An accounting cycle comparison

Please jus the beginning Trial Balance completed in a completed Chart Of Accounts

The Company History and Instructions

Runners Company was started in the State of Ohio two years ago by Mr. Noah Arc as a sole proprietorship. The company distributes running shoes to retailers all over the United States.

Runners Company currently maintains an accrual based manual accounting system and uses specialized journals to record its business transactions. A general ledger is maintained, as are an accounts receivable subsidiary ledger and an accounts payable subsidiary ledger. Financial statements are prepared at the end of each month, and the books are closed on December 31.

An accounting cycle comparison:

Accounting procedures are essentially the same whether they are performed manually or on a computer. The following is a list of the accounting cycle steps in a manual accounting system as compared to the steps in a computerized accounting system.

STEPS OF THE ACCOUNTING CYCLE
Manual Accounting System
1. Business transactions occur and generate source documents.
2. Analyze and record business transactions manually into a journal.
3. Post or transfer information from journal to ledger.
4. Prepare a trial balance.
5. Prepare a worksheet, determine and enter necessary adjustments.
6. Journalize and post adjusting entries.
7. Prepare financial statements.
8. Journalize and post-closing entries.
9. Prepare a post-closing trial balance

The accounting cycle comparison shows that the accountant’s task of initially analyzing business transactions in terms of debits and credits (both routine business transactions and adjusting entries) is required in both manual and computerized accounting systems. However, in a computerized accounting system, the “drudge” work of posting transactions, creating and completing worksheets and financial statements, and performing the closing procedures is all handled automatically. In some computerized accounting programs, entries may be entered on business forms and the computer will show the entry in debit/credit format when viewing the Journal.

In addition, computerized accounting systems can perform accounting procedures at greater speeds and
with greater accuracy than can be achieved in a manual accounting system. It is important to recognize,
however, that the computer is only a tool that can accept and process information supplied by the
accountant. Each business transaction and adjusting entry must first be analyzed and recorded in a
computerized journal correctly; otherwise, the financial statements generated by the computerized
accounting system will contain errors and will not be useful to the business.

Instructions

The Accounting Records for Runners Company

The business transactions completed during the first eleven months of the current year have been
recorded by Runners Company’s former bookkeeper in the manual general ledger. You have been hired to
complete the accounting work for December 2019 into the new computerized accounting system that the owner has chosen, QuickBooks Online, and to prepare the financial statements for the year.

All beginning balances for each general ledger account, each customer and vendor account are included, beginning with the Trial Balance as of December 1, 2019, you are to create the company in the QuickBooks Online program and proceed to complete the December transactions.

After completion of this practice set, you are required to file the tax return for Noah Arc. The return is due July 15, 2020 (Extended because of COVID 19). The normal due date is April 15, 2020

The Runners CompanyTrial Balance December 1, 2019
Acct. No.	Debit	Credit
10100	$ 56,386
10500	20,000
11000	47,839
11100		$4,500
11500	20,595
11700	250
11900	2,000
16000	10,000
17000	150,000
17500		7,500
18000	42,675
18500		8,535
19000	5,000
20100		56,803
20200
20300
20400
20500
20600
20700
30100		168,662
30200
36000
41000		475,445
41500	4,000
41600	2,000
41700
51000	206,000	.,
60100	133,685
60200	3,000
60300	2,000
60400	7,000
60500
60600
60700	2,750	'
60800	4,500
60900	1,665
61000	100
61200
61300
61400
	$721,445	721,445

The Accounts Receivable and Accounts Payable Beginning balances for December 1, 2019 appear below:

Accounts Receivable Subsidiary Ledger
Customer ID	Date of Original Invoice	Invoice Number	Amount
2050	Feb. 1	6030	$2,000
2052	Nov. 1	6180	28,689
2055
2056	Nov. 1	6192	4,000
2057	Nov. 1	6189	13,150
2058
			$47,839

Accounts Payable Subsidiary Ledger
Vendor Number	Date of Original Invoice	PO/Invoice Number	Amount
01
02	Nov. 17	3533	$33,000
03	Nov. 17	3532	$18,000
04	Nov. 17	3534	$5,803
05
			$56,803

1. Set up all General Ledger accounts according to the December 1, 2019 Trial Balance that is provided.

May sure you use a December 1, 2019 date during ALL phases of set up.

