10 $ 109.80 2 2 4 30-Sep 25 $ 6.05 $ 151.25 55 weighted average 7-Sep $ 333.25 Purchases 10 $ 6.00 $ 60.00 10 8 $ 6.00 $ 48.00 20 $ 6.10 $ 122.00 24-Sep 30-Sep $ 157.80 Sales 15-Sep 20-Sep 26 25 $ 6.05 $ 151.25 $ 333.25 2 2 20 22 18 $ 6.09 $ 109.62 55 2 2 25 29 29 26 157.62 4 4 25 29 Ending Inventory $ 6.00 $ 60.00 $ 6.00 $ 12.00 7-Sep Merchandise Inventory (10 x $6) Cash Purchased inventory Dr 60.00 $ 6.00 $ 12.00 $ 6.10 $ 122.00 $ 134.00 15-Sep Cash (8 x $8.50) Merchandise Sales Revenue Record sale of inventory 68.00 48.00 $ 6.10 $ 15-Sep Cost of Goods Sold (8 X $6) Merchandise Inventory Recorded the cost of goods sold 24.40 $ 6.10 $ 24.40 $ 6.05 $ 151.25 $ 175.65 $ 175.65 20-Sep Merchandise Inventory (20 x $6.10 ) Cash 122.00 24-Sep Cash (18 x 8.50) Merchandise Sales Revenue Record sale of inventory 153.00 24-Sep Cost of Goods Sold (2 x $6)+(16 x $6.10 109.60 Merchandise Inventory Recorded the cost of goods sold Ending Inventory $ 6.00 $ 60.00 $ 6.00 $ 151.25 7-Sep Merchandise Inventory (10 x $6) Cash Purchased inventory 60.00 12.00 $ 6.00 $ 12.00 $ 6.10 $ 122.00 $ 134.00 $ 6.00 $ $ 6.10 $ 30-Sep Merchandise Inventory (25 x $6.05) Cash 12.00 12.20 15-Sep Cash (8 x $8.50) Merchandise Sales Revenue Record sale of inventory 68.00 15-Sep Cost of Goods Sold (8 X $6) Merchandise Inventory Record inventory reduction due to sale 48.00 $ 24.20 $ 6.00 $ 12.00 $ 6.10 $ 12.20 $ 6.05 $ 151.25 $ 175.45 $ 175.45 Ending Inventory $ 6.00 $60 $ 6.00 $ 122.00 24-Sep Cash (18 x 8.50) Merchandise Sales Revenue Record sale of inventory 153.00 24-Sep Cost of Goods Sold (18 x $6.10) Merchandise Inventory Record inventory reduction due to sale 109.80 30-Sep Merchandise Inventory (25 x $6.05) Cash 151.25 7-Sep Merchandise Inventory (10 x $6) Cash Purchased inventory 60.00 12.00 $ 6.00 $ 12.00 $ 6.10 $ 122.00 per unit $ 134.00 $6.09 $ 20-Sep Merchandise Inventory (20 x $6.10) Cash 24.38 $ 24.38 $ 6.05 $ 151.25 $ 175.63 $6.06 15-Sep Cash (8 x $8.50) Merchandise Sales Revenue Record sale of inventory 68.00 15-Sep Cost of Goods Sold (8 X $6) Merchandise Inventory Record inventory reduction due to sale 48.00 20-Sep Merchandise Inventory (20 x $6.10) Cash 122.00 24-Sep Cash (18 x 8.50) Merchandise Sales Revenue Record sale of inventory 153.00 24-Sep Cost of Goods Sold (18 x $6.09) Merchandise Inventory Record inventory reduction due to sale 109.62 30-Sep Merchandise Inventory (25 x $6.05) Cash 151.25 Cr 60.00 68.00 ### 122.00 153.00 109.60 151.25 ### 68.00 ### Purchases 9/7: 10 bottles purchased at $6 9/20: 20 bottles purchased at $6.10 9/30: 25 bottles purchased at $6.05 Sales - selling price, $8.50 a bottle 9/15: 8 bottles 9/24: 18 bottles 122.00 153.00 109.80 151.25 ### 68.00 ### 122.00 153.00 109.62 151.25 date Cash 1-Jul 15,000.00 3-Jul 10,000.00 1,500.00 375.00 250.00 200.00 300.00 1,200.00 120.00 31-Jul 8-Aug 31-Sep 8-Sep 15-Sep 24-Sep Notes Payable 10,000 7-Jul 10-Jul 11-Jul 13-Jul 14-Jul 31-Jul 5-Aug date 3-Jul 10,000 10-Aug 15-Aug 1,000.00 8,500.00 480.00 300.00 31-Aug date 10000 3,200.00 45.00 1,500.00 18-Aug date 20-Aug 20-Aug 22-Aug 12500 3,000.00 420.00 1-Sep 5-Sep 1,500.00 60 7-Jul 7-Sep 45.00 5,000.00 1,500.00 10-Sep 13-Sep 15-Sep 456.00 122.00 20-Sep 20-Sep 151.25 30-Sep 31-Jul 31-Aug 30-Sep Accounts Rec. 3200 8-Aug 5000 1000 18-Aug 5000 7500 6000 4000 8-Sep 19,000.00 4,000.00 68.00 153.00 5300 74,921.00 27,024.25 47,896.75 11-Jul Misc. expense 250 Baking equipment 13-Jul 5,000 5,000 250 1-Jul 15-Aug 11-Sep Baking supplies 8,500 5000 7000 20,500 7-Jul Prepaid rent 1,500 Misc. supplies 14-Jul 22-Aug 300 300 600 Prepaid insurance 31-Jul 1,200 1,200 1,500 10-Aug 20-Aug 10-Sep 13-Sep 15-Aug Accounts payable 8500 1-Jul 45 30-Jul 45 8,500 45 31-Aug 7,000 11-Sep 45 5,000 5,000 5000 Salary and wages expense 31-Jul 120 15-Aug 480 31-Aug 420 15-Sep 456 30-Sep 480 2,000 Telephone expense 30-Jul 45 31-Aug 45 1,956 1-Sep Dividends 3,000 90 3,000 baking supplies expense adj 0 misc supplies expense COGS LIF0 adj 15-Sep 48.00 24-Sep 109.80 0 Merchandise Sales Revenue 68 15-Sep 153.00 24-Sep 157.80 221.00 COGS Weighted Avg. 15-Sep 48.00 24-Sep 109.62 157.62 Business License exp 10-Jul 375 375 Common Stock 15,000 5,000 1-Jul 13-Jul 20,000 Insurance expense COMPLETION OF STEPS 1- 4 DELIVERABLE: CONGRATULATIONS! YOU ARE NOW READY TO SUBMIT YOU WORKBOOK TO COMPLETE THE 3-3 CHECKPOINT REQUIREM 0 Advertising expense 13-Jul 200 200 15-Aug 7-Jul 15-Sep Rent expense 1,500 1500 1500 4,500 Bakery Sales 10000 31-Jul 12500 31-Aug 19000 30-Sep 5,000 31-Jul 7,500 31-Aug 6000 30-Sep 60,000 Salaries and wages payable 120 