60.1K

Verified Solution

Link Copied!

ACCT $207$ PROJECT

Adjusting Journal Entries and Financial Statements

Purpose

Improve your understanding of the relationships between the financial statements; increase your

confidence in preparing and recording accounting entries; increase your ability to understand the

preparation of formal financial statements.

Instructions

Included are the unadjusted trial balance for Sinfully Sweet Desserts at December $31,2030,$ and a

list of adjusting journal entries required at year$-$end.

First, enter the December $31,2030,$ beginning balances from the Unadjusted Trial Balance

into your accounting "system" $($i$.$e$.,$ enter the beginning balances into the T$-$accounts

provided on pp$.4-7).$

Second, "record" $($i$.$e$.,$ write out in proper journal entry format$)$ each of the adjusting entries

from page $3$ on page $8($i$.$e$.,$ on blank page with the header "Adjusting Entries"$).$

IMPORTANT $-$ Don't forget to post each of these adjusting entries to the correct T$-$

accounts on pp$.4-7-$ this ensures that your adjusting entries are properly updating the

various accounts in your "system".

After journalizing and posting all of your adjusting entries to the T$-$accounts, tally up all the

ending balances in the T$-$accounts on pp$.4-7.$ Then, use these ending balances to fill out the

Adjusted Trial Balance on page $9.$

From the Adjusted Trial Balance, then your accounting "system" $($i$.$e$.,$ you$)$ will complete

the Multiple$-$Step Income Statement $($p$.10),$ Statement of Retained Earnings $($p$.11)$ for the

year ended December $31,2030,$ and the Classified Balance Sheet $($p$.12)$ as of December $31,$

$($Hint: Your Prepaid Advertising asset account will have a zero balance.$)$

Expectations

This is an individual project. Therefore, each student will turn in his$/$her own copy of this completed

packet. However, I want this to be a pleasant learning experience. Therefore, while I want everyone

to complete their own packet, I encourage you to work together! Have "fun" with it$!$

Due Date

All packets must be submitted to me by the end of the day on Thursday, December $7^{th}-my$

office is $255$ Purnell. If you do not turn in the project by this date, you will receive a zero $-$

Answer & Explanation Solved by verified expert

See Answer