Assignment 1: Accounting Worksheet, Statements, and Closing Entries

This accounting assignment solution provides a comprehensive analysis of a company's financial data. The assignment requires the creation of adjusting entries based on provided information, followed by the posting of these entries into a worksheet. Students are then tasked with completing an income statement and a balance sheet directly on the worksheet. Furthermore, the assignment necessitates the preparation of a multi-step income statement, a statement of equity, and a classified balance sheet in proper format. Finally, the solution includes the journalizing of closing entries to finalize the accounting cycle. The provided solution covers all aspects of the assignment, offering a complete and detailed response to each requirement.

ASSIGNMENT #1 - PRACTICAL APPLICATION
STUNDENT NAME: _______________________
INSTRUCTIONS
This assignment should be completed using this document. Assignments need to be submitted on or
before the due date specified by the instructor. Consult the course calendar in the Course Documents
section for assignment due dates. The assignment may be uploaded only once to the gradecenter. Your
assignment grade and the marked file will be available for your review through the Gradebook after the
due date.
This assignment is worth 15% of your final grade. There are a total of 83 marks as described in the
question on the following pages.
SCORING CRITERIA
This assignment will be marked using the scoring criteria indicated in the chart below.
Grading Rubric
Criteria Exceeds
Requirements
Meets
Requirements
Meets
Requirement
s but Needs
Work
Does Not Meet
Requirements
Grade
Prepare
Adjusting
Entries
Prepares all
journal entries
correctly
(16)
Prepares a
minimum of
70% of journal
entries correctly
(12-15)
Prepares a
minimum of
50-69% of
journal
entries
correctly
(9-11)
Prepares less
than 50% of
journal entries
correctly
(0-8)
Post Adjusting
Entries into a
Worksheet
Post entries
correctly
(10)
Post entries 70%
of correctly
(8-9)
Post a
minimum of
50-69% of
entries
correctly
(6-7)
Post less than
50% of entries
correctly
(0-5)
Complete
Income
Statement on
Worksheet
Complete
Income
statement on
worksheet
correctly
(10)
Complete
Income
statement on
worksheet
correctly
70%
(8-9)
Complete
Income
statement on
worksheet
correctly
50-69%
(6-7)
Complete
Income
statement on
worksheet less
than 50%
correctly
(0-5)
Complete
Balance Sheet
on Worksheet
Complete
Balance Sheet
on worksheet
correctly
Complete
Balance Sheet
on worksheet
correctly
70%
Complete
Balance Sheet
on worksheet
correctly
50-69%
Complete
Balance Sheet
on worksheet
less than 50%
correctly

(13) (10-12) (5-9)
(0-6.5)
Prepare in Good
Form Multi Step
Income
Statement
Complete in
Good Form a
Multi Step
Income
Statement
(10)
Complete in
Good Form a
Multi Step
Income
Statement
correctly
70%
(8-9)
Complete in
Good Form a
Multi Step
Income
Statement
correctly
50-69%
(6-7)
Complete in
Good Form a
Multi Step
Income
Statement less
than 50%
correctly
(0-5)
Prepare in Good
Form Statement
of Equity
Complete in
Good Form a
Statement of
Equity
(5)
Complete in
Good Form a
Statement of
Equity
correctly
70%
(4-4.5)
Complete in
Good Form a
Statement of
Equity
correctly
50-69%
(3-3.5)
Complete in
Good Form a
Statement of
Equity less than
50%
correctly
(0-2.5)
Prepare in Good
Form Classified
Balance Sheet
Complete in
Good Form a
Classified
Balance Sheet
(11)
Complete in
Good Form a
Classified
Balance Sheet
correctly
70%
(9-10)
Complete in
Good Form a
Classified
Balance Sheet
correctly
50-69%
(6-8)
Complete in
Good Form a
Classified
Balance Sheet
less than 50%
correctly
(0-5.5)
Journalize
Closing Entries
Prepares all
closing entries
correctly
(8)
Prepares a
minimum of
70% of closing
entries correctly
(6-7)
Prepares a
minimum of
50-69% of
closing
entries
correctly
(5-5.5)
Prepares less
than 50% of
closing entries
correctly
(0-4)
Comments Total /83

Question
Given the following work sheet with the trial balance already entered, and the related adjustment
information, complete the requirements listed below
Emmas Essentials Co.
Accounting Work Sheet
For the Year Ended December 31, 2011
(All numbers are in ‘$,000)
Account Trial Adjustments Inc. Balance
Balance Statement Sheet
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash 8
Accounts Rec. 15
Inventory 22
Prepaid Rent 9
Furniture 16
Accumulated
Amortization-
Furniture 4
Accounts
Payable 17
Salary Payable 0
Unearned
Revenue 6
Emma Mc,
Capital 24
Emma Mc,
Withdrawals 3
Sales Revenue 79
Sales Discounts 5
Sales Returns
and Allowances 2
Cost of Goods
Sold 25
Salary Expense 18
Rent Expense 0
Utilities
Expense 7
Amortization
Expense-
Furniture
130 130
Net
Income/Loss

Part 1: 16 marks
Required:
1) Create any adjusting entries needed from the following additional information:
a) The hydro bill of $2,000 for December was received but not recorded or paid.
b) A new employee has been hired for $150 a day, with a 5 day week, and will start work on
January 1.
c) The Prepaid rent account represents 3 months rent paid October 1, 2011
d) The Furniture was purchased January 1, 2010 and is expected to have a 3 year useful life
with a $4,000 salvage value.
e) The unearned revenue represents a prepayment on September 1, 2011 for merchandise to
be delivered over 6 months.
f) Emma’s Essentials employs 2 people, each who earn $125 a day and they work Monday to
Friday. The year end of December 31, 2011 is on a Friday. The employees have not been
paid for the last 4 days.
OMIT EXPLANATIONS
Date Accounts Debit Credit
2) Post Adjusting Entries into Worksheet 10 marks
3) Complete Income Statement on Worksheet 10 marks
4) Complete Balance Sheet on Worksheet 13 marks
See next page for additional requirements
5) Prepare in Good Form Multi Step Income Statement 10 marks

6) Prepare in Good Form Statement of Equity 5 marks
7) Prepare in Good Form Classified Balance Sheet 11 marks

8) Journalize Closing Entries 8 marks
Date Accounts Debit Credit