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Option 2 Preparing Adjusting Entries
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Note: The template required for this assignment is attached.
Option #2: Preparing Adjusting Entries, Closing Entries and a Post-Closing Trial Balance
Complete Part 1 and Part 2.
Part 1
Shown below is Johnson Travel Agencys adjusted trial balance as of the end of its annual accounting period:
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Johnson Travel Agencys
Adjusted Trial Balance
December 31
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Account Name
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DR.
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CR.
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Cash
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$ 52,000
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Accounts receivable
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18,900
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Office equipment
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31,500
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Accumulated depreciationOffice equipment
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$7,500
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Notes payable
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11,260
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Capital stock
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42,500
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Dividends
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2,500
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Fees earned
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98,000
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Salaries expense
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45,200
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Rent expense
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2,300
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Depreciation expenseOffice equipment
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3,160
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Office supplies expense
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3,700
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Totals
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$159,260
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$159,260
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Required: Using the template in the Module 3 folder, prepare the following:
(a) Prepare the necessary closing entries.
(b) Prepare a post-closing trial balance.
Part 2
Determine if the following transactions for Everon Corporation require an adjustment. If an adjusting entry is required, give the correct entry. Where applicable, write the original entry first and then the adjusting entry.
- At the beginning of the month, Everon agreed to perform services for the next four months for Maston, Inc. for $25,000 per month. Ford paid Michigan $100,000 cash in advance. One month has now passed.
- Everon pays its employees every two weeks. At the end of the month, Everon owes its employees $75,000 but will not pay them until the following week.
- Everon paid $60,000 cash for rent at the beginning of the month by debiting prepaid rent and crediting cash. This amount covered six months of occupancy, but only one month has passed.
- At the beginning of the year, Everon bought supplies from Douglas Implements for $4,500 cash per month for twelve months. A physical count at year-end revealed supplies worth $1,500 were still left over. Complete the original journal entry followed by the adjusting entry.
Review the grading rubric to understand how you will be graded on this assignment.
Note: The template required for this assignment is attached.
Rubric
ACT300 Mod 3 CT
ACT300 Mod 3 CT
| Criteria |
Ratings |
Pts |
|
This criterion is linked to a Learning OutcomeRequirements
|
| 10.0 to >8.0 pts
Meets Expectation
Includes all of the required components of adjusting and closing entries and/or financial statements.
|
8.0 to >6.0 pts
Approaches Expectation
Includes most of the required components of adjusting and closing entries and/or financial statements.
|
6.0 to >4.0 pts
Below Expectation
Includes some of the required components of adjusting and closing entries and/or financial statements.
|
4.0 to >0 pts
Limited Evidence
Includes few of the required components of adjusting and closing entries and/or financial statements.
|
|
10.0 pts
|
|
This criterion is linked to a Learning OutcomeContent
|
| 20.0 to >16.0 pts
Meets Expectation
Demonstrates strong or adequate knowledge of adjusting and closing entries and/or financial statements; correctly represents knowledge of adjusting and closing entries and/or financial statements.
|
16.0 to >12.0 pts
Approaches Expectation
Some significant but not major errors or omissions in demonstration of knowledge of adjusting and closing entries and/or financial statements; somewhat represents knowledge of adjusting and closing entries and/or financial statements.
|
12.0 to >8.0 pts
Below Expectation
Major errors or omissions in demonstration of knowledge of adjusting and closing entries and/or financial statements; major misrepresentations of knowledge of adjusting and closing entries and/or financial statements.
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8.0 to >0 pts
Limited Evidence
Fails to demonstrate knowledge of adjusting and closing entries and/or financial statements.
|
|
20.0 pts
|
|
This criterion is linked to a Learning OutcomeCritical Analysis
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| 10.0 to >8.0 pts
Meets Expectation
Provides a strong critical analysis and interpretation of the information given.
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8.0 to >6.0 pts
Approaches Expectation
Some significant but not major errors or omissions in analysis and interpretation.
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6.0 to >4.0 pts
Below Expectation
Major errors or omissions in analysis and interpretation.
|
4.0 to >0 pts
Limited Evidence
Fails to provide critical analysis and interpretation of the information given.
|
|
10.0 pts
|
|
This criterion is linked to a Learning OutcomeProblem Solving
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| 10.0 to >8.0 pts
Meets Expectation
Demonstrates strong or adequate thought and insight in problem solving.
|
8.0 to >6.0 pts
Approaches Expectation
Some significant but not major errors or omissions in problem solving.
|
6.0 to >4.0 pts
Below Expectation
Major errors or omissions in problem solving.
|
4.0 to >0 pts
Limited Evidence
Fails to demonstrate problem solving.
|
|
10.0 pts
|
|
This criterion is linked to a Learning OutcomeDemonstrates college-level proficiency in organization, grammar and style.
|
| 10.0 to >8.0 pts
Meets Expectation
Project is clearly organized, well written, and in proper format as outlined in the assignment. Strong sentence and paragraph structure; few errors in grammar and spelling.
|
8.0 to >6.0 pts
Approaches Expectation
Project is fairly well organized and written, and is in proper format as outlined in the assignment. Reasonably good sentence and paragraph structure; significant number of errors in grammar and spelling.
|
6.0 to >4.0 pts
Below Expectation
Project is poorly organized; does not follow proper paper format. Inconsistent to inadequate sentence and paragraph development; numerous errors in grammar and spelling.
|
4.0 to >0 pts
Limited Evidence
Project is not organized or well written, and is not in proper paper format. Poor quality work; unacceptable in terms of grammar and spelling.
|
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10.0 pts
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Total Points: 60.0
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