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CASE STUDY 1THE COMPLETE ACCOUNTING CYCLE

Name: ___________________________________

The entire Case Study is due Sunday at midnight mountain time at the end of Week 3.
This Case Study is worth 100 points or 10% of your final course grade.
This Case Study relates to TCOs D and E and Chapters 3 and 4.
MAKE SURE TO COMPLETE ALL REQUIREMENTS WHICH ARE LISTED BELOW.
There are 10 sheets in the Workbook including this one.
All of the Information you need for the project is located in this Workbook.
Requirements
Requirement 1Prepare the Journal Entries in the General Journal
Requirement 2Post Journal Entries to the General Ledger
Requirement 3Prepare a Trial Balance
Requirement 4Prepare the Adjusting Entries
Requirement 5Post Adjusting Entries to the General Ledger
Requirement 6Prepare an Adjusted Trial Balance
Requirement 7Prepare the Financial Statements
Requirement 8Prepare the Closing Entries
Requirement 9Post Closing Entries to the General Ledger
Requirement 10Prepare the Post Closing Trial Balance

Sheet in Workbook
Journal Entries
General Ledger
Trial Balance
Adjusting Entries
General Ledger
Adjusted TB
Financial Statements
Closing Entries
General Ledger
Post Closing TB

Hint for success: Review the Week 2 Lecture prior to starting this project.
There are also hints contained within certain cells on some of the worksheet tabs.
You can hover over the red pointer at the top right-hand corner of the cell to read the
Hints are provided for the following balances:
1) The debits for the journal entries are on the Journal Entries tab.
2) The credits for the journal entries are on the Journal Entries tab.
3) The cash balance is on the General Ledger tab.
4) The debits for the trial balance are on the Trial Balance tab.
5) The credits for the trial balance are on the Trial Balance tab.
6) The debits for the adjusted trial balance are on the Adjusted Trial Balance tab.
7) The credits for the adjusted trial balance are on the Adjusted Trial Balance tab.
8) Net income for the income statement is on the Financial Statements tab.
9) Retained earnings as of March 31 are on the Financial Statements tab.
10) Total assets for the balance sheet are on the Financial Statements tab.
11) Total liabilities and shareholders' equity for the balance sheet are on the Financial Statements tab.
12) The debits for the post-closing trial balance are on the Post-Closing Trial Balance tab.
13) The credits for the post-closing trial balance are on the Post-Closing Trial Balance tab.

s project.
e worksheet tabs.
f the cell to read the hint.

ments tab.

During its first month of operation, the Flower Landscaping Corporation, which specializes in residential landscaping,
completed the following transactions.
March 1

Began business by making a deposit in a company bank account of $72,000, in exchange


for 7,200 shares of $10 par value common stock.

March 1

Paid the current month's rent, $4,500.

March 1

Paid the premium on a 1-year insurance policy, $3,300.

March 7

Purchased supplies on account from Parkview Company, $900.

March 10 Paid employee salaries, $2,200.


March 14 Purchased equipment from Hammond Company, $9,000. Paid $1,500 down and the balance was
placed on account. Payments will be $375.00 per month for 20 months. The first payment is due 4/1.
Note: Use accounts payable for the balance due.
March 15 Received cash for landscaping revenue for the first half of March, $4,896.
March 19 Made payment on account to Parkview Company, $450.
March 31 Received cash for landscaping revenue for the last half of March, $5,304.
March 31 Declared and paid cash dividend of $1,000.

Prepare journal entries to record the March transactions in the General Journal below.

Date
3/1/2014

3/1/2014

3/1/2014

3/7/2014

3/10/2014

3/14/2014

General Journal
Description(Account Name) Debit
Credit
cash
72,000
common stock
72,000
rent expense
cash

4,500

prepaid insurance
cash

3,300

supplies
accounts payable

900

4,500

3,300

900

salary expense
cash

2,200

Equipment

9,000

2,200

This Sheet will be used for Requirements 2, 5, and 9


Requirement #2:
Post the March journal entries to the following T-accounts and compute ending balances.

