PROJECT #1 -THE COMPLETE ACCOUNTING CYCLE Name: _____Andrea Boatman______________________________ Due Dates: Part A - Sunday at Midnight MST at the

end of Week 3. Part B - Sunday at Midnight MST at the end of Week 5. Project 1 is worth at Total of 75 Points, which is 7.5% of your Grade in the Course. Part A = 30 points and Part B = 45 points MAKE SURE TO COMPLETE ALL REQUIREMENTS WHICH ARE LISTED BELOW. There are 10 Sheets in the Workbook including this one. All of the Information you need for the Project is located in this Workbook. Requirements Part A - Due in Week 2 - Requirement 1, 2 and 3 Requirement 1 - Prepare the Journal Entries in the General Journal Requirement 2 - Post Journal Entries to the General Ledger Requirement 3 - Prepare a Trial Balance Part B - Due in Week 5 - Requirements 4 - 10 Requirement 4 - Prepare the Adjusting Entries Requirement 5 - Post Adjusting Entries to the General Ledger Requirement 6 - Prepare an Adjusted Trial Balance Requirement 7 - Prepare the Financial Statements Requirement 8 - Prepare the Closing Entries Requirement 9 - Post Closing Entries to the General Ledger Requirement 10 - Prepare the Post Closing Trial Balance Sheet in Workbook Jounral Entries General Ledger Trial Balance Adjusting Entries General Ledger Adjusted TB Financial Statements Closing Entries General Ledger Post Closing TB

During its first month of operation, the Rawls Repair Corporation, which specializes in bicycle repairs, completed the following transactions: Oct. 1 Began business by making a deposit in a company bank account of $12,000, in exchange for 1,200 shares of $10 par value common stock. Paid the premium on a one-year insurance policy, $1,200. Paid the current month's rent, $1,040. Purchased repair equipment from Conklin Company, $4,400. Paid $600 down and the balance was placed on account. Payments will be $200.00 per month for nineteen months. The first payment is due 11/1. Note: Use Accounts Payable for the Balance Due. Purchased repair supplies from McKenna Company on credit, $390. Paid utility bill for October, $154. Cash bicycle repair revenue for the first half of October, $1,362. Made payment to McKenna Company, $200. Cash bicycle repair revenue for the last half of October, $1,310. Declared and paid cash dividend of $800.

Oct. 1 Oct. 1 Oct. 3

Oct. 8 Oct. 12 Oct. 16 Oct. 19 Oct. 31 Oct. 31

Prepare journal entries to record the October transactions in the General Journal below. General Journal Description(Account Name) Debit Credit Cash 12000 Common Stock 12000 Insurance Expense 1200 Cash 1200 Rent Expense 1040 Cash 1040 Repair Equipment 4400 Cash 600 Accounts Payable 3800 Repair Supplies 390 Accounts Payable 390 Utility Expenses 154 Cash 154 Bicycle Repair Revenue 1362 Bicycle Repair Revenue 1362 Accounts Payable 200

Date Oct. 1 Oct. 1 Oct. 1 Oct. 1 Oct. 1 Oct. 1 Oct. 3 Oct. 3 Oct. 3 Oct. 8 Oct. 8 Oct. 12 Oct. 12 Oct. 16 Oct. 16 Oct. 19

This Sheet will be used for Requirements 2, 5 and 9

REQUIREMENT #2: Post the October journal entries to the following T-Accounts and compute ending balances.

$ $ $

Cash (111) 12,000 1,362 $ 1,310 $ $ $ $ $

1,200 1,040 600 154 200 800

Bicycle Repair Revenue (411) $ 1,362 $ 1,310 2672

Bal. $10678

Bal. $0

Prepaid Insurance (117) $ $1,100

Store Rent Expense (511) 1,040 1040

Bal. $0 $ Repair Supplies (119) 390 196 $ Utility Expense (512) 154 154

Bal. $194 Repair Equipment (144) 4,400

Bal. $0 Insurance Expense (513) 1,200

1100 $100

Bal. $4400 Accum. Depr.-Repair Equipment (145) 70

Bal. $0 Repair Supplies Expense (514) 196 196

bal

70

bal

Accounts Payable (212) $ 3,800 $ 390 $ Bal. $3990

Depr. Exp.-Repair Equipment (515) 70 200 bal 0 70

Income Taxes Payable (213)

Income Taxes Expense (516)

40

40

40

bal 40 Common Stock (311) $

bal 0

12,000

Bal. $12000 Retained Earnings (312) 800

1072

bal 272 Dividends (313)

$ Bal. $0

800

800

REQUIREMENT #3: Prepare a trial balance for October in the space below.

