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Accrual Basis: In your company accounting workbook, apply the accrual basis of accounting

Overview

In Milestone One, you completed the first part of your course project to demonstrate your ability to accurately record financial data. In Milestone Two, you will use your journal entries from Milestone One to continue working through the next stages of the accounting cycle in preparation for creating financial statements in Module Seven.

Scenario

You are a certified public accountant (CPA) who is working with a small bakery to prepare their financial statements for three months of the current fiscal year. Because the company is a startup and so small, the accounting is done manually in Microsoft Excel. You have been given the accounts and information you need to prepare their financial statements, but you will need to use the accounting cycle to report accurate information to the finance department.

Prompt

Accrual Basis: In your company accounting workbook, apply the accrual basis of accounting and prepare adjusting entries to ensure accurate accounting for expenses that lack transactions in the current period. (You may refer to the Company Accounting Workbook Template Spreadsheet if necessary, but keep in mind that your work for this milestone should be added to the work you completed in your workbook for the previous milestone.)

Specifically, you must address the following rubric criteria:

  • Unadjusted Trial Balance: Prepare the unadjusted trial balance portion of the “Trial Balance” tab of the company accounting workbook, ensuring that the total debits and credits match.
  • Adjusting Entries: Prepare the “Adjusting Entries” tab of the company accounting workbook. Ensure that the entries are correctly transferred to the adjusting entries portion of the “Trial Balance” tab.
  • Adjusted Trial Balance: Prepare the adjusted trial balance on the “Trial Balance” tab, ensuring that the debit and credit totals match.

Guidelines for Submission

Build on your work from Milestone One to complete the “Trial Balance” and “Adjusting Entries” tabs in your company accounting workbook. This should be completed and submitted using Microsoft Excel. Please note that there are drop-down menus embedded in the “Accounts” columns as well as formulas throughout the spreadsheet to help you complete the workbook without accidentally introducing errors.

Milestone Two Rubric
Criteria Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value
Unadjusted Trial Balance Prepares the unadjusted trial balance accurately, ensuring the total debits and credits match with no errors Prepares the unadjusted trial balance with minimal errors Prepares the unadjusted trial balance with significant errors Does not attempt criterion 35
Adjusting Entries Prepares adjusting entries with no errors Prepares adjusting entries with minimal errors Prepares adjusting entries with significant errors Does not attempt criterion 35
Adjusted Trial Balance Prepares the adjusted trial balance with no errors Prepares the adjusted trial balance with minimal errors Prepares the adjusted trial balance with significant errors Does not attempt criterion 30
Total: 100%

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