The purpose of this group project is to learn what is required in setting up the accounting records for a new business and to develop skills that will allow you to work with others in future college courses and in your chosen profession. Each group will have the responsibility of creating a fictitious manufacturing company. No late projects will be accepted.

The project must be typed and well organized. The accounting portion can be done utilizing MS Excel or an integrated accounting software program. It must have the following:

A cover page including: 1) Name of company; 2) Board of Directors (group members); 3) Instructor and 4) Date.

An introduction comprised of a description of the business including: 1) Type of product manufactured; 2) Product costing method (job order or process cost); 3) Organizational layout (department descriptions, personnel, etc.); 4) Fiscal Year-End (why did you choose this date); 5) Location of business; 6) Capital investment requirements (Assets needed to start the business and associated costs); 7) Financing of Assets (where did the money come from to purchase your assets) and 8) Anything else you deem relevant to the project.

A general journal including entries for at least the first two (2) months of operations. A minimum of 50 business transactions are required (but you should have more). This is where your knowledge, creativity and thoroughness will be evaluated.

An unadjusted trial balance.

Any necessary adjusting entries and an adjusted trial balance.

A Statement of Cost of Goods Manufactured, Income Statement, Retained Earnings Statement, Balance Sheet and Cash Flow Statement for the year end.

Closing entries and a post-closing trial balance.

Inventory analysis of your company (Raw Materials, Work-in-Process and Finished Goods), including individual jobs or processes.

Conclusion. Summarize financial information of your company. Include in this discussion the companys future goals. Each project will be graded as a group effort. Individual members of the group will be given the opportunity to grade all other members of the team as well as grading their own efforts and contributions. This means that each member of the group will be given the same grade, modified by individual performance.

YOU CAN ASSUME THE DATA--Company theme HATS