Pane in the Glass: A Review of the Accounting Cycle

Abstract

This case employs a realistic scenario in which the student has applied for an internship with Pane in the Glass, Inc.’s financial reporting group. As part of the interview process, the student is required to demonstrate their financial accounting knowledge and skills by completing a simulated accounting and financial reporting cycle. Specifically, they are required to: (1) analyze transactions and prepare the appropriate initial journal entries, (2) complete the financial closing process by booking adjusting and closing journal entries, and (3) prepare a set of basic financial statements. This case is intended to provide students with a comprehensive review and integration of intermediate financial accounting course concepts, and of the accounting and financial reporting cycles. The modular nature of the case allows the instructor to assign one, two or three of these case requirements, depending on the desired level of involvement and the amount of time available. In addition, the instructor can easily add, remove, or modify individual transactions, maximizing flexibility and allowing the instructor to tailor the case to specific topics of interest and/or emphasis. The case is appropriate for honors principles, intermediate, advanced, and MBA-level financial accounting classes.

Keywords: Accounting Cycle, Financial Reporting Cycle, Intermediate Accounting, Financial Accounting, Simulation, Financial Statements