On Dec 1st of this year, you have been hired as Chief Financial Officer (“CFO”) of a business called Beavers Entertainment Incorporated (“GoBeavs”). The company plans, organizes, and administers various music festivals, one of which is called Civil War Music Fest (“CWMF”) held at the Reser Stadium.
Part of your job as the CFO of the GoBeavsis to record the transactions related to running the festival. You will also be responsible for fixing errors, including unrecorded transactions.
The festival will begin Friday, Dec.12thand run through Sunday, Dec.14th. The owner of GoBeavs has contracted with various bands to play at your festival. Among them include Maron5, SOS, KidCudi, Foster the People, and Major Lazer.
You will provide a campground adjacent to the main festival as well as other amenities.
Items worth noting:
- GoBeavs has a 12/31 year-end.
- GoBeavs rounds all numbers to the nearest $1.
- The General Journal (GJ) is where you will record the journal entry (JE) associated with each individual transaction. Note: not all transactions or events require a JE.
- The General Ledger (G/L) is where you post the results of any JE. Each G/L account is in “standard account form” which is a more formal format of a typical T-account.
o Note: the headers of the individual G/L accounts do not indicate whether the account is a normal debit or credit balance. Use the information on the trial balance worksheets to determine whether an account has a normal debit or credit balance.
- The Adjusting Trial Balance (ATB) and Closing Trail Balance (CTB) reflect the unadjusted, adjusted, and closing balances of each G/L account. You will populate information from the individual G/L accounts into these worksheets which will ultimately help you produce the financial statements for the second phase of the project.
- The Financial Statements (F/S) reflect the summary information about GoBeavs. They are prepared using the information from the Adjusted TB. This is part of the second phase of the project.
- An example of how to record a JE and post it to the G/L is already in the GJ.
- Post JE’s to the G/L at the end of each transaction date to keep the G/L balances updated.
- All JEs and G/L postings are to be typed into the document.
- You must work through the problems sequentially; do not skip around doing random JEs. Do not “divide-and-conquer”.
