THE UNIVERSITY OF NEVADA LAS VEGAS
WILLIAM F. HARRAH COLLEGE OF HOTEL ADMINISTRATION
Project Part 2
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.
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.
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.
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.
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%.
***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.
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.
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.
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 !
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.