Project $1-$ Developing Financial Statements

This is an individual assignment. All work is to be completed in Excel and the completed worksheet must be

submitted in $.$xls or $.$xlsx format to the assignment in Canvas.

What you will demonstrate$/$learn from this assignment.

Knowledge & Skillsets

Perform Accounting Cycle:

Analyze business transactions and impacts to business.

Journal entries

General ledger$/$T$-$accounts

Trial balance

Adjusting entries

Adjusted T$-$accounts

Adjusted trial balance

Financial statement development $($Income Statement, Balance Sheet, and Statement of Stockholders'

Equity$)$

Closing entries

Post$-$closing trial balance

Basic Proficiency in Excel

Create templates$/$formatting

Basic mathematic functions$/$formulas

What you will need to do to complete the project.

The basic Excel template we will create in class together. You will need to format it to look professional

and validate the forms using the examples in the book.

Review the problem below and follow the required work.

first team in each category to complete all checkpoints in order wins. The entry fee

for each team is $$500.$

Dec $5$ To help organize and promote the race, Tony hires his college roommate, Victor.

Victor will be paid $$250$ in salary for each team that competes in the race. His

salary will be paid after the race.

Dec $8$ The company pays $$1,400$ to purchase a permit from a state park where the race

will be held. The amount is recorded as a miscellaneous expense.

Dec $12$ The company purchases racing supplies for $$7,000$ on account due in $30$ days.

Supplies include trophies for the top$-$finishing teams in each category, promotional

shirts, snack foods and drinks for participants, and field markers to prepare the

race course.

Dec $15$ The company receives $$20,000$ cash from a total of forty teams, and the race

is held.

Dec $16$ The company pays Victor's salary of $$10,000.$

Dec $31$ The company pays a dividend of $$12,000($ $$6,000$ to Tony and $$6,000$ to Suzie$).$

Dec $31$ Using his personal money, Tony purchases a diamond ring for $$20,000.$ Tony

surprises Suzie by proposing that they get married. Suzie accepts and they get

married!

The following information relates to year$-$end adjusting entries as of December $31,2024.$

a$.$ Depreciation of the mountain bikes purchased on July $8$th$,$ useful life $10$ years.

b$.$ Depreciation of kayaks purchased on August $4$th$,$ useful life $10$ years.

c$.$ Six months of the one$-$year insurance policy purchased on July $1$ has expired.

d$.$ Four months of the one$-$year rental agreement purchased on September $1$

has expired.

e$.$ Of the $$1,250$ of office supplies purchased on July $4,$$$400$ remains.

f$.$ Interest expense on the $$40,000$ loan obtained from the city council on August $1$

should be recorded.

g$.$ Of the $$7,000$ of racing supplies purchased on December $12,$$$1,200$ remains.

h$.$ Suzie calculates that the company owes $$14,000$ in income taxes.

Record transactions $($journal entries$)$ from July $1$ through December $31.$

Post transactions from July $1$ through December $31$ to General Ledger $($T$-$Accounts$).$

Prepare the trail balance.

Record adjusting entries as of December $31,2024.$

Post adjusting entries on December $31$ to T$-$Accounts.

Prepare an adjusted trial balance as of December $31,2024.$

For the period July $1$ to December $31,2024,$ prepare an income statement, statement

of stockholders' equity, and a classified balance sheet as of December $31,2024.$

Record closing entries as of December $31,2024.$

Post$-$closing entries to T$-$Accounts.

Prepare a post$-$closing trail balance as of December $31,2024.$

Requirement # This should be at the top of each worksheet

For journal entries, replace all of the words with their actual items. Exception is debit$/$credit at the top of column G & H$-$that's a title

However, the word date is not a title $-$ please put the actual date there.

T$-$Accounts should have the account name on top. Debit balance accounts have the balance total on the bottom left, credit balance accounts have the balance

total on the bottom right.

T$-$Account set $1-$ enter numbers in black

T$-$Account set $2-$ copy T$-$Account set $1$ to the new worksheet and then enter new numbers in blue italics

T$-$Account set $3-$copy T$-$Account set $2$ to the new worksheet and then enter new numbers in red italics

Trial Balance, Adjusted Trial Balance, Post$-$Closing Trial Balance

Income Statement, Statement of Stockholders' Equity, Balance Sheet

Company Name

Statement Name

There are multiple requirements $($worksheets$)$ that have statements. Make sure all have the appropriate header required for

Date

statements.