You may enter the beginning balance amounts for each account at this time or you can use a journal entry to enter beginning balances. DO NOT ENTER BEGINNING BALANCES FOR THE ACCOUNTS RECEIVABLE, THE ACCOUNTS PAYABLE and THE INVENTORY ACCOUNT. The beginning balances for these 3 accounts will be entered later.

Acct. No.	AccountType	DetailType	Debit	Credit
10100	Bank	Checking	$56,386
10500	Other Current Assets	Investments – Other	20,000
11000	Accounts Receivable	Accounts Receivable
11100	Other Current Assets	Allowance for Bad Debts		4,500
11500	Other Current Assets	Inventory
11700	Other Current Assets	Prepaid Expenses	250
11900	Other Current Assets	Prepaid Expenses	2,000
16000	Fixed Assets	Land	10,000
17000	Fixed Assets	Buildings	150,000
17500	Fixed Assets	Accumulated Depreciation		7,500
18000	Fixed Assets	Machinery & Equipment	42,675
18500	Fixed Assets	Accumulated Depreciation		8,535
19000	Fixed Assets	Furniture & Fixtures	5,000
20100	Accounts Payable	Accounts Payable
20200	Other Current Liabilities	Federal Income Tax Payable
20300	Other Current Liabilities	Other Current Liabilities
20400	Other Current Liabilities	Other Current Liabilities
20500	Other Current Liabilities	Other Current Liabilities
20600	Long Term Liabilities	Note Payable
20700	Other Current Liabilities	Other Current Liabilities
30100	Equity	Opening Balance Equity		168,662
30200	Equity	Owner’s Equity
Acct No.	Account Type	Detail Type	Debit	Credit
36000	Equity	Paid in Capital or Surplus
41000	Income	Sales of Product Income		475,445
41500	Income	Discounts/Refunds Given	4,000
41600	Income	Discounts/Refunds Given	2,000
41700	Income	Other Investment Income
51000	Cost of Goods Sold	Supplies & Materials- COGS	206,000
60100	Expenses	Office General Administration	133,685
60200	Expenses	Utilities	3,000
60300	Expenses	Supplies and Materials	2,000
60400	Expenses	Advertising/Promotional	7,000
60500	Other Expense	Depreciation
60600	Other Expense	Depreciation
60700	Expenses	Insurance	2,750
60800	Expenses	Bad Debts	4,500
60900	Expenses	Other Business Expenses	1,665
61000	Other Expense	Other Miscellaneous Expense	100
61200	Expenses	Interest Paid
61300	Other Expenses	Depreciation
61400	Expense	Taxes Paid
19500	Fixed Assets	Accumulated Depreciation
61100	Cost of Goods Sold	Supplies & Materials-COGS

2. Add the following Customers and their beginning balance amounts:

Accounts Receivable beginning balances for December 1, 2019
Customer ID	Original Date ofInvoice	InvoiceNumber	Amount
2050	Feb 1	6030	$2,000
2052	Nov 1	6180	28,689
2055
2056	Nov 1	6192	4,000
2057	Nov 1	6189	13,150
2058
		Totals	$47,839

3. Add the following Vendors and their beginning balance amounts:

Accounts Payable beginning balances for December 1, 2019
Vendor Number	Original Date ofInvoice	PO/InvoiceNumber	Amount
01
02	Nov 17	3533	$33,000
03	Nov 17	3532	18,000
04	Nov 17	3534	5,803
05
		Totals	$56,803

4. Add the following items that you will be selling to the Products and Services List:

· The TYPE is Inventory

· The Inventory asset account is 11500 Inventory

· The Income account is 41000 Sales

· The Expense account is 51000 Cost of Goods Sold

Item #& Name	CostPrice	Sale Price
105/Adidas	$25	$75
110/Reebok	$35	$90
120/Converse	$22	$65
130/Payless	$19.95	$50

5. After the completion of instructions 1 through 4, print a Trial Balance as of December 1, 2019. Check your work by comparing to the original Trial Balance. Correct any errors. Name the Trial Balance:

Runners Company

Trial Balance

As of December 1, 2019

You are required to submit this with the rest of your project.

