ACCT 212-Course Project-Prepare the Journal Entries in the General Journal

ACCT 212: Course Project
Requirement
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10 ACCT 212: Course Project
Requirement Description
Prepare the Journal Entries in the General Journal
Post Journal Entries to the General Ledger
Prepare a Trial Balance
Prepare the Adjusting Entries
Post Adjusting Entries to the General Ledger
Prepare an Adjusted Trial Balance
Prepare the Financial Statements
Prepare the Closing Entries
Post Closing Entries to the General Ledger
Prepare the Post Closing Trial Balance Project
Worksheet Name
1 - Journal Entries
2 - General Ledger
3 - Trial Balance
4 - Adjusting Entries
2 - General Ledger
5 - Adjusted TB
6 - Financial Statements
7 - Closing Entries
2 - General Ledger
8 - Post Closing Trial Balance Course Project Overview Scenario Requirements Guidelines ct Overview The Course Project consists of 10 Requirements for you to complete. The Course Project is due at the e
6. See the Syllabus section ”Due Dates for Assignments & Exams” for due date information. All of the
you need to complete the Course Project is located in this Workbook.
• There are eight worksheets in the workbook you will need to complete.
• A list of March transactions
• A Chart of Accounts reference sheet
• A Grading Rubric to help explain what is expected.
• Each worksheet has the Check Figures embedded as a comment. You’ve just secured a new client in your accounting practice, Bethany's Bicycle Corporation (BBC), a b
small business specializing in bicycle repair. The owner, Bethany Beck, is a terrific cyclist and bike rep
but definitely not an accountant. Your job is to helpBethany put his affairs in order. Luckily Bethany ha
in operation for a month and things have not gotten too out of hand yet! Bethany has to submit his fin
statements to her investors and doesn’t know where to begin. It’s your job to go through the complete
cycle to prepare the financial statements for the BBC. Use the embedded assistance in the template, guidance in your textbook, and examples in the weekly
complete this project. Should you have any questions contact your professor. Before You Begin:
Review the Week 2 Lecture prior to starting work on this project.
Print the Chart of Accounts and October Transactions worksheets for
your reference. You will need to refer
to both throughout the project.
Review the Grading Criteria. SAVE your work frequently in this workbook. During its first month of operation, the Bethany's Bicycle Corporation, which
specializes in bicycle repairs, completed the following transactions. March Transactions
Date
March 1 March 1
March 1
March 3 March
March
March
March
March
March
March
March 8
10
11
18
20
31
31
31 st month of operation, the Bethany's Bicycle Corporation, which
n bicycle repairs, completed the following transactions. March Transactions
Transaction Description
Began business by making a deposit in a company bank
account of $20,000, in exchange for 2,000 shares of $10 par
value common stock.
Paid the premium on a 1-year insurance policy, $2,400.
Paid the current month's store rent expense, $1,900.
Purchased repair equipment from Andrew Company, $5,800.
Paid $1,000 down and the balance was placed on account.
Payments will be $400.00 per month for 12 months. The first
payment is due 4/1. Note: Use Accounts Payable for the
Balance Due.
Purchased repair supplies from Jackson Company on credit,
$650.
Paid telephone bill for March, $340.
Cash bicycle repair revenue for the first third of March,
$1,650.
Made payment to Jackson Company, $400.
Cash bicycle repair revenue for the second third of March,
$2,450.
Cash bicycle repair revenue for the last third of March, $1,250.
Paid the current month's electice bill, $250.
