As a professional accountant, you are responsible for adherence to accounting principles and methods when working...

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As a professional accountant, you are responsible for adherence to accounting principles and methods when working with clients. Depending on your specific market that you will work in, it is important to know how large to small businesses should organize their finances. This project gives you the opportunity to put that skill set into practice by reviewing transactions of a small business just starting up. Remember, you will more than likely work with a range of clients over your professional career and may need to explain the process and provide rationale for the financial processes and procedures to ensure they are successful in maintaining their financial records. As with any financial records, accuracy is key. It is imperative to keep accurate and complete records. You will have the opportunity to correct any errors in the previous Milestone Journal Entries and Milestone Inventory tabs. You will notice as your work through both projects, that you will need to provide more than just the numbers. You will need to explain the financial data and provide evidence of your calculations. This will prepare you with a solid foundation as a future accountant. Using the scenario provided, complete the following in the same file, Project One Workbook Template, that includes your original work from Project One Milestone and the feedback from your instructor. All work should be completed in the VDI. Note: You may choose to complete an assignment using a desktop program instead of SNHU's virtual desktop (VDI); however, technical support will not be provided by SNHU if you select this option. Project One Workbook: Correct Journal Entries, Inventory Tabs, Ledger Accounts, Income Statement and Balance Sheet 1. Correct all Journal Entries from Project One Milestone by using the Corrected Journal Entries and Corrected Inventory tabs. 2. Highlight the corrected errors in green. 3. Complete the Ledger Accounts, Income Statement, and Balance Sheet tabs in the same Workbook based on the Corrected Journal Entries and Corrected Inventory tabs. 4. Upload the completed Project One Workbook Template for submission. Note if you received a perfect score on the Project One Milestone and do not need to correct any errors, simply note it in the designated section within the Corrected Journal Entries tab. You will receive full points for that specific criteria for this assignment. Project One Analysis Paper 1. Complete an analysis of the information contained in the completed Project One Workbook Template including your revisions. 2. It will need to be formatted in APA style; specific formatting can be found in the What to Submit section. 3. It will need to address all of the rubric criteria for the Project One Analysis Paper below. Specifically, you must address the following rubric criteria: Project One Workbook Project One Workbook 1. Correct all errors for the Journal Entries and Inventory tabs of the workbook. Highlight corrections in green. 2. Prepare the current assets and liabilities accounts accurately and completely on the Ledger Accounts tab in the workbook. 3. Prepare the current assets and liabilities components accurately and completely on the Income Statement and Balance Sheet tabs in the workbook. Project One Analysis Paper 4. Summarize the financial components included in the current assets and liabilities section of the Balance Sheet for the given company. 5. Justify the difference between current assets and liabilities. Include the following details in your response: A. Explain why the balance sheet is arranged the way it is. B. Determine if the same asset or liability can have both short-term and long-term components and provide your rationale. C. Explain how variances in data can be detected for current assets and liabilities using relevant tools. 6. Justify why footnotes for current assets and liabilities are important in decision making for the company. Include the following details in your response: A. Explain why the balance sheet amounts alone are not sufficient in providing the information needed in decision making. 7. Explain why FIFO is the best choice for this given company. 8. Cite the applicable FASB codification section for the following items as a list: cash and cash equivalents, inventory, and receivables. Submit the same file submitted for the Project One Milestone with your instructor feedback the following tabs completed: Corrected Journal Entries, Corrected Inventory, Ledger Accounts, Income Statement, and Balance Sheet. The Ledger Accounts, Income Statement, and Balance Sheet tabs should be based on the Corrected Journal Entries and Corrected Inventory tabs. This work should be completed using Microsoft Excel in the VDI. Remember to save your file on your OneDrive before exiting the VDI. 1. The following events occurred during the year. Book the entries necessary for the corresponding transactions that have occurred. August 1: The business owner loaned the company $10,000 at 4% interest annually to be paid in full in three years. August 15: A new one-year lease agreement was signed for a new sporting goods store. The rent is $1,350 per month for the year. The lease begins on September 1 and is effective through August 31 of the next year. A payment of the first month's rent plus a deposit payment of $2,000 was made. (Info only. The deposit remains in Prepaid Rent until the end of the lease) August 31: Paid $2,400 for a 12-month insurance policy. Policy effective dates are September 1 through August 31. September 1: Expense September rent paid in August. September 21: A part-time worker was hired at $15 per hour to work the customer service desk. One pay period is the 1st of the month through the 15th, and the other is the 16th through the end of the month. Paydays are the 20th for the first pay period and the 5th of the following month for the second pay period. (No entry required on this date-for informational purposes only.) September 30: Sold 15 bicycles on special at $150 each and 5 golf club sets at $350 each. The customer put 12% on account and paid cash for the rest. September 30: Calculate the payroll accrual for employee's first paycheck for 12 hours to be