+1443 776-2705 panelessays@gmail.com
  

BCO114 ACCOUNTING I Task brief & rubrics

Task: Midterm Makeup Assignment

· This is an assignment to be done individually.

· You must answer all the questions in the proposed problem.

· Submission file format: Word document with all the answers, clearly identifying all steps, results, journals, ledger accounts and including comments when requested.



Submission:



This task assesses the following learning outcomes:

· Understand how to record the adjusting and closing entries in order to be able to close the company’s accounting books.

· Understand how to prepare the company’s financial statements: Balance Sheet, Income Statement and Statement of Retained Earnings.

· Acquire a thorough understanding of the company’s accounting cycle and the importance of all the procedures to be able to determine the company’s final net income and its financial situation in the Balance Sheet

Love Online is an Internet dating agency. All members pay in advance to be listed in the database. Advance payments are credited to an account called Unearned Client Fees. Adjusting entries are performed on a monthly basis and closings are done on December 31. An unadjusted trial balance dated December 31, 2021, follows:

LOVE ONLINE, INC.

UNADJUSTED TRIAL BALANCE

31 DECEMBER. 2021

DEBIT

CREDIT

CASH

32.800

ACCOUNTS RECEIVABLE

17.000

PREPAID RENT

4.000

UNEXPIRED INSURANCE

12.000

OFFICE SUPPLIES

2.500

COMPUTER EQUIPMENT

60.000

ACCUMULATED DEPRECIATION: COMPUTER EQUIPMENT

6.000

ACCOUNTS PAYABLE

10.000

NOTES PAYABLE

30.000

UNEARNED CLIENT FEES

15.000

CAPITAL STOCK

40.000

RETAINED EARNINGS

38.000

DIVIDENDS

3.500

CLIENT FEES EARNED

54.000

SALARIES EXPENSE

21.000

DEPRECIATION EXPENSE COMPUTER EQUIPMENT

5.500

INSURANCE EXPENSE

11.500

RENT EXPENSE

22.000

OFFICE SUPPLIES EXPENSE

3.700

TOTAL

193.000

193.000

The following information relates to the Company’s month-end adjustments:

1. Office supplies consumed during the month amounted to $900.

2. On December 1, the company paid $12.000 to renew their insurance policy for a period of 12 months. Adjust the monthly insurance expense.

3. The useful life of the computer equipment was estimated to be 10 years (120 months).

4. Fees recorded as Unearned Client Fees in the amount of $8,000 were earned during the current month of December.
5. On December 1, the company borrowed $30,000 by signing a 9-month, 9% note payable. The entire note, plus 9 months’ interest, is due August 31st, 2022. Record the interest expense for December.

6. On December 1, Love Online had moved into the new facilities and had paid $4.000 for 2 month’s rent in advance.
7. Client fees already earned during December but not yet billed or recorded amounted to $25,000.

Instructions:

1. Prepare adjusting entries based on the information provided. (21 points = 3 points each)

1. Post all adjustments on the ledger accounts (T- accounts) (14 points)

1. Prepare closing entries (25 points)

1. Prepare an Income Statement (15 points)

1. Prepare a Statement of Retained Earnings. (10 points)

1. Prepare a Balance Sheet (15 points)

.

Rubrics

Exceptional 90-100

Good 80-89

Fair 70-79

Marginal fail 60-69

Knowledge & Understanding (20%)

Student demonstrates excellent understanding of key concepts and technical vocabulary used.

Student demonstrates good understanding of the task and mentions some relevant concepts and demonstrates use of the relevant vocabulary.

Student understands the task and provides minimum theory and/or some use of vocabulary.

Student understands the task and attempts to answer the question but does not mention key concepts or uses minimum amount of relevant vocabulary. Shows lack of study.

Application (30%)

Student applies fully relevant knowledge from the topics delivered in class.

Student applies mostly relevant knowledge from the topics delivered in class.

Student applies some relevant knowledge from the topics delivered in class. Misunderstanding may be evident.

Student applies little relevant knowledge from the topics delivered in class. Misunderstandings are evident.

Critical Thinking (30%)

Student critically assesses in excellent ways, drawing outstanding conclusions from material learned.

Student critically assesses in good ways, drawing conclusions from relevant topics learned in class.

Student provides some insights but stays on the surface of the topic. References may not be relevant.

Student makes little or no critical thinking insights and is unable to show having assimilated the concepts dealt with in class.

Communication (20%)

Student communicates their ideas extremely clearly and concisely, providing accurate and clear explanations required.

Student communicates their ideas clearly and concisely.

Student communicates their ideas with some clarity and concision.

Student communicates their ideas in a somewhat unclear and unconcise way. Conceptual and numeric errors are evident.