ACCT205-1804A-03 UNIT 5 SUBMISSION ASSIGNMENT
Using the same data in the Unit 3 Submission and incorporating
the feedback you received from your instructor on Submission 3,
perform the steps below to complete the final project.
Adjustment Data:
One month’s insurance coverage has expired.
The company occupied the office space for the month of
December.
At the end of the month, $600 of office supplies are still
available.
Create journal entries to record the transactions that occurred
during the month of December. (Completed in Unit 3)
Prepare an unadjusted trial balance (Completed in Unit 3)
Create adjusting journal entries at the end of the year,
December 31 based on the adjustment data.
Prepare an adjusted trial balance.
Prepare an income statement, statement of stockholders’ equity,
and classified balance sheet.
Create closing journal entries to close all temporary
accounts.
Prepare post-closing trial balance.
In addition, answer TWO of the questions below in 1-2 fully
developed paragraphs. A fully developed paragraph should have a
major point with 3 to 5 support sentences. One or two sentences is
not acceptable or does not discuss the question. Be sure to show
what you know!!!
Trap Adventures, Inc. is looking for an accountant. In your own
words, explain to Trap’s hiring team the role of accountant and
accounting within business. Provide examples of the expectations of
the accountant.
Discuss the financial position of Trap Adventures, Inc. using
the following ratios:
Current ratio
Return on equity: For each ratio, provide the calculation and an
explanation of the meaning. Is this a positive or negative result
for the Trap Adventures, Inc.?
Using Trap Adventures, Inc.’s income statement, evaluate the
operations for the month of December. Complete a common-size income
statement using sales as the base number. What is the largest
percentage? What is the smallest percentage? What recommendations
could be made to increase Trap’s net income?
Currently, Trap Adventures, Inc. does not own any loans or bank
notes (long-term liabilities). What would happen if Trap decides to
obtain a bank loan for $25,000 to fund daily operations? How would
this transaction impact the financial statements – which accounts
would be affected? What is the debt to equity ratio? What does the
debt to equity ratio represent
