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					                        CASE STUDY 1 -THE COMPLETE ACCOUNTING CYCLE

                            Name: ___________________________________



The Entire Case Study is due Sunday at Midnight Mountain time at the end of Week 3.
This Case Study is worth 100 points or 10% of your final course grade.

This Case Study relates to TCO's D and E and Chapters 3 and 4.

MAKE SURE TO COMPLETE ALL REQUIREMENTS WHICH ARE LISTED BELOW.

There are 10 Sheets in the Workbook including this one.
All of the Information you need for the Project is located in this Workbook.

                           Requirements                                      Sheet in Workbook
Requirement 1 - Prepare the Journal Entries in the General Journal   Journal Entries
Requirement 2 - Post Journal Entries to the General Ledger           General Ledger
Requirement 3 - Prepare a Trial Balance                              Trial Balance
Requirement 4 - Prepare the Adjusting Entries                        Adjusting Entries
Requirement 5 - Post Adjusting Entries to the General Ledger         General Ledger
Requirement 6 - Prepare an Adjusted Trial Balance                    Adjusted TB
Requirement 7 - Prepare the Financial Statements                     Financial Statements
Requirement 8 - Prepare the Closing Entries                          Closing Entries
Requirement 9 - Post Closing Entries to the General Ledger           General Ledger
Requirement 10 - Prepare the Post Closing Trial Balance              Post Closing TB

Hint for success: review the Week 2 Lecture prior to starting this project.
There are also hints contained within certain cells on some of the worksheet tabs.
You can hover over the red pointer at the top right-hand corner of the cell to read the
Hints are provided for the following balances:
1) The debits for the journal entries on the Journal Entries tab
2) The credits for the journal entries on the Journal Entries tab
3) The cash balance on the General Ledger tab
4) The debits for the trial balance on the Trial Balance tab
5) The credits for the trial balance on the Trial Balance tab
6) The debits for the adjusted trial balance on the Adjusted Trial Balance tab
7) The credits for the adjusted trial balance on the Adjusted Trial Balance tab
8) Net Income for the Income Statement on the Financial Statements tab
9) Retained earnings as of March 31 on the Financial Statements tab
10) Total assets for the Balance Sheet on the Financial Statements tab
11) Total liabilities and shareholders' equity for the Balance Sheet on the Financial Statements tab
12) The debits for the post-closing trial balance on the Post-Closing Trial Balance tab
13) The credits for the post-closing trial balance on the Post-Closing Trial Balance tab
s project.
he worksheet tabs.
of the cell to read the hint.
REQUIREMENT #1:
During its first month of operation, the Flower Landscaping Corporation, which specializes in residential landscaping,
completed the following transactions:

March 1    Began business by making a deposit in a company bank account of $72,000, in exchange
           for 7,200 shares of $10 par value common stock.

March 1    Paid the current month's rent, $4,500.

March 1    Paid the premium on a one-year insurance policy, $3,300.

March 7    Purchased supplies on account from Parkview Company, $900.

March 10 Paid employee salaries, $2,200.

March 14 Purchased equipment from Hammond Company, $9,000. Paid $1,500 down and the balance was
         placed on account. Payments will be $375.00 per month for twenty months. The first payment is due 4/1.
         Note: Use Accounts Payable for the Balance Due.

March 15 Received cash for landscaping revenue for the first half of March, $4,896.

March 19 Made payment on account to Parkview Company, $450.

March 31 Received cash for landscaping revenue for the last half of March, $5,304.

March 31 Declared and paid cash dividend of $1,000.


Prepare journal entries to record the March transactions in the General Journal below.

                                 General Journal
Date          Description(Account Name)    Debit          Credit
                                                      0          0

Note: Remember that Debits must equal Credits - All of your Journal Entries should balance.
ndscaping,




 is due 4/1.




               Use the following account names for journal entries.

