Accounting Project
The purpose of this group project is to learn what is required in setting up the accounting records for a new business and to develop skills that will allow you to work with others in future college courses and in your chosen profession. Each group will have the responsibility of creating a fictitious manufacturing company and operate the company for two months.
You are also expected to complete and submit the following on Canvas (no hardcopy submission is required):
- Written report
- The Excel Workbook (use this to submit the General Journal, General Ledger, Unadjusted Trial Balance, Adjusted Trial Balance, Post-closing Trial Balance, Cost of Goods Manufactured Schedule, Income Statement, Retained Earnings Statement, and Balance Sheet)
- PowerPoint presentation you would have used if you were going to do a live presentation (8 to 10 slides excluding the title and reference slides).
Make sure to select one person in your group to submit all parts of the project for the entire group. Do not have each group members submit separate parts of the project. No late submissions will be accepted.
Written Report
The written report should be 3 to 5 pages using the APA 6th format (you should include the cover page, introduction section and conclusion section, but you do not need to include the abstract section). The report should contain the following:
- Name of company
- Type of product manufactured
- Location of your business
- Fiscal Year-End (why you choose this date)
- Organizational layout (department descriptions, personnel, etc.)
- Capital investment requirements (Assets needed to start the business and associated costs)
- Financing of Assets (where did the money come from to purchase your assets)
- Inventory analysis of your company (Raw Materials, Work-in-Process and Finished Goods), product costing method (job cost or process cost) including individual jobs or processes.
- Summarize financial information of your company. Include in this discussion the financial results of the two months’ operation and the company’s future goals.
- Anything else you deem relevant to the project.
The Excel Workbook
Accounting portion of this report can be done manually or utilizing an accounting software (such as the Klooster & Allen software or QuickBooks). I encourage you to use the klooster & Allen software that I provided you. You can locate the software link to download to your personal computer in Canvas. Please go to Canvas – Module – Project – Klooster & Allen software. Please keep in mind that you cannot download the software if you have an Apple computer. Also, you have less problem with the download if you use Google Chrome.
You can also use the Klooster & Allen software in any of the Fullerton College Computer Labs.
Your Excel workbook should contain the following:
- A general journal containing all the journal entries, any necessary adjusting entries for both months, and the closing entries (for the end of the second month only). All entries should be posted to the general ledger if you are not using an accounting software. For the first two (2) months of operations, at least 40 business transactions are required (but you may have more). This is where your knowledge, creativity and thoroughness will be evaluated.
- A general ledger (if doing this project manually, you may use T-Accounts to represent the general ledger as long as it is clear and organized).
- A trial balance, adjusted trial balance and post-closing trial balance.
- A Cost of Goods Manufactured Schedule / Statement of Cost of Goods Manufactured for the two months (you cannot use the Klooster & Allen or any other accounting software to prepare this schedule). If you forgot how to prepare this statement refer to chapter 15.
- An Income Statement for the two months.
- A Retained Earnings Statement for the two months.
- A Balance Sheet for the end of the two months.
If you are using the Klooster & Allen software, follow these steps:
1. Retrieve the trial balance before you prepare the adjusting journal entries and that will be the unadjusted trial balance.
2. After you prepare the adjusting journal entries, retrieve the trial balance again before you prepare the closing entries that will be the adjusted trial balance.
3. After you prepare the closing entries retrieve the trial balance again, that will be your post-closing trial
balance.