31-Jul 5-Aug 120 480 15-Aug 20-Aug 480 420 31-Aug 5-Sep 420 456 15-Sep 20-Sep 456 480 30-Sep 480 depreciation expense 0 Interest expense acc dep 0 Interest payable adj adj 0 COGS FIFO 0 15-Sep 24-Sep 48.00 109.60 157.60 Merch. Inv. FIFO 7-Sep 60.00 48.00 20-Sep 122.00 109.60 30-Sep 151.25 175.65 Merch. Inv. LIFO 15-Sep 24-Sep 175.45 Y TO SUBMIT YOUR KPOINT REQUIREMENT Merch. Inv. Avg. 175.63 Peyton Approved Adjusting Journal Entries 2014 Date Accounts 30-Sep Depreciation Expense Debit Credit 208.33 accumulated depreciation 30-Sep Interest Expense 208.33 150.00 Interest Payable 150.00 note payable interest for Jul, Aug, Sep 30-Sep Insurance Expense 500.00 Prepaid Insurance 500.00 to record insurance for 1 year 30-Sep Baking Supplies Expense 19,400.00 Baking Supplies 19,400.00 to record baking supplies used 30-Sep Misc Supplies Expense Misc Supplies to record misc supplies used 550 550 Peyton Approved Income Statement For Qtr. Ending 9/30/2014 Revenues: Bakery Sales Merchandise Sales Total Revenues Expenses: Baking Supplies Expense Rent Expense Insurance Expense Misc. Expense Business License Expense Advertising Expense Wages Expense Telephone Expense COGS Depreciation Expense Misc Supplies Expense* Interest Expense* Total Expenses Net Income $ 60,000.00 221.00 60,221.00 19400 4500 1200 800 375 200 1956 90 157.6 208.33 0 150 29036.93 29,036.93 $ 31,184.07 Peyton Approved Statement of Retained Earnings For Qtr. Ending 9/30/2014 Net Income for the three months 31184.07 Dividends 31184.07 3000 Retained Earnings, Sept 30, 2014 28,184.07 Peyton Approved Balance Sheet As of September 30, 2014 Assets Cash Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Baking Equipment Misc. Supplies Accounts Receivable Less: Depreciation Expense Total Assets 47896.75 1100 175.65 1500 0 5000 50 5300 208.33 60,814.07 Peyton Approved Balance Sheet As of September 30, 2014 Liabilities and Owners' Equity Notes Payable Accounts Payable Wages Payable Common Stock Dividends Retained Earnings Interest Payable $ 10,000.00 2,000.00 480.00 20,000.00 3000 28,184.07 150 Total Liabilities and Stockholder's Equity $ 63,814.07 Peyton Approved Closing Entries 9/30/2014 Date Accounts 30-Sep revenue revenue income summary to close revenue. Debit Credit 60,000.00 221.00 60,221.00 30 Income Summary Baking Supplies Expense Rent Expense Insurance Expense Misc. Expense Business License Expense Advertising Expense Wages Expense Telephone Expense COGS Depreciation Expense Misc Supplies Expense* Interest Expense* to close expenses 29,036.93 30 Income Summary Retained Earnings to close income summary 28,184.07 30 Retained Earnings Dividends to close dividends 19,400.00 4,500.00 1,200.00 800.00 375.00 200.00 1,956.00 90.00 157.60 208.33 150.00 28184.07 3000 3000 Peyton Approved Post Closing Trial Balance 9/30/2014 Account Cash Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Baking Equipment Misc. Supplies Accounts Receivable Notes Payable Accounts Payable Wages Payable Common Stock Bakery Sales Merchandise Sales Accumulated Depreciation Interest Payable Total Unadjusted Trial Balance Debit 47896.75 1100 175.65 1500 0 5000 50 5300 61022.4 adjusted Trial Balance Credit 10000 2000 480 20000 60000 221 208.33 150 93059.33 Peyton Approved Reversing Entries 9/30/2014 Date Accounts 1-Oct Accumulated Depreciation Depreciation expense Interest Payable Interest Expense Accounts Payable Insurance Expense Baking Supplies Baking Supplies Expense Misc Supplies Misc Supplies Expense Debit Credit 208.33 208.33 150.00 150.00 1,200.00 1,200.00 19,400.00 19,400.00 550.00 550.00 COMPLETION OF STEPS 8-11 DELIVERABLE: CONGRATULATIONS! YOU ARE NOW READY TO SUBMIT YOUR COMPLETED WORKBOOK (STEPS 1 - 11)TO COMPLETE THE 6-2 CHECKPOINT REQUIREMENT ACC 201 Final Project Part I Guidelines and Rubric Overview One of the measures of success in any business is profitability. Managers and business owners must be able to assess the profitability of a company using information about its financial transactions. This is done through the use of accounting. By working through the accounting cycle, you will understand how money flows through a company. This information can help you determine whether or not an organization can afford to stay open while employing current practices and what types of changes might be needed to allow the organization to become profitable if it is currently struggling financially. This process also helps you understand the level of attention to detail that is required in a successful business venture. The assessment for this course consists