ACCT 211-Fall 2021

INTEGRATED LEARNING PROJECT 2 INSTRUCTIONS VINE & BRANCHES-SUNFLOWER DESIGNS

Important: This assignment should be completed alone. Students should treat this assignment similar to the requirements of an in-class open-book exam. That is, the only resources allowed are the textbook and the professor.

1. CREATE JOURNAL ENTRIES FOR THE August 2021 TRANSACTIONS BELOW FOR SUNFLOWER DESIGNS:

1. On August 1, $350 of office supplies were purchased on credit; the terms of the invoice were net 30. All of the supplies were used during the month of August (hint: expense immediately).
2. OnAugust1,acomputerlaptopwaspurchasedoncredittotaling$2,675.Theestimateduseful life of the computer is three (3) years and is expected to have no salvage value. The invoice terms were 2/10, net 30.
3. OnAugust2,a24-monthliabilityinsurancepolicywaspurchasedtocoverSunflowerDesigns. The full cost of the policy, $1,920, was paid in cash on the same date.
4. On August 4, payroll checks were issued for the wages payable balance.
5. On August 5, Sunflower Designs purchased $4,500 worth of inventory items for resale. These items were purchased on credit and the invoice term is 2/10, net 30.
6. On August 9, a check was issued to pay for the inventory purchased on August 5.
7. OnAugust10,SunflowerDesignspaidfortheofficesuppliespurchasedoncreditonAugust1.
8. On August 12, Sunflower Designs completed and delivered an interior design layout to a customer for $8,500. The customer had paid for the services in advance in a previous month, and Sunflower Designs had appropriately recorded the deposit.
9. On August 14, Sunflower Designs completed, delivered, and billed an interior design layout for $16,475 to a new customer. The terms of the invoice were 2/10, net 30.
10. On August 14, Sunflower Designs paid $1,300 in wages to a temporary employee in cash. On the same date, the company remitted payroll taxes of $340, previously accrued, to the appropriate government entities.
11. OnAugust18,SunflowerDesignsreceivedarefundof$35fromtheirofficesupplyvendorfor items that were returned on the August 1 purchase.
12. On August 20, a customer paid the balance due for an interior design layout. The invoice for these services was sent to the customer on July 20, 2019. The contract price was $14,000.

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1. On August 24, Sunflower Designs sold a side table from inventory for $1,180. The inventory cost for this item was $600. The customer paid cash for this purchase.
2. On August 26, $1,500 worth of inventory was returned to supplier because of defects. The inventory had been purchased on account in October and had not been paid for.
3. On August 30, the customer delivered a check for one-half of the interior design invoice delivered on August 14.
4. CREATE THE AUGUST 31, 2021 UNADJUSTED TRIAL BALANCE
5. CREATE ADJUSTING JOURNAL ENTRIES FOR AUGUST 31, 2021:
6. Record the depreciation for the laptop purchased on August 1.
7. Record the August 2021 depreciation for all computers & software owned before the August 1 purchase. These items are being depreciated over 3 years using the straight-line method with no salvage value.
8. Record the August 2021 depreciation for the furniture & fixtures. These items are being depreciated over 7 years using the straight-line method with no salvage value.
9. RecordtheadjustingentryforAugust'srent.SunflowerDesignspaid$6,600inadvancefor6months' rent on June 1, 2021. All previous months' adjusting entries were made as required.
10. Record the adjusting entry for the consumption of prepaid insurance for the month of August. The preexisting policy has 36-months remaining as of August 1, and recall that the new policy provides coverage for 24-months. The previous months' adjusting entries were made asrequired.
11. Record the amount due to employees for time worked during August, but not paid. The amount earned by the employees was $2,800. The payroll taxes should be accrued at 20% of the wages and the entry should be made, payment for these taxes will occur in December.
12. CREATE THE ADJUSTED TRIAL BALANCE.
13. CREATE THE AUGUST 31, 2021 INCOME STATEMENT.
14. The amount for each account must belinked from the ending balances in the Trial Balance.
15. All sub-totals and totals must be accurately calculatedusing Excel formulas.
16. CREATE THE AUGUST 31, 2021 BALANCE SHEET.
17. The amount for each account must belinked from the ending balances in the Trial Balance. All sub-totals and totals must be accurately calculatedusing Excel formulas.

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Note: The trial balance may include decimals, but the financial statements should not show decimals.

GRADING RUBRIC

1. JOURNAL ENTRIES/ADJUSTING JOURNAL ENTRIES (25%)
2. All required journal entry items are present and correctly formatted.
3. Journal entries are accurate and balance.
4. TRIAL BALANCE/ADJUSTMENTS/ADJUSTED TRIAL BALANCE (25%)
5. All journal entries are properly reflected on the trial balance.
6. All closing entries are properly reflected in the adjustments.
7. The adjusted trial balance reflects the entries from the trial balance and the adjustments.
8. Aformula is usedto determine all of the ending debit/credit balances.
9. The debits and credits are balanced for each of the 3 sections.
10. INCOME STATEMENT (25%)
11. All totals arelinked from the ending balance amounts on the Trial Balance.
12. All sub-totals and totals are accurately calculated (using Excel formulas).
13. Ensure that $ signs are used correctly.
14. Ensure that statement heading is correct.
15. BALANCE SHEET (25%)
16. All totals arelinked from the ending balance amounts on the Trial Balance.
17. All sub-totals and totals are accurately calculated (using Excel formulas).
18. Ensure that $ signs are used correctly.
19. Ensure that statement heading is correct.