PREPARATION OF A CHECK BALANCE AND ADJUSTMENTS OF THE FERRITERI HARDWARE IN CHARGE OF PEDRO SARANGO IN THE PERIOD JANUARY TO MARCH 2020 IN THE COMMERCIAL ACTIVITY.

DESCRIPTION: Serve as support for mr. Pedro Sarango in the preparation of a balance of verification and adjustment of the Ferreteri hardware store in the period from January to March 2020 in commercial activity.

QUESTION MULTIPLE OPTION.

What is the best solution to help the owner of the hardware store “FERRETERI” to make a trial and adjustment balance as the first step in preparing the financial statement of your company?

Application of knowledge on the elaboration of accounting processes necessary to be able to carry out the balance of trial and adjustment correctly.

RESPONSIBLE FOR MONITORING THE PROJECT BY THE EDUCATIONAL INSTITUTION

Name and Surname: Sonia Vicenta Saritama Ramírez

Telephone: 0999665964

mail: sonniasr@hotmail.com

Date and signature of approval: Signature:

________________________ _______________________

Approval signature Student signature

PART I: PLANNING AND ANALYSIS OF THE PROPOSED SITUATION

1.1. Identification of contents or skills to apply

A trial balance statement is a financial instrument that is used to display the list of the total debits and credits of the accounts, together with the balance of each one of them, whether debtor or creditor in this way, allowing to establish a basic summary of a financial statement. The company’s trial balance is made using the general ledger balances are segregated into the debit and credit balances. The assets and expenses accounts appear in the “Debit” of the trial balance, on the other hand, the liabilities, capital and income accounts appear on the credit side.

Identify and apply the elements that govern the activity of the buying and selling sectors, their interaction with the environment, as well as the impact on the different subsystems of the sector
Distinguish, identify and apply basic accounting concepts regarding products related to buying and selling companies.
Demonstrate that you know and understand the basic principles of purchase and sale accounting in all its dimensions, trial balance, activities and areas within the context of the accounting sector.

– General Accounting: Develop the accounting process of a Service and Commercial Company subject to accounting, labor and tax regulations with the

purpose of determining the economic and financial situation that they contribute to decision making.

– Bank accounting: Register the accounting movements of financial products and services in order to establish the economic and financial situation of an entity.

– Taxation: Determine the tax obligations of the taxpayer in accordance with current regulations.

1.1. Recognition of the topic to review and reinforce

The topics of the competence units that are identified as needing reinforcement are:

Identify the concepts of equity, balance and capital.
Know and know how to use the ordering and evaluation criteria of the elements in the balance sheet.
Acquire the concepts and schemes of the accounting cycle of a company
Know the accounting of the most common operations of the company
Define and know the classification of the annual accounts (balance sheet and profit and loss account).
Be able to define accounting principles and valuation rules of the General Accounting Plan
Idea and accounting process of value added tax.

Its connection with the subjects of the common trunk in the framework of interdisciplinarity is:

– Entrepreneurship and Management: Because it allows recognizing the basic components of assets, liabilities, equity, income, costs and expenses, in accordance with accounting regulations to properly classify accounting accounts. Prepare a profit and loss statement.

– Accounting packages: It allows the electronic sheet, accounting and tax packages to be used to process data in order to optimize time and resources.

– Mathematics: It allows solving problems in real or hypothetical situations that can be modeled by identifying the significant variables present and the relationships between them, judging the relevance and validity of the results obtained.