of two major parts: an accounting workbook with supporting accounting cycle report and a memo that uses financial statements to assess whether a business is going in the right direction. In the accounting workbook, you will use course-provided information to record journal entries that document financial transactions in a business. To do this, you will follow the business transactions for a three-month period, starting from step one of the accounting cycle through the reporting process. These transactions will include the initial setup of the business, sales, and purchases, making payments to vendors, paying store employees, and managing debt. You will then create a brief report explaining the steps of the accounting cycle and the significance of those steps and the financial statements that come out of them for the business. The accounting workbook and accounting cycle report will prepare you for the second part of final project, which consists of a memo to request funding for potential expansion. The memo will overview the company's accounting system, discuss what the financial statement suggests about the company's strengths and weaknesses, and present opportunities for future growth. This first part of the final project addresses the following course outcomes: Apply the accounting cycle to business transactions for communicating financial data Analyze the steps of the accounting cycle for their impact on the success of a business Prompt Your dog, Peyton, has severe allergies and cannot have the usual store-bought dog treats. You have been making homemade treats for him that are all-natural and hypoallergenic. Over the past year, you have been making and selling these treats out of your home and have been quite successful. You now have an opportunity to open your own dog treat bakery. You have decided on a corporate form of business and have named your company \"Peyton Approved.\" There are two components to this part of the final project: an accounting cycle workbook (submitted in Module Six) and an accounting cycle report (submitted in Module Seven). To complete the first component, use accepted accounting principles to follow and record your business transactions for a three-month period from step one of the accounting cycle through the reporting process. Enter your transactions in the workbook provided. Your completed workbook will consist of journal entries for each transaction and postings of transactions to account ledgers. You will develop a trial balance from ledger balances and adjust revenue and expense accounts as necessary to ensure that revenues and expenses are reported in the appropriate period under the accrual accounting method. The adjusted trial balance will be used in preparation of the income statement, statement of owner's equity, balance sheet, and statement of cash flows. After preparation of financial statements, closing entries will be entered to transfer earnings to equity and prepare temporary accounts for the new accounting period. Then, prepare a brief report that lays out the steps of the accounting cycle, explaining what each step does, why it is important to the success of a business, and what financial information is produced at the end of the cycle. Specifically, the following critical elements must be addressed: Accounting Cycle Workbook a) Record all journal entries. Be sure that all information is recorded accurately. b) Post entries to appropriate ledger accounts. Ensure all information is posted accurately. c) Prepare unadjusted trial balance. Ensure unadjusted trial balance is prepared accurately. d) Interpret trial balance and make appropriate end of period adjustments. e) Post adjusted entries and prepare the adjusted trial balance. f) Apply adjusted trial balance and prepare financial statements. g) Close all temporary income statement accounts and create closing entries. h) Prepare the post-closing trial balance for the next accounting period. i) Cancel any applicable temporary adjusting entries and prepare reversing entries. Accounting Cycle Report a) Identify the steps of the accounting cycle and provide a description of each step. b) What role does each step play in the success of a business? c) How could the omission of a step impact the success of a business? What strategies could be used to avoid this? d) What are the major financial statements that come out of the accounting cycle? Why are they important? Final Project Part I Rubrics Instructor Feedback: Both of these submissions use integrated rubrics