delivered on October 5. October 1: Paid October rent on new sporting goods space. October 5: Paid employee for period ending September 30. October 15: Collected $500 on account from customers. October 20: Paid employee with 20 hours for period ending October 15. October 31: Accrued wages earned for employee with 15 hours for period of October 16 through October 31. October 31: Sold 5 bicycles at $170 each and 15 golf club sets at $380 each in October with 31% on account. November 1: Paid rent on new sporting goods space. November 5: Paid employee for period ending October 31. November 17: Collected $950 on account from customers. November 20: Paid employee with 17 hours for period ending November 15. November 30: Accrued wages earned for employee with 22 hours for period November 16 through November 30. November 30: Sold 15 bicycles at $170 each and 10 golf club sets at $380 each in November with 28% on account. December 1: Paid rent on new sporting goods space. December 5: Paid employee for period ending November 30. December 18: Received payments from customers toward accounts receivable in amount of $1,000. December 20: Paid employee with 16 hours for period ending December 15. December 31: Accrued wages earned for employee with 18 hours for period of December 16 through December 31. December 31: Sold 20 bicycles at $180 each and 5 golf club sets at $400 each in December with 22% on account. December 31: Book expense for insurance during September 1-December 31. December 31: Accrue for interest from August 1 to December 31 on the loan. 2. As this is a new store, merchandise has been purchased on account to sell at the store. The information below relates to the purchase and sales of the new products. Use the perpetual inventory method with the FIFO valuation method. Please see the "Milestone Inventory" tab in your workbook for purchase and sales information. August 25: Purchased 15 golf club sets for $240 each to sell at the store from vendor A, on account with terms of 1/10 net 60. September 16: Purchased 25 bicycles for $75 each to sell at the store from vendor B, on account with terms of 1/10 net 60. September 24: Paid $750 toward merchandise from vendor A. September 30: Recorded impact of sales transaction on COGS and the inventory asset. October 18: Paid $650 toward merchandise from vendor B. October 25: Paid remaining payable for merchandise from vendor A. October 26: Purchased 25 more golf club sets for $250 each to sell at the store from vendor A, on account with terms of 1/10 net 60. October 31: Recorded impact of sales transaction on COGS and the inventory asset. November 10: Paid remaining payable for merchandise from vendor B. November 16: Purchased 35 more bicycle sets for $85 to sell at the store each from vendor on account with terms of 2/10 net 30. November 20: Paid vendor B in full and took advantage of the discount (offset COGS). November 30: Recorded impact of sales transaction on COGS and the inventory asset. December 10: Paid $4500 toward payable for merchandise from Vendor A. December 31: Recorded impact of sales transaction on COGS and the inventory asset. As a professional accountant, you are responsible for adherence to accounting principles and methods when working with clients. Depending on your specific market that you will work in, it is important to know how large to small businesses should organize their finances. This project gives you the opportunity to put that skill set into practice by reviewing transactions of a small business just starting up. Remember, you will more than likely work with a range of clients over your professional career and may need to explain the process and provide rationale for the financial processes and procedures to ensure they are successful in maintaining their financial records. As with any financial records, accuracy is key. It is imperative to keep accurate and complete records. You will have the opportunity to correct any errors in the previous Milestone Journal Entries and Milestone Inventory tabs. You will notice as your work through both projects, that you will need to provide more than just the numbers. You will need to explain the financial data and provide evidence of your calculations. This will prepare you with a solid foundation as a future accountant. Using the scenario provided, complete the following in the same file, Project One Workbook Template, that includes your original work from Project One Milestone and the feedback from your instructor. All work should be completed in the VDI. Note: You may choose to complete an assignment using a desktop program instead of SNHU's virtual desktop (VDI); however, technical support will not be provided by SNHU if you select this option. Project One Workbook: Correct Journal Entries, Inventory Tabs, Ledger Accounts, Income Statement and Balance Sheet 1. Correct all Journal Entries from Project One Milestone by using the Corrected Journal Entries and Corrected Inventory tabs. 2. Highlight the corrected errors in green. 3. Complete the Ledger Accounts, Income Statement, and Balance Sheet tabs in the same Workbook based on the Corrected Journal Entries and Corrected Inventory tabs. 4. Upload the completed Project One Workbook Template for submission. Note if you received a perfect score on the Project One Milestone and do not need to correct any errors, simply note it in the designated section within the Corrected Journal Entries tab. You will receive full points for that specific criteria for this assignment. Project One Analysis Paper 1. Complete an analysis of the information contained in the completed Project One Workbook Template including your revisions. 2. It will need to be formatted in APA style; specific formatting can be found in the What to Submit section. 3. It will need to address all of the rubric criteria for the Project One Analysis Paper below. Specifically, you must address the following rubric criteria: Project One Workbook Project One Workbook 1. Correct all errors for the Journal Entries and Inventory tabs of the workbook. Highlight corrections in green. 2. Prepare the current assets and liabilities accounts accurately and completely on the Ledger Accounts tab in the workbook. 