LedgerSelect: The Desired Account Title From The Exce 101590

Ledgerselect The Desired Account Title From The Excel Name Boxmake Yo

Ledger select the desired account title from the Excel Name Box. Make your entries in the appropriate cells. No entry is required in the ITEM column. Remember, this spreadsheet will not be part of your CengageNow grade. The assignment involves recording financial transactions for Palisade Creek Co., preparing trial balances, and adjusting entries at the end of the fiscal year, using a comprehensive accounting worksheet.

Paper For Above instruction

Introduction

The process of financial accounting involves meticulous record-keeping of transactions, preparation of trial balances, and making necessary adjustments to ensure accurate financial statements. This paper elaborates on the procedures involved in managing a company's ledger, specifically the example of Palisade Creek Co., and demonstrates how to record transactions, prepare unadjusted and adjusted trial balances, and analyze the effects of adjustments on financial reporting. Emphasizing the importance of systematic bookkeeping and verification, the paper explores the complexities and best practices in accounting workflows as instituted in the given scenario.

Recording Transactions

The first step in the accounting cycle, as exemplified by Palisade Creek Co., involves accurately recording all transactions in the general journal and then posting them to the general ledger accounts. For instance, on May 1, the company paid rent for $5,000, which would be debited to Rent Expense and credited to Cash. Purchase of merchandise on account from Martin Co. on May 3, amounting to $36,000, would be debited to Inventory and credited to Accounts Payable. Such transactions are carefully posted to respective accounts with the appropriate references and amounts, ensuring all account balances reflect operational activities.

The use of Excel's Name Box enables selecting the relevant account titles directly, facilitating organized data entry into the ledger format provided. Entries are made in the debit and credit columns, following standard accounting principles. Notably, the ITEM column remains blank, aligning with the instruction that no entries are necessary there. The process requires careful attention to details such as FOB shipping terms, discounts, and freight charges, which influence the classification of costs and revenues.

Creating the Unadjusted Trial Balance

After recording all May transactions, the next phase involves posting these entries into the general ledger, followed by the preparation of an unadjusted trial balance. This balance verifies the equality of debits and credits, serving as a foundational step before adjustments. Accounts with zero balances are omitted for clarity.

In Palisade Creek Co.’s scenario, the trial balance includes accounts such as Cash, Accounts Receivable, Inventory, and various expense and revenue accounts with their respective debit or credit balances. Ensuring the total debits equal total credits confirms that the recording process was performed correctly, laying the groundwork for subsequent adjustments.

Adjusting Entries at Fiscal Year-End

Year-end adjustments are crucial for aligning accounting records with actual financial status. The provided data specify adjustments for inventory, insurance, supplies, depreciation, and accrued salaries. For example, inventory on May 31 is valued at $570,000, which may differ from recorded amounts, requiring an adjustment to reflect in the inventory account.

Adjustments for insurance expired ($12,000), store supplies on hand ($4,000), depreciation expense ($14,000), and accrued salaries ($13,600) are journalized as adjusting entries. These adjustments modify asset, liability, expense, and revenue accounts to correctly represent the financial position and performance of the company. For example, depreciation expense increases by $14,000, while accumulated depreciation increases correspondingly.

Post-Adjustments and Preparing the Adjusted Trial Balance

Once the adjusting entries are journalized, they are posted to the ledger accounts. Subsequently, an adjusted trial balance is prepared to verify the equality of debits and credits after adjustments. This balanced figure serves as the basis for preparing financial statements such as the income statement and balance sheet.

In the example, adjustments for reported sales returns ($60,000), cost of goods sold ($35,000), and others are reflected here, affecting net income calculations. The adjustments ensure revenues and expenses are accurately matched for the period, adhering to accrual accounting principles.

Conclusion

The detailed process outlined emphasizes the importance of systematic recording, verification through trial balances, and timely adjustments. Utilizing Excel to manage ledger entries enhances accuracy and efficiency. Proper execution of these steps ensures that the financial statements prepared are truthful and compliant with accounting standards, providing reliable information for stakeholders. Although the example focuses on Palisade Creek Co., these procedures generalize to any organization seeking sound financial reporting and internal control.

References

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  5. Garrison, R. H., Noreen, E. W., & Brewer, P. C. (2018). Managerial Accounting (16th ed.). McGraw-Hill Education.
  6. Peterson, P. P., & Fabozzi, F. J. (2018). Principles of Fixed Income Securities. Wiley.
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  8. Libby, T., Libby, R., & Short, D. G. (2016). Financial Accounting (8th ed.). McGraw-Hill Education.
  9. Berk, J., DeMarzo, P., & Harford, J. (2020). Fundamentals of Corporate Finance (4th ed.). Pearson.
  10. Harrison, W. T., Horngren, C. T., & Oliver, M. (2018). Financial & Managerial Accounting. Pearson.

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