Declared and paid cash dividend of $1,000. Use the following account descriptions for journal entries. Chart of Accounts
Account Type
Assets Account
Number Account Title 111
117
119
144
145 Cash
Prepaid Insurance
Repair Supplies
Repair Equipment
Accum Dep -Repair Equipment 212
213 Accounts Payable
Income Tax Payable 311
312
313 Common Stock
Retained Earnings
Dividends 411 Bicycle Repair Revenue 511
512
513
514
515
516
517 Store Rent Expense
Telephone Expense
Insurance Expense
Repair Supplies Expense
Dep Expense - Repair Equipment
Income Tax Expense
Electric Expense Liabilities Stockholders Equity Revenue Expenses es. Normal Balance
Debit
Debit
Debit
Debit
Credit Credit
Credit Credit
Credit
Debit Credit Debit
Debit
Debit
Debit
Debit
Debit
Debit Review Chapter
2, p. 90 for more
information on the
Chart of Accounts Journal Entries REQUIREMENT #1: Prepare journal entries to record the March transactions in the General
Journal below. Remember that Debits must equal Credits—All of your Journal Entries should
balance. General Journal Date Account
Number from
Chart of
Accounts tab Account Title from Chart of Accounts tab Debit Credit Journal Entries 0 - Journal Entries Once you've completed
this requirement print
your General Journal to
complete Requirement
#2 on the General
Ledger worksheet. Journal Entries REQUIREMENT #2: Post the March journal entries to the following T-Accounts and compute
balances.
Date Cash (111) Prepaid Insurance (117) Repair Supplies (119) Repair Equipment (144) Accum. Depr.-Repair Equipment (145) Date Accounts Payable (212) Income Taxes Payable (213) Common Stock (311) Retained Earnings (312) Dividends (313) following T-Accounts and compute ending
Bicycle Repair Revenue (411)
This worksheet will
be used to complete
Requirements #2, #5
and #9. Instructions
for #5 can be found
on the Adjusting
Entries Worksheet.
Instructions for #9
can be found on the
Closing Entries
Worksheet.
Store Rent Expense (511) Telephone Expense (512) Insurance Expense (513) Repair Supplies Expense (514) Depr. Exp.-Repair Equipment (515) Income Taxes Expense (516) Electric Expense (517) Journal Entries REQUIREMENT #3: Prepare a trial balance for March in the space below. Bethany's Bicycle Corporation
Trial Balance
March 31
Account
Title Only enter
accounts that
have a
balance. Balance
Debit
Credit 0 0 Journal Entries Requirement #4: Prepare adjusting entries using the following information in the General Journal below
your calculations!
a) One month's insurance has expired.
b) The remaining inventory of repair supplies is $200.
c) The estimated depreciation on repair equipment is $120.
d) The estimated income taxes are $65. Requirement #5: Post the adjusting entries on March 31 below to the General Ledger T-accounts and
compute adjusted balances. Just add to the balances that are already listed. General Journal Date Account
Number from
Chart of
Accounts tab Account Title from Chart of Accounts tab Debit 0 Journal Entries General Journal below. Show ger T-accounts and Credit 0 Journal Entries REQUIREMENT #6: Prepare an Adjusted Trial Balance in the space below. Bethany's BicycleCorporation
Adjusted Trial Balance
March 31
Account
Title Only enter
accounts that
have a
balance. Balance
Debit
Credit 0 0 Requirement #7: Prepare the financial statements for Bethany's Bicycle Corporation as of March 31
You will only be preparing the Income Statement, Statement of Retained Earning, and the Balance Sh
The Statement of Cash Flows is a required Financial Statement, but is not required for this project. Bethany's Bicycle Corporation
Income Statement
For the Month Ending March 31 Bethany's Bicycle Corporation
Statement of Retained Earnings
For the Month Ending March 31 Revenues:
Bicycle Repair Revenue
Total Revenue 0 Expenses:
Store Rent Expense
Telephone Expense
Insurance Expense
Repair Supplies Exp.
Depreciation Exp.
Income Taxes Expense
Electric Expense
Total Expenses 0 Net Income 0 Retained Earnings, March 1
Add: Net Income
Subtotal
Less: Dividends
Retained Earnings, March 31 ycle Corporation as of March 31 in the space below.
ed Earning, and the Balance Sheet.
not required for this project. ycle Corporation
Retained Earnings
Ending March 31 Bethany's Bicycle Corporation
Balance Sheet
March 31
$0
0
$0 Assets:
Cash
Prepaid Insurance
Repair Supplies
Repair Equipment
Less: Accum. Depr.
