ACC 561 SNHU Accounting Cycle & Trial Balance Worksheet Overview: In this milestone, you will move through the next phase of the accounting cycle by creati

ACC 561 SNHU Accounting Cycle & Trial Balance Worksheet Overview: In this milestone, you will move through the next phase of the accounting cycle by creating the trial balance, adjusting entries, and adjusted trial

balance. Completing the adjusting entries implements the matching, timing, and periodicity of the generally accepted accounting principles. Omission of this

step will show a higher net income than there actually is, which could cause users of the financial statements to make an incorrect decision and suffer financially.

Prompt: You will find the provided data for your second milestone in the appendix at the end of this document. The data have been separated from the prompt

so that you can more easily view the full scope of this assignment. Links have been provided to help you locate the information.

Specifically, the following critical elements must be addressed:

I. Incorporate the feedback that you received from your Milestone One submission on Steps 1–4.

A. Step One: Complete the “July Journal Entries” tab in your workbook using the Step One data in the appendix.

B. Step Two: Complete the “August Journal Entries” tab in your workbook using the Step Two data in the appendix.

C. Step Three: Complete the “September Journal Entries” tab in your workbook using the Step Three data and updated scenario information in the

appendix. Note that there was an additional line of products added this month, so you must first complete the “Inventory Valuation” tab in your

workbook and copy the journal entries from the inventory evaluation page into your journal for this month to ensure the impact of

merchandising is reflected in your reporting.

D. Step Four: Transfer posted entries to T accounts.

II. Apply the accrual basis of accounting to correctly create adjusting entries in the preparation of financial statements:

A. Step Five: Prepare the unadjusted trial balance. Note that you should use the T account balances completed in the previous step to prepare the

unadjusted trial balance portion of the “Trial Balance” tab in your workbook.

B. Step Six: Complete the “Adjusting Entries” tab in your workbook using the Step Six data in the appendix. Note that you should take the adjusting

entries from this worksheet and enter them into the “Trial Balance” tab in your workbook.

C. Step Seven: Apply adjusting entries to create the adjusted trial balance. Note that the adjusting entries from Step Six will apply to affected

accounts in the unadjusted trial balance to arrive at the adjusted trial balance.

Rubric

Guidelines for Submission: Your completed accounting workbook should have all tabs fully and accurately populated in the provided Excel template.