Project 5

Project 5: Final Project

Project Introduction

Open the Interactive Accounting Cycle. Click on each step in the accounting cycle for a reminder of how the eight steps work together.

This project is divided into two major assignments that will allow you to showcase your knowledge about Accounting Cycle 2. You will complete a simulation of a business’s end-of-the-fiscal-period statements and a portfolio presentation.

Project 5: Final Project

Assignment 1: Working as an Entry-Level Accounting Clerk—Suggested Weighting 35%

As a graduating business student, Rachelle Cardinal decided to put her computer skills to work and began a web design company called Innovative Creations. She has been completing her own accounting records but is now far too busy to continue to do this. Rachelle has hired you to perform the bookkeeping and to complete the monthly end-of-fiscal-period work for her company.

What Do I Need to Know?

Everything you need to know you have studied in FIN1020 and FIN1030. You may review any of the steps in the accounting cycle by clicking on the steps in the multimedia piece provided in the Project 5 Introduction or refer to the rubrics in the Toolkit for additional support.

Why Is This Important?

This project will give you the opportunity to go through the accounting cycle of a business, thereby strengthening your understanding of accounting concepts and procedures. This will help to give you the experience you need to continue on in your accounting studies or to apply for an entry-level accounting position.

What Do I Need to Do?

Rachelle Cardinal opened her business, Innovative Creations, on October 1 of the current year. She has opened her accounting records and completed the journal entries for this month. Although she has posted her opening entry, she has not had time to complete any other postings. You will be given the journal entries of Innovative Creations for the month of October. These entries need to be posted, and the end-of-the-fiscal-period work needs to be completed. This includes a worksheet, the financial statements, closing entries, and a post-closing trial balance. You will also do a budget analysis for this company. When you have completed this work for Rachelle’s business, go on to Assignment 2, which addresses your portfolio presentation.

Time to Work

Create a new folder in your course folder called Project 5. All of your work for Innovative Creations should be saved in this folder for submission to your teacher.

Rubrics and exemplars are available in the Toolkit for your reference.

Completing the Accounting Records

Step 1: Open General Journal that Rachel completed for October for Innovative Creations and save it in your Project 5 folder as “Journal 1.” Change 20xx to the current year. Notice that there are three pages to this journal that are indicated by the tabs at the bottom of the worksheet.

Step 2: Open the General Ledger for Innovative Creations and save it in your Project 5 folder as “Ledger.“ Change 20xx to the current year in the ledger and post the journal entries.

End of the Fiscal Period

Rachelle has decided to do monthly reports and so the end of her current fiscal period is at the end of October. Use the current year to complete the following as of October 31st.

Step 3: Open Worksheet Template and save it in your Project 5 folder as “Worksheet.” Complete the worksheet.

Step 4: Open Balance Sheet Template and save it in your Project 5 folder as “Balance Sheet.” Complete the balance sheet.

Step 5: Open Income Statement Template and save it in your Project 5 folder as “Income Statement.” Complete the income statement.

Step 6: Open Statement of Owner’s Equity Template and save it in your Project 5 folder as “Statement of Owner’s Equity.” Complete this statement.

Step 7: Open General Journal Template and save it in your Project 5 folder as “Journal 2.” Complete the closing entries on page 4 of the general journal. Don’t forget to update your file by saving your work.

Step 8: Post the closing entries. Update your file.

Step 9: Open Trial Balance Template and save it in your Project 5 folder as “Trial Balance.” Complete a post-closing trial balance.

Step 10: When finished, complete the Audit Test and save it in your Project 5 folder as “Audit Test.” An audit test is a sampling of numbers in your accounting records to check for accuracy. You would have done this in Finance 1020 as well.

Budget Analysis

Step 1: Open the partially completed Budgeted Income Statement Form and save it in your Project 5 folder as “Budgeted Income Statement.” For November, Rachelle is anticipating a 20% increase in revenue and a 5% increase in expenses. Use the financial statements above for the actual for October as well as her anticipated November budget to complete a budgeted income statement.

Step 2: Open Cash Budget Template and save it in your Project 5 folder as “Cash Budget.“ Using the statements above and the information below, complete the cash budget.

• Of the customers, 80% pay cash. The other 20% are accounts receivable customers that will be collected from in the next fiscal period. 
  
  
• Her monthly payments are $120.00 to Accounts Payable, $875.00 to Computer Equipment Company, and $100.00 to Tax Payable.
  
  
• She will pay 20% of her expenses from October in November and 80% of the estimated cash expenses for November.

Step 3: Open Comparative Income Statement and save it in your Project 5 folder as “Comparative Income Statement.” Using the information from the budgeted income statement, complete the comparative income statement for Innovative Designs.

Project 5: Final Project

Assignment 2: Portfolio Presentation—Suggested Weighting 15%

Similar to your portfolio presentation in FIN1020, this assignment could be presented orally, as an essay, as a digital slideshow, or in another format that you discuss with your teacher. No matter what form you choose, you must include examples of your work. Please check with your teacher for details regarding submission for assessment.

A Portfolio Presentation Rubric includes a checklist for your reference. This rubric is also available in the Toolkit.

You are to revisit all of the projects and training rooms from FIN1030: Accounting Cycle 2 as well as Assignment 1 in Project 5.

Select examples from your practice and assignment work to best represent your understanding of Accounting Cycle 2. The purpose of this presentation is to:

• showcase your knowledge to a potential employer
• showcase your knowledge to a potential post-secondary institution
• provide you with a reference to assist in future Financial Management courses.

You must exhibit an understanding of each of the documents that you present and organize them in a logical order based on the steps in the accounting cycle.

Project 5: Final Project

Assignment 3: Career Connections Investigation

If you have already completed a career connections investigation in another course, you can use that file to update and expand your career connections investigation for FIN1030. Locate the career connections file and visit the ALIS website to reassess and update your personal inventory and career research.

Step 1: Go to High School Students Self-Assessment Tools on the ALIS website to begin your research.

Step 2: Complete at least three of the ALIS self-assessment tools.

Step 3: Complete the worksheet My Personal Inventory.

Step 4: Search the ALIS site for OCCinfo to view over 500 occupational profiles to match your personal inventory.

Step 5: Choose three careers that interest you. Be sure to spend some time exploring the ALIS website. There are a number of related activities that are worthwhile to guide you on your career pathway.

When you have finished the personal inventory, complete the Career Reflections Assignment. Save the assignment in your course folder.

Submit all of your Project 5 work to your teacher for assessment.