Overview
The milestone for Project One involves applying accounting principles
and methods to long-term liabilities and equity. You will also evaluate
these financial statement components for adherence to accounting
principles and methods. In this assignment, which directly supports
Project One, you will analyze the scenario in Project One to calculate
and record financial data accurately. You will have an opportunity to
correct journal entries and ledger accounts in Project One based on
feedback from your instructor for this assignment. It is imperative to
keep accurate and complete records.
Directions
Using the scenario provided in the Project One Guidelines and Rubric
(found in the Supporting Materials section below), you will be preparing
journal entries related to long-term liabilities and equity in the
Milestone Journal Entries tab of the Project One Workbook Template and
based on the transactions listed in the Project One Appendix. You will
also complete the Milestone Ledger Accounts tab by filling in the
amounts in the appropriate account bucket.
To access the Project One Workbook Template, use Microsoft Excel on
the virtual desktop infrastructure (VDI) to complete this assignment.
Note: You may choose to complete an assignment using
a desktop program instead of SNHU’s virtual desktop (VDI); however,
technical support will not be provided by SNHU if you select this
option.
The Project One Workbook Template is provided for you to prepare the
journal entries. It contains several tabs: Chart of Accounts, Milestone
Journal Entries, Corrected Journal Entries, Milestone Ledger Accounts,
Corrected Ledger Accounts, Income Statement, Balance Sheet, Statement of
Retained Earnings, Cash Flow Worksheet, Statement of Cash Flows, and
Ratios. Please keep in mind, for this milestone you will only be
completing the Milestone Journal Entries and Milestone Ledger Accounts
tabs of the workbook.
Note: Remember to save your file on your OneDrive before exiting the VDI because work is not saved once you exit the VDI.
Specifically, you must address the following rubric criteria:
Milestone Journal Entries Tab
Prepare accurate journal entries with the correct
ledger accounts on the Milestone Journal Entries tab of the workbook. Be
sure to refer to the Chart of Accounts tab for the account names when
preparing journal entries. Include the following details in your
response:
Show calculations necessary to prepare the journal entries. Not all
journal entries will require a calculation. Rows with an asterisk
require formulas in the debit or credit column.
Prepare journal entries that are complete from the
transactions listed in Project One Appendix on the Milestone Journal
Entries tab of the workbook. There are a total of 12 entries.
Milestone Ledger Accounts Tab
Prepare the ledger accounts correctly on the Milestone Ledger Accounts tab in the workbook. This requires inputting the information accurately.
Prepare the ledger accounts completely on the Milestone Ledger Accounts tab in the workbook. This requires including all the information needed.
Competency
In this project, you will demonstrate your mastery of the following competency:
Apply accounting principles and methods to long-term liabilities and equity
Analyze the inflows and outflows of cash for an organization
Overview
Organizations use debt and equity to be able to fund their operations
and purchase necessary property, plant, and equipment for the business.
As an organization grows it will become essential for it to gain more
capital either from financing or equity arrangements. Professional
accountants may encounter varying degrees of debt depending on the
companies they work for. Regardless of how much debt a company has, it
is important to be able to manage long-term liabilities and equity to
avoid insolvency.
As with any financial records, accuracy is key. It is imperative to
keep accurate and complete records. You now have the opportunity to
correct any errors from the previous Project One Milestone Journal
Entries and Ledger Accounts tabs in the Corrected Journal Entries and
Corrected Ledger Accounts tabs.
Scenario
You are a professional accountant who is working with an established
office supply manufacturer, Sharper! Enterprises Inc., to prepare their
financial statements for the current fiscal year. You have been given
the accounts and information you need to prepare their financial
statements. For this, you will need to use your understanding of the
balance sheet accounts for long-term liabilities and equity to report
accurate information to the finance department.
For a large company, they would more than likely use a software
program to manage their finances. For purposes of this assignment, the
information has been provided in Microsoft Excel.
Directions
Using the scenario provided, complete the following in the same
Project One Workbook Template you used for Project One Milestone. Use
the Chart of Accounts tab in the workbook for account names.
Note: You may choose to complete an assignment using
a desktop program instead of SNHU’s virtual desktop (VDI); however,
technical support will not be provided by SNHU if you select this
option.
Project One Workbook
Correct all milestone journal entries and milestone ledger accounts
from Project One Milestone using the Corrected Journal Entries and
Corrected Ledger Accounts tabs.
Highlight the corrected errors in green.
Complete the Income Statement, Balance Sheet, Statement of Retained
Earnings, Cash Flow Worksheet, Statement of Cash Flows, and Ratios tabs
in the same workbook based on the Corrected Journal Entries and
Corrected Ledger Accounts tabs.
Upload the completed Project One Workbook Template for submission.
Note: If you received a perfect score on the Project
One Milestone and do not need to correct any errors, simply note it in
the designated section within the Corrected Journal Entries tab. You
will receive full points for that specific criterion for this
assignment.
Project One Analysis Paper
Complete an analysis of the information contained in the completed Project One Workbook Template including your revisions.
It will need to be formatted in APA style; specific formatting can be found in the What to Submit section.
It will need to address all of the rubric criteria listed below for the Project One analysis paper.
Specifically, you must address the following rubric criteria:
Project One Workbook
Correct all errors from the Milestone Journal
Entries and Milestone Ledger Accounts tabs and enter the correct
information on the Corrected Journal Entries and Corrected Ledger
Accounts tab of the workbook. Highlight corrections in green.
Prepare the Income Statement, Balance Sheet, and Statement of Retained Earnings tabs accurately and completely in the workbook.
Prepare the Cash Flow Worksheet tab accurately and completely in the workbook.
Prepare the Statement of Cash Flows tab accurately and completely in the workbook.
Identify data variances in long term liabilities, equity, and cash flows on the Ratios tab.
Project One Analysis Paper
Explain the importance of the company having long-term debt on its balance sheet. Include the following details in your response:
Explain the characteristics of notes payable and bonds payable.
Explain how long-term debt impacts the financial statements?
Explain the alternative accounting methods for situations relating to long-term liabilities and equity. Include the following details in your response:
Why would a bond sell at a different price than the face amount?
What are the two methods of amortizing premium and discount?
Explain the importance of the company having equity on its balance sheet. Consider the following questions to guide your response:
How do companies obtain common stock?
Describe the purpose and structure of additional paid-in capital.
How do dividends paid or dividends payable impact the equity and income statement?
Explain the importance of cash flow in the overall financial health of the organization.
Explain how cash flow data connects to the income statement and balance sheet components.
If you need writing support, access the Academic Support module of your course.
