The Attached Excel Worksheet Is The Project You Will Complet

The Attached Excel Worksheet Is The Project You Will Complete The Wor

The attached excel worksheet is the project. You will complete the worksheet by making the necessary adjustments. Afterwards, you will prepare the adjusted trial balance, income statement, and balance sheet. The worksheet is the only one that you will use and return. Do not convert it into PDF. Points will be taken off for not following instructions. Once completed the computations in the worksheet, you will formalize the project by preparing the corresponding journals for the adjusting entries and closing entries. Below you will find some complimentary information for the adjusting entries to be made within the class project case assigned. In order to determine the amount of supplies used, it is necessary to make a count of the amount on hand on December 31. The amount has been stated. Find the amount of supplies that have been used. From the original insurance, there was some insurance that expired. Salaries accrued but not paid during the year. Received interests that had been earned from a client, but not recorded. Received cash from a client for services to be rendered on January 11, 2022.

Paper For Above instruction

The project involves completing an Excel worksheet by making necessary adjustments, preparing an adjusted trial balance, income statement, and balance sheet using the worksheet, and then formalizing the process by creating journal entries for adjustments and closing entries. The process must follow specific instructions, including proper adjustments based on factual data, such as supplies used, expired insurance, accrued salaries, unrecorded interest income, and deferred revenue.

The initial step is to review the worksheet and identify all necessary adjustments. The supplies adjustment requires a physical count of supplies on hand as of December 31, which has been provided. The supplies used during the period are calculated by subtracting the ending supplies on hand from the beginning balance. Additionally, any expired insurance must be recorded as an expense by recognizing the portion of the original prepaid insurance that has expired during the period.

Salaries that have been incurred but not paid by year-end must also be accrued. This involves recording a Salaries Payable liability and an expense for salaries earned but not yet disbursed. The unrecorded interest income requires that interest earned from a client but not yet recorded be documented in the accounting records. Lastly, cash received for services to be performed in the future (on January 11, 2022) should be classified as deferred revenue, requiring an adjustment to recognize revenue earned in the current period.

These adjustments are critical in ensuring that financial statements reflect the true financial position and performance of the business according to accrual accounting principles. After making these adjustments on the worksheet, the financial statements—namely the income statement and balance sheet—must be prepared accurately, formatted, and checked for consistency. The final step involves journalizing the adjustments, including the necessary debits and credits for each transaction, and performing the closing entries to prepare the books for the next accounting period.

Throughout the process, it is essential to adhere strictly to instructions, use only the provided worksheet, and ensure accuracy in computations and journal entries to avoid point deductions. The entire project emphasizes understanding of adjusting entries, proper financial statement preparation, and the importance of detailed record-keeping for accurate financial reporting.

References

• Horngren, C. T., Harrison, W. T., & Oliver, M. S. (2014). Financial & Managerial Accounting (6th ed.). Pearson.
• Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2019). Intermediate Accounting (16th ed.). Wiley.
• Wild, J. J., Subramanyam, K. R., & Halsey, R. F. (2014). Financial Statement Analysis (11th ed.). McGraw-Hill.
• Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2019). Financial Accounting Theory and Analysis (13th ed.). Wiley.
• Needles, B. E., & Powers, M. (2013). Financial Accounting (11th ed.). Cengage Learning.
• Gibson, C. H. (2012). Financial Reporting & Analysis (13th ed.). Cengage Learning.
• Revsine, L., Collins, D., & Johnson, W. (2015). Financial Reporting & Analysis (3rd ed.). Pearson.
• Penman, S. H. (2012). Financial Statement Analysis and Security Valuation. McGraw-Hill Education.
• White, G. I., Sondhi, A. C., & Fried, D. (2003). The Analysis and Use of Financial Statements. Wiley.
• Penman, S. H. (2013). Financial Statement Analysis and Security Valuation. McGraw-Hill Education.