As stated previously, the amounts in the file change based on the student name. The amounts shown in Table 2 result from the use of Joe Average Guy entered into cell C1 on the assumptions worksheet. The concept is to make the first year of the project (20X1) relatively easy in terms of the accounting issues. This ensures that the students are comfortable with the process of maintaining all aspects of the accounting system, including the use of debits and credits. Manually posting the information to the general ledger from the various books of original entry reinforces the relationship between the ledger accounts and the journals and takes the mystery out of the system. In essence, while few manual accounting systems exist these days, we do not want the students to become so dependent on computerized accounting systems that they do not understand what those systems are actually doing.

A comparison of the trial balances of the accounts receivable and accounts payable subsidiary ledgers ensures that they are correct and tie to the amounts in the adjustments worksheet. A review of the general journal ensures it reflects only the appropriate transactions, and an examination of the general ledger ensures that it reflects the adjustments and is closed. Students project accounting submit the adjustments worksheet and financial statements on Blackboard for the third assignment for grading of their Excel work.» » » READ MORE