Principles of Financial Accounting Project
Description
Scenario
You work as the accountant of a sole proprietorship, Jamie’s Consulting. Jamie’s Consulting has decided to expand and would like to obtain a line of credit with the bank. To apply for a line of credit, the bank requires the most recent set of financial statements. To help the owner, Jamie, accurately convey the business’s performance and overall financial health to the bank, she has asked you to review the business’s recent transactions and write a brief that will prepare her for her meeting with the bank.
Directions
Unformatted Attachment Preview
Competency Overview
Principles of Financial Accounting
In this competency,
you will learn how to
demonstrate the
foundational
principles of
financial
accounting.
Project
You work as the accountant of a sole proprietorship that
has decided to expand and would like to obtain a line of
credit with the bank. To apply for a line of credit, the bank
requires the most recent set of financial statements. To
ensure the financial information is accurate, reliable, and
relevant, you will need to review the business’s
transactions and apply the most relevant accounting
principle. You will then write a brief to prepare the
business owner to accurately convey the business’s
performance and overall financial health to the bank.
(ACC-20132)
This competency is part of the goal:
Goal:
Foundations of Financial Accounting
Explore the foundational principles and skills in financial accounting. Learn how to
complete and interpret the financial statements to inform managerial decisions. Use
ratios and vertical and horizontal analyses to support recommendations.
To complete this goal, master all three competencies:
Financial Statements
Principles of Financial Accounting
Interpret the key
sections of financial
statements to make
management
decisions
Demonstrate the
foundational
principles of
financial accounting
Ratios and Analysis
Apply appropriate
ratios and vertical
and horizontal
analyses to
recommend
business decisions
(ACC-20133)
(ACC-20132)
(ACC-30134)
Quarterly Business Transactions
Quarter 2 (April 1-June 30)
Date
April 4
April 15
April 16
May 1
May 1
May 3
May 12
May 17
May 19
May 31
June 2
June 3
June 14
June 20
June 22
June 25
June 26
June 29
June 30
Transaction
Jamie’s parents gave $5,000. Jamie decided to invest it in the consulting business.
Jamie purchased a computer for $1,000 on account.
Jamie completed some work and was paid in cash $5,000.
Jamie paid monthly rent of $2,000.
Jamie paid the next two month’s rent as well.
.
Jamie paid the telephone bill.
Jamie paid the internet bill.
Jamie interviewed a potential admin and discussed $15 per hour.
Jamie completed work in the amount of $3,000 and was told to send a bill.
Jamie withdrew $1,000 for personal expenses.
Jamie went to a business seminar costing $500.
Jamie purchased supplies for work in the amount of $600.
Jamie completed work and was paid half in cash and told to send a bill for the other half. The total bill was $4,000.
Jamie paid monthly health insurance of $450.
Jamie paid the insurance on the business for one year, $1,200.
Jamie reimbursed an employee for mileage in the amount of $50.
Jamie has a side business selling organic cat food. Jamie paid for shipping of cat food out of the consulting business funds.
Jamie replenished petty cash and discovered a discrepancy of $110.00.
Jamie received a bill for a business seminar that she will attend in August
Financial Review Template
Transaction Description
Accounting Principle
Include Transaction?
(Yes/No)
Types of Accounts
Increases or Decreases Account
Justification Based on Accounting
Principle
Provide justification for applying the
principle to the transaction 1
Expense
Increase
Example:
Pays utility bill
Matching principle
Yes
Asset
Increase
Footnotes
[Insert references here]
Purchase answer to see full
attachment
Principles of Financial Accounting
In this competency,
you will learn how to
demonstrate the
foundational
principles of
financial
accounting.
Project
You work as the accountant of a sole proprietorship that
has decided to expand and would like to obtain a line of
credit with the bank. To apply for a line of credit, the bank
requires the most recent set of financial statements. To
ensure the financial information is accurate, reliable, and
relevant, you will need to review the business’s
transactions and apply the most relevant accounting
principle. You will then write a brief to prepare the
business owner to accurately convey the business’s
performance and overall financial health to the bank.
(ACC-20132)
This competency is part of the goal:
Goal:
Foundations of Financial Accounting
Explore the foundational principles and skills in financial accounting. Learn how to
complete and interpret the financial statements to inform managerial decisions. Use
ratios and vertical and horizontal analyses to support recommendations.
To complete this goal, master all three competencies:
Financial Statements
Principles of Financial Accounting
Interpret the key
sections of financial
statements to make
management
decisions
Demonstrate the
foundational
principles of
financial accounting
Ratios and Analysis
Apply appropriate
ratios and vertical
and horizontal
analyses to
recommend
business decisions
(ACC-20133)
(ACC-20132)
(ACC-30134)
Quarterly Business Transactions
Quarter 2 (April 1-June 30)
Date
April 4
April 15
April 16
May 1
May 1
May 3
May 12
May 17
May 19
May 31
June 2
June 3
June 14
June 20
June 22
June 25
June 26
June 29
June 30
Transaction
Jamie’s parents gave $5,000. Jamie decided to invest it in the consulting business.
Jamie purchased a computer for $1,000 on account.
Jamie completed some work and was paid in cash $5,000.
Jamie paid monthly rent of $2,000.
Jamie paid the next two month’s rent as well.
.
Jamie paid the telephone bill.
Jamie paid the internet bill.
Jamie interviewed a potential admin and discussed $15 per hour.
Jamie completed work in the amount of $3,000 and was told to send a bill.
Jamie withdrew $1,000 for personal expenses.
Jamie went to a business seminar costing $500.
Jamie purchased supplies for work in the amount of $600.
Jamie completed work and was paid half in cash and told to send a bill for the other half. The total bill was $4,000.
Jamie paid monthly health insurance of $450.
Jamie paid the insurance on the business for one year, $1,200.
Jamie reimbursed an employee for mileage in the amount of $50.
Jamie has a side business selling organic cat food. Jamie paid for shipping of cat food out of the consulting business funds.
Jamie replenished petty cash and discovered a discrepancy of $110.00.
Jamie received a bill for a business seminar that she will attend in August
Financial Review Template
Transaction Description
Accounting Principle
Include Transaction?
(Yes/No)
Types of Accounts
Increases or Decreases Account
Justification Based on Accounting
Principle
Provide justification for applying the
principle to the transaction 1
Expense
Increase
Example:
Pays utility bill
Matching principle
Yes
Asset
Increase
Footnotes
[Insert references here]
Purchase answer to see full
attachment
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