6. Enter all of the transactions for December 2019.

7. Prepare a Schedule of Accounts Receivable as of XXXXXXXXXX and submit with the rest of your project.

8. Prepare a Schedule of Accounts Payable as of XXXXXXXXXX and submit with the rest of your project.

9. Print a Trial Balance before you begin adjustments. Name the Trial Balance:

Runners Company

Trial Balance before Adjustments

As of December 31, 2019

You are required to submit this with the rest of your project.

10. You are now prepared to enter your adjustments. The following is your Adjustment data:

After you complete your adjustments, run another trial balance and name it, Trial balance after Adjustments. You are required to submit this with the rest of your project.

· The physical inventory of merchandise at the close of business, December 31, 2019 showed $25,822.50 consisting of:

Item #105 Quantity on Hand 250 pairs

Item #110 Quantity on Hand 320 pairs

Item #120 Quantity on Hand 172 pairs

Item #130 Quantity on Hand 230 pairs

Use the Inventory Quantity Adjustment window to make the above adjustments to inventory.

Use the Inventory Quantity Adjustment window to make the above adjustments to inventory, using general account #61100, Inventory Adjustment Expense. The total value of the adjustments adds up to -$1,351.

· Refer to your Trial Balance before adjustments to verify adjustments:

The physical inventory of merchandise at the close of business on December 31, 2019 showed $25,822.50

Office Supplies on hand on December 31, $1,500

Insurance expired for the month of December, $250

Depreciation expense for 2019: (You can enter a compound entry)

Office Equipment $8,535

Building 7,500

Display Cases 1,000

Accrued salaries at December 31, $7,000 (no need to record payroll taxes)

Accrued interest at December 31, $400

Accrued property tax For November and December but payable in April 2020, $1,139

Income tax Paid on Dec 31, 2019 is $24,000.

Management has decided to increase the Allowance for Uncollectible Accounts by $200.

11. Run the following reports which will be turned in with this project and will be used to complete the tax return for this project:

Income Statement Run the report from December 1, 2019 to December XXXXXXXXXX

Balance Sheet Run report from December 1, 2019 to December 31, 2019

Statement of Cash Flows Run the report from December 1, 2019 to December 31, 2019

Journal Run the report from December 1, 2019 to December 31, 2020

Journal Run the report from December 2, 2019 to December 31, 2020

12. Include the following ratios to be submitted with your project:

· Current Ratio

· Quick ratio

· Debt ratio

· Return on assets

· Return on equity

13. Prepare a tax return using the free Intuit ProConnect tax software. This return and all its schedules and forms are to be submitted with your project

Instructions for Tax return for Noah and Joan Arc

Noah and Joan Arc live with their family in Dayton, Ohio. Johns Social Security number is XXXXXXXXXXNoah was born on February 22, 1972, and Joan was born on July 1, 1984. Both enjoy good health and eyesight. Noah owns and operates a company that sells running shoes to other stores around the United States. Joan is a firefighter for the city of Dayton.

1. The Arcs have two children, a son named Billy Bob (Social Security number XXXXXXXXXX), born on March 21, 2010, and a daughter named Mary Sue (Social Security number XXXXXXXXXX), born on December 3, 2013.

2. Noah and Joan’s Tax documents are included.

3. Noah’s company is located at 1415 S. Patterson Blvd, Dayton, OH XXXXXXXXXXThe name of the company is “The Runners Company” and its taxpayer identification number is XXXXXXXXXXSince you handle Noah’s accounting, you have printed the income statement from your QuickBooks software included in the attached paperwork.

4. Noah and Joan paid the following amounts during the year (all by check):

Political contributions $250

Church donations (for which a written

Acknowledgement was received) 2,625

Real Estate on their home 1,375

Medical co-pays for doctor visits 700

Mortgage interest for purchase of home see form 1098 included

Tax return preparation fees 500

Credit card interest 220

Auto insurance premiums 600

Uniforms for Joan 125

5. Noah has a long-term capital loss carryover from last year of $2,375.

6. Noah and Joan own rental property located at 16 Oakwood Ave, Dayton, OH 45409.The revenue and expenses for the year are as follows:

Rental Income $13,800

Insurance 575

Interest expense 6,870

Property Taxes 1,000

Miscellaneous Expenses 700

Depreciation (The house was acquired in XXXXXXXXXX,000

7. All family members were covered the entire year under health care insurance under Joan’s employer.

8. The Arcs paid Ohio general sales tax of $976 during the year.

Required: You are to prepare their federal income tax return in good form, signing the return as the preparer. Make realistic assumption about any missing data (addresses, etc.) that you may need.

