Grace's Diner, Inc.

This case study must be completed in Excel or other spreadsheet program using the formats provided in this workbook.

Objectives:

1.Practice the steps involved in the Accounting Cycle

2.Practice electronic spreadsheet skills

a. Formulas

b. Linking worksheets

3. Practice creating data visualization to communicate results

Instructions

1.Using the Chart of Accounts provided, record the transactions in the General Journal for the month March 31, 2020.Do not add any new accounts.

2.Post the General Journal entries to the General Ledger.

3.Prepare the Unadjusted Trial Balance in the Trial Balance tab.

4.Journalize any adjusting entries in the General Journal and post to the General Ledger.Show your calculationsand explanation for the adjustments in the Adjustments tab.

5.Prepare the Adjusted Trial Balance in the Trial Balances tab. Also the Income Statementand Balance Sheet on the Trial Balance worksheet.

6.Prepare in GOOD FORM the Income Statement, Statement of Shareholder's Equity, and Balance Sheetfor the period of April 1, 2019 to March 31, 2020 in the appropriate tabs.Ignore the effects of income tax.

7. Prepare a appropriate data visualization of financial results that include both years (2019 and 2020) results.You may select either data from the balance sheet or the income statement.

8. Prepare and post the closing entries for the year ended March 31, 2020.

9. Prepare the Post-Closing Trial Balance in the Trial Balance tab.

10. Note the following additional information:

1. The company began operations in 2018.

2. For the purposes of this assignment, ignore the effects of

income tax, property tax,sales tax, and payroll tax.

3. Straight-line depreciation method is used.

4. The food inventory on hand March 31, 2020 was $3,200.

5. The supplies on hand March 31, 2020 were $1,125.

6. The telephone bill for March 31, 2020 for $235 was

received April 2020.

7. The utility bill for March 31, 2020for $385 was received

April 2020.

8. For the purposes of this assignment, consider the note

payable for delivery van purchase to be a current liability.

9. The following are transactions that occurred in the previous

accounting period:

a. Liz Burnes and her brother, James each invested $10,000

in a corporation they formed tooperate Grace's Diner, Inc.

Each were issued 1,000 shares of $10 par value common

stock.

b. The corporation borrowed $30,000 as a small business

loan from a local bank in 2018. The loan isan 'interest only'

at a fixed rate of 8% per year. A balloon payment of the

principal will bedue in 5 years. The annual interest payment

is due on the 31st of December.

c. The company rents a facility for $1,500 per month.

d. The business purchased equipment and fixtures for

$26,000 in 2018.The assetshave a useful life of 6 years

with $2,000 residual value.The corporation took 1/2 year

depreciation in year of purchase, 2018.

e. The company purchased a delivery van valued at

$35,000 with a $10,000 down payment anda 3-year,

$25,000 note payable with an annual interest rate of 6%.

The van has a 5 year useful life.The corporation took 1/2

year depreciation in year of purchase, 2018. The monthly

payment including principal and interest is $760.55.

f. Preston Hill, a local B & B, arranged with Grace's Diner to

provide breakfast for their guests at$10 per person per

day. Grace's Diner bills the B & B at the end of each month

for the meals provided.Payment is required by the 10th of

the next month.