Solved | You are an accountant for The Flower Shoppe. Your supervisor has asked you to
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You are an accountant for The Flower Shoppe. Your supervisor has asked you to help her prepare the year-end financial statements. Before you do, she wants to ensure that you understand some main points.
- Explain the following:
- The elements of the balance sheet, their purposes, and how to measure them
- The elements and purpose of the statement of changes in stockholder's equity
- Based on the adjusted trial balance and additional information, prepare the following in an Excel file to give to the controller for review:
- Balance sheet
- Income statement
- Statement of retained earnings
- Statement of cash flows
The following is additional information about the Flower Shoppe that is needed for financial-statement preparation:
- Net income for the year ended December 31, 2008 was $10,845.
- Changes from the prior year's balances included the following:
- a decrease in accounts receivable of $300.
- a decrease in inventory of $450.
- an increase in accounts payable of $250.
- an decrease in accrued expenses of $100.
- Land was purchased in April for $3,500.
- Cash as of January 1, 2008 was $10,105.
Please submit your assignment.<span></span>
Your assignment will be graded in accordance with the following criteria. Click to view the grading rubric.
For assistance with your assignment, please use your text, Web resources, and all course materials.<span></span>
Individual Project Rubric:
| The Flower Shoppe | ||
| Adjusted Trial Balance | ||
| December 31, 2008 | ||
|
| Debit | Credit |
| Cash | $22,750 |
|
| Accounts Receivable | 3,200 |
|
| Inventory | 8,000 |
|
| Land | 27,000 |
|
| Building | 56,000 |
|
| Accumulated Depreciation |
| 16,800 |
| Accounts Payable |
| 4,600 |
| Accrued Expenses |
| 2,500 |
| Common Stock |
| 20,000 |
| Additional Paid-in Capital |
| 10,000 |
| Dividends | 1,200 |
|
| Retained Earnings |
| 53,405 |
| Sales |
| 112,020 |
| Returns | 1,300 |
|
| Purchases | 47,000 |
|
| Salaries | 38,000 |
|
| Supplies | 870 |
|
| Utilities | 5,225 |
|
| Telephone | 2,850 |
|
| Bank Charges | 330 |
|
| Depreciation Expense | 5,600 |
|
|
| $219,325 | $219,325 |
| Grading Criteria | Percentage |
| Deliverable requirements addressed; understanding of material and writer's message and intent are clear | 40% |
| Calculation methods, where required, are contextually appropriate, fully explained, and presented in a manner that is easy to understand | 10% |
| External research incorporated into the paper, if any, supports writer's position properly acknowledged and cited direct quotations may not exceed 10% of the word count of the body of the assignment deliverable (excluded title page, abstract or table of contents if used, tables, exhibits, appendices, and reference page(s).) Inclusion of plagiarized content will not be tolerated and may result in adverse academic consequences. | 5% |
| Critical thinking: Position is well-justified; logical flow; examples | 20% |
| Structure: Includes introduction and conclusion; proper paragraph format and reads as a polished, academic paper or professional presentation, as appropriate for the required assignment deliverable | 10% |
| Mechanical: No spelling, grammatical, or punctuation errors | 10% |
| APA: Deliverable is cited properly according to the APA Publication Manual (6th ed.) | 5% |
