ACC 201 Milestone One Guidelines and Rubric Overview

 

ACC 201 Milestone One Guidelines and Rubric

Overview

In previous modules, you examined the initial stages of the accounting cycle and practiced journalizing financial transactions. In Milestone One, you will complete the first part of your course project to demonstrate your ability to accurately record financial data, which will continue to be used to complete other parts of the project.

Scenario

You were recently hired as an entry-level bookkeeper for a service business that recently opened. This is the first month in operation for the business and your first task is to record business transactions for their first month using the source documents and transaction data the owner will provide to you. Because this is a small business that does not use computerized accounting, you will apply the accounting cycle in Excel to record transactions and generate financial reporting results for the owner.

Prompt

Record Financial Data: Use accepted accounting principles to accurately capture business transactions for the month in the

Company Accounting Workbook Template

 using the data provided in the

Accounting Data Appendix

 document.

Specifically, you must address the following rubric criteria:

Accuracy: Prepare entries that are accurate in that they fully reflect the appropriate information.
Completeness: Prepare entries that are complete for each month, including transferring posted entries to T accounts.

Unadjusted Trial Balance: Prepare the unadjusted trial balance portion of the “Trial Balance” tab of the company accounting workbook, ensuring that the total debits and credits match.

What to Submit

Using the provided template, submit your company accounting workbook with the following portions completed: the General Journal tab, the Ledger Accounts tab, and the Trial Balance tab. This should be completed and submitted using the Microsoft Excel workbook template. Please note that the first tab of the workbook provides you with the chart of accounts. These are the accounts you will use in recording transactions for the month.

Supporting Materials

The following resources support your work on the project:

Video:

Milestone One Walkthrough

(14:40)
This video walkthrough is available if you need additional assistance completing this milestone. The video uses a sample data set for illustrative purposes.

A video transcript is available:

Transcript for ACC 201 Milestone One Walkthrough

Milestone One Rubric

CriteriaExemplary (100%)Proficient (85%)Needs Improvement (55%)Not Evident (0%)ValueAccuracyPrepares accurate entries with no errorsPrepares accurate entries with minimal errorsPrepares entries that have significant inaccuraciesDoes not attempt criterion35CompletenessPrepares entries that are complete for each month, including transferring posted entries to T accounts, with no errorsPrepares entries that are complete for each month, including transferring posted entries to T accounts, with minimal errorsPrepares entries that are complete for each month, including transferring posted entries to T accounts, with significant errorsDoes not attempt criterion35Unadjusted Trial Balance Prepares the unadjusted trial balance accurately, ensuring the total debits and credits match with no errors Prepares the unadjusted trial balance with minimal errors Prepares the unadjusted trial balance with significant errors Does not attempt criterion30Total:100% 

ACC 201 Accounting Data Appendix

The following events occurred in June:

·
June 1: Owner contributed $50,000 in cash to the business.

·
June 1: Owner purchased a company vehicle in the amount of $15,000.

·
June 3: Owner took out a small business loan in the amount of $25,000.

·
June 5: Owner paid rent for June, and prepaid office rent for a 6-month period to cover July through December at $1,195 per month.

· June 5: Owner paid business license fees in the amount of $250 to the county.

·
June 5: Owner ordered office supplies, on account, in the amount of $750.00.

·
June 6: Owner performed service for client on account in the amount of $1,000.

· June 9: Owner provided service for client in the amount of $1,500. Customer paid $750 at time of service. Client will be billed for the balance due.

· June 10: Owner paid $250 in advertising costs to the local paper.

·
June 15: Owner recorded wages due to the part-time employee in the amount of $325. This will be paid on June 20.

· June 15: Owner prepaid business insurance to cover July through December at the rate of $125 per month.

·
June 20: Owner paid wages due to part-time employee from period ending June 15.

·
June 21: Owner paid for plumbing repairs in the office in the amount of $210.

·
June 22: Owner withdrew $1,000 cash for personal use.

·
June 23: Customer paid balance due from June 6 service in the amount of $1,000.

·
June 25: Owner provided service to client in the amount of $800. Client paid at time of service.

·
June 28: Owner paid balance due for office supplies purchase on June 5.

·
June 29: Owner performed service for client on account in the amount of $2,225.00.

·
June 30: Owner received telephone bill for month of June in the amount of $155 and recorded the expense. This bill will not be paid until July.

·
June 30: Last day of pay period; owner owes part-time worker $325 for the June 16 through June 30 pay period. This will be paid on July 5.

·
June 30: Record depreciation on vehicle at $250.

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Chart of

Account

s

Accounts

Acct #

Acct #

(contra asset)

Accounts

Acct #

Acct #

Cash
Prepaid Rent
Prepaid Insurance
Office Supplies
Accounts Receivable
Accumulated Depreciation
Notes Payable
Accounts Payable
Wages Payable
Business License Expense
Advertising Expense
Wages Expense
Depreciation Expense

This chart of accounts should help you identify the appropriate accounts to record to as you are analyzing and journaling transactions for this workbook. There is nothing to complete on this page; this is simply a resource for you.

