THE WORKSHEET - QUEST

Introduction

I N T R O D U C T I O N

Accounting is a glorious but misunderstood field. The popular view is that it's mostly mind-numbing number-crunching; it certainly has some of that, but it's also a rich intellectual pursuit with an abundance of compelling and controversial issues. Accountants are often stereotyped as soulless drones laboring listlessly in the bowels of corporate bureaucracies. But many accountants will tell you that it's people skills, not technical knowledge, that are crucial to their success. And although it's often thought of as a discipline of pinpoint exactitude with rigid rules, in practice accountants rely heavily on best estimates and educated guesses that require careful judgment and strong imagination.

Actually, stereotyping accounting and accountants, either positively or negatively, is useless because accounting involves so many different activities. The short-but-sweet description of accounting is "the language of business.

Not all individual love numbers but we must first love what we are doing enable to finish the task. We must first understand the basic concepts in accounting; analyze each transaction very well before recording it to the books of accounts.

This web-quest is designed to a fourth-year high school student, subject (TLE-Accounting), I understand that for nowadays not all the high students has an accounting subject but I believe that some private school add accouting subject as part of the TLE.

Task

T A S K

Class I believe that in our previous lesson I already made you familiarize the accounting cycle. I will give you transactions which should be journalize and posted to its individual ledger accounts before you can proceed to the preparation of Trial balance. After the trial balance you have to record adjusting entries at the end of the month. You have to prepare the trial balance, adjusting entry, adjusted trial balance, balance sheet & income statement at the 10 column worksheet but, take note we will not use the long hand method, instead we will use the MS excel, format your excel to come up with an accurate financial report. The (sheet1) JOURNAL, (sheet2) LEDGER, (sheet3) WORKSEET. Reminder class: (1) Take note that your work was just like the Journal, Ledger & worksheet we usually used in accounting. (2) Please see to it that your journal entries are correct; any error in journals will result to a wrong answer. This is an individual activity.

Process

P R O C E S S

You may begin performing tasks and finding out what is being asked with the aid of the web resources provided below.

Given transactions:

Company A was incorporated on January 1, 2010 with an initial capital of 5,000 shares of common stock having $20 par value. During the first month of its operations, the company engaged in following transactions:

Date	Transaction
Jan 2	An amount of $36,000 was paid as advance rent for three months.
Jan 3	Paid $60,000 cash on the purchase of equipment costing $80,000. The remaining amount was recognized as a one year note payable with interest rate of 9%.
Jan 4	Purchased office supplies costing $17,600 on account.
Jan 13	Provided services to its customers and received $28,500 in cash.
Jan 13	Paid the accounts payable on the office supplies purchased on January 4.
Jan 14	Paid wages to its employees for first two weeks of January, aggregating $19,100.
Jan 18	Provided $54,100 worth of services to its customers. They paid $32,900 and promised to pay the remaining amount.
Jan 23	Received $15,300 from customers for the services provided on January 18.
Jan 25	Received $4,000 as an advance payment from customers.
Jan 26	Purchased office supplies costing $5,200 on account.
Jan 28	Paid wages to its employees for the third and fourth week of January: $19,100.
Jan 31	Paid $5,000 as dividends.
Jan 31	Received electricity bill of $2,470.
Jan 31	Received telephone bill of $1,494.
Jan 31	Miscellaneous expenses paid during the month totaled $3,470

Relevant information for the preparation of adjusting entries of Company A
1. Office supplies having original cost $4,320 were unused till the end of the period. Office supplies having original cost of $22,800 are shown on unadjusted trial balance.
2. Prepaid rent of $36,000 was paid for the months January, February and March.
3. The equipment costing $80,000 has useful life of 5 years and its estimated salvage value is $14,000. Depreciation is provided using the straight line depreciation method.
4. The interest rate on $20,000 note payable is 9%. Accrue the interest for one month.
5. $3,000 worth of service has been provided to the customer who paid advance amount of $4,000.

3. Steps to be followed in accomplishing the task:

Accounting cycle is a step-by-step process of recording, classification and summarization of economic transactions of a business.The time period principle requires that a business should prepare its financial statements on periodic basis. Therefore accounting cycle is followed once during each accounting period. Accounting Cycle starts from the recording of individual transactions and ends on the preparation of financial statements.

