TCA221 Fall 2014 Project Part 2

| August 14, 2017

THE UNIVERSITY OF NEVADA LAS VEGAS
WILLIAM F.
HARRAH COLLEGE OF HOTEL ADMINISTRATION

TCA 221
Fall 2014
Project Part 2

INTRODUCTION

This project is
the second part of a three-part project that assesses your knowledge of
financial accounting and the accounting cycle. In the first part, you were
required to prepare journal entries, T-accounts and a trial balance for a
variety of transactions for a new hospitality company. In part 2 of the project,
you are asked to analyze adjusting entries and to prepare journals, T-accounts
and an adjusted trial balance. In the third part of the project (posted after
part 2 is complete) you will need to prepare closing journal entries and
T-accounts in addition to an income statement and balance sheet. This part of the project is based on the
first part so you must adjust your first part for any mistakes.

DUE
DATE

The project will
be due on Monday, November 3rd, 2014, at the beginning of class.
Projects received after this date will
be penalized 10 points (out of 100) each 24-hour period they are late
(beginning at the start of class). You
can earn 10% points extra credit by turning a completed project in at the
beginning of class on Monday, October 27, 2014.
No projects will be accepted for extra credit after the start of class
on Monday, November 3rd, 2014, including even one minute late. Also, any projects not completed are not
eligible for extra credit including not having all page or parts attached.

BACKGROUND

After
graduating from UNLV with a degree in Hotel Administration you have decided to
open your own hotel property as a sole proprietorship. The project is a hotel called Serenity.
Since you have taken a financial accounting class as part of your undergraduate
degree, you have decided to save the money to hire an accountant and do the
work yourself. Also as the owner, it is
your responsibility that all transactions are recorded properly and that the financial
statements are correct so either way you need to understand the transactions
and process.

REQUIREMENTS

1.
All
analysis must be completed using Excel. Handwritten journals, T-accounts, or
trial balance will not be accepted nor will any other file format. When using Excel formulas must be used when
possible and numbers should not be hardcoded.
For instance, do not just solve the amount of the adjusting entries using
your calculator and just type in the answer.
In Excel you must have a formula
for any calculations. The only hardcoded
numbers are the ones that have no calculation involved. There should be only formulas
on the T-accounts and trial balance.

2.
All
pages must be printed “portrait style” (i.e. longer down than across). The trial balance must be on one page. The journals and T-accounts can be on
multiple pages but they must not wrap pages across, only down.

3.
In addition to the journals, T-accounts, and trial
balance, you must print out the formulas you used for the trial balance.
The instructions are shown below. The formula
printouts are to be handed in. They do
not have to all fit onto one page. Not
doing this is Excel, not using the Excel formulas, or not submitting the
formula sheet will result in a 10% point penalty.

STEPS TO PRINT
OUT FORMULAS IN EXCEL 2007/2010

1. Go to the “FORMULAS” menu in Excel.

2. Click on “SHOW FORMULAS”.

3. Unclick on “SHOW FORMULAS” to get worksheet
back to numbers.

STEPS TO PRINT
OUT FORMULAS IN EXCEL 2010 ON A MAC

1. Go to the “FORMULAS” menu in Excel.

3. Click on “SHOW” in the “FUNCTION” area and
check “SHOW FORMULAS”.

4. Uncheck “SHOW FORMULAS” to get worksheet
back to numbers.

4.
You
should present your work as follows:
a) Cover sheet with your Name and ID
b) Your corrected
trial balance from Part 1 (even if there were no errors you must submit the
Part 1 trial balance).
c) Adjusting entries;
d) T-accounts (all);
e) Adjusted Trial balance;
f) Formulas for
the adjusting entries, T-accounts, and adjusted trial balance

5.
All dollar figures should be formatted to the nearest dollar with no demical. Make
sure that your submission is formatted with dollar signs and commas.

6.
All pages must be professional, legible, and
formatted as if you were providing this to the owner or outside creditors. This includes, but is not limited to
spelling, presentable, correct format for journals, T-accounts, and trial
balance per what was learned in class and in the book. Penalty
points can range up to 20% points for unprofessional work and not following 1,
2, 4, 5 or 6.