Total Assets $0 Liabilities and Stockholders' Equity
Liabilities:
Accounts Payable
Income Taxes Payable
Total Liabilities
0
Stockholders' Equity:
Common Stock
Retained Earnings
Total Stockholders' Equity
Total Liabilities &
Stockholders' Equity 0 $0 Journal Entries Requirement #8: Prepare the closing entries at March 31 in the General Journal below. Hint:Use the
balances for each account which appear on the Adjusted
Trial Balance for your closing entries.
Requirement #9: Post the closing entries to the T-Accounts on the General Ledger worksheet and
compute ending balances. Just add to the adjusted balances already listed. General Journal Date Account
Number from
Chart of
Accounts tab Account Title from Chart of Accounts tab Debit 0 Journal Entries low. Hint:Use the worksheet and Credit See the Week 2
Lecture for examples
of how to complete
closing entries. 0 Journal Entries equirement #10: Prepare a post-closing trial balance as of March 31 in the space
elow. Bethany's Bicycle Corporation
Post-Closing Trial Balance
March 31
Account
Title Balance
Debit
Credit - - Project 1 Grading Rubric - Students
Criteria
Parts: Excellent Good Poor 90% to 100%
Step 1
Journal entries use
—Journal accurate accounts
Entries (20
and amounts; and
points)
debits and credits
are used correctly. 70% to 89%
Journal entries
mostly use
accurate accounts
and amounts; and
debits and credits
are used correctly. 50% to 69%
Journal entries
have some errors in
use of accounts
and amounts; and
debits and credits
are only somewhat
used correctly. Steps 2 and 3 Posting is correct
leading to an
—Posted and accurate trial
Unadjusted
balance.
Trial Balance.
(10 points)
Step 4
Journal entries use
—
accurate accounts
Adjusting
and amounts; and
Journal
debits and credits
Entries (10
are used correctly.
points) Posting is mostly
correct leading to
a mostly correct
trial balance. Posting has several
errors leading to a
trial balance with
several errors. Journal entries
mostly use
accurate accounts
and amounts; and
debits and credits
are used correctly. Journal entries
have some errors in
use of accounts
and amounts; and
debits and credits
are only somewhat
used correctly. Steps 5 and 6 Posting is correct
leading to an
—Posted and accurate trial
Adjusted Trial balance.
Balance. (10
points)
Step 7
All four financial
—
statements are
Financial
prepared
Statements
accurately and in
(10 points)
an appropriate
format. Posting is mostly
correct leading to
a mostly correct
trial balance. Posting has several
errors leading to a
trial balance with
several errors. Three of four
financial
statements are
prepared
accurately and
mostly in an
appropriate
format, one
statement has
some errors.
Journal entries
mostly use
accurate accounts
and amounts; and
debits and credits
are used correctly. Two of four
financial
statements are
prepared
accurately and
mostly in an
appropriate format,
two statements
have some errors. Step 8
—Closing
Journal
Entries (10
points) Journal entries use
accurate accounts
and amounts; and
debits and credits
are used correctly. Journal entries
have some errors in
use of accounts
and amounts; and
debits and credits
are only somewhat
used correctly. Steps 9 and
10
—Posted
and PostclosingTrial
Balance. (10 Posting is correct
leading to an
accurate trial
balance. Posting is mostly
correct leading to
a mostly correct
trial balance. Posting has several
errors leading to a
trial balance with
several errors. Very Poor
Less than 50%
Journal entries
have some errors in
use of accounts
and amounts; and
debits and credits
are not used
correctly.
Posting is done
poorly or not at all,
leading to
inaccurate or no
trial balance.
Journal entries
have some errors in
use of accounts
and amounts; and
debits and credits
are not used
correctly.
Posting is done
poorly or not at all,
leading to
inaccurate or no
trial balance.
One or fewer of
four financial
statements are
prepared
accurately and
mostly in an
appropriate format,
three or all
statements have
some errors.
Journal entries
have some errors in
use of accounts
and amounts; and
debits and credits
are not used
correctly. Posting is done
poorly or not at all,
leading to
inaccurate or no
trial balance.