hello this sachinn i need help in accounting cycle program
ACC 296
ACCOUNTING CYCLE PROBLEM
SUMMER , 201 9
Please read all directions before starting this assignment.
GENERAL INSTRUCTIONS:
1) With the exception of posting to T -accounts or the ledger, either of which can be handwritten, all other
answers for this assignment are required to be typed using either spreadsheet and/or word processing
so ftware (e.g., Excel, Word, or similar). I recommend using Excel. This means that you cannot use accounting
software such as QuickBooks or similar to process your tr ansactions.
2) Do NOT abbreviate any account titles in your journals, T -accounts (or ledger accounts) or financial
statements. Also, make sure your journal entries are prepared using proper form throughout. In
addition, be sure to include the word ‘ exp ense ’ in the title of any expense account --- and be sure to do so
in your journal entries, T -accounts (or ledger accounts) and financial statements. Likewise, do not use the
word ‘expense’ in the account title if the account is not an expense. Also, you c an omit explanations in all
of your journal entries (unless you want to include them).
3) This assignment is DUE by the start of class on WEDNES DAY , MA Y 29 TH , and is worth points. Unlike
the assigned homework, your grade for this assignment will be bas ed on the correctness of your answers .
Significant points will be deducted for turning in this assignment late. Submissions that are excessively tardy, as
determined by the instructor, will not be accepted and a ‘0’ will be assigned for the assignment. In addition,
failure to complete this assignment will result in a 10 -point penalty in determining your final course grade (i.e.,
in addition to receiving a ‘0’ for the assignment). Submissions by email will not be permitted. Finally, do not
under -estimate the amount of time it will take to complete this assignment!
4) Available Help: This project must be done INDIVIDUALLY and NOT with the assistance of anyone
else . (Please refer to the syllabus related to potential penalties for cheatin g.) Since having a correct solution
stems from having correct journal entries, I will permit each student to verify with me the correctness of up to
three journal entries in total (i.e., from the regular transactional entries and adjusting entries, but no t from the
closing entries). If you type the three entries of your choice and send them to me in an email, I will respond to
you indicating if any of those entries are incorrect. I will not tell you the correct entry, only if yours is not
correct. Please d o not send me attachments or financial statements, only journal entries typed into (or cut
and pasted into) an email. This help is available only through 5:00 p.m. on Tuesday , Ma y 28 th as I cannot
assist you at the last minute (and please remember to use p rofessional email etiquette as I discussed the
first day of class). Of course, you are certainly encouraged to inquire of me if you have questions regarding
your understanding of general concepts related to this assignment. Otherwise, you should not be see king the
help of anyone else to complete the assignment, as it is essentially a take -home portion of the first exam.
SPECIFIC REQUIREMENTS:
1) Provided on the next page is the trial balance of the Ridgewood Golf Club, Inc. as of December 31, 201 8.
They prepare adjusting entries and close their books annually on December 31 st. Create T -accounts (or
general ledger accounts) for each account listed in the trial balance, and enter the balances from the trial balance
into your T -accounts (or general ledger a ccounts) --- and allow a few lines per account. (FYI: I recommend
using T -accounts due to their simplicity, but the choice is yours.) In order to save paper, you can place multiple
T-accounts (or ledger accounts) on a page. For ledger accounts you can u se the standard account format as
illustrated on page 88 or the T -account format illustrated on page 89 (and elsewhere). Note that you must create ONE (and only one ) T -account (or general ledger account) for each and every account (i.e., do not
create mor e than one Cash T -account, more than one Retained Earnings T -account, etc.). (You will use the
same T -accounts for posting regular transactional entries, adjusting entries, and closing entries.) Also, to the
extent possible, organize your T -accounts (or general ledger accounts) so that Assets are together, Liabilities are
together, etc. (Please note that the assumption in this problem is that the ‘regular’ (transactional) entries have
ALREADY been recorded and posted to the T -accounts (or general ledger ), and the trial balance below reflects
that fact. (Therefore, you do not have to record the original journal entries that resulted in the balances shown in
the trial balance --- and in fact, there is no way that you would be able to figure out what those journal entries
were just by looking at the trial balance, anyway.)
Ridgewood Golf Club, Inc.
Trial Balance
December 31, 201 8
Debit Credit
Cash $ 238,000
Accounts Receivable 80,000
Allowance for Doubtful A ccounts $ 1,000
Prepaid Insurance 36 ,000
Land 200,000
Buildings 800,000
Accumulated Depreciation of Buildings 250,000
Equipment 300,000
Accumulated Depreci ation of Equipment 50,000
Common Stock 550,000
Retained Earnings 440 ,000
Dues Revenue 400,000
Greens Fee Revenue 838 ,000
Rent Revenue 275 ,000
Advertising Expe nse
Utilities Expense
50,000
100,000
Salaries and Wages Expense 600,000
Maintenance Expense 400,000
$ 2,8 04,0 00 $ 2,8 04,000
2) Assume the regular transactional entries for the year have already been recorded leading to the account
balances in the trial balance above. However, assume that the following transactions were overlooked and not
previousl y recorded by the company during the year. (These are regular transactional entries, not adjusting
entries). Record the journal entries for these transactions and then post them to your T -accounts (or ledger).
