| Course | ACC 315 Accounting Software Systems (ACC/315) |
|---|---|
| Week | 5 |
| Paper type | Month-end close and reporting paper |
| Length | about 1,033 words, 4 double-spaced pages plus title page and references |
| Format | APA 7 student paper |
| School | University of Phoenix |
| Program | BS in Accounting |
| Updated | September 2026 |
Free sample paper for ACC 315 Week 5
Closing June at a Climbing Gym: A Bank Reconciliation, Five Adjusting Entries and the Reports an Owner and a Lender Will Read
[Student Name]
University of Phoenix
ACC/315: Accounting Software Systems
Week 5 Assignment
[Instructor Name]
[Date]
The gym, its accounts and all figures are composites written for a model paper; accounting rules come from the sources listed.
A composite indoor climbing gym has about 900 members, a small retail shop and a youth program. Most members pay monthly by card, but about a fifth buy annual memberships in advance. The gym's bank has asked for monthly financial statements as a condition of the loan that paid for a new bouldering area. June has ended, all transactions have been entered and the owner wants reports by the tenth. This paper reconciles the operating account, records the adjusting entries the month requires and prepares and interprets the reports.
Bank Reconciliation
The June 30 bank statement shows a balance of $48,620. The general ledger shows $49,015. The two are reconciled by adjusting each side for items the other side does not yet know about.
On the bank side, a deposit of $3,150 made on the evening of June 30 does not appear until July, so it is added. Four checks totaling $2,870, mainly to route-setting suppliers, have not cleared, so they are subtracted. The adjusted bank balance is $48,900.
On the book side, the statement shows a $35 monthly service fee, a $180 check from a youth program parent returned for insufficient funds and $100 of interest earned. The fee and returned check are subtracted and the interest added, giving an adjusted book balance of $48,900. The two sides meet at the same figure, and that figure, not either starting balance, is the true cash position.
Only the book-side items become entries: the fee is debited to bank charges, the returned check is debited back to accounts receivable so the parent can be billed again and the interest is credited to interest income. The deposit in transit and outstanding checks need no entry, since the bank will record them in July.
Adjusting Entries
The software records every sale and payment, but it cannot record the passage of time. Weygandt et al. (2021) explain that adjusting entries make sure revenue is recorded in the period earned and expenses in the period incurred. Five were needed for June.
First, insurance. The gym paid a $7,200 annual premium on January 1 and recorded it as prepaid insurance. One month's share, $600, expired in June and is moved to insurance expense.
Second, depreciation. The climbing walls and equipment cost $144,000 and are depreciated evenly across a ten-year useful life with no salvage value, which is $1,200 a month. Depreciation expense is debited and accumulated depreciation credited.
Third, wages. Staff worked June 28 to 30 but will be paid on the July 12 payroll. Those three days cost $4,350 in wages, which is debited to wages expense and credited to accrued wages payable, so June carries its own labor cost.
Fourth, memberships. The unearned revenue account held $36,000 of annual memberships paid in advance. Based on the months each member has used, $3,000 was earned in June and is moved from unearned revenue to membership income. This follows the principle that revenue is recognized as the service is provided (Financial Accounting Standards Board, 2014).
Fifth, supplies. The shop and front desk supplies account showed $2,450, but a count on June 30 found $1,620 on hand, so $830 is moved to supplies expense.
The Reports
After the adjustments, the profit and loss statement for June shows revenue of $71,400, made up of $58,200 in memberships and day passes, $7,900 from youth programs and $5,300 from retail. Expenses total $64,850, including $29,600 in wages and payroll taxes, $14,000 in rent and $1,200 in depreciation, so net income is $6,550. The balance sheet shows cash of $48,900, matching the reconciliation, total assets of $231,000, liabilities of $158,300, including the equipment loan and $33,000 still in unearned revenue, and equity of $72,700. Net income for June equals the increase in equity for the month, since the owner took no draws, which confirms the reports agree.
Comparing June With May
Revenue rose 6% from May as summer youth camps began, but wages rose 11% because camps need more staff per participant. Net income fell from $7,100 to $6,550. Dechow (1994) showed that, over short measurement intervals, accrual earnings track firm performance more closely than cash flows do; here, without the accrual for June wages, the month would have looked better than it was.
What the Lender Will Ask
Minnis (2011) found that lenders to private firms rely on the quality of financial statements when setting loan terms. The gym's lender will likely look at cash coverage of monthly loan payments, the unearned revenue balance, which represents service the gym still owes, and whether camp staffing costs will keep squeezing margins. The owner should be ready to explain the camp pricing and the plan for autumn. Two simple ratios help. Current assets cover current liabilities about 1.4 times, which is adequate but leaves little room if autumn membership sales are slow. Monthly cash generated before loan payments covers the $3,900 loan installment roughly twice over. The owner can also point to the unearned revenue balance as evidence of committed customers, while acknowledging that it is a liability: the gym has already been paid for service it must still provide, and that cash cannot be treated as spare.