in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Final Project Part I: Accounting Cycle Workbook Rubric Guidelines for Submission: Complete the Peyton Approved Student Workbook, available in the Assignment Guidelines and Rubrics folder. Be sure to fill out the Excel workbook in its entirety (12 sheets). Critical Elements Accounting Cycle Workbook: Journal Entries Accounting Cycle Workbook: Ledger Accounts Exemplary Proficient Records all journal entries accurately (100%) Needs Improvement Records all journal entries, but there are some inaccuracies (55%) Not Evident Does not record all journal entries (0%) Accurately posts entries to appropriate ledger accounts (100%) Posts entries, but not all entries are posted accurately or to the appropriate ledger accounts (55%) Prepares unadjusted trial balance, but contains some issues regarding accuracy (55%) Does not post entries to ledger accounts (0%) 10 Does not prepare unadjusted trial balance (0%) 10 Does not interpret trial balance, making end of period adjustments (0%) 10 Does not post adjusted entries (0%) 10 Does not apply adjusted trial balance (0%) 10 Accounting Cycle Workbook: Unadjusted Trial Balance Accurately prepares unadjusted trial balance (100%) Accounting Cycle Workbook: Trial Balance Interprets trial balance, making appropriate end of period adjustments (100%) Accounting Cycle Workbook: Adjusted Entries Posts adjusted entries, preparing the adjusted trial balance (100%) Interprets trial balance, making end of period adjustments, but adjustments contain inaccuracies or are not appropriate (55%) Posts adjusted entries, but does not prepare the adjusted trial balance (55%) Accounting Cycle Workbook: Adjusted Trial Balance Applies adjusted trial balance and prepares financial statements (100%) Applies adjusted trial balance but does not prepare financial statements (55%) Value 10 Accounting Cycle Workbook: Temporary Income Statement Accounts Closes all temporary income statement accounts, creating closing entries (100%) Closes all temporary income statement accounts, but does not create closing entries (55%) Does not close temporary income statement accounts (0%) 10 Accounting Cycle Workbook: PostClosing Trial Balance Prepares the post-closing trial balance for the next accounting period (100%) Does not prepare the post-closing trial balance (0%) 10 Accounting Cycle Workbook: Temporary Adjusting Entries Cancels all applicable temporary adjusting entries, preparing reversing entries (100%) Prepares the post-closing trial balance, but it is not aligned with the next accounting period (55%) Cancels all applicable temporary adjusting entries, but does not prepare reversing entries (55%) Does not cancel all applicable temporary adjusting entries (0%) 10 Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas (55%) Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas (0%) 10 Articulation of Response Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy-toread format (100%) Submission has no major errors related to citations, grammar, spelling, syntax, or organization (85%) Earned Total 100% Final Project Part I: Accounting Cycle Report Rubric Guidelines for Submission: The accounting cycle report should be 1-3 pages in length and should use double spacing, one-inch margins, and 12-point Times New Roman font. Sources should be cited according to APA style. Critical Elements Accounting Cycle Report: Steps Accounting Cycle Report: Role Accounting Cycle Report: Omission Accounting Cycle Report: Financial Statements Articulation of Response Exemplary (100%) Meets \"Proficient\" criteria, and description is exceptionally clear and contextualized Meets \"Proficient\" criteria and uses industry-specific language to establish expertise Proficient (85%) Identifies steps of the accounting cycle and describes each step Analyzes the role each accounting cycle step plays in the success of a business Meets \"Proficient\" criteria and demonstrates a nuanced understanding of the relationship between omitting steps of the accounting cycle and the success of a business Meets \"Proficient\" criteria, and explanation demonstrates keen insight into the importance of different types of financial statements Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy-to-read format Analyzes the impact of an omission, identifying strategies to avoid them Discusses major financial statements that come out of the accounting cycle, explaining why they are important Submission has no major errors related to citations, grammar, spelling, syntax, or organization Needs Improvement (55%) Identifies steps of the accounting cycle, but does not describe each step Analyzes the role each accounting cycle step plays in the success of a business, but analysis does not cover the compete cycle or contains inaccuracies Analyzes the impact of an omission, but does not identify strategies to avoid them Not Evident (0%) Does not identify steps of the accounting cycle Value 20 Does not analyze the role each accounting cycle step plays in the success of a business 20 Does not analyze the impact of an omission 20 Discusses major financial statements that come out of the accounting cycle, explaining why they are important, but with gaps in detail or accuracy Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Does not discuss major financial statements that come out of the accounting cycle or explain why they are important 20 Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas 20 Earned Total 100% Running head: ACCOUNTING CYCLE. 1 Running head: ACCOUNTING CYCLE. This paper aims at exploring the steps that are involved in the accounting cycle, analyzes the role of each step, analyzes the impact of omitting of each of the steps identified and discusses major statements that can be produced at the end of the accounting cycle. Accounting cycle refers to the process of accounting for all the activities that take place in a business environment during a specific period. This involves the recording of the various business activities, classifying and summarizing of these business activities in financial reports. These processes are repeated in each of the subsequent periods to enable the business have financial reports that are up to date at all times. The steps of the Accounting Cycle comprises eight steps which are discussed below. 1) Transaction analysis. This step involves the analysis of the source documents which describe the various business activities and transactions. The Source documents which record the various business activities can either be in the form of hard copy or electronic. Examples of such documents include checks, purchase orders and bank statements. This accounting step is necessary as it ensures that only transactions that occur during the financial year are recorded. Omission of this step will lead to outdated financial reports that do not reflect the current affairs of a business. 2) Recording (Journalizing) of transactions. Journalizing the activities of the business involves the application of the double entry accounting principle. The duality principle requires that for every debit entries there must be a credit entries. Journalizing of business activities ensures that all transactions have been duly recorded. 3) Posting. 2 Running head: ACCOUNTING CYCLE. The process of posting involves the transfer of financial information from the journal to the ledger. A ledger is simply a collection of all accounts and it shows all of the number detail about a company's accounts. 4) Preparation of the unadjusted trial balance. This process involves the preparation of the initial trial balance so as to verify that the entries were entered accurately. A trial balance refers to a complete list of all accounts and their respective balances which are drawn from the ledgers. 5) Adjusting for end year transactions. Adjusting entries involve bringing an asset or liability account balance to its proper amount and updating the corresponding revenue or expense account. Adjusting entries are recorded in the general journal and then posted to the ledger. All adjusting entries are made at the end of the accounting time period. After the adjusting entries have been posted, the accountant prepares another trial balance. This trial balance is called the adjusted trial balance because it is prepared after the adjusting entries. This trial balance is used to verify that the debits equal the credits and also is used to prepare the financial statements. 