7.
Staple all of your analysis together so that it
won’t get lost or misplaced. Projects that are not stapled together will
lose points 5% points. Do not put
projects in binders or paperclips, staple only.

8.
Projects that do not meet these
requirements will be penalized. All
penalty points come off the starting value of 100%.

You are
expressly forbidden to consult anyone besides your partners about this
project (except the instructor).

***IMPORTANT*** To complete this
assignment, you must use the last four digits of your NSHE number, called your
ID. You must state on the cover page what
that ID number is or you will be penalized 10% points and your project returned
without grading to get that ID number since the answer cannot be solved without
this. If your NSHE number begins with one
or more zeros, place them at the end.
Example: 0097 becomes 9700.

PROJECT
DETAILS

After completing
Part 1 of the project, you need to fix any errors you may have had. A correct trial balance will be given back to
you with your Part 1. It is your
responsibility to make sure and fix any journals or T-accounts that were wrong
and to make sure the trial balance you now have matches the one given to you. Also, this project is an extension of Part 1,
so just like in the real world the previous transactions do not go away. You start from where that part ended and add
this information.

After you have
corrected Part 1, the following transactions are adjusting entries that need to
be booked as of June 30, 20XX:
1. The money borrowed on June 2 is an
interest-only loan with a 10 percent interest rate. The interest accrues each month even though
it is only paid quarterly with the first payment not due until September 2,
20xx. Compute interest on a monthly
basis not by number of days.

2. The building has no salvage value and is
depreciated on a straight-line basis over 30 years. The equipment has no salvage value and is
depreciated on a straight-line basis over 10 years.

3. One month of insurance coverage has
expired. Assume an entire month’s worth
of insurance has expired not only the number of days between payment and end of
June.

4. There is $8,500 of food and beverage
inventory left in storage at the end of the month and there was no inventory
used for internal purposes.

5. The last payday was June 28th
(employees were paid for working that day).
Wages accrue at $200 per day.

Required:
1. Fix any errors from Part 1
2. Prepare adjusting entries in good form based
on the above information. (Part 1 entries are not required and should not be
turned in)
3. Post the journal entries into T-accounts
(make sure you have a total amount for each account and that the T-accounts
have Part 1 and Part 2 amounts).
Remember t-accounts do not go away.
Any T-account from Part 1 whether it was affected or not needs to be
included. There should be no hardcoded
numbers on the T-accounts, formulas only.
4. Complete an adjusted trial balance in good
form as of June 30, 20xx. There should be no hardcoded numbers on the adjusted
trial balance, formulas only.

HELPFUL HINTS

This is a real world
financial accounting exercise. It is
intended to integrate the material learned in class. Submissions are expected to resemble those
presented to the owner of a hospitality operation. Make sure they are legible and presented in
good order.

PLAN FOR DISASTER. Make back-up copies of your project files onto
at least two different drives or CD’s (you will need this part later
anyway). You can also use the discussion
group to save a copy. Lost, missing, or corrupted
file problems will not warrant an extension. Take good care of your files and your
back-ups.

Good
luck!
GRADING RUBRIC

These items are
points that come right off the starting score of 100%

No Cover page with ID
and student name. Both must be included

-10

Turning in late
(starting at 1 min after class starts)

-10 per 24 hours

Project not in
required order as per #4 on Requirements

-5

Project not stapled
(binders and paperclips not allowed)

-5

Formula sheets not
included (any 1 missing is total points off)

-10

Formatting (dollar
signs, spelling, presentable, borders, etc.)

Up to -20

These are the
maximum points for each required part :

Corrected Part 1
Trial Balance

20

Adjusting entries –
10 points each journal (3 for the correct debit account, 3 for the correct credit
account and 4 for the dollar amount)

50

T-accounts

10

Adjusted Trial
Balance

20

Trial Balance not balancing is the
largest point deduction

-10

This grading rubric is
very high level and does not give specifics of each journal, T-account, etc.
required. This should be used just to
guide you to make sure you are including all required parts.

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