MenuACCT 212: Course Project RequirementRequirement
DescriptionWorksheetPart A1Prepare the Journal Entries in the
General JournalJournal Entries2Post Journal Entries to the General
LedgerGeneral Ledger3Prepare a Trial BalanceTrial BalancePart
B4Prepare the Adjusting EntriesAdjusting Entries5Post Adjusting
Entries to the General LedgerGeneral Ledger6Prepare an Adjusted
Trial BalanceAdjusted TB7Prepare the Financial StatementsFinancial
Statements8Prepare the Closing EntriesClosing Entries9Post Closing
Entries to the General LedgerGeneral Ledger10Prepare the Post
Closing Trial BalancePost Closing TB
Click on the worksheet link to complete the corresponding
Requirement or the Project Instructions button below for an
overview.Project Instructions
Project InstructionsCourse Project #1 OverviewThe Course Project
consists of 10 Requirements for you to complete. The Course Project
is due at the end of Week 6. See the Syllabus section Due Dates for
Assignments & Exams for due date information. All of the
information 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 October 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.
ScenarioYouve just secured a new client in your accounting
practice, the Rawls Repair Corporation (RRC), a brand new small
business specializing in bicycle repair. The owner, Rob Rawls, is a
terrific cyclist and bike repair specialist, but definitely not an
accountant. Your job is to help Rob put his affairs in order.
Luckily Rob has only been in operation for a month and things have
not gotten too out of hand yet! Rob has to submit his financial
statements to his investors and doesnt know where to begin. Its
your job to go through the complete Accounting cycle to prepare the
financial statements for the RRC.
Requirements
GuidelinesUse the embedded assistance in the template, guidance
in your textbook, and examples in the weekly lectures to 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.
October TransactionsDuring its first month of operation, the
Rawls Repair Corporation, which specializes in bicycle repairs,
completed the following transactions.
October TransactionsDateTransaction DescriptionOct. 1Began
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.Oct.
1Paid the premium on a 1-year insurance policy, $1,200.Oct. 1Paid
the current month's store rent expense, $1,040.Oct. 3Purchased
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 19 months. The first payment is due 11/1. Note: Use
Accounts Payable for the Balance Due.Oct. 8Purchased repair
supplies from McKenna Company on credit, $390.Oct. 12Paid utility
bill for October, $154.Oct. 16Cash bicycle repair revenue for the
first half of October, $1,362.Oct. 19Made payment to McKenna
Company, $200.Oct. 31Cash bicycle repair revenue for the last half
of October, $1,350.Oct. 31Declared and paid cash dividend of
$800.
Chart of AccountsUse the following account descriptions for
journal entries.
Chart of AccountsAccount TypeAccount NumberAccount TitleNormal
BalanceAssets111Cash Debit117Prepaid Insurance Debit119Repair
SuppliesDebit144Repair Equipment Debit145Accum Dep -Repair
Equipment Credit
Liabilities212Accounts Payable Credit213Income Tax
PayableCredit
Stockholders Equity311Common Stock Credit312Retained Earnings
Credit313Dividends Debit
Revenue411Bicycle Repair RevenueCredit
Expenses511Store Rent Expense Debit512Utility Expense
Debit513Insurance Expense Debit514Repair Supplies Expense
Debit515Dep Expense - Repair Equipment Debit516Income Tax Expense
Debit
Journal EntriesREQUIREMENT #1: Prepare journal entries to record
the October transactions in the General Journal below. Remember
that Debits must equal CreditsAll of your Journal Entries should
balance.General JournalDateDescription (Account
Name)DebitCredit
0
Harris, Nicole: Debits = $22,8960.0
Harris, Nicole: Credits = $22,896
Journal Entries
Once you've completed this requirement print your General
Journal to complete Requirement #2 on the General Ledger
worksheet.
General LedgerREQUIREMENT #2: Post the October journal entries
to the following T-Accounts and compute ending balances.
Cash (111)
DeVry: The balance of the Cash account after posting journal
entries for Part A should be $10,718.Bicycle Repair Revenue
(411)
Prepaid Insurance (117)Store Rent Expense (511)
Repair Supplies (119)Utility Expense (512)
Repair Equipment (144)Insurance Expense (513)
Accum. Depr.-Repair Equipment (145)Repair Supplies Expense
(514)
Accounts Payable (212)Depr. Exp.-Repair Equipment (515)
Income Taxes Payable (213)Income Taxes Expense (516)
Common Stock (311)
Retained Earnings (312)
Dividends (313)
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.
