acct 207 project adjusting journal entries and financial

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  ACCT 207 PROJECT 

Adjusting Journal Entries and Financial Statements 

 

 

Purpose 

Improve your understanding of the relationships between the financial statements; increase your 

confidence in preparing and recording accounting entries; increase your ability to understand the 

preparation of formal financial statements. 

 

 

Instructions 

Included are the unadjusted trial balance for Sinfully Sweet Desserts at December 31, 2018, and a 

list of adjusting journal entries required at year-end. 

 

•  First, enter the December 31, 2018, beginning balances from the Unadjusted Trial Balance 

into your accounting “system” (i.e., enter the beginning balances into the T-accounts 

provided on pp. 4-7). 

  

•  Second, “record” (i.e., write out in proper journal entry format) each of the adjusting entries 

from page 3 on page 8 (i.e., on blank page with the header “Adjusting Entries”). 

IMPORTANT – Don’t forget to post each of these adjusting entries to the correct T-

accounts on pp. 4-7 – this ensures that your adjusting entries are properly updating the 

various accounts in your “system”.  

 

•  After journalizing and posting all of your adjusting entries, tally up all the ending balances 

in the T-accounts on pp. 4-7. Then, use these ending balances to fill out the Adjusted Trial 

Balance on page 9.  

 

•  From the Adjusted Trial Balance, then your accounting “system” (i.e., you) will complete 

the Multiple-Step Income Statement (p. 10), Statement of Retained Earnings (p. 11) for the 

year ended December 31, 2018, and the Classified Balance Sheet (p. 12) as of December 31, 

2018. (Hint: One of your asset accounts will have a zero balance.)     

 

Expectations 

 

This is an individual project. Therefore, each student will turn in his/her own copy of this completed 

packet. However, I want this to be a pleasant learning experience. Therefore, while I want everyone 

to complete their own packet, I encourage you to work together! Have “fun” with it!  

 

Due Date 

 

All packets must be submitted to me by Tuesday, May 15 th .  If you do not turn in the project by 

May 15 th , you will receive a zero – no exceptions.  Further, if you decide that you want to turn in 

the project before the deadline, that’s fine by me!  In fact, I encourage you to do so!   ADDITIONAL NOTES 

 

•  Do not wait until the last minute to do this project – things always take longer than you 

expect them to.  I suggest you knock this project out in one shot – i.e., set aside a block of 

time and complete it. 

 

 

•  For assistance with this project, I would refer to Chapter 4 in your textbook. Specifically, 

take look at Problem 4-3A!  

 

 

•  This is a project that nobody should have a real problem completing. We have reviewed 

problems like this in class. Therefore, do not expect me to sit down with you and walk 

you through this project (I will only answer very simple questions about this project). 

Get together, set aside a block of time, and knock it out! 

 

 

•  When you are ready turn in the project, make sure the packet is stapled together (assuming 

you took it apart to complete it). I will not accept unstapled packets!