Rawls Repair Corporation Trial Balance October 31 Account Title Cash Equipment Supplies Accounts Payable Insurance Expense Rent Expense Utility Expense Service Revenue Common Stock Dividends Debit 10678 4400 390 3990 1200 1040 154 2672 12000 800 Credit

18662

18662

Requirement #4: Prepare adjusting entries using the following information in the General Journal below. Show your calculations! a) One month's insurance has expired. b) The remaining inventory of repair supplies is $194. c) The estimated depreciation on repair equipment is $70. d) The estimated income taxes are $40. General Journal Description(Account Name) prepaid insurance insurance expense repair supplies expense repair supplies depreciation expense accumulated depreciation tax expense tax payable

Date a

Debit 1100

Credit 1100 196 196 70 70 40 40

Requirement #5: Post the adjusting entries to the General Ledger T-accounts and compute adjusted balances. Just add to the balances that are already listed.

Requirement #6: Prepare an Adjusted Trial Balance in the space below. Rawls Repair Corporation Adjusted Trial Balance October 31

Debit Cash Equipment Supplies Accounts Payable Insurance Expense Rent Expense Utility Expense Service Revenue Common Stock Dividends accumulated depreciation depreciation expense supplies expense prepaid insurance tax expense tax payable 10678 4400 194

Credit

3990 100 1040 154 2672 12000 800 70 70 196 1100 40 18772 40 18772

Requirement #7: Prepare the financial statements for Rawls Repair Corporation as of October 31 in the space below. You will only be preparing the Income Statement, Statement of Retained Earning and the Balance Sheet. The Statement of Cash Flows is a required Financial Statement, but is not required for this Project. Rawls Repair Corporation Income Statement For the Month Ending October 31 Revenues: Bicycle Repair Revenue Expenses: Store Rent Expense Utility Expense Insurance Expense Repair Supplies Exp. Depreciation Exp. Income Taxes Exp. Total Expenses Net Income Rawls Repair Corporation Statement of Retained Earnings For the Month Ending October 31 Retained Earnings, October 1 Add: Net Income Subtotal Less: Dividends Retained Earnings, October 31 $ 1,072 -800 $ 272

2,672

1,040 154 100 196 70 40 1,600 $ 1,072

alance Sheet.

Rawls Repair Corporation Balance Sheet October 31 Assets: Cash Prepaid Insurance Repair Supplies Repair Equipment Less: Accum. Depr. Total Assets Liabilities: Accounts Payable Income Taxes Payable Total Liabilities Stockholders' Equity: Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities & Stockholders' Equity

10,678 1,100 194 4,400 -70 16,302

16,302

3,990 40 4,030

272 12,000 $ 16,302

Requirement #8: Prepare the closing entries at October 31 in the General Journal below. Hint: use the balances for each account which appear on the Adjusted Trial Balance for your closing entries. General Journal Description (Account Name)

Date

Debit

Credit

Bicycle Repair Revenue income summary

2672 2672

income summary Store Rent Expense Utility Expense Insurance Expense Repair Supplies Exp. Depreciation Exp. Income Taxes Exp. income summary retained earning retained earning dividend

1600 1,040 154 100 196 70 40 1072 1072 800 800

Requirement #9: Post the closing entries to the General Ledger T-accounts and compute ending balances. Just add to the adjusted balances already listed.

Requirement #10: Prepare a post-closing trial balance as of October 31 in the space below.

Rawls Repair Corporation Post-Closing Trial Balance October 31

Cash Equipment Supplies Accounts Payable Common Stock accumulated depreciation prepaid insurance tax payable retained earnings total

10678 4400 194 3990 12000 70 1100 40 272 16372

16372

Project 1 Rubric - Students

Criteria Parts: Step 1 Journal Entries (25pts) Excellent 90% to 100% - Journal Entries use accurate accounts and amounts; and debits and credits are used correctly. Good 70% to 89% Journal Entries mostly use accurate accounts and amounts; and debits and credits are used correctly. Poor 50% to 69% Journal Entries have some errors in use of accounts and amounts; and debits and credits are only somewhat used correctly. Posting has several errors leading to a trial balance with several errors. Journal Entries have some errors in use of accounts and amounts; and debits and credits are only somewhat used correctly. Posting has several errors leading to a trial balance with several errors. Two of four Financial Statements are prepared accurately and mostly in an appropriate format, two statements have some errors.

Step 2&3 Posting is correct -Posted and leading to an accurate Unadjusted Trial trial balance. Balance. (5pts) Step 4 - Journal Entries use Adjusting Journal accurate accounts and Entries (10pts) amounts; and debits and credits are used correctly.

Posting is mostly correct leading to a mostly correct trial balance. Journal Entries mostly use accurate accounts and amounts; and debits and credits are used correctly.

Step 5&6 -Posted and Adjusted Trial Balance. (5pts) Step 7 -Financial Statements (15pts)

Posting is correct Posting is mostly leading to an accurate correct leading to a trial balance. mostly correct trial balance. All four Financial Three of four Financial Statements are Statements are prepared accurately prepared accurately and in an appropriate and mostly in an format. appropriate format, one statement has some errors.

Step 8 Closing Journal Entries (10pts)

- Journal Entries use accurate accounts and amounts; and debits and credits are used correctly.

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. Posting has several errors leading to a trial balance with several errors.

Step 9&10 Posting is correct -Posted and Post- leading to an accurate closingTrial trial balance. Balance. (5pts)

Posting is mostly correct leading to a mostly correct trial balance.

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.