Trial BalanceREQUIREMENT #3: Prepare a trial balance for October
in the space below.Rawls Repair CorporationTrial BalanceOctober
31AccountBalance TitleDebitCredit
0
User: Debit Balance = $18,7020
User: Credit Balance = $18,702
Journal Entries
Only enter accounts that have a balance.
Adjusting EntriesRequirement #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. Requirement #5: Post the adjusting entries on
October 31 below to the General Ledger T-accounts and compute
adjusted balances. Just add to the balances that are already
listed. General JournalDateDescription (Account
Name)DebitCredit
0
Bruce: Balance $406.000
Bruce: Balance $406.00
Journal Entries
Click here to go to the General Ledger worksheet to complete
Requirement #5.
Adjusted TBREQUIREMENT #6: Prepare an Adjusted Trial Balance in
the space below.Rawls Repair CorporationAdjusted Trial
BalanceOctober 31AccountBalance TitleDebitCredit
0
User: Debit Balance = $18,8120
User: Credit Balance = $18,812
Journal Entries
Only enter accounts that have a balance.
Financial StatementsRequirement #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 CorporationRawls Repair CorporationRawls Repair
CorporationIncome StatementStatement of Retained EarningsBalance
SheetFor the Month Ending October 31For the Month Ending October
31October 31
Revenues:Retained Earnings, October 1Assets:Bicycle Repair
RevenueAdd: Net Income0.0CashTotal Revenue0Subtotal0Prepaid
InsuranceLess: DividendsRepair SuppliesExpenses:Retained Earnings,
October 310
User: Retained Earnings = $312
Repair EquipmentStore Rent ExpenseLess: Accum. Depr.Utility
ExpenseTotal Assets0
User: $16,342Insurance ExpenseRepair Supplies Exp.Liabilities and
Stockholders' EquityDepreciation Exp.Liabilities:Income Taxes
Exp.Accounts Payable Total Expenses0Income Taxes PayableTotal
Liabilities0Net Income0
User: Net Income = $1,112
Stockholders' Equity:Common StockRetained Earnings0.0Total
Stockholders' Equity0
Total Liabilities & Stockholders' Equity0
User: $16,342
Closing EntriesRequirement #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.
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 JournalDateDescription (Account Name)DebitCredit
0
Bruce: Debit $5,1120
Bruce: Credit $5,112
Journal Entries
Click here to go to the General Ledger worksheet to complete
Requirement #9.See the Week 2 Lecture for examples of how to
complete closing entries.
Post Closing Trial BalanceRequirement #10: Prepare a
post-closing trial balance as of October 31 in the space
below.Rawls Repair CorporationPost-Closing Trial BalanceOctober
31AccountBalance TitleDebitCredit
0
User: Debits = $16,4120
User: Credits = $16,412
Journal Entries
Grading RubricProject 1 Grading Rubric - Students
CriteriaExcellentGoodPoorVery PoorParts:90% to 100%70% to 89%50%
to 69%Less than 50%Step 1 Journal Entries (20 points)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.Journal entries have
some errors in use of accounts and amounts; and debits and credits
are not used correctly.Steps 2 and 3 Posted and Unadjusted Trial
Balance. (10 points)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.Posting is done poorly or not at all, leading to
inaccurate or no trial balance.Step 4 Adjusting Journal Entries (10
points)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.Journal entries have some errors in use of accounts and
amounts; and debits and credits are not used correctly.Steps 5 and
6 Posted and Adjusted Trial Balance. (10 points)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.Posting is
done poorly or not at all, leading to inaccurate or no trial
balance.Step 7 Financial Statements (10 points)All four financial
statements are prepared accurately and in an appropriate
format.Three of four financial statements are prepared accurately
and mostly in an appropriate format, one statement has some
errors.Two of four financial statements are prepared accurately and
mostly in an appropriate format, two statements have some
errors.One or fewer of four financial statements are prepared
accurately and mostly in an appropriate format, three or all
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 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.Journal entries have some errors in use of accounts and
amounts; and debits and credits are not used correctly.Steps 9 and
10 Posted and Post-closingTrial Balance. (10 points)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.Posting is done poorly or not at all, leading to inaccurate
or no trial balance.
