option 2 preparing adjusting entries

Note: The template required for this assignment is attached.

Option #2: Preparing Adjusting Entries, Closing Entries and a Post-Closing Trial Balance

Complete Part 1 and Part 2.

Part 1

Shown below is Johnson Travel Agency’s adjusted trial balance as of the end of its annual accounting period:

Johnson Travel Agency’s

Adjusted Trial Balance

December 31

Account Name

DR.

CR.

Cash

$ 52,000

Accounts receivable

18,900

Office equipment

31,500

Accumulated depreciation—Office equipment

$7,500

Notes payable

11,260

Capital stock

42,500

Dividends

2,500

Fees earned

98,000

Salaries expense

45,200

Rent expense

2,300

Depreciation expense—Office equipment

3,160

Office supplies expense

3,700

Totals

$159,260

$159,260

Required: Using the template in the Module 3 folder, prepare the following:

(a) Prepare the necessary closing entries.

(b) Prepare a post-closing trial balance.

Part 2

Determine if the following transactions for Everon Corporation require an adjustment. If an adjusting entry is required, give the correct entry. Where applicable, write the original entry first and then the adjusting entry.

  1. At the beginning of the month, Everon agreed to perform services for the next four months for Maston, Inc. for $25,000 per month. Ford paid Michigan $100,000 cash in advance. One month has now passed.
  2. Everon pays its employees every two weeks. At the end of the month, Everon owes its employees $75,000 but will not pay them until the following week.
  3. Everon paid $60,000 cash for rent at the beginning of the month by debiting prepaid rent and crediting cash. This amount covered six months of occupancy, but only one month has passed.
  4. At the beginning of the year, Everon bought supplies from Douglas Implements for $4,500 cash per month for twelve months. A physical count at year-end revealed supplies worth $1,500 were still left over. Complete the original journal entry followed by the adjusting entry.

Review the grading rubric to understand how you will be graded on this assignment.

Note: The template required for this assignment is attached.

Rubric

ACT300 Mod 3 CT

ACT300 Mod 3 CT

CriteriaRatingsPts

This criterion is linked to a Learning OutcomeRequirements

10.0 to >8.0 pts

Meets Expectation

Includes all of the required components of adjusting and closing entries and/or financial statements.

8.0 to >6.0 pts

Approaches Expectation

Includes most of the required components of adjusting and closing entries and/or financial statements.

6.0 to >4.0 pts

Below Expectation

Includes some of the required components of adjusting and closing entries and/or financial statements.

4.0 to >0 pts

Limited Evidence

Includes few of the required components of adjusting and closing entries and/or financial statements.

10.0 pts

This criterion is linked to a Learning OutcomeContent

20.0 to >16.0 pts

Meets Expectation

Demonstrates strong or adequate knowledge of adjusting and closing entries and/or financial statements; correctly represents knowledge of adjusting and closing entries and/or financial statements.

16.0 to >12.0 pts

Approaches Expectation

Some significant but not major errors or omissions in demonstration of knowledge of adjusting and closing entries and/or financial statements; somewhat represents knowledge of adjusting and closing entries and/or financial statements.

12.0 to >8.0 pts

Below Expectation

Major errors or omissions in demonstration of knowledge of adjusting and closing entries and/or financial statements; major misrepresentations of knowledge of adjusting and closing entries and/or financial statements.

8.0 to >0 pts

Limited Evidence

Fails to demonstrate knowledge of adjusting and closing entries and/or financial statements.

20.0 pts

This criterion is linked to a Learning OutcomeCritical Analysis

10.0 to >8.0 pts

Meets Expectation

Provides a strong critical analysis and interpretation of the information given.

8.0 to >6.0 pts

Approaches Expectation

Some significant but not major errors or omissions in analysis and interpretation.

6.0 to >4.0 pts

Below Expectation

Major errors or omissions in analysis and interpretation.

4.0 to >0 pts

Limited Evidence

Fails to provide critical analysis and interpretation of the information given.

10.0 pts

This criterion is linked to a Learning OutcomeProblem Solving

10.0 to >8.0 pts

Meets Expectation

Demonstrates strong or adequate thought and insight in problem solving.

8.0 to >6.0 pts

Approaches Expectation

Some significant but not major errors or omissions in problem solving.

6.0 to >4.0 pts

Below Expectation

Major errors or omissions in problem solving.

4.0 to >0 pts

Limited Evidence

Fails to demonstrate problem solving.

10.0 pts

This criterion is linked to a Learning OutcomeDemonstrates college-level proficiency in organization, grammar and style.

10.0 to >8.0 pts

Meets Expectation

Project is clearly organized, well written, and in proper format as outlined in the assignment. Strong sentence and paragraph structure; few errors in grammar and spelling.

8.0 to >6.0 pts

Approaches Expectation

Project is fairly well organized and written, and is in proper format as outlined in the assignment. Reasonably good sentence and paragraph structure; significant number of errors in grammar and spelling.

6.0 to >4.0 pts

Below Expectation

Project is poorly organized; does not follow proper paper format. Inconsistent to inadequate sentence and paragraph development; numerous errors in grammar and spelling.

4.0 to >0 pts

Limited Evidence

Project is not organized or well written, and is not in proper paper format. Poor quality work; unacceptable in terms of grammar and spelling.

10.0 pts

Total Points: 60.0

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