The following forms and schedules are required:

Form 1040 Schedule E

Schedule 1 Schedule SE

Schedule B Form 2441

Schedule C Form 8949

Schedule D Qualified Dividends and Capital Gain Worksheet

Form 8995 Child Tax Credit Worksheet

Charlotte Squab Financial Services

This Photo by Unknown Author is licensed under CC BY-SA

EIN: XXXXXXXXXX

123 Wall Street

New York, NY 10022

December 31, 2019

Joan and Noah Arc

1265 W. Riverview Avenue

Dayton, OH 45402

SSN: XXXXXXXXXX

Dividends
Payor	Box 1bQualifiedDividends	Box 2aCapitalGainDistributions	Box 4Federal IncomeTax Withheld	Box 6Foreign TaxPaid	Box 10Tax-ExemptDividends
Exxon Mobil	308.00	00.00	00.00	00.00	00.00
Texas Utilities	1,220.00	00.00	00.00	00.00	00.00
Coca-Cola	320.00	00.00	00.00	00.00	00.00

StockTransactions
Description	Date Sold	Proceeds	Basis ReportedTo IRS
100 shares BlueCorp.	08/15/2019	4,500.00	2,500.00
50 shares YellowCorp.	06/05/2019	6,100.00	5,300.00
25 shares Red corp.	10/07/2019	12,300.00	1,600.00

ROUNDUP DAYCARE CENTER 245 N. WILKINSON TREET DAYTON, OH 45402

January 12, 2020

Noah and Joan Arc

1265 W. Riverview Avenue

Dayton, OH 45402

Dear Joan and Noah,

Thank you for a great 2019 at Roundup! We appreciate your patronage during the year and hope to provide excellent service for Mary Sue in 2020. We have provided the tax information for calendar year 2019 below. Please let us know if you need any additional informational.

Sincerely,

Charles F. Burgundian

Charles F. Burgundian

Executive Director, Roundup Day Care

EIN XXXXXXXXXX

Date of Service	Child’s Name
Jan 01, 2019 to Dec 31, 2019	Mary Sue Arc

• WE OFFER THE BEST CUSTOM PAPER WRITING SERVICES. WE HAVE DONE THIS QUESTION BEFORE, WE CAN ALSO DO IT FOR YOU.
• Assignment status: Already Solved By Our Experts
• (USA, AUS, UK & CA PhD. Writers)
• CLICK HERE TO GET A PROFESSIONAL WRITER TO WORK ON THIS PAPER AND OTHER SIMILAR PAPERS, GET A NON PLAGIARIZED PAPER FROM OUR EXPERTS

QUALITY: 100% ORIGINAL PAPER – NO PLAGIARISM – CUSTOM PAPER

Why Choose Us?

How It Works

• Click on the “Place Your Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
• Fill in your paper’s requirements in the “PAPER DETAILS” section.
• Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
• Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
• From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.

About AcademicWritersBay.com

AcademicWritersBay.com is an easy-to-use and reliable service that is ready to assist you with your papers 24/7/ 365days a year. 99% of our customers are happy with their papers. Our team is efficient and will always tackle your essay needs comprehensively assuring you of excellent results. Feel free to ask them anything concerning your essay demands or Order.

AcademicWritersBay.com is a private company that offers academic support and assistance to students at all levels. Our mission is to provide proficient and high quality academic services to our highly esteemed clients. AcademicWritersBay.com is equipped with competent and proficient writers to tackle all types of your academic needs, and provide you with excellent results. Most of our writers are holders of master’s degrees or PhDs, which is an surety of excellent results to our clients. We provide assistance to students all over the world.
We provide high quality term papers, research papers, essays, proposals, theses and many others. At AcademicWritersBay.com, you can be sure of excellent grades in your assignments and final exams.