SAP Assignment 2 Grades For This Assignment Come From The Qu

SAP Assignment 2grades For This Assignment Come From The Quizfalsecli

SAP Assignment 2 grades for this assignment come from the quiz: false. Click here to go to the quiz. This assignment is linked to the discussion, false. Grading will be based on posts in the topic. Click here to go to the discussion.

Solution to Part 1: You can use this file as starting point for Part 2, or just use it as guide to correct your own file. Please be sure that you start with all corrections made before starting part two. --->>> Assignment_1_Solution.xls

Assignment 2 check figures for Trial Balance Debits/Credits: Beginning Balance: $630,827; Transactions: $1,269,860; Ending Balance: $1,023,325; Adjustments: $12,514. There are nine adjusting entries. Adjusted Balance: $1,028,185. End of Month (EOM) Closing Entries: $290,100. Ending Balance after closing: $790,201.

To submit for Assignment Two: - You do NOT need to turn in Part one of the assignment, as the problem states. - Excel: Include General Journal, General Ledger, and Trial Balance for the complete accounting cycle from January 2007. - SAP: Provide print screens of (1) Balance Sheet, and (2) Retained Earnings statement.

Paper For Above instruction

The task of completing the second assignment in SAP accounting involves a comprehensive review and preparation of the financial statements and related documentation for January 2007. The assignment emphasizes understanding the flow of transactions through various accounting cycles, including the preparation of journal entries, ledger updates, and trial balances, culminating in the generation of a balance sheet and retained earnings statement. Accurately analyzing trial balance figures, recording adjustments, and ensuring correct closing entries are essential components of this task. By systematically executing these steps, students demonstrate their ability to synthesize raw financial data into meaningful financial reports, thereby reflecting a clear picture of the company's financial position at the end of the period.

Analyzing Trial Balance Figures

The trial balance for January 2007 reports a beginning balance of $630,827, with total transactions of $1,269,860. These figures help in understanding the volume and nature of financial activities undertaken during the period. The initial step is verifying that the debits and credits are balanced initially, followed by making necessary adjustments, which in this case totals $12,514 across nine adjusting entries. These adjustments typically include accrued expenses, deferred revenue, depreciation, or other necessary corrections to ensure the financial statements accurately reflect the company's financial position.

Adjustments and Closing Entries

The adjustments increase the balance to $1,028,185, indicating alterations for accrued or deferred transactions. The end-of-month closing entries, which total $290,100, serve to transfer temporary account balances (revenues and expenses) to retained earnings, preparing the accounts for the subsequent period. These closing entries reduce the temporary account balances to zero and update retained earnings to incorporate the net income or loss for the period, which is essential for accurate period-to-period comparison.

Preparation of Financial Statements

After completing the adjustments and closing entries, the final balance on the trial balance is $790,201. For submission, students are required to produce the General Journal, General Ledger, and Trial Balance documentation in Excel format, representing the complete accounting cycle of January 2007. These documents should clearly depict each transaction, adjustment, and closing entry, providing transparency and traceability of financial data.

Additionally, students are instructed to generate visual representations of the financial position through SAP. This includes print screens of the Balance Sheet and the Retained Earnings statement, which are critical outputs of the accounting process. Accuracy in capturing and presenting these documents reflects thorough understanding of SAP's financial reporting capabilities.

Effective execution of this assignment demonstrates competency in fundamental accounting procedures, including journal entry preparation, ledger updating, trial balance validation, adjustments, closing procedures, and final financial reporting. Mastery of these steps is vital for preparing accurate financial statements that comply with accounting standards and support managerial decision-making.

References

  • Wild, J. J., Bernstein, L. A., & Subramanyam, K. R. (2021). Financial Accounting (13th ed.). McGraw-Hill Education.
  • Horngren, C. T., Sundem, G. L., Elliott, J. A., & Philbrick, D. (2019). Introduction to Financial Accounting (11th ed.). Pearson.
  • Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2019). Financial Accounting Theory and Analysis (12th ed.). Wiley.
  • Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2020). Intermediate Accounting (17th ed.). Wiley.
  • Gibson, C. H. (2018). Financial Reporting & Analysis (13th ed.). Cengage Learning.
  • Brigham, E. F., & Ehrhardt, M. C. (2019). Financial Management: Theory & Practice (16th ed.). Cengage.
  • Rachel, B., & Peterson, S. (2020). Understanding SAP Financials: An Introduction. SAP SE Publications.
  • AccountingTools. (2022). Trial Balance. Retrieved from https://www.accountingtools.com/articles/trial-balance.html
  • AccountingCoach. (2023). Adjusting Entries. Retrieved from https://www.accountingcoach.com/blog/adjusting-entries
  • Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2021). Financial Accounting Theory and Analysis (13th ed.). Wiley.

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