3. Prepare the current assets and liabilities components accurately and completely on the Income Statement and Balance Sheet tabs in the workbook. Project One Analysis Paper 4. Summarize the financial components included in the current assets and liabilities section of the Balance Sheet for the given company. 5. Justify the difference between current assets and liabilities. Include the following details in your response: A. Explain why the balance sheet is arranged the way it is. B. Determine if the same asset or liability can have both short-term and long-term components and provide your rationale. C. Explain how variances in data can be detected for current assets and liabilities using relevant tools. 6. Justify why footnotes for current assets and liabilities are important in decision making for the company. Include the following details in your response: A. Explain why the balance sheet amounts alone are not sufficient in providing the information needed in decision making. 7. Explain why FIFO is the best choice for this given company. 8. Cite the applicable FASB codification section for the following items as a list: cash and cash equivalents, inventory, and receivables. Submit the same file submitted for the Project One Milestone with your instructor feedback the following tabs completed: Corrected Journal Entries, Corrected Inventory, Ledger Accounts, Income Statement, and Balance Sheet. The Ledger Accounts, Income Statement, and Balance Sheet tabs should be based on the Corrected Journal Entries and Corrected Inventory tabs. This work should be completed using Microsoft Excel in the VDI. Remember to save your file on your OneDrive before exiting the VDI. 1. The following events occurred during the year. Book the entries necessary for the corresponding transactions that have occurred. August 1: The business owner loaned the company $10,000 at 4% interest annually to be paid in full in three years. August 15: A new one-year lease agreement was signed for a new sporting goods store. The rent is $1,350 per month for the year. The lease begins on September 1 and is effective through August 31 of the next year. A payment of the first month's rent plus a deposit payment of $2,000 was made. (Info only. The deposit remains in Prepaid Rent until the end of the lease) August 31: Paid $2,400 for a 12-month insurance policy. Policy effective dates are September 1 through August 31. September 1: Expense September rent paid in August. September 21: A part-time worker was hired at $15 per hour to work the customer service desk. One pay period is the 1st of the month through the 15th, and the other is the 16th through the end of the month. Paydays are the 20th for the first pay period and the 5th of the following month for the second pay period. (No entry required on this date-for informational purposes only.) September 30: Sold 15 bicycles on special at $150 each and 5 golf club sets at $350 each. The customer put 12% on account and paid cash for the rest. September 30: Calculate the payroll accrual for employee's first paycheck for 12 hours to be delivered on October 5. October 1: Paid October rent on new sporting goods space. October 5: Paid employee for period ending September 30. October 15: Collected $500 on account from customers. October 20: Paid employee with 20 hours for period ending October 15. October 31: Accrued wages earned for employee with 15 hours for period of October 16 through October 31. October 31: Sold 5 bicycles at $170 each and 15 golf club sets at $380 each in October with 31% on account. November 1: Paid rent on new sporting goods space. November 5: Paid employee for period ending October 31. November 17: Collected $950 on account from customers. November 20: Paid employee with 17 hours for period ending November 15. November 30: Accrued wages earned for employee with 22 hours for period November 16 through November 30. November 30: Sold 15 bicycles at $170 each and 10 golf club sets at $380 each in November with 28% on account. December 1: Paid rent on new sporting goods space. December 5: Paid employee for period ending November 30. December 18: Received payments from customers toward accounts receivable in amount of $1,000. December 20: Paid employee with 16 hours for period ending December 15. December 31: Accrued wages earned for employee with 18 hours for period of December 16 through December 31. December 31: Sold 20 bicycles at $180 each and 5 golf club sets at $400 each in December with 22% on account. December 31: Book expense for insurance during September 1-December 31. December 31: Accrue for interest from August 1 to December 31 on the loan. 2. As this is a new store, merchandise has been purchased on account to sell at the store. The information below relates to the purchase and sales of the new products. Use the perpetual inventory method with the FIFO valuation method. Please see the "Milestone Inventory" tab in your workbook for purchase and sales information. August 25: Purchased 15 golf club sets for $240 each to sell at the store from vendor A, on account with terms of 1/10 net 60. September 16: Purchased 25 bicycles for $75 each to sell at the store from vendor B, on account with terms of 1/10 net 60. September 24: Paid $750 toward merchandise from vendor A. September 30: Recorded impact of sales transaction on COGS and the inventory asset. October 18: Paid $650 toward merchandise from vendor B. October 25: Paid remaining payable for merchandise from vendor A. October 26: Purchased 25 more golf club sets for $250 each to sell at the store from vendor A, on account with terms of 1/10 net 60. October 31: Recorded impact of sales transaction on COGS and the inventory asset. November 10: Paid remaining payable for merchandise from vendor B. November 16: Purchased 35 more bicycle sets for $85 to sell at the store each from vendor on account with terms of 2/10 net 30. November 20: Paid vendor B in full and took advantage of the discount (offset COGS). November 30: Recorded impact of sales transaction on COGS and the inventory asset. December 10: Paid $4500 toward payable for merchandise from Vendor A. December 31: Recorded impact of sales transaction on COGS and the inventory asset.

Answer rating: 100% (QA)

To address the project requirements comprehensively lets break down each part and provide a detailed explanation 1 Correcting Journal Entries and Inventory Tabs Review each transaction provided in the ... View the full answer