The Goal Of This Graded Project Is To Create The Following F ✓ Solved

The goal of this graded project is to create the following financial statements for Ice Cream Systems (ICS)

The goal of this graded project is to create the following financial statements for Ice Cream Systems (ICS): balance sheet, income statement, and post-closing trial balance.

The financial statements must be created in one Word document (.doc or .docx), or an Excel workbook (.xls or .xlsx). Alternatively, a Rich Text Format (.rtf) file can be used by Mac users. The file will be uploaded for grading.

The project provides several supporting documents, including the chart of accounts, trial balance, schedules of receivables, payables, payroll taxes, formats for financial statements, and a job cost record.

Your task involves journalizing transactions, posting to ledgers, preparing schedules, trial balances, adjusting entries, and creating financial statements based on provided data and the detailed instructions. You are to set up the general ledger, record all journal entries, post entries, calculate balances, prepare schedules and trial balances, and finally generate the financial statements in the specified formats.

Sample Paper For Above instruction

The goal of this graded project is to create the following financial statements for Ice Cream Systems ICS

Introduction

Financial accounting is fundamental to business management and external reporting. The purpose of this project is to simulate the process of preparing accurate financial statements for Ice Cream Systems (ICS), encompassing journal entries, ledger postings, trial balances, and ultimately, the balance sheet, income statement, and post-closing trial balance. This comprehensive exercise not only demonstrates technical proficiency in accounting procedures but also enhances understanding of financial statement interrelations, accrual accounting, and internal control mechanisms.

Setup of the General Ledger and Accounts

The initial step involves establishing the general ledger accounts based on the chart of accounts and starting balances provided in the trial balance, schedules of receivables and payables. These accounts should be correctly numbered and categorized under assets, liabilities, owner’s equity, revenues, and expenses. Accurate setup ensures proper posting and trustworthy financial reports.

Recording Journal Entries

Next, journal entries for all transactions during January are to be recorded chronologically. These include operational expenses, asset acquisitions, customer receipts, vendor payments, payroll activities, job costing, and billing. For example, purchases of advertising, rent, payroll, and materials must be journalized with appropriate debits and credits, referencing established accounts. Particular attention should be paid to the application of factory overhead, direct and indirect materials, direct labor, job costs, and revenue recognition.

Posting to Ledger Accounts

After journalization, entries are to be posted to individual ledger accounts using the Post Reference (Post Ref.) column for traceability. This step updates the balances of each ledger account, segregating operational data from summarized financials. Accurate posting is critical for subsequent trial balance and financial statement accuracy.

Calculating Account Balances

Once all postings are complete, balances of each account are to be computed. These balances form the basis for preparing schedules, trial balances, and financial statements. The accuracy of these balances hinges on meticulous posting and correct calculations.

Preparing Schedules of Accounts Receivable and Payable

The schedules reflect current outstanding balances, categorized by customer and vendor, respectively. They serve as subsidiary ledgers supporting the general ledger control accounts and assist in verifying account accuracy.

Trial Balance and Adjusting Entries

An unadjusted trial balance is prepared from ledger balances. Subsequently, adjusting entries are journalized to account for accrued expenses, prepaid asset amortizations, depreciation, and other period-end adjustments. These adjustments ensure compliance with the matching principle and accurate financial positioning.

Revised Trial Balance and Financial Statements

After posting adjusting entries, an adjusted trial balance is drawn. Financial statements—income statement and balance sheet—are then prepared using the adjusted balances, following proper formats. The income statement reports revenues, expenses, and net income, while the balance sheet presents assets, liabilities, and owner’s equity at period-end.

Closing Entries and Post-Closing Trial Balance

Next, closing entries are journalized and posted to transfer temporary account balances to retained earnings. This resets income and expense accounts for the new period. A post-closing trial balance is prepared to ensure all temporary accounts are zeroed out, and the ledger is balanced.

Finalizing Financial Statements

Using the post-closing trial balance, the final balance sheet is prepared. Its accuracy depends heavily on correct closing procedures and ledger balances. Formatting, spelling, and presentation are emphasized to meet professional standards.

Conclusion

This project encapsulates the end-to-end process of financial statement preparation, illustrating the flow from journal entries to formal reports. It emphasizes critical accounting principles and procedural diligence, preparing students for real-world accounting practices and financial analysis.

References

  • Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2019). Accounting Principles (23rd ed.). Wiley.
  • Horngren, C. T., Sundem, G. L., & Elliott, J. A. (2018). Introduction to Financial Accounting (11th ed.). Pearson.
  • Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2021). Financial Accounting Theory and Analysis. Wiley.
  • Gibson, C. H. (2020). Financial Reporting & Analysis (13th ed.). Cengage Learning.
  • Michel, C. P., & Rossi, M. (2017). Managerial Accounting Fundamentals. Routledge.
  • Wild, J. J., Subramanyam, K. R., & Halsey, R. F. (2017). Financial Statement Analysis. McGraw-Hill Education.
  • Penman, S. H. (2019). Financial Statement Analysis and Security Valuation. McGraw-Hill Education.
  • Horngren, C. T., Datar, S., & Rajan, M. (2021). Cost Accounting: A Managerial Emphasis. Pearson.
  • EAudit & Accounting Standards Board. (2020). GAAP Financial Statements Handbook. AICPA.
  • Investopedia. (2023). A comprehensive guide to financial statements. https://www.investopedia.com/terms/f/financialstatements.asp

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