Closing the Period
Once the reports are sent, the bookkeeper sets a closing date of June 30 with a password held by the owner. Any later correction to June will require the owner's approval and will leave a record. Romney et al. (2021) list closing and access controls among the basic application controls in an accounting system, and for a small business they are easy to apply. The bookkeeper will also save the June reports as they were sent, so that any future question from the lender can be answered with the exact figures it received.
Conclusion
Closing June required a reconciliation that tied book cash to bank cash, five adjusting entries that the software could not make on its own and reports that were read, compared and explained rather than simply printed. The finished statements tell the owner that summer revenue is growing faster than expected but that labor costs are growing faster still.
References
Dechow, P. M. (1994). Accounting earnings and cash flows as measures of firm performance: The role of accounting accruals. Journal of Accounting and Economics, 18(1), 3-42. https://doi.org/10.1016/0165-4101(94)90016-7
Financial Accounting Standards Board. (2014). Revenue from contracts with customers (Topic 606) (Accounting Standards Update No. 2014-09).
Minnis, M. (2011). The value of financial statement verification in debt financing: Evidence from private U.S. firms. Journal of Accounting Research, 49(2), 457-506. https://doi.org/10.1111/j.1475-679X.2011.00411.x
Romney, M. B., Steinbart, P. J., Summers, S. L., & Wood, D. A. (2021). Accounting information systems (15th ed.). Pearson.
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2021). Accounting principles (14th ed.). Wiley.
What the ACC 315 Week 5 instructions ask
In ACC 315 Week 5, students generally complete the accounting cycle in the software. Typical tasks are a bank reconciliation, adjusting journal entries for items such as prepaid expenses, depreciation, accrued expenses and unearned revenue and the preparation of standard reports, usually the profit and loss statement, balance sheet and sometimes the statement of cash flows or aging reports. Many versions ask students to interpret the reports for an owner and to explain why the adjustments were needed. Some add a closing date or password to protect the finished period. The written paper should show each reconciling item and adjustment with its amount and entry, then discuss what the reports reveal about the business.
How this ACC 315 Week 5 example is built
A climbing gym suits this week because it has prepaid annual memberships, expensive wall equipment, part-time staff paid after month end and a busy bank account, so each type of adjustment appears for a real reason. The reconciliation is laid out as two sides, bank and book, that meet at the same adjusted balance, and each book-side item becomes a journal entry. Adjustments are numbered and each is explained in two or three sentences with its calculation. Reports are summarized in prose with the key figures, and June is compared with May so the numbers mean something. The final section reads the reports from a lender's point of view and names the owner's next steps.
ACC 315 Week 5 grading rubric: where the points go
The rubric for this week usually rewards a reconciliation that balances with every item explained, adjusting entries that are correct in amount and account, reports that reflect those entries and interpretation that goes beyond printing. Faculty check that book-side reconciling items are recorded and that bank-side items are not, that prepaid and unearned amounts are split correctly and that depreciation follows a stated method. Comparing periods or computing a few ratios adds analysis. A closing date or similar control shows awareness of protecting finished work. Organization under headings, figures that agree across sections and APA citations complete the marks, and inconsistent totals between the paper and its reports cost the most.
ACC 315 Week 5 help: mistakes to avoid
The error seen most often in ACC 315 Week 5 is recording bank-side items, such as outstanding checks, as journal entries; only book-side items, like fees and returned checks, belong in the books. Label each side clearly. Another problem is forgetting that adjusting entries are needed even though the software posts everything automatically; the software cannot know that a month of insurance has expired. Show every calculation. Students also print reports without saying what they mean. Pick three or four figures and explain them. Check that net income on the profit and loss statement matches the change in equity on the balance sheet. Finally, lock the period so no one edits June after the reports go out.
Related ACC 315 sample papers
Other ACC 315 week samples
- ACC 315 Week 1: Choosing Accounting Software
- ACC 315 Week 2: Company Setup and Chart of Accounts
- ACC 315 Week 3: Recording Sales and Receipts
- ACC 315 Week 4: Purchases, Payroll and Banking
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ACC 315 Week 5 questions, answered
What does ACC/315 Week 5 usually cover?
The last week usually covers the month-end close in accounting software: bank reconciliation, adjusting entries and financial reports such as the profit and loss statement and balance sheet, with interpretation.
Where can I find a free ACC 315 Week 5 sample paper?
The climbing gym close on this page is free to read, including the reconciliation, all five adjustments and the report review, with margin comments. We can also draft your first version around your own company at no charge.
Which reconciling items need journal entries?
Only items on the book side, such as bank service fees, returned customer checks and interest earned. Deposits in transit and outstanding checks are timing differences that clear on their own.
Why are adjusting entries needed in accounting software?
The software records transactions as they happen, but some revenue and expenses build up over time without a transaction, such as expired insurance, depreciation and wages earned but not yet paid.
What is a closing date in accounting software?
It is a setting that locks transactions before a chosen date, often with a password, so reports already issued cannot be changed by later edits.
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