6) Preparation of financial statements. During the accounting period the amounts have been recorded in the accounts that the company keeps. At the end of the period, using the balances in these accounts, the firm needs to produce a set of financial statements. These statements include the, , , and the statement of changes in shareholders' equity. Income statement The income statement reflects all of the revenues of the firm regardless of source, all of the expenses that the firm has incurred, the estimated tax expense and net income which are the 3 Running head: ACCOUNTING CYCLE. earnings of the firm for a particular period. Using net income, the firm then uses that number to calculate the retained earnings of the firm. Statement of financial position. The statement of financial position helps in showing the assets, liabilities and equity of a firm at a specific date. Equity comprises retained earnings, share capital, revaluations and share premiums. Cash flow statement. This financial report helps to inform financial statements users the various sources of cash within the business. This statement comprises three sections which include cash flows from operating activities, cash flows from investing activities and cash flows from financing activities. Operating activities reflect cash flows from daily activities, investing activities show finances from the buying and selling of noncurrent activities while financing activities show finances that arise from buying and selling of stock and paying of dividends 7) Posting closing entries. Because the income statement reflects revenues and expenses for a period of time, the firm needs to start from zero at the beginning of each accounting period. So the closing entries zero out the balances in all of the temporary accounts (income, expenses, and dividends). The process is not duplicated for the next accounting period. 8) Preparation of an after-closing trial balance. The last step in most businesses/companies involve the preparation of a post-closing trial balance. The post-closing trial balance contains only the credit and debit balances of permanent 4 Running head: ACCOUNTING CYCLE. accounts since these are the only accounts that remain once the closing process has been completed. The importance of this step is to ensure that the credit entries and are equal to the debit entries and that there are zero balances in the temporary accounts. Bibliography. Jensen, L. (2007). Fundamental accounting principles (13th ed.). 5 Running head: ACCOUNTING CYCLE This paper aims at exploring the steps that are involved in the accounting cycle, analyzes the role of each step, analyzes the impact of omitting of each of the steps identified and discusses major statements that can be produced at the end of the accounting cycle. Accounting cycle refers to the process of accounting for all the activities that take place in a business environment during a specific period. This involves the recording of the various business activities, classifying and summarizing of these business activities in financial reports. These processes are repeated in each of the subsequent periods to enable the business have financial reports that are up to date at all times. The steps of the Accounting Cycle comprises eight steps which are discussed below. 1) Transaction analysis. This step involves the analysis of the source documents which describe the various business activities and transactions. 2) Recording (Journalizing) of transactions. Journalizing the activities of the business involves the application of the double entry accounting principle. The duality principle requires that for every debit entries there must be a credit entries. Journalizing of business activities ensures that all transactions have been duly recorded. 3) Posting. The process of posting involves the transfer of financial information from the journal to the ledger. A ledger is simply a collection of all accounts and it shows all of the number detail about a company's accounts. 4) Preparation of the unadjusted trial balance. Running head: ACCOUNTING CYCLE This process involves the preparation of the initial trial balance so as to verify that the entries were entered accurately. A trial balance refers to a complete list of all accounts and their respective balances which are drawn from the ledgers. 5) Adjusting for end year transactions. Adjusting entries involve bringing an asset or liability account balance to its proper amount and updating the corresponding revenue or expense account. Adjusting entries are recorded in the general journal and then posted to the ledger. All adjusting entries are made at the end of the accounting time period. 