Cash (111)
72000
4896
5304

4500
3300
2200
1500
450
1000

Landscaping Revenue (411)


10200

4896
5304

$69,250
Prepaid Insurance (117)
3300

275

3025
Supplies (119)
900

Rent Expense (511)


4500

4500

425

475

Salaries Expense (512)


2200

2200

Equipment (144)
9000

Insurance Expense (513)


275

275

0
Accumulated Depreciation-Equipment (145)
150

Supplies Expense (514)


425

425

Accounts Payable (212)


450

900
7500

7950

Depreciation Expense (515)


150

150

Income Tax Payable (213)


795

Income Tax Expense (516)


795

0
Common Stock (311)
72000

Retained Earnings (312)


8345
1000

10200

855
Dividends (313)
1000

1000

795

Requirement #3:
Prepare a trial balance for March in the space below.

Flower Landscaping Corporation


Trial Balance
March 31

cash
landscaping revenue
prepaid insurance
rent expense
supplies
salaries expense
equipments
accounts payable
common stock
dividends

69,250
10,200
3,300
4,500
900
2,200
9,000
7,950
72,000
1,000

90,150

90,150

Requirement #4:
Prepare adjusting entries using the following information in the General Journal
below. Show your calculations!
a) One month's insurance has expired.
b) The remaining inventory of supplies is $475.
c) The estimated depreciation on equipment is $150.
d) The estimated income tax is $795.
General Journal
Description(Account Name)
insurance expense
prepaid insurance

Date
3/31/2014

3/31/2014

3/31/2014

Debit

Credit
275
275

supplies expense
supplies

425

depreciation expense
accumulated depreciation -equipments

150

income tax expense


income tax payable

795

3/31/2014

425

150

795
1,645

1,645

Requirement #5:
Post the adjusting entries to the General Ledger T-accounts and compute adjusted balances.
Just add to the balances that are already listed.

Requirement #6:
Prepare an adjusted trial balance in the space below.
Flower Landscaping Corporation
Adjusted Trial Balance
March 31

cash
landscaping revenue
prepaid insurance
rent expense
supplies
salaries expense
equipments
accounts payable
common stock
dividends
Insurace expense
depreciation expense
accumulated depreciation-equipment
income tax expense
income tax payable
supplies expense

69,250
10,200
3,025
4,500
475
2,200
9,000
7,950
72,000
1,000
275
150
150
795
795
425
91095

91095

Requirement #7:
Prepare the financial statements for the Flower Landscaping Corporation as of March 31 in the space below.
You will only be preparing the income statement, statement of retained earnings, and the balance sheet.
The statement of cash flows is a required financial statement, but is not required for this project.
Flower Landscaping Corporation
Income Statement
For the Month Ending March 31
Revenues:
Landscaping Revenue
Expenses:
Rent Expense
Salaries Expense
Insurance Expense
Supplies Expense
Depreciation Expense
Income Tax Expense
Total Expenses
Net Income

Flower Landscaping Corporation


Statement of Retained Earnings
For the Month Ending March 31
Retained Earnings, March 1
Add: Net Income
Subtotal
Less: Dividends
Retained Earnings, March 31

10,200

4,500
2,200
275
425
150
795
8,345
$ 1,855

1,855
1,000
$ 855

the space below.


lance sheet.

Flower Landscaping Corporation


Balance Sheet
March 31
Assets:
Cash
Prepaid Insurance
Supplies
Equipment
Less: Accum. Depr.
Total Assets
Liabilities:
Accounts Payable
Income Tax Payable
Total Liabilities
Stockholders' Equity:
Common Stock
Retained Earnings
Total Stockholders' Equity
Total Liabilities and
Stockholders' Equity

$ 69,250
3,025
475
9,000
-150
81,600

7,950
795
8,745

855
72,000
$ 81,600

Requirement #8:
Prepare the closing entries at March 31 in the General Journal below.
Hint: Use the balances for each account, which appear on the Adjusted
Trial Balance for your closing entries.

Date
3/31/2014

General Journal
Description (Account Name)
landscaping revenue
retained earnings

Debit

Credit
10200
10200

rent expense
salaries expense
insurance expense
depreciation expense
income tax expense
supplies expense
retained earnings

4500
2200
275
150
795
425
8345

dividends
retained eranings

1000

1000

19545

19545

Requirement #9:
Post the closing entries to the General Ledger T-accounts and compute ending balances.
Just add to the adjusted balances already listed.

Requirement #10:
Prepare a post-closing trial balance as of March 31 in the space below.

Flower Landscaping Corporation


Post-Closing Trial Balance
March 31
cash
prepaid insurance
supplies
equipments
accumulated depreciation-equipment
accounts payable
common stock
retained earnings
income tax payable

69,200
3,025
475
9,000
150
7,950
72,000
855
795
81,700

81,750