Previous Modules: Examined The Initial Stages Of The A

3 In Previous Modules You Examined The Initial Stages Of the Accounti

In previous modules, you examined the initial stages of the accounting cycle and practiced journalizing financial transactions. In Milestone One, you will complete the first part of your course project to demonstrate your ability to accurately record financial data, which will continue to be used to complete other parts of the project. You were recently hired as an entry-level bookkeeper for a service business that recently opened. This is the first month in operation for the business, and your first task is to record business transactions for their first month using the source documents and transaction data the owner will provide. Because this is a small business that does not use computerized accounting, you will apply the accounting cycle in Excel to record transactions and generate financial reporting results for the owner.

Use accepted accounting principles to accurately capture business transactions for the month in the Company Accounting Workbook Template using the data provided in the Accounting Data Appendix document. Specifically, you must address the following criteria:

  • Accuracy: Prepare entries that fully reflect the appropriate information.
  • Completeness: Prepare entries that are complete for each month, including transferring posted entries to T accounts.
  • Unadjusted Trial Balance: Prepare the unadjusted trial balance portion of the “Trial Balance” tab of the company accounting workbook, ensuring that total debits and credits match.

Guidelines for submission include completing and submitting your company accounting workbook in Excel with the following tabs filled out: the General Journal, the Ledger Accounts, and the Trial Balance. The first tab provides the chart of accounts which you will use for recording transactions.

Paper For Above instruction

The first month of operations for a newly established service business presents a foundational opportunity to demonstrate core accounting skills such as accurate transaction recording, ledger posting, and trial balance preparation. As an entry-level bookkeeper, your role involves applying generally accepted accounting principles (GAAP) to ensure that all financial data is correctly captured and reported, facilitating reliable financial statements for the business owner.

In this project, the primary objective is to utilize the provided company accounting workbook template within Excel to record a series of business transactions supplied by the business owner. These transactions include sales, expenses, purchases, and other operational activities typical of a new service company. The process begins with journalizing each transaction in the General Journal tab, ensuring that all entries are accurate, complete, and adhere to GAAP standards. This involves recognizing the appropriate accounts, the amounts, and the nature of each transaction, whether debit or credit.

Once transactions are journalized, the next step is to post these entries to the ledger accounts tab within the workbook. Proper posting ensures that all individual accounts reflect the cumulative effects of the transactions, providing a clear picture of each account’s balance at month-end. Posting must be thorough and precise to maintain the integrity of the financial data.

After completing the ledger postings, the unadjusted trial balance is prepared on the designated tab. This trial balance compiles all account balances, listing total debits and credits to verify that they are equal, which is a fundamental step in the accounting cycle. Any discrepancies would indicate errors that need correction before moving forward.

Throughout this process, strict attention to detail is essential to ensure the accuracy and completeness of the financial records. This exercise not only tests your ability to apply basic accounting procedures but also helps develop skills in financial data organization, critical thinking, and adherence to accounting standards.

Successful completion of this milestone will provide a solid foundation for the subsequent phases of the project, including adjusting entries, financial statement preparation, and analysis. The final deliverable is an Excel workbook that accurately reflects the first month’s financial activities, ready for review by the business owner or instructor.

References

  • Brigham, E. F., & Houston, J. F. (2019). Fundamentals of Financial Management. Cengage Learning.
  • Gibson, C. H. (2019). Financial Reporting & Analysis. Cengage Learning.
  • Higgins, R. C. (2018). Analysis for Financial Management. McGraw-Hill Education.
  • Understanding the Accounting Cycle. (2020). Journal of Accountancy. Retrieved from https://www.journalofaccountancy.com
  • Accounting Principles. (2022). Financial Accounting Standards Board (FASB). https://www.fasb.org
  • Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2019). Financial Accounting Theory. McGraw-Hill.
  • Weygandt, J. J., Kieso, D. E., & Kimmel, P. D. (2020). Financial Accounting. Wiley.
  • Accounting Cycle and Journal Entries. (2021). Investopedia. Retrieved from https://www.investopedia.com
  • Small Business Accounting Procedures. (2020). SBA Office of Advocacy. https://advocacy.sba.gov
  • Excel for Accountants. (2019). Microsoft Office Support. https://support.microsoft.com

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