PROJECT #1 -THE COMPLETE ACCOUNTING CYCLE Name: Dennis M.

DePugh

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 3 - 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 $12,000.00 Common Stock $12,000.00 PrePaid Insurance $1,200.00 Cash $1,200.00 Rent Expense $1,040.00 Cash $1,040.00 Repair Supplies Equipment $4,400.00 Cash $600.00 Accounts Payable $3,800.00 Repair Supply Expense $390.00 Accounts Payable $390.00 Utilty Expense $154.00 Cash $154.00 Cash $1,362.00 Revenue $1,362.00 Accounts Payable $200.00 Cash $200.00 Cash $1,310.00 Revenue $1,310.00

Date Oc1 1 Oc1 1 Oc1 1 3-Oct

8-Oct 12-Oct 16-Oct 19-Oct 31-Oct

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.

Oct 1 12000

Cash (111) Oct 1 $1,200 Oct 1 $1,040 Oct 3 $600 Oct 12 $154 Oct 19 $200 Oct 31 $800

Bicycle Repair Revenue (411) Oct 16 $1,362 Oct 31 $1,310 31-oct $4206

Oct 16 1362

Oct 31 1310

Prepaid Insurance (117) Oct 1 1,200 Oct 31 $100

Store Rent Expense (511) Oct 1st $1,040

Repair Supplies (119) Oct 3 4,400 31Oct $194 10/31 $4,400

Utility Expense (512) Oct 12 $154

Repair Equipment (144)

Insurance Expense (513) Oct 1 $1,200 Oct 31 $100

Accum. Depr.-Repair Equipment (145) 31 Oct $70

Repair Supplies Expense (514) Oct 8 $390

Accounts Payable (212) Oct 19 200 Oct 3 $3,800 Oct 8 $390

Depr. Exp.-Repair Equipment (515) 31 Oct $70

Income Taxes Payable (213) 31 Oct $40

Income Taxes Expense (516) 31 Oct $40

Common Stock (311) Oct 1 12,000

Retained Earnings (312)

Dividends (313) 31 oct $800

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

Rawls Repair Corporation Trial Balance

October 31
ACCOUNT TITLE Cash (Debit) Prepaid Insurance (Debit) Repair Supplies (Debit) Repair Equipment (Debit) Accum Dep -Repair Equipment (Credit) Accounts Payable (Credit) Income Tax Payable (Credit) Common Stock (Credit) Retained Earnings (Credit) Dividends (Debit) Bicycle Repair Revenue (Credit) Store Rent Expense (Debit) Utility Expense (Debit) Insurance Expense (Debit) Repair Supplies Expense (Debit) Dep Expense - Repair Equipment (Debit) Income Tax Expense (Debit) Total DEBIT $10,678.00 $1,200.00 $4,400.00 CREDIT

$3,990.00 $12,000.00 $800.00 $2,672.00 $1,040.00 $154.00 $390.00

$18,662.00 $18,662.00

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) Insurance Expense Pre-Paid Insurance Supplies Supplies Expense Dep- Expense Repair Equipment Accumulated Dep- Repair Equipment Income Tax Expense Income Tax Payable

Date 31-Oct 31-Oct 31-Oct 31-Oct 31-Oct 31-Oct 31-Oct 31-Oct

Debit Credit $100.00 $100.00 $194.00 $194.00 $70.00 $70.00 $40.00 $40.00

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

Cash (Debit) Prepaid Insurance (Debit) Repair Supplies (Debit) Repair Equipment (Debit) Accum Dep -Repair Equipment (Credit) Accounts Payable (Credit) Income Tax Payable (Credit) Common Stock (Credit) Retained Earnings (Credit) Dividends (Debit) Bicycle Repair Revenue (Credit) Store Rent Expense (Debit) Utility Expense (Debit) Insurance Expense (Debit) Repair Supplies Expense (Debit) Dep Expense - Repair Equipment (Debit) Income Tax Expense (Debit)

$10,678.00 $1,100.00 $4,400.00 $194.00 $70.00 $3,990.00 $40.00 $12,000.00 $800.00 $2,672.00 $1,040.00 $154.00 $100.00 $196.00 $70.00 $40.00 $18,772.00

$18,772.00

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

$2,672.00

$1,040.00 $154.00 $100.00 $196.00 $70.00 $40.00 $1,600.00 $1,072.00

$1,072.00 $1,072.00 $272.00 $272.00

space below. the Balance Sheet. r this Project. 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

$10,678.00 $1,100.00 $4,400.00 $194.00 $70.00 $16,302.00

$3,990.00 $40.00 $4,030.00 $12,000.00 $272.00 $12,272.00 $16,302.00

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) Bicycle Repair Revenue (Credit) Retained Earnings Retained Earnings Store Rent Expense Utility Expense Insurance Expense Repair Supplies Exp. Depreciation Exp. Income Taxes Exp. Retained Earnings Dividends

Date

Debit Credit $2,672.00 $2,672.00 $1,600.00 $1,040.00 $154.00 $100.00 $196.00 $70.00 $40.00 $800.00 $800.00

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 Prepaid Insurance Repair Supplies Repair Equipment Accounts Payable Income Taxes Payable Common Stock Accum Dep -Repair Equipment Retained Earnings $10,678.00 $1,100.00 $4,400.00 $194.00 $3,990.00 $40.00 $12,000.00 $70.00 $272.00 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.