               Chart of Accounts: Account Title (Normal Balance)

               Assets
                             Cash (Debit)
                             Prepaid Insurance (Debit)
                             Supplies (Debit)
                             Equipment (Debit)
                             Accumulated Depreciation -Equipment (Credit)

               Liabilities
                             Accounts Payable (Credit)
                             Income Tax Payable (Credit)

               Stockholders Equity
                        Common Stock (Credit)
                        Retained Earnings (Credit)
                        Dividends (Debit)

               Revenue
                             Landscaping Revenue (Credit)

               Expenses
         Rent Expense (Debit)
         Salaries Expense (Debit)
         Insurance Expense (Debit)
         Supplies Expense (Debit)
         Depreciation Expense (Debit)
         Income Tax Expense (Debit)

Clearing Account
          Income Summary
This Sheet will be used for Requirements 2, 5, and 9

REQUIREMENT #2:

Post the March journal entries to the following T-Accounts and compute ending balances.


               Cash (111)                                            Landscaping Revenue (411)




         Prepaid Insurance (117)                                         Rent Expense (511)




              Supplies (119)                                           Salaries Expense (512)




             Equipment (144)                                          Insurance Expense (513)




Accumulated Depreciation-Equipment (145)                               Supplies Expense (514)




         Accounts Payable (212)                                      Depreciation Expense (515)




        Income Tax Payable (213)                                      Income Tax Expense (516)
 Common Stock (311)
                          Income Summary (517)




Retained Earnings (312)




    Dividends (313)
REQUIREMENT #3:

Prepare a trial balance for March in the space below.


                  Flower Landscaping Corporation
                           Trial Balance
                             March 31




                                           0            0
Requirement #4:

Prepare adjusting entries using the following information in the General Journal
below. Show your calculations!

a) One month's insurance has expired.

b) The remaining inventory of supplies is $475.

c) The estimated depreciation on equipment is $150.

d) The estimated income taxes are $795.

                       General Journal
Date          Description(Account Name)       Debit   Credit




Requirement #5:

Post the adjusting entries to the General Ledger T-accounts and compute adjusted balances.
Just add to the balances that are already listed.
Requirement #6:

Prepare an Adjusted Trial Balance in the space below.

                   Flower Landscaping Corporation
                       Adjusted Trial Balance
                             March 31




                                                    0   0
Requirement #7:

Prepare the financial statements for Flower Landscaping Corporation as of March 31 in the space below.
You will only be preparing the Income Statement, Statement of Retained Earnings and the Balance Sheet.
The Statement of Cash Flows is a required Financial Statement, but is not required for this Project.

     Flower Landscaping Corporation                    Flower Landscaping Corporation
            Income Statement                           Statement of Retained Earnings
     For the Month Ending March 31                     For the Month Ending March 31

Revenues:                                          Retained Earnings, March 1
Landscaping Revenue                                Add: Net Income
                                                   Subtotal
Expenses:                                          Less: Dividends
Rent Expense                                       Retained Earnings, March 31
Salaries Expense
Insurance Expense
Supplies Expense
Depreciation Expense
Income Tax Expense
  Total Expenses

Net Income
 space below.
Balance Sheet.


                  Flower Landscaping Corporation
                          Balance Sheet
                            March 31

            Assets:
            Cash
            Prepaid Insurance
            Supplies
            Equipment
            Less: Accum. Depr.
            Total Assets

            Liabilities:
            Accounts Payable
            Income Tax Payable
            Total Liabilities
            Stockholders' Equity:
            Common Stock
            Retained Earnings
            Total Stockholders' Equity
            Total Liabilities &
              Stockholders' Equity
Requirement #8:

Prepare the closing entries at March 31 in the General Journal below.
Hint: use the balances for each account which appear on the Adjusted
Trial Balance for your closing entries.

                          General Journal
Date               Description (Account Name)       Debit        Credit




Requirement #9:

Post the closing entries to the General Ledger T-accounts and compute ending balances.
Just add to the adjusted balances already listed.
Requirement #10:

Prepare a post-closing trial balance as of March 31 in the space below.


