Case Briefing: Operation Clean Sweep
Northstar Forensic Advisory · Fraud Investigation Unit
Listen up, Team. We've just been called in by the Board of Directors at Pinecrest Industrial Services. Their lead controller, "Fast" Eddie Ledger, vanished last night.
Before he left, Eddie sent a cryptic email claiming he had "cleaned the books" and that the company's equity was far lower than reported. He didn't delete the data — but he did something worse: he left the accounting cycle unfinished.
The Board needs to present their final, audited numbers to the bank in exactly 60 minutes, or their credit line will be frozen.
Your Mission: Step into Eddie's office, reconstruct June's activity, and find the true Retained Earnings balance. If your final number matches the bank's records, we've caught Eddie in a lie. If not… the company is bankrupt.
How this works:
- Work through 5 phases in order. Each phase builds on the last — you cannot skip ahead.
- Use the scaffolding fields in each phase to work out your answers on screen.
- Enter the Vault Code at the bottom of each phase. Numbers only — no dollar signs or commas.
- If your code is wrong, you will receive a targeted hint. You have 5 attempts per vault. After the third, the answer is revealed and you can move on.
- Complete all five phases to close the case. Earn the Cycle Master badge by showing your work and getting at least 85% of your workpaper entries correct.
Enter your name before beginning. It will appear on your Cycle Master badge if earned. Your case file uses figures generated from your name, so your numbers will differ from your classmates'.
Required. Your name will appear on your badge if earned.
Reconstructing the Crime Scene
- June 5Performed services for a client and received $9,000 cash.
- June 12Purchased office supplies on account for $1,500.
- June 25Paid monthly staff salaries of $4,000.
- June 28Paid a cash dividend of $1,000.
Record each transaction below. These fields are for your working — only the vault code is checked.
| Date | Account | Debit ($) | Credit ($) |
|---|---|---|---|
| June 5 | |||
| June 12 | |||
| June 25 | |||
| June 28 | |||
Vault 1 Code
What is the ending balance of the Cash account?
The First Audit Check
Transfer your T-account ending balances into the correct Debit or Credit column.
| Account Name | Debit ($) | Credit ($) |
|---|---|---|
| Cash | ||
| Supplies | ||
| Accounts Payable | ||
| Common Stock | ||
| Retained Earnings (Beginning) | ||
| Dividends | ||
| Service Revenue | ||
| Salaries Expense | ||
| TOTALS | ||
| ⚠ Remember the storyline — we are cleaning up Fast Eddie's books. The trial balance may not balance. That imbalance is part of the evidence. | ||
Vault 2 Code
What is the Trial Balance Total — the sum of the debit column?
The Hidden Adjustments
- Adj. AA physical count of supplies shows only $400 are left on hand. (Supplies on the books: $1,500.)
- Adj. BA $500 utility bill was received today but will not be paid until next month.
| Adj. | Account | Debit ($) | Credit ($) |
|---|---|---|---|
| A | |||
| B | |||
Vault 3 Code
What is the adjusted balance of the Supplies asset account?
The Financial Filter
Not sure where to start? Open the adjusted trial balance. It lists every account balance after the Phase 3 adjustments, which is the starting point for classifying the accounts and for the three calculations below. Total Equity is the equity part of the balance sheet: Common Stock plus Ending Retained Earnings.
Check one column for each account: IS = Income Statement | E = Statement of Equity | BS = Balance Sheet.
| Account | IS | E | BS |
|---|---|---|---|
| Cash | |||
| Supplies | |||
| Accounts Payable | |||
| Common Stock | |||
| Retained Earnings | |||
| Dividends | |||
| Service Revenue | |||
| Salaries Expense | |||
| Supplies Expense | |||
| Utilities Payable | |||
| Utilities Expense |
Vault 4 Code
What is the Total Equity amount?
The Final Vault
Need the account balances? Open the adjusted trial balance.
Close directly to Retained Earnings — no Income Summary needed.
THE MASTER UNLOCK CODE
What is the Post-Closing Balance of Retained Earnings?
This is the number that will catch Eddie — or save the company.
You caught Eddie. Your post-closing Retained Earnings matched the bank's records — the books are clean, the credit line is safe, and Fast Eddie Ledger is officially out of excuses.
Answer Key — The Evidence
Apply these concepts to practice problems in your course materials before your exam. You now have the full accounting cycle mapped — from transactions all the way through closing.