I. Demonstrate the year-end adjustment process. A. Prepare the adjusting journal entries in the Adjusting Entries tab in the provided workbook. B. Transfer the values from the Adjusting Entries tab to the proper cells of the Adjusting Entries columns in the Worksheet tab. C. Create the adjusted trial balance by completing the Adjusted Trial Balance columns using the Worksheets tab. D. Close temporary accounts by completing the Closing Entries tab. II. Prepare an income statement for your company by completing the Income Statement tab in the provided workbook.
ACC 307 Milestone One Guidelines and Rubric Overview: In your final project, you will assume the role of an accountant and complete the year-end adjustment process for your company using a provided workbook. This workbook is the first deliverable (Part I) of your final project. In Part II, you will analyze the provided financials of the same company and create a report documenting your findings. For your first milestone, you will complete certain portions of the final project workbook as described in the prompt below. You will complete the entire workbook for your next milestone, due in Module Five. Prompt: Specifically, the following critical elements must be addressed: I. Demonstrate the year-end adjustment process. A. Prepare the adjusting journal entries in the Adjusting Entries tab in the provided workbook. B. Transfer the values from the Adjusting Entries tab to the proper cells of the Adjusting Entries columns in the Worksheet tab. C. Create the adjusted trial balance by completing the Adjusted Trial Balance columns using the Worksheets tab. D. Close temporary accounts by completing the Closing Entries tab. II. Prepare an income statement for your company by completing the Income Statement tab in the provided workbook. Rubric Guidelines for Submission: Complete the workbook tabs and sections described in the prompt above. Critical Elements Proficient (100%) Needs Some Improvement (85%) Needs Major Improvement (55%) Not Evident (0%) Value Year-End Adjustment Process: Adjusting Journal Entries Accurately prepares all adjusting entries Prepares adjusting entries, but there are up to four gaps or inaccuracies Prepares adjusting entries, but there are five or more gaps or inaccuracies Does not prepare adjusting entries 20 Year-End Adjustment Process: Transfer Transfers values from the Adjusting Entries tab to the proper cells of the Adjusting Entries columns in the Worksheet tab based on the values from the previous step Transfers values to the Adjusting Entries columns in the Worksheet tab, but there are up to four gaps or inaccuracies Transfers values to the Adjusting Entries columns in the Worksheet tab, but there are five or more gaps or inaccuracies Does not transfer values to the Adjusting Entries columns in the Worksheet tab 20 Year-End Adjustment Process: Adjusted Trial Balance Accurately prepares the adjusted trial balance based on the values from the previous step Prepares the adjusted trial balance, but there are up to four gaps or inaccuracies Prepares the adjusted trial balance, but there are five or more gaps or inaccuracies Does not prepare the adjusted trial balance 20 Year-End Adjustment Process: Closing Entries Accurately prepares all closing entries based on the values from the previous step Prepares closing entries, but there are up to four gaps or inaccuracies Prepares closing entries, but there are five or more gaps or inaccuracies Does not prepare closing entries 20 https://learn.snhu.edu/d2l/lor/viewer/view.d2l?ou=6606&loIdentId=20047 Critical Elements Proficient (100%) Needs Some Improvement (85%) Needs Major Improvement (55%) Not Evident (0%) Value Income Statement Accurately prepares the income statement based on the values from the previous step Prepares the income statement, but there are up to four gaps or inaccuracies Prepares the income statement, but there are five or more gaps or inaccuracies Does not prepare the income statement 20 Total 100% ACC 307 Final Project Scenario I Scenario for adjusting entries: Year end is December 31, 2017. Peyton Baking Company uses the following accounting practices: Inventory: Periodic, FIFO for both baking and merchandise o Baking supplies: $27,850 ending inventory Equipment: Straight line method used for equipment o Mixing machine: $5,000 initial cost, $500 salvage value, 3rd year of use of 7 total ($642.86 per year) o Ovens: $8,000 initial cost, $1,000 salvage value, 3rd year of use of 7 total ($1,000 per year) o Other depreciable equipment: $4,000 initial cost, $0 salvage value, 1st year of use of 4 total ($1,000 per year) o Bakery Leasehold Improvements: $10,000, 2nd year of use ($2,000 per year) o Trademark for company name: Initial cost, $2,300, 3rd year of use Office supplies: Periodic, FIFO. Ending balance is $250. Pay period is every 2 weeks. Last pay period ended December 27. o 60 employees with a daily pay of $5,700. All receive pay through December 31. Financing: o 6% interest note payable was made on January 31, 2017, and is due February 1, 2019. o 5-year loan was made on June 1, 2017. Terms are 7.5% annual rate, interest only until due date. Insurance: Annual policy covers 12 months, purchased in February, covering March 2017– February 2018. No monthly adjustments have been made. Other information: An employee slipped and fell in the baking area and has filed a lawsuit. The company lawyer indicates that it is probable that the company will be found liable. No additional information is available.