General Instructions For Student Class Project

General Instructionsacc 112 Student Class Projectmr Miller Has Had A A

Complete an Excel project for Miller Delivery Services Inc., covering their first month of operations from Jan 01 to Dec 31. The project involves recording financing, investing, and operating transactions, adjusting entries, closing entries into the general ledger and journal, creating financial schedules and statements, and demonstrating proper worksheet use. The assignment is divided into two parts: Part 1 (worth 25%) includes the general journal, ledger, and unadjusted trial balance; Part 2 (worth 75%) involves steps 1-9, including adjustments, adjusted trial balance, financial statements, closing entries, and post-closing trial balance. Each part has specific deadlines, with feedback provided after submission for correction. Grading is based on accuracy, proper formatting, and linkage of schedules and statements to the worksheet, with detailed rubrics for each accounting component.

Sample Paper For Above instruction

The following paper demonstrates the comprehensive application of accounting principles and procedures necessary for the Miller Delivery Services Inc. first-month operation reporting. The focus lies on accurately recording transactions, preparing financial statements, and analyzing the company's financial position at each stage, aligning with best practices in financial accounting and reporting standards.

Introduction

Starting a new business involves meticulous financial record-keeping and adhering to accounting principles that ensure integrity and accuracy in financial reporting. Miller Delivery Services Inc., having transitioned from a sole proprietorship to a corporation, requires a structured accounting approach for its initial operational month. This paper traces the development from journal entries through financial statements, emphasizing the importance of each step in reflecting the company's financial health accurately.

Recording Transactions

The initial transaction on December 1, 2019, involved the owner’s contribution of $20,000 cash and a truck valued at $20,000, with a salvage value of $2,000 and a useful life of five years. This transaction was recorded by debiting Cash and Truck accounts and crediting Common Stock, reflecting the owner’s contribution, capital infusion, and asset acquisition. Subsequent transactions, such as paying for insurance, supplies, performing delivery services, and billing customers, were recorded based on standard journal entries ensuring correct classification of revenues, expenses, assets, and liabilities.

For example, the receipt of $2,000 cash for delivery services on December 5 was recorded as a debit to Cash and a credit to Service Revenue, indicating earned income. Similarly, the purchase of fuel was debited to Fuel Expense and credited to Accounts Payable, following accrual principles. Bond issuance on December 21 was documented with a debit to Cash and a credit to Bonds Payable, recognizing the company's debt obligations.

Throughout the month, transactions like land and building purchase, land and asset depreciation, and dividend payments reflect prudent financial management and adherence to accounting standards, emphasizing the significance of proper classification and recording for accurate financial representation.

Adjusting Entries and Their Significance

The end-of-period adjustments are crucial for aligning financial records with economic reality. For example, accrued salaries expense of $1,000 was recognized to reflect wages owed but unpaid as of December 31. Depreciation using the half-month convention was applied to the truck and building, providing a systematic allocation of assets' costs over their useful lives. Prepaid insurance and office supplies were adjusted to reflect expired and remaining balances, promoting accuracy in expense recognition.

Unearned revenue that has been earned during December was reclassified as revenue, while service revenue earned but not yet billed was recognized through accrued revenue entries. These adjustments ensure that the financial statements accurately portray the company's financial position and performance, essential for stakeholders’ decision-making.

Financial Statements and Analysis

The preparation of the unadjusted and adjusted trial balances sets the foundation for financial statement creation. The income statement displays total revenues and expenses, resulting in net income for December, which is transferred to the statement of retained earnings. The statement of retained earnings adjusts the beginning balances for net income and dividends paid, culminating in the ending retained earnings.

The balance sheet presents assets, liabilities, and stockholders' equity. Assets such as cash, accounts receivable, supplies, land, and buildings are listed with their respective balances, after depreciation. Liabilities like accounts payable, salaries payable, unearned revenue, and bonds payable are accurately classified, reflecting the company's obligations.

Post-closing trial balances verify the equality of debits and credits after closing temporary accounts, ensuring the accuracy of retained earnings and readiness for the subsequent accounting period.

Closing Entries and Their Role

The closing process involves transferring temporary account balances to retained earnings, preparing the accounts for the next cycle. Revenue accounts are debited, and expense accounts are credited, with the net amount transferred to Income Summary, which is then closed to Retained Earnings. Dividends are also closed to Retained Earnings, reducing the accumulated earnings for the period. Proper execution of these entries maintains the integrity of retained earnings and ensures that income and expense accounts are reset for the next period.

Conclusion

This comprehensive approach underscores the importance of systematic transaction recording, precise adjustments, and careful preparation of financial statements. Adherence to accounting standards enhances transparency, supports decision-making, and ensures regulatory compliance. The process detailed in this exercise exemplifies fundamental accounting practices vital for accurate financial reporting in a growing business like Miller Delivery Services Inc.

References

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