UNIVERSITY OF NEVADA LAS VEGAS TCA 221 Fall 2014 Project Part 2

INTRODUCTION
This project is the second part of a three-part project that assesses your knowledge of
financial accounting and the accounting cycle. In the first part, you were required to
prepare journal entries, T-accounts and a trial balance for a variety of transactions for a
new hospitality company. In part 2 of the project, you are asked to analyze adjusting
entries and to prepare journals, T-accounts and an adjusted trial balance. In the third part
of the project (posted after part 2 is complete) you will need to prepare closing journal
entries and T-accounts in addition to an income statement and balance sheet. This part of
the project is based on the first part so you must adjust your first part for any mistakes.
DUE DATE
The project will be due on Monday, November 3rd, 2014, at the beginning of class.
Projects received after this date will be penalized 10 points (out of 100) each 24-hour
period they are late (beginning at the start of class). You can earn 10% points extra credit
by turning a completed project in at the beginning of class on Monday, October 27, 2014.
No projects will be accepted for extra credit after the start of class on Monday, November
3rd, 2014, including even one minute late. Also, any projects not completed are not
eligible for extra credit including not having all page or parts attached.
BACKGROUND
After graduating from UNLV with a degree in Hotel Administration you have decided to
open your own hotel property as a sole proprietorship. The project is a hotel called
Serenity. Since you have taken a financial accounting class as part of your undergraduate
degree, you have decided to save the money to hire an accountant and do the work
yourself. Also as the owner, it is your responsibility that all transactions are recorded
properly and that the financial statements are correct so either way you need to
understand the transactions and process.
REQUIREMENTS
1. All analysis must be completed using Excel. Handwritten journals, T-accounts, or trial
balance will not be accepted nor will any other file format. When using Excel
formulas must be used when possible and numbers should not be hardcoded. For
instance, do not just solve the amount of the adjusting entries using your calculator
and just type in the answer. In Excel you must have a formula for any
calculations. The only hardcoded numbers are the ones that have no calculation
involved. There should be only formulas on the T-accounts and trial balance.


2. All pages must be printed “portrait style” (i.e. longer down than across). The trial
balance must be on one page. The journals and T-accounts can be on multiple pages
but they must not wrap pages across, only down.
3. In addition to the journals, T-accounts, and trial balance, you must print out the
formulas you used for the trial balance. The instructions are shown below. The
formula printouts are to be handed in. They do not have to all fit onto one page. Not
doing this is Excel, not using the Excel formulas, or not submitting the formula
sheet will result in a 10% point penalty.

STEPS TO PRINT OUT FORMULAS IN EXCEL 2007/2010
1. Go to the “FORMULAS” menu in Excel.
2. Click on “SHOW FORMULAS”.
3. Unclick on “SHOW FORMULAS” to get worksheet back to numbers.
STEPS TO PRINT OUT FORMULAS IN EXCEL 2010 ON A MAC
1. Go to the “FORMULAS” menu in Excel.
3. Click on “SHOW” in the “FUNCTION” area and check “SHOW FORMULAS”.
4. Uncheck “SHOW FORMULAS” to get worksheet back to numbers.
4. You should present your work as follows:
a) Cover sheet with your Name and ID
b) Your corrected trial balance from Part 1 (even if there were no errors you must submit
the Part 1 trial balance).
c) Adjusting entries;
d) T-accounts (all);
e) Adjusted Trial balance;
f) Formulas for the adjusting entries, T-accounts, and adjusted trial balance
5. All dollar figures should be formatted to the nearest dollar with no demical. Make
sure that your submission is formatted with dollar signs and commas.

6. All pages must be professional, legible, and formatted as if you were providing this to
the owner or outside creditors. This includes, but is not limited to spelling,
presentable, correct format for journals, T-accounts, and trial balance per what was
learned in class and in the book. Penalty points can range up to 20% points for
unprofessional work and not following 1, 2, 4, 5 or 6.

7. Staple all of your analysis together so that it won’t get lost or misplaced. Projects
that are not stapled together will lose points 5% points. Do not put projects in
binders or paperclips, staple only.

8. Projects that do not meet these requirements will be penalized. All penalty
points come off the starting value of 100%.

You are expressly forbidden to consult anyone besides your partners about
this project (except the instructor).
***IMPORTANT*** To complete this assignment, you must use the last four digits
of your NSHE number, called your ID. You must state on the cover page what that
ID number is or you will be penalized 10% points and your project returned
without grading to get that ID number since the answer cannot be solved without
this. If your NSHE number begins with one or more zeros, place them at the end.
Example: 0097 becomes 9700.
PROJECT DETAILS
After completing Part 1 of the project, you need to fix any errors you may have had. A
correct trial balance will be given back to you with your Part 1. It is your responsibility
to make sure and fix any journals or T-accounts that were wrong and to make sure the
trial balance you now have matches the one given to you. Also, this project is an
extension of Part 1, so just like in the real world the previous transactions do not go away.
You start from where that part ended and add this information.
After you have corrected Part 1, the following transactions are adjusting entries that need
to be booked as of June 30, 20XX:
1. The money borrowed on June 2 is an interest-only loan with a 10 percent interest
rate. The interest accrues each month even though it is only paid quarterly with the
first payment not due until September 2, 20xx. Compute interest on a monthly basis
not by number of days.
The building has no salvage value and is depreciated on a straight-line basis over
30 years. The equipment has no salvage value and is depreciated on a straight-line
basis over 10 years.
2. One month of insurance coverage has expired. Assume an entire month’s worth
of insurance has expired not only the number of days between payment and end of
June.
3.There is $8,500 of food and beverage inventory left in storage at the end of the
month and there was no inventory used for internal purposes.
4.The last payday was June 28th (employees were paid for working that day).
Wages accrue at $200 per day.
5.Required:
1. Fix any errors from Part 1
2. Prepare adjusting entries in good form based on the above information. (Part 1 entries
are not required and should not be turned in)
3. Post the journal entries into T-accounts (make sure you have a total amount for each
account and that the T-accounts have Part 1 and Part 2 amounts). Remember t-accounts
do not go away. Any T-account from Part 1 whether it was affected or not needs to be
included. There should be no hardcoded numbers on the T-accounts, formulas only.
3

4. Complete an adjusted trial balance in good form as of June 30, 20xx. There should be
no hardcoded numbers on the adjusted trial balance, formulas only.

HELPFUL HINTS
This is a real world financial accounting exercise. It is intended to integrate the material
learned in class. Submissions are expected to resemble those presented to the owner of a
hospitality operation. Make sure they are legible and presented in good order.
PLAN FOR DISASTER. Make back-up copies of your project files onto at least two
different drives or CD’s (you will need this part later anyway). You can also use the
discussion group to save a copy. Lost, missing, or corrupted file problems will not
warrant an extension. Take good care of your files and your back-ups.
Good luck!
GRADING RUBRIC
These items are points that come right off the starting score of 100%
No Cover page with ID and student name. Both must be
included
Turning in late (starting at 1 min after class starts)
Project not in required order as per #4 on Requirements
Project not stapled (binders and paperclips not allowed)
Formula sheets not included (any 1 missing is total points off)
Formatting (dollar signs, spelling, presentable, borders, etc.)