               Flower Landscaping Corporation
                  Post-Closing Trial Balance
                          March 31




                                           0               0
Case Study 1 Rubric
Please note that this rubric provides a general guideline but you can score anywhere between 0
and the maximum number of points for that step depending on the accuracy and completeness
of your work.
      Criteria         Outstanding           Good                  Poor                       Very Poor

         Step 1      Journal            Minor errors       Errors in         Evidence of an attempt to complete
         - Prepared Entries use         such as            computations that the journal entries.
         Journal     accurate           incorrect          resulted in
         Entries (20 accounts and       account            incorrect amounts
         pts)        amounts; and       names or           to be debited and
                     debits and         credits listed     credited.
                     credits are        prior to debits.
                     used
                     correctly.

                           20 pts            16 pts               12 pts                       8 pts
         Step 2        Posting is       Posting is         Posting has         Posting is done poorly but does show
         -Posted to    correct          mostly correct     several errors that evidence of an attempt to complete.
         the General   leading to       but minor          resulted in
         Ledger. (10   accurate         errors are         incorrect account
         pts)          account          evident.           balances.
                       balances.
                           10 pts             8 pts                6 pts                       4 pts
         Step 3        Correct          Some minor         Errors in         Evidence of an attempt to complete
         -Prepared a   account          errors such as     computations that the trial balance.
         Trial         names and        incorrect          resulted in
         Balance (10   balances so      account            incorrect amounts
         pts)          to arrive at a   names or           to be debited and
                       correct trial    incorrect totals   credited.
                       balance.         due to errors
                                        in prior steps.

                         10 pts              8 pts                6 pts                          4 pts
         Step 4      Journal            Journal Entries    Journal Entries      Journal Entries have some errors in
         -Prepared   Entries use        mostly use         have some errors     use of accounts and amounts; and
         Adjusting   accurate           accurate           in use of accounts   debits and credits are not used
         Journal     accounts and       accounts and       and amounts; and     correctly.
         Entries (10 amounts; and       amounts; and       debits and credits
         pts)        debits and         debits and         are only somewhat
                     credits are        credits are        used correctly.
                     used               used correctly.
                     correctly.

                          10 pts                8                   6                            4 pts
         Step 5&6     Posting is        Posting is         Posting has          Posting is done poorly or not at all,
         -Posted and correct            mostly correct     several errors       leading to inaccurate or no trial
         Prepared an leading to an      leading to a       leading to a trial   balance.
         Unadjusted accurate trial      mostly correct     balance with
         Trial        balance.          trial balance.     several errors.
         Balance. (10
         pts)
Prepared an
Unadjusted
Trial
Balance. (10
pts)
                    10 pts         8 pts               6 pts                            4 pts
Step 7         All three      Two of the        One of the three      One or fewer of four Financial
-Prepared      Financial      three financial   Financial             Statements are prepared accurately
Financial      Statements     Statements        Statements are        and mostly in an appropriate format,
Statements     are prepared   are prepared      prepared              three or all statements have some
(20 pts)       accurately     accurately and    accurately and        errors.
               and in an      mostly in an      mostly in an
               appropriate    appropriate       appropriate format,
               format.        format, one       two statements
                              statement has     have some errors.
                              some errors.

                20 pts            16 pts               12 pts                          8 pts
Step 8      Journal           Journal Entries   Journal Entries       Journal Entries have some errors in
-Prepared   Entries use       mostly use        have some errors      use of accounts and amounts; and
Closing     accurate          accurate          in use of accounts    debits and credits are not used
Journal     accounts and      accounts and      and amounts; and      correctly.
Entries (10 amounts; and      amounts; and      debits and credits
pts)        debits and        debits and        are only somewhat
            credits are       credits are       used correctly.
            used              used correctly.
            correctly.

                 10 pts              8 pts             6 pts                           4 pts
Step 9&10 Posting is          Posting is        Posting has           Posting is done poorly or not at all,
-Posted and correct           mostly correct    several errors        leading to inaccurate or no trial
Prepared     leading to an    leading to a      leading to a trial    balance.
post-        accurate trial   mostly correct    balance with
closingTrial balance.         trial balance.    several errors.
Balance. (10
pts)

                  10 pts           8 pts                6 pts                          4 pts
                                                                            Total Points Earned Out of 100
                                                                                                    Points
ywhere between 0
and completeness

         Points
        Awarded
0

				
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posted:10/18/2012
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