BAF3M - FINAL CULMINATING ACTIVITY For your culminating activity you will be simulating the accounting cycle...

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BAF3M - FINAL CULMINATING ACTIVITY For your culminating activity you will be simulating the accounting cycle of a merchandising business. You will be creating a merchandise business of your own, setting up the accounting for your business and performing the accounting duties for the first month of business. HST is to be calculated at 13% where applicable. You will make the adjustments and closing entries based on the instructions below. Things to think about: What is needed (assets) to start up your business: loans? capital? physical assets? What are the typical transactions that would occur in that business? Any other information that you think you would need to complete this assignment. Perhaps you can do some research of a similar business to get some ideas. TASK: Creating your own Merchandising Business 1. Explain your business in a neatly written paragraph. What does your business sell? How did you come up with the idea for this business? What are your goals for the business? What are your expectations for the first year of operations? etc. 2. Create a Chart of Accounts that your business would need to use. There must be a minimum of 14 accounts - 4 current assets, 2 fixed assets, 2 current liabilities, 1 long-term liability, 1 capital, 1 drawings, 1 sales revenue, 5 expenses. -Your assets, liabilities, and capital should have opening balances. -You must include HST Payable and HST Recoverable & Prepaid Insurance Use your Chart of Accounts to begin creating your initial Trial Balance, the Ledger, and Worksheet in the Excel Spreadsheet provided. 3. Create 10 financial transactions that would likely occur in your merchandising business. - Make sure that your sentences contain all the necessary information: type of source document, dollar amounts, (business) names, etc. - Your first transaction must describe your initial investment of assets into the business (Opening entry). - At least two of your transactions should be compound entries that involve more than two accounts (example: purchased and made partial payment with the remainder to be paid at a later date). 4. Include Four Adjusting entries of which: Two adjustments must be for depreciation. Use the straight-line method and include your salvage value in the transaction sentence. - One must be a pre-paid insurance adjustment. - One other adjustment. 5. Create your Closing entries for the month. Remember to include Merchandise Inventory. 6. Use the excel workbook template provided to complete the above tasks. You will need to make the necessary formatting adjustments, to make it fit to your business. You should use linking cells as much as possible, to link values between worksheets. When will hand in the following completed worksheets: 1.Business Description Paragraph 2. Initial Trial Balance 3. Transactions 4. General Ledger 5. Adjusting Entries 6. Worksheet 7. Income Statement 8. Closing Entries 9. Balance Sheet are finished you you are EVALUATION: See attached Rubric. This is the Culminating Activity for the course. It will be worth 15% of your Final Mark! Due Date: January 17, 2024 This assignment must be submitted electronically to CANVAS, on Wednesday, January 17 before the beginning of class. CHECKPOINTS: January 10, 2024 - A list of your Transactions should be completed for review in class. January 12, 2024 - Adjusting and Closing Entries should be completed. Should have all numbers finalized. January 15/16, 2024 - Final touches and modifications to Excel workbook. January 17, 2024 - Submit to CANVAS at the beginning of class. BAF3M - FINAL CULMINATING ACTIVITY For your culminating activity you will be simulating the accounting cycle of a merchandising business. You will be creating a merchandise business of your own, setting up the accounting for your business and performing the accounting duties for the first month of business. HST is to be calculated at 13% where applicable. You will make the adjustments and closing entries based on the instructions below. Things to think about: What is needed (assets) to start up your business: loans? capital? physical assets? What are the typical transactions that would occur in that business? Any other information that you think you would need to complete this assignment. Perhaps you can do some research of a similar business to get some ideas. TASK: Creating your own Merchandising Business 1. Explain your business in a neatly written paragraph. What does your business sell? How did you come up with the idea for this business? What are your goals for the business? What are your expectations for the first year of operations? etc. 2. Create a Chart of Accounts that your business would need to use. There must be a minimum of 14 accounts - 4 current assets, 2 fixed assets, 2 current liabilities, 1 long-term liability, 1 capital, 1 drawings, 1 sales revenue, 5 expenses. -Your assets, liabilities, and capital should have opening balances. -You must include HST Payable and HST Recoverable & Prepaid Insurance Use your Chart of Accounts to begin creating your initial Trial Balance, the Ledger, and Worksheet in the Excel Spreadsheet provided. 3. Create 10 financial transactions that would likely occur in your merchandising business. - Make sure that your sentences contain all the necessary information: type of source document, dollar amounts, (business) names, etc. - Your first transaction must describe your initial investment of assets into the business (Opening entry). - At least two of your transactions should be compound entries that involve more than two accounts (example: purchased and made partial payment with the remainder to be paid at a later date). 4. Include Four Adjusting entries of which: Two adjustments must be for depreciation. Use the straight-line method and include your salvage value in the transaction sentence. - One must be a pre-paid insurance adjustment. - One other adjustment. 5. Create your Closing entries for the month. Remember to include Merchandise Inventory. 6. Use the excel workbook template provided to complete the above tasks. You will need to make the necessary formatting adjustments, to make it fit to your business. You should use linking cells as much as possible, to link values between worksheets. When will hand in the following completed worksheets: 1.Business Description Paragraph 2. Initial Trial Balance 3. Transactions 4. General Ledger 5. Adjusting Entries 6. Worksheet 7. Income Statement 8. Closing Entries 9. Balance Sheet are finished you you are EVALUATION: See attached Rubric. This is the Culminating Activity for the course. It will be worth 15% of your Final Mark! Due Date: January 17, 2024 This assignment must be submitted electronically to CANVAS, on Wednesday, January 17 before the beginning of class. CHECKPOINTS: January 10, 2024 - A list of your Transactions should be completed for review in class. January 12, 2024 - Adjusting and Closing Entries should be completed. Should have all numbers finalized. January 15/16, 2024 - Final touches and modifications to Excel workbook. January 17, 2024 - Submit to CANVAS at the beginning of class.

Answer rating: 100% (QA)

1 Business Description Please provide me with the details of your business including the nature of the products you sell how you came up with the idea ... View the full answer