a) On February 1, the company paid cash to purchase supplies for $1 4,000. The company’s policy is to
record the purchase of supplies in an expense account at the time of purchase.
b) On April 1 , an additional building was purchased for $40 0,000 and additional equipment was
purchased for $ 10 0,0 00. The company made a 10% down payment of the total purchase price, and
signed a 1 -year, 4% note payable for the remaining balance. Make one compound entry.
c) On December 1, dividends of $ 12 ,000 we re declared. ( Note: Payment of the dividends will be ma de at a
later date the following year. Hint: Be precise with the account name that is credited.)
3) Record the adjusting journal entries listed below (see letters ‘a -j’) and then post those adjusting
entries to T -accounts (or the ledger). Create new ac counts, as needed. (Again, the company prepares
adjusting entries at year -end only.) Be sure to SHOW YOUR CALCULATION S for each adjusting entry that
requires a calculation (i.e., any adjusting entry for which you add, subtract, multiply, or divide numbers ).
There will be a deduction for each calculation that is missing. Those calculations can appear beneath or next
to the entry or on a separate page. [ Note: Adjusting entries should always be made in journal form first , and
then , only after the journal entr ies have been prepared , should they be posted to T -accounts (ledger accounts).
When your posting is complete, be sure to show ending balances in each T-account (ledger account) .]
a) The amount for prepaid insurance relates to a payment for one year of i nsurance coverage that was
paid for on June 1st of the current year. The insurance coverage began on that date.
b) It is estimated that 5% of the accounts r eceivable will be uncollectible.
c) The rent revenue represents the amount received for 11 m onths for dining facilities. The same
monthly amount is owed from customers for December, but that rent has not yet been received.
(Note: Be specific/descriptive in the account name for the account debited in this entry.)
d) The company paid $ 50,000 in October for several months of television and radio ads and recorded that
amount as Advertising Expense at that time. As of December 31 st, $ 10,000 of those ads have yet to run.
e) Of the $4 00,000 of Dues Revenue on the trial balance, 5% of that amount is considered to be ‘received
in advance’ (i.e., services have not been performed for that portion, yet).
f) Property taxes incurred but not yet paid amount to $ 60,000. (Be specific in both account names here.)
g) Of the supplies purchased in 2a ) above, $ 3,000 worth were u nu sed as of December 31 st
h) The building referred to in 2b) above has an estimated useful life of 30 years and an estimated salvage
value of $40,000. Use the straight -line method to record depreciation for 201 8. (Note: A ssume for
simplicity that depreciation was already recorded for all other buildings; you only have to record
depreciation for this new building.)
i) The equipment referred to in 2b) above has an estimated salvage value of $0 and is depreciated at
a ra te of 20% per year. Record depreciation for 201 8. (Note: Assume depreciation was already recorded
for all other equipment ; you only have to record depreciation for this new equipment. )
j) Record the accrued interest on the note from the April 1st tra nsaction from 2b) above.
4) Using your updated balances in your T -accounts (or ledger) prepare the year -end income statement,
statement of retained earnings, and balance sheet for 201 8. Be sure to use proper form in preparing your
financial statements, including proper headings and dating of the financials . Page 161 (Single -Step Income
Statement), p. 111 (Statement of Retained Earnings), and p. 112 (Balance Sheet) provide good examples to
follow for this requirement (but obviously, you will have some di fferent account names than the examples
provided in the text). For your balance sheet, be sure to use your updated retained earnings balance from your
statement of retained earnings since you have not prepared closing entries, yet. For your income statemen t, be
sure to list each revenue and expense account, but do not worry about computing income tax expense.
5) Prepare closing entries (using compound entries where appropriate) and post them to your T -accounts
(or ledger). Put these journal entries on a separate page from your adjusting journal entries and label them ,
‘Closing Entries .’ (When posting, be sure to create a T -account or ledger account for Income Summary.)
6) Place your name at the top right corner of every page and make sure that each pa rt is clearly and
precisely identified . Your submission should be neatly prepared and free of spelling mistakes, and please
note that points can be deducted for unprofessional / non -neat work and/or for multiple spelling
mistakes. Arrange all your work in the following order (and please note that points will be deducted if
items are not submitted in this order): 1) The three additional ‘regular’ transactional entries, 2) Adjusting
entries, 3) Income statement, 4) Statement of retained earnings, 5) Bal ance sheet, 6) Closing entries, and 7)
T-accounts or general ledger accounts. [Note: You can combine more than one financial statement on one page,
if you wish --- assuming they ‘fit’ on one page and it is clearly readable and not too small.] Do not use a report
cover; simply staple once in the upper left hand corner.
