Project 1 Objectives

In this project, students will

• practice using an accounting information system for a small business, including recording journal entries, posting to accounts, creating a trial balance, and creating financial statements.
• analyze accounting information for the benefit of a manager and a potential creditor
• listen to and communication accounting information.

Project 1 Assignment
Project 1

Scofield Enterprises has been operating for one year and the company needs additional working capital to expand its business. The owner doesn't really know whether the business is profitable or not, but she is sure from the increase in orders already experienced that the business concept can be successful. Now she needs to provide GAAP-compliant financial statements to the banker and may hire your company to create them. The company has been entering information in general ledger software all year and the software has generated an Unadjusted Trial Balance which is available separately in a spreadsheet. The owner of Scofield Enterprises sat down with your boss this week when she realized that the bank wasn't going to accept the computer output, and their conversation is available at ACCT 3310 Professional Application: Part I provided below in this folder.

REQUIRED:

Download the Project 1 Spreadsheet and customize your project by entering your phone number on the Start Here worksheet.

1. Listen to and watch the conversation between the accountant and the owner atACCT 3310 - Professional Application: Part I.
2. Use the unadjusted trial balance on theOriginal Trial Balanceworksheet in theProject 1 Spreadsheet,plus the information you gather from the owner / accountant's discussion to develop GAAP-compliant financial statements in the EXCEL workbook provided.
3. Prepare adjusting / error correction journal entries in theGeneral Journalworksheet. Skip theGeneral Ledgerworksheet.
4. Prepare an Adjusted Trial Balance on the Trial Balanceworksheet.
5. Prepare an Income Statement, Statement of Retained Earnings, and Balance Sheet in good form on the appropriate worksheets.
6. Prepare a memorandum in a separate WORD file to the owner that
   • presents your evaluation of the company's cash management and profitability and
   • explains the transformation of the unadjusted trial balance to finished financial statements.
7. Upload both files in the dropbox for Project 1.