1.1. Work planning

Activity No. June July

Week 1 Week 2 Week 3 Week 4 Week 5

L M M J V L M M J V L M M J V L M M J V L M M J V

06/08/2020 06/09/2020 06/10/2020 06/11/2020 06/12/2020 06/15/2020 06/16/2020 06/17/2020 06/18/2020 06/19/2020 06/22/2020 06/23/2020 06/24/2020 06/25/2020 06/26/2020 06/29/2020 06/30/2020 07/01/2020 07/02/2020 07/03/2020 07/06/2020 07/07/2020 07/08/2020 07/09/2020 07/10/2020

1 Presentation of the topic X X

2 PART 1 PREPARATION OF: PLANNING AND ANALYSIS OF THE PROPOSED SITUATION X X

3 Identification of content or skills to apply X X

4 Recognition of the topic to be reviewed and reinforced X X

5 Part 2 development

Answer to theoretical question, multiple choice. X

6

7

8

9 PART II: DEVELOPMENT

2.1. Answer to theoretical question, multiple choice

What documents are necessary to formulate to know the financial situation, the profit or liquid loss of the company?

a) Balance sheet and profit and loss statement.

b) Balance generates and capital accounts.

c) Asset accounts and liability accounts.

The types of accounts are:

a) Debtor and creditor

b) Asset, liability and capital

c) Profit and loss

What accounts control the assets and property rights of the Company?

a) Active

b) Creditor

c) Capital

What accounts control the debts and obligations of the Company?

a) Debtor

b) Losses

c) Liabilities

2.2. Importance and applicability of the Professional Figure.

The Public Accountant, as a professional in economic sciences, has the great challenge of perfecting himself and updating himself permanently to achieve an effective result. This profession involves a series of knowledge that is generally acquired throughout the career. Not only must you handle accounting and legal knowledge, but you must also be a specialist in the use of computer tools and also have extensive analysis on inherent issues, such as economic and financial issues. This implies that the accountant must be a person prepared to face different situations in which decisions will have to be made accurately and conveniently.

The work of the Public Accountant is linked to the activity of the organizations, whatever their legal form, whether or not they are for profit and in the environment in which these Companies operate. Regarding the option of liberal or independent professional practice, the Public Accountant acts as: advisor, consultant, auditor, trustee or auxiliary of justice, on specific issues that the organization requires. The career of Public Accountant, in general, offers a solid base in administrative-accounting and tax aspects, learning that is integrated with legal, humanistic, mathematical and economic knowledge. The Public Accountant must bear in mind that the purpose of their profession is “information” in all its forms, whether it is the same generated within the Companies, interacting with each other or in their relationship with the environment. The description of the different functions that a Public Accountant can assume in the

exercise of their professional activity, has been considered of extraordinary importance by professional entities, as they are the basis used to ensure the responsibilities contained in current civil, commercial and criminal legislation.

PART III: REFLECTION

Written explanation of the development.

The Statement of Financial Position was prepared, which is a financial statement where the amount of assets, liabilities and equity is recorded on a specific date, said financial statement shows the resources that the business owns (assets), what it owes (liabilities) and the capital contributed by partners or owners. In addition, it is the first entry that is recorded in the journal as an opening entry.

The opening entry and accounting transactions carried out in the Company during the month of January, February and March were recorded in the daily book. All the entries that are recorded in this document are included in the Accounting Entries and, depending on the format that is followed, may be related to:

• Purchases

• Sales

• Debt payment

• Personal expenses

• Customer collections

• Loans

The regularization entry is recorded in the daily book on the last day of the fiscal year, after all the operations carried out by the Company and the pertinent annotations to the fiscal year-end process have been accounted for.

The ledger of the accounts of the daily book is elaborated, which contains the movements of each calculation separately. This allows you to see at a glance the movements that are included in each of the company’s accounting accounts, as well as determine what your balance is during the accounting year, which provides information to the Company about the balance that remains in each account for the operations recorded at all times, taking into account each accounting account in a defined manner.

The preparation of a trial balance begins with the realization of the sums of the entries of each account, both on it and on credit. In the next step, the balance of each account is obtained (the difference between it must and credit). Finally, the sums and balances obtained are transferred to the balance sheet.

The adjusted trial balance is performed which is a list of the balances of the general ledger accounts, which were created after the preparation of the adjustment entries. The adjusted trial balance contains income and expense balances, along with assets, liabilities and equity. This provides a complete listing of the account balances that you should use when preparing the financial statements.