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Complete the following assignment by preparing the necessary financial statements and related accounting records for a new business, Aqua Elite, Inc., based on detailed transaction data for the first three months of operation. The project involves setting up accounts, recording transactions, posting journal entries, preparing trial balances, adjusting entries, financial statements, closing entries, and a post-closing trial balance. The final deliverables are four specific forms: Balance Sheet, Income Statement, Statement of Retained Earnings, and Post-Closing Trial Balance, which must be submitted as a completed PDF file according to specific submission instructions.

Paper For Above instruction

The purpose of this project is to simulate the accounting cycle for Aqua Elite, Inc., a newly established pool and spa maintenance business, from its inception through the end of its first quarter of operations. This comprehensive exercise aims to deepen understanding of fundamental accounting principles, including journalizing transactions, maintaining general ledgers, preparing trial balances, making adjusting and closing entries, and ultimately generating financial statements appropriate for external reporting. By completing this project, students can demonstrate proficiency in applying theoretical knowledge to practical business scenarios and reinforce their skills in financial analysis and reporting.

The project begins with the initial setup: recording the owner's investment and subsequent transactions that affect the company's accounts. The transactions span from the business startup costs through operational activities such as service revenues, expenses, purchasing equipment and supplies, and other related activities that influence the company's financial position. These transactions must be systematically journalized, posted to ledger accounts, and summarized in trial balances.

Specifically, students will first journalize all relevant transactions from May to July, omitting detailed explanations but ensuring accuracy. Following this, they will post these transactions to the general ledger, creating new accounts as necessary, and calculating the balances at the end of the period. An unadjusted trial balance is then prepared to verify the ledger’s accuracy. Subsequently, students will record and post adjusting entries based on given information regarding prepayments, depreciation, accrued expenses, unbilled services, and earned but unreceived revenues, updating the trial balance accordingly to produce an adjusted trial balance.

Using the adjusted balances, students will prepare the financial statements for the period covering May through July, including the Income Statement, Statement of Retained Earnings, and Balance Sheet, providing a comprehensive overview of the company’s financial health. The project then requires journalizing, posting, and executing closing entries to close temporary accounts, followed by the preparation of a post-closing trial balance to confirm the accuracy and readiness for the next accounting period.

Throughout the project, careful attention must be paid to accurate account classification, calculation, and adherence to accounting standards. The final step involves filling out the specified forms and submitting the complete PDF file according to the detailed online submission procedures, which include uploading the document through the designated system and ensuring that all information is accurate and proofread.

This project emphasizes the importance of meticulous record-keeping, accuracy in financial reporting, and understanding the flow of accounting information from initial transaction recording to final financial statement presentation. By successfully completing this project, students will develop a solid foundation in the accounting cycle, prepare themselves for more advanced financial analysis, and demonstrate their competence in producing professional financial reports for business evaluation.

References

• Boynton, W. C., Johnson, R. N., & LeGolden, F. (2020). Principles of Accounting. Wiley.
• Wild, J. J., & Subramanyam, K. R. (2019). Financial Statement Analysis. McGraw-Hill Education.
• Horngren, C. T., Sundem, G. L., & Elliott, J. A. (2018). Introduction to Financial Accounting. Pearson.
• Revsine, L., Collins, W. K., & Johnson, C. (2015). Financial Reporting & Analysis. Pearson.
• Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2021). Intermediate Accounting. Wiley.
• Harrison, W. T., Horngren, C. T., & Thomas, S. (2018). Financial & Managerial Accounting. Pearson.
• Shim, J. K., & Siegel, J. G. (2020). Financial Accounting, Reporting, and Analysis. Routledge.
• Gibson, C. H. (2018). Financial Reporting & Analysis. Cengage Learning.
• Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2019). Financial Accounting Theory. Wiley.
• Accounting Standards Board. (2020). Generally Accepted Accounting Principles (GAAP). FASB.