Mini-Project: Small Business Accounting STUDENT ROLE: You are a recent accounting graduate and have just been hired by Johnson Accounting Firm as an entry-level accountant. Johnson Accounting is a public accounting firm that provides bookkeeping, accounting, payroll, audit, tax and consulting services to local residents and businesses Today you have been assigned your first client-Daphne Design, Inc. CLIENT PROFILE: Daphne Design, Inc. is a local retail store that sells home furnishings and interior design consulting services. The business sells a wide range of products, including furniture, art, and home dcor. Daphne Design, Inc. is a privately held corporation and has one shareholder-Daphne Smith. The company began operations on March 1, 2018, and Ms. Smith has been completing all bookkeeping, accounting and payroll services herself Daphne first met with your supervisor on September 25, 2018, to inquire about accounting services. As her first business tax year was coming to a close she felt it was important to meet with an accountant. She was not exactly sure what services Johnson Accounting Firm could offer, or what help she needs, but your supervisor conducted a client interview and was able to provide some advice. Johnson Accounting has recommended monthly compilation services (using accrual accounting), payroll and sales tax consultation, and corporate and individual tax return preparation. ASSIGNMENT: You have been assigned the task of completing Daphne Design's compilation work for the 2018 year. Remember that Daphne was performing her own accounting work through the end of September. Your supervisor has already taken Daphne's records for March 1, 2018 through September 30, 2018, and made necessary corrections. Thus, you have access to a complete and correct Trial Balance for March 1, 2018 through September 30, 2018. Your assignment is to complete the compilation for the last quarter (October, November and December). Thus, you will be journalizing for a quarter at a time and will present Financial Statements for March 1 through December 31, 2018. Starting in January 2019, Johnson Accounting will complete monthly compilations (meaning that the firm will prepare her financials at the end of each month, rather than at the end of the quarter). But, we are not concerned, yet, with the 2019 year Johnson Accounting Firm has developed its own training program for new accountants learning the compilation process. Below, your supervisor has identified each process that you must complete (in the order in which they are to be completed]. Use the training program available in Blackboard/Course Content/Mini-Projects Folder/Mini-Project #1/Johnson Accounting Firm's Training Materials to locate the client data, instructions, guidance and forms you need to complete the work. You will complete the compilation using manual accounting. Once you master manual accounting, your supervisor will train you to use software. Remember, Johnson Accounting Firm is very excited about accepting Daphne Design as a new client. You are expected to complete the work in a timely fashion, and in a format that is professional and appropriate to present directly to the client. Time management is a very important characteristic for successful accountants! Waiting until the last minute often leads to errors and omissions which can result in the loss of a client or even legal liability. Your supervisor recommends that you develop a time management plan for the project. Start by reviewing the processes (listed below) that need to be completed before the due date. Also glance at the Training Program (in Blackboard) to develop an understanding of the type of materials available. Page 2 Mini-Project: Small Business Accounting STUDENT ROLE: You are a recent accounting graduate and have just been hired by Johnson Accounting Firm as an entry-level accountant. Johnson Accounting is a public accounting firm that provides bookkeeping, accounting, payroll, audit, tax and consulting services to local residents and businesses Today you have been assigned your first client-Daphne Design, Inc. CLIENT PROFILE: Daphne Design, Inc. is a local retail store that sells home furnishings and interior design consulting services. The business sells a wide range of products, including furniture, art, and home dcor. Daphne Design, Inc. is a privately held corporation and has one shareholder-Daphne Smith. The company began operations on March 1, 2018, and Ms. Smith has been completing all bookkeeping, accounting and payroll services herself Daphne first met with your supervisor on September 25, 2018, to inquire about accounting services. As her first business tax year was coming to a close she felt it was important to meet with an accountant. She was not exactly sure what services Johnson Accounting Firm could offer, or what help she needs, but your supervisor conducted a client interview and was able to provide some advice. Johnson Accounting has recommended monthly compilation services (using accrual accounting), payroll and sales tax consultation, and corporate and individual tax return preparation. ASSIGNMENT: You have been assigned the task of completing Daphne Design's compilation work for the 2018 year. Remember that Daphne was performing her own accounting work through the end of September. Your supervisor has already taken Daphne's records for March 1, 2018 through September 30, 2018, and made necessary corrections. Thus, you have access to a complete and correct Trial Balance for March 1, 2018 through September 30, 2018. Your assignment is to complete the compilation for the last quarter (October, November and December). Thus, you will be journalizing for a quarter at a time and will present Financial Statements for March 1 through December 31, 2018. Starting in January 2019, Johnson Accounting will complete monthly compilations (meaning that the firm will prepare her financials at the end of each month, rather than at the end of the quarter). But, we are not concerned, yet, with the 2019 year Johnson Accounting Firm has developed its own training program for new accountants learning the compilation process. Below, your supervisor has identified each process that you must complete (in the order in which they are to be completed]. Use the training program available in Blackboard/Course Content/Mini-Projects Folder/Mini-Project #1/Johnson Accounting Firm's Training Materials to locate the client data, instructions, guidance and forms you need to complete the work. You will complete the compilation using manual accounting. Once you master manual accounting, your supervisor will train you to use software. Remember, Johnson Accounting Firm is very excited about accepting Daphne Design as a new client. You are expected to complete the work in a timely fashion, and in a format that is professional and appropriate to present directly to the client. Time management is a very important characteristic for successful accountants! Waiting until the last minute often leads to errors and omissions which can result in the loss of a client or even legal liability. Your supervisor recommends that you develop a time management plan for the project. Start by reviewing the processes (listed below) that need to be completed before the due date. Also glance at the Training Program (in Blackboard) to develop an understanding of the type of materials available. Page 2