6) Preparation of financial statements. Preparation of financial statements is important because these are the kind of reports that are used to assess the financial condition of a business and helps show whether the business is progressing towards the right direction or not. These financial statements help measure the performance, overall financial strength of the business and the credit risk of the firm. During the accounting period the amounts have been recorded in the accounts that the company keeps. At the end of the period, using the balances in these accounts, the firm needs to produce a set of financial statements. These statements include; Income statement The income statement reflects all of the revenues of the firm regardless of source, all of the expenses that the firm has incurred, the estimated tax expense and net income which are the earnings of the firm for a particular period. Using net income, the firm then uses that number to calculate the retained earnings of the firm. Statement of financial position. Running head: ACCOUNTING CYCLE The statement of financial position helps in showing the assets, liabilities and equity of a firm at a specific date. Equity comprises retained earnings, share capital, revaluations and share premiums. Cash flow statement. This financial report helps to inform financial statements users the various sources of cash within the business. This statement comprises three sections which include cash flows from operating activities, cash flows from investing activities and cash flows from financing activities. Operating activities reflect cash flows from daily activities, investing activities show finances from the buying and selling of noncurrent activities while financing activities show finances that arise from buying and selling of stock and paying of dividends 7) Posting closing entries. Because the income statement reflects revenues and expenses for a period of time, the firm needs to start from zero at the beginning of each accounting period. So the closing entries zero out the balances in all of the temporary accounts (income, expenses, and dividends). The process is not duplicated for the next accounting period. 8) Preparation of an after-closing trial balance. The last step in most businesses/companies involve the preparation of a post-closing trial balance. The post-closing trial balance contains only the credit and debit balances of permanent accounts since these are the only accounts that remain once the closing process has been completed. The importance of this step is to ensure that the credit entries and are equal to the debit entries and that there are zero balances in the temporary accounts. Omissions analysis. Running head: ACCOUNTING CYCLE Each step is the foundation of the next step in the accounting cycle. The omission of one the accounting steps will produce an inaccurate analysis of the business. The omission of an adjusting entry will result in an understatement overstatement of the net income and also ledger balances will be incorrect. This will also lead to an incorrect adjusted trial balance. Creation of worksheets helps accountants make adjustments as they aid in identifying accounts that require adjustments. If the adjusted trial balance was omitted we would not know if our debits and credits are balanced and we wouldn't be able to move on to the income statement which leads to the statement of financial position. Internal control activities such as duty separation and the assigning of responsibilities to various members of the staff will help reduce fraud in the financial statements of a business. Bibliography. Jensen, L. (2007). Fundamental accounting principles (13th ed.). Running head: ACCOUNTING CYCLE This paper aims at exploring the steps that are involved in the accounting cycle, analyzes the role of each step, analyzes the impact of omitting of each of the steps identified and discusses major statements that can be produced at the end of the accounting cycle. Accounting cycle refers to the process of accounting for all the activities that take place in a business environment during a specific period. This involves the recording of the various business activities, classifying and summarizing of these business activities in financial reports. These processes are repeated in each of the subsequent periods to enable the business have financial reports that are up to date at all times. The steps of the Accounting Cycle comprises eight steps which are discussed below. 1) Transaction analysis. This step involves the analysis of the source documents which describe the various business activities and transactions. 2) Recording (Journalizing) of transactions. Journalizing the activities of the business involves the application of the double entry accounting principle. The duality principle requires that for every debit entries there must be a credit entries. Journalizing of business activities ensures that all transactions have been duly recorded. 