Suggested Chart Of Accounts

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Develop a comprehensive chart of accounts based on the provided transactions and account structure, recording the transactions in a general journal, posting to a general ledger, preparing trial balances, financial statements, and closing entries for Miller Architects, Inc. Additionally, research and recommend an appropriate accounting software package for the company.

Paper For Above instruction

The task involves creating a detailed accounting process for Miller Architects, Inc., starting with developing an appropriate chart of accounts tailored to the company's operations. The chart of accounts serves as the foundation for recording all financial transactions systematically. Based on the transactions listed, including asset acquisitions, service revenues, expenses, and owner’s equity, the chart needs to encompass various asset, liability, equity, revenue, and expense accounts, consistent with standard accounting practices.

Next, the project requires recording the specific June transactions in a general journal. These entries must accurately reflect the business activities, including asset purchases, services rendered, payments made, and receipt of income. Each journal entry should include the date, accounts affected, and debit/credit amounts, maintaining the fundamental accounting equation's integrity.

Following journalization, postings to the general ledger are necessary to summarize the transactions by account. This involves updating each account's balance with the debits and credits from the journal entries, enabling accurate account tracking and preparing for financial statement creation.

Once the ledger is updated, an unadjusted trial balance must be prepared. This step ensures that total debits equal total credits before adjustments. Subsequently, adjusting entries are formulated based on the provided data, such as expired insurance, supplies on hand, depreciation, accrued salaries, and unearned revenue adjustments. These entries are posted to the ledger to reflect the true financial position of Miller Architects, Inc.

The adjusted trial balance then consolidates all updated account balances, serving as the basis for preparing the financial statements. The income statement summarizes revenues and expenses, showing the net income for June. The retained earnings statement updates owner’s equity by factoring in net income and dividends.

Furthermore, the balance sheet presents assets, liabilities, and stockholders' equity at month-end, reflecting the company's financial standing. After financial statements are completed, closing entries are prepared to reset temporary accounts (revenues, expenses, dividends) for the new accounting period. These entries transfer the net income and dividends to retained earnings and are posted to the ledger.

Finally, a post-closing trial balance is prepared to verify that all debits and credits are balanced after closing entries, indicating readiness for the next accounting cycle. Throughout this process, all journal entries, ledger updates, trial balances, and financial statements should be meticulously documented and formatted, leveraging Excel templates for accuracy and clarity.

In addition to the core accounting activities, a PowerPoint presentation should be created that visually demonstrates the entire accounting cycle—from journal entries to financial statement preparation—using speaker notes to explain each step clearly to the client. Accompanying this presentation, a one-page memo is recommended, advising Miller on suitable accounting software options, considering his company's needs for efficiency, scalability, and ease of use.

The comprehensive approach ensures that Miller Architects, Inc. establishes an organized, accurate, and professional accounting system capable of supporting the company's transition from a small home-based operation to a full-time professional enterprise.

References

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• Weygandt, J. J., Kieso, D. E., & Kimmel, P. D. (2021). Accounting Principles (25th ed.). Wiley.
• Gibson, C. H. (2020). Financial Reporting and Analysis (13th ed.). South-Western College Pub.
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