Milestone Assignment
Part 1: Milestone One
Overview: In this milestone, you will move through the first four steps of Project I by creating the monthly journal entries and general ledger accounts in your accounting workbook. The monthly journal entries are how businesses input financial activities into their accounting systems. The values from these entries are posted to the general ledger.
Prompt: Your dog, Peyton, has severe allergies and cannot have the usual store-bought dog treats. You have been making homemade treats for him that are all-natural and hypoallergenic. Over the past year, you have been making and selling these treats out of your home, and you have been quite successful. You now have an opportunity to open your own dog treat bakery. You have decided on a corporate form of business and have named your company "Peyton Approved."
To complete Milestone One, use accepted accounting principles to follow and record your business transactions for a three-month period. You will find the provided data for your workbook in the appendix at the end of this document. The data have been separated from the prompt so that you can more easily view the full scope of the assignment. Links have been provided to help you locate the information you need as you move through each step.
Specifically, the following critical elements must be addressed:
I. Record financial data that accurately captures business transactions according to accepted accounting principles.
A. Step One: Complete the "July Journal Entries" tab in your workbook using the Step One data in the appendix.
B. Step Two: Complete the "August Journal Entries" tab in your workbook using the Step Two data in the appendix.
C. Step Three: Complete the "September Journal Entries" tab in your workbook using the Step Three data and updated scenario information in the appendix. Note that there was an additional line of products added this month, so you must first complete the "Inventory Valuation" tab in your workbook and then copy the journal entries from the inventory evaluation page into your journal for this month to ensure the impact of merchandising is reflected in your reporting.
D. Step Four: Transfer posted entries to T accounts.
Part 2: Milestone Two
Overview: In this milestone, you will move through the next phase of the accounting cycle by creating the trial balance, adjusting entries, and adjusted trial balance. Completing the adjusting entries implements the matching, timing, and periodicity of the generally accepted accounting principles. Omission of this step will show a higher net income than there actually is, which could cause users of the financial statements to make an incorrect decision and suffer financially.
Prompt: You will find the provided data for your second milestone in the appendix at the end of this document. The data have been separated from the prompt so that you can more easily view the full scope of this assignment. Links have been provided to help you locate the information.
Specifically, the following critical elements must be addressed:
I. Incorporate the feedback that you received from your Milestone One submission on Steps 1-4.
A. Step One: Complete the "July Journal Entries" tab in your workbook using the Step One data in the appendix.
B. Step Two: Complete the "August Journal Entries" tab in your workbook using the Step Two data in the appendix.
C. Step Three: Complete the "September Journal Entries" tab in your workbook using the Step Three data and updated scenario information in the appendix. Note that there was an additional line of products added this month, so you must first complete the "Inventory Valuation" tab in your workbook and copy the journal entries from the inventory evaluation page into your journal for this month to ensure the impact of merchandising is reflected in your reporting.
D. Step Four: Transfer posted entries to T accounts.
II. Apply the accrual basis of accounting to correctly create adjusting entries in the preparation of financial statements:
A. Step Five: Prepare the unadjusted trial balance. Note that you should use the T account balances completed in the previous step to prepare the unadjusted trial balance portion of the "Trial Balance" tab in your workbook.
B. Step Six: Complete the "Adjusting Entries" tab in your workbook using the Step Six data in the appendix. Note that you should take the adjusting entries from this worksheet and enter them into the "Trial Balance" tab in your workbook.
C. Step Seven: Apply adjusting entries to create the adjusted trial balance. Note that the adjusting entries from Step Six will apply to affected accounts in the unadjusted trial balance to arrive at the adjusted trial balance.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.
Attachment:- Project-Workbook.rar