Asset

Accounts

Liability Accounts

Equity

Acct #

Cash

101

Notes Payable

201

Owner’s Capital

301

Accounts Receivable

102

Accounts Payable

202

Owner Draws

302

Prepaid Rent

103

Wages Payable

203

Prepaid Insurance

104

Office Supplies

105

Vehicle

106

Accumulated Depreciation

107

Revenue

Service Revenue

401

Expense Accounts

Rent expense

501

Business License Expense

502

Telephone expense

503

Repairs and Maintenance

504

Advertising Expense

506

Wages Expense

507

Depreciation Expense

508

Baking Supplies

Baking Equipment

Merchandise Inventory

Interest Payable

Common Stock

Dividends

Bakery Sales

Merchandise Sales

Baking Supplies Expense

Rent Expense

Insurance Expense

Misc. Expense

Telephone Expense

Interest Expense

Office Supplies Expense

Cost of Goods Sold

General Journal

s and credits must always equal!

Accounts
Debit

– 0

A Company

General Journal Entries

Journal Entry Tips

The debited account is recorded first, credited account recorded second.

Debit

Date

Credit

There can be compound entries in which two accounts receive a debt to an equivalent credited amount to one account.

Be sure to use your chart of accounts (the first page of this workbook).

Each account you will record to is already listed and organized by classification of the account.

Total

– 0

If Red, this means your debits and credits do not equal. Be sure to review for errors.

Ledger Accounts

Assets Liabilities

Equity

Revenue

Expenses

Cash

Notes Payable

Owner’s Capital

Service Revenue

Rent Expense
$ – 0

$ – 0

$ – 0
$ – 0

$ – 0
$ – 0

$ – 0
$ – 0

$ – 0
$ – 0

$ – 0

$ – 0

$ – 0

$ – 0

$ – 0
Accounts Rec.

Accounts Payable

Owner Draws

Business License Expense

$ – 0
$ – 0

$ – 0
$ – 0

$ – 0
$ – 0

$ – 0
$ – 0

$ – 0
$ – 0

$ – 0

$ – 0

$ – 0

$ – 0

Prepaid Rent

Wages Payable

Telephone Expense
Posting to the ledger/t accounts Don’t overthink it! You are just posting each debit and credit from the journal entries to the account you identified in the entry. These accounts are set to calculate your balances for you. Please be careful not to delete the running totals as those will calculate the ending balance.

The ending balance will transfer to the

Trial Balance

sheet.

If you have posted all entries and your trial balance is not in balance (total debits = total credits),

$ – 0
$ – 0

$ – 0
$ – 0

this means that there is an error.

$ – 0
$ – 0

$ – 0

$ – 0

$ – 0

Prepaid Insurance

Repairs & Maint.

$ – 0
$ – 0

$ – 0
$ – 0

$ – 0

$ – 0

Office Supplies

Advertising Expense

$ – 0
$ – 0

$ – 0
$ – 0

$ – 0

$ – 0

Vehicle

Wages Expense

$ – 0
$ – 0

$ – 0
$ – 0

$ – 0

$ – 0

Accumulated Depreciation

Depreciation Expense

$ – 0
$ – 0

$ – 0
$ – 0

$ – 0

$ – 0

Trial Balance

Trial Balance
Account
Debit
Credit

Trial Balance

Cash
– 0

Accounts Receivable
– 0

Prepaid Rent
– 0

Prepaid Insurance
– 0

Vehicle
– 0
Office Supplies
– 0
Accumulated Depreciation

– 0

Notes Payable

– 0

Accounts Payable

– 0

Wages Payable

– 0

Owner’s Capital

– 0

Owner Draws
– 0
Service Revenue

– 0

Rent Expense
– 0
Business License Expense
– 0
Telephone Expense
– 0

– 0

Advertising Expense
– 0
Wages Expense
– 0
Depreciation Expense
– 0

– 0
– 0

As of 06/30/20XX

Unadjusted trial balance

Balances from the t accounts will autofill your trial balance.

If total debits do not equal total credits in the trial balance, you know you have an error.

These are the balances that will be used to prepare the financial statements.

Be sure to implement feedback provided by your instructor for this Milestone One submission!

Repairs and Maintenance Expense

Retained Earnings

Total:

Debits should equal credits

`

Income Statement

A Company

Income Statement

$ – 0

– 0

– 0

For Month ending 06/30/20XX

Revenues

Total Revenues

Operating Expenses:

Total Operating Expenses:

Net Income

Statement of

Owner’s Equity

Statement of Owner’s Equity

$ – 0

$ – 0

Owner Draws

$ – 0

Company Name

Period Ending 06/30/20XX

Beginning Capital on 6/01/20XX

Increases to capital

Net income/loss:

Owner Contributions

Subtotal:

Decreases to capital

Ending Equity as of 06/30/20XX

Balance Sheet

A Company

Balance Sheet

Assets

– 0

– 0

– 0

– 0

Owner’s Equity

– 0

– 0

– 0

– 0

As of June 30, 20XX
Liabilities and Owners’ Equity
Current Assets:	Current Liabilities:
Total Current Liabilities
Long Term Liabilities:
Total Current Assets	Total Long Term Liabilities:
Total Liabilities:
Non-Current Assets:
Total Equity
Total Non Current/Fixed Assets
Total Assets:	Total Liabilities & Equity	<== Total Assets on the left should equal Liabilities + Owner's Equity on the right.

Closing Entries

A Company

Date
Accounts
Debit
Credit

30-Jun

30-Jun

30-Jun

– 0
– 