3) Posting. The process of posting involves the transfer of financial information from the journal to the ledger. A ledger is simply a collection of all accounts and it shows all of the number detail about a company's accounts. 4) Preparation of the unadjusted trial balance. Running head: ACCOUNTING CYCLE This process involves the preparation of the initial trial balance so as to verify that the entries were entered accurately. A trial balance refers to a complete list of all accounts and their respective balances which are drawn from the ledgers. 5) Adjusting for end year transactions. Adjusting entries involve bringing an asset or liability account balance to its proper amount and updating the corresponding revenue or expense account. Adjusting entries are recorded in the general journal and then posted to the ledger. All adjusting entries are made at the end of the accounting time period. 6) Preparation of financial statements. Preparation of financial statements is important because these are the kind of reports that are used to assess the financial condition of a business and helps show whether the business is progressing towards the right direction or not. These financial statements help measure the performance, overall financial strength of the business and the credit risk of the firm. During the accounting period the amounts have been recorded in the accounts that the company keeps. At the end of the period, using the balances in these accounts, the firm needs to produce a set of financial statements. These statements include; Income statement The income statement reflects all of the revenues of the firm regardless of source, all of the expenses that the firm has incurred, the estimated tax expense and net income which are the earnings of the firm for a particular period. Using net income, the firm then uses that number to calculate the retained earnings of the firm. Statement of financial position. Running head: ACCOUNTING CYCLE The statement of financial position helps in showing the assets, liabilities and equity of a firm at a specific date. Equity comprises retained earnings, share capital, revaluations and share premiums. Cash flow statement. This financial report helps to inform financial statements users the various sources of cash within the business. This statement comprises three sections which include cash flows from operating activities, cash flows from investing activities and cash flows from financing activities. Operating activities reflect cash flows from daily activities, investing activities show finances from the buying and selling of noncurrent activities while financing activities show finances that arise from buying and selling of stock and paying of dividends 7) Posting closing entries. Because the income statement reflects revenues and expenses for a period of time, the firm needs to start from zero at the beginning of each accounting period. So the closing entries zero out the balances in all of the temporary accounts (income, expenses, and dividends). The process is not duplicated for the next accounting period. 8) Preparation of an after-closing trial balance. The last step in most businesses/companies involve the preparation of a post-closing trial balance. The post-closing trial balance contains only the credit and debit balances of permanent accounts since these are the only accounts that remain once the closing process has been completed. The importance of this step is to ensure that the credit entries and are equal to the debit entries and that there are zero balances in the temporary accounts. Omissions analysis. Running head: ACCOUNTING CYCLE Each step is the foundation of the next step in the accounting cycle. The omission of one the accounting steps will produce an inaccurate analysis of the business. The omission of an adjusting entry will result in an understatement overstatement of the net income and also ledger balances will be incorrect. This will also lead to an incorrect adjusted trial balance. Creation of worksheets helps accountants make adjustments as they aid in identifying accounts that require adjustments. If the adjusted trial balance was omitted we would not know if our debits and credits are balanced and we wouldn't be able to move on to the income statement which leads to the statement of financial position. Internal control activities such as duty separation and the assigning of responsibilities to various members of the staff will help reduce fraud in the financial statements of a business. Bibliography. Jensen, L. (2007). Fundamental accounting principles (13th ed.)