Awesome and Fun Accounting Cycle Case Studies

CASE #1 Easy, Co

Easy, Co uses an easy set of monthly transactions that students record in a tabular worksheet in order to fill out an Income Statement, Retained Earnings Statement and Balance Sheet.

Topics: transaction analysis, balancing the accounting equation, financial statement articulation, Chart of Accounts composition and organization, periodic inventory adjustment (Office Supplies)

CASE #2 Easy, Quick & Fun, Co

This case uses the same transactions as Case #1 to execute a complete accounting cycle.

Topics: transaction analysis, debit and credit rules, recording standards, posting sequence, trial balance sequence, adjusting entries and the closing process.

CASE #3 Sassafras Sis, Inc

This pool design firm’s monthly transactions establish the groundwork for executing six adjusting entries covering periodic inventory, estimated expense, accruals and deferrals.

All expenses are recorded in a single Expenses account to speed the recording and closing process. The focus is on adjusting entry analysis.

The case is a complete accounting cycle case.

Topics: transaction analysis, types of adjusting entries, prepaids, depreciation, periodic inventory, Accounts Payable and Accounts Receivable.

CASE #4 Uphill Farm Industries, Inc

This small manufacturer acquires three new machines. Each machine uses a different depreciation method.

The Petty Cash fund is maintained in an old mayonnaise jar hidden under the owner’s desk.

For simplicity and convenience, the owner adopts a Periodic Inventory System. A catastrophic flood destroys all the records and inventory on December 31st. The count cannot be done.

This is a complete accounting cycle case study.

Topics: Depreciation methods (Straight line, Double Declining Balance, Activity Based), Petty Cash reimbursement, Cash-Short and Over account, Gross Method inventory valuation, income tax calculation, Multi-step Income Statement preparation

CASE #5 Pete’s Pool Design, Inc

The shenanigans of, Barely Making It Motel, Inc provide the fodder for an in-depth and amusing look at the life cycle of this deadbeat customer’s AR account.

Bonus: Principles I students have an opportunity to do some library research should they accept the “Disclose or Recognize Challenge?”

This is awesome. Students visit the library. For many, this will be a first. Then it’s off to the stacks to find an Intermediate I textbook to research Subsequent Events. The students will inevitably get lost. The Librarian will have a rare moment of purpose.

This challenge provides the interactive experience demanded by Millennials.

This is a complete accounting cycle case study.

Topics: interest calculations, terms of sale, promissory notes, Gross Method sales discounts, dishonored notes, subsequent events and the value of Librarians.

CASE #6 Mercury Wins Again!

When Taylor Mercury files a lawsuit the eventual headline is always the same: Mercury Wins Again! This hilarious research case will bring tears to the eyes of students. The type of tears is debatable.

Students must calculate a payroll, understand non-payroll income tax obligations, measure a contingency loss and calculate the interest expense for a non-interest-bearing note.

The story line is dense with fun and thought-provoking facts. It’s a really slow read.

The fun continues as students parse the instructions for IRS Form 945. A priceless experience for aspiring accountants.

A favorite student quipped “This case is a cure for insomnia.”

That stamp of student “disapproval” makes this case awesome.

This case requires students to research GAAP and IRS documents to accurately complete various tasks, calculations and entries. This is not an accounting cycle case study, but we threw it in since we use it.

Topics: FASB and IRS research skills, payroll and non-payroll income tax obligations, noninterest-bearing notes, loss contingency measurement, daily interest calculation, critical thinking, quiet sobbing.