Major Steps in Accounting Cycle

Following are the major steps involved in the accounting cycle. We will use a simple example problem to explain each steps:

Analyzing and recording transactions via journal entries (Using the MS Excel journalize the transactions given above)
Posting journal entries to ledger accounts (Based on your journal entries post the transactions to their corresponding ledger accounts, use the formula to link it to your journal)
Preparing unadjusted trial balance (Use the cross footing & footing of each account to the ledger and be able to transfer the balances of each account to Unadjusted Trial balance)
Preparing adjusting entries at the end of the period (Journalize the given adjustments above, your journal entry should be posted to the 3rd * 4th column of the 1o column worksheet)
Preparing adjusted trial balance (After the adjusting entry you can prepare the adjusted trial balance, by adding or subtracting adjusting entry to unadjusted trial balance)
Preparing financial statements (Balance sheet – compose of the real account & income statement – compose of the nominal accounts)

4. After accomplishing the task. Have it printed and be able to send to me the soft copy of your work.

Evaluation

E V A L U A T I O N

Your worksheet will be graded as follows:

Particular

Advanced
(N/A)

Proficient
(N/A)

Novice
(N/A)

Unsatisfactory
(N/A)

Journalizing Business Transactions
20 points

Advanced

Shows a well developed understanding of the principles of journalizing accurately in the appropriate journal.
(20-15 points)

Proficient

Shows a good understanding of the principles of journalizing accurately in the appropriate journal.
(14-10 points)

Novice

Shows little to no understanding of the principles of journalizing accurately in the appropriate journal.
(9-5 points)

Unsatisfactory

Transactions appear incomplete. Shows little to no understanding of the principles of journalizing accurately in the appropriate journal.
(4-0 points)

Posting to Ledgers
15 points

Advanced

Shows a well developed understanding of the principles of posting.
(15-11 points)

Proficient

Shows a good understanding of the principles of posting.
(10-7 points)

Novice

Shows little understanding of the principles of posting.
(6-3 points)

Unsatisfactory

Shows very little understanding of the principles of posting.
(2-0 points)

Worksheet
20 points

Advanced

The entire worksheet is correctly prepared with no major errors.
(20-15 points)

Proficient

The entire worksheet is correctly prepared, with no more than one major errors.
(14-10 points)

Novice

The worksheet was clearly attempted, but is not completed correctly.
(9-5 points)

Unsatisfactory

The worksheet was started but provides little information.
(4-0 points)

Income Statements
15 points

Advanced

Income statement is presented with no errors.
(15-11 points)

Proficient

Income statement is included with no major errors.
(10-7 points)

Novice

Income statement is included, but contain multiple errors.
(6-3 points)

Unsatisfactory

Income statement was attempted but are basically incomplete.
(2-0 points)

Balance Sheet
20 points

Advanced

Balance sheet is completed with no errors.
(20-15 points)

Proficient

Balance sheet is completed with no major errors.
(14-10 points)

Novice

Balance sheet is included and have one error
(9-5 points)

Unsatisfactory

Balance sheet was attempted but have several errors.
(4-0 points)

Conclusion

C O N C L U S I O N

My dear class I really hoping that you enjoy working the spreadsheet or worksheet. Applying what you've learned in accounting is very much appreciated. Navigating the MS Excel is fun, creating functions to make your accounting equation easier. Class I believe accounting is not just for business, our daily expenses should be accounted to prioritize our daily needs. Accounting deals with mathematical & analytical mind. I am very proud for all of you, because I knew that only few appreciates accounting that’s why I put the use of technology to make it interesting for you.

I am excited to see your work.

God bless you class, may God spare more wisdom in accomplishing the task!

Credits

C R E D I T S

Author: VERDEFLOR, SHEILA V. - TCP student from University of Nueva Caceres, I am a graduate of BSBA- Financial Accounting from the University.

This is just a school requirement.

Thankful to have this website to help us accomplishing the task. You may view my work but don't copy as it is...

Thank you very much!!!

Teacher Page

TEACHER

This web-quest is done to connect the student on internet, not just in the four corners of the classroom. To make the accounting subject fun because most of the students say that accounting is one of the boring subjects in high school. I decided to have individual task to accomplish. The objective is to perform the accounting cycle using the MS Excel and be able to send to me the soft copy.

STUDENT

This is intended for the fourth-year student - TLE subject (Accounting).

STANDARD

1. Make sure to finish the accounting cycle as instructed.

2. Uses the functions & formulas in MS Excel.

3. Come up with the right Financial Statement. (because this is not a security that you balance the Trial balance that you have a correct answer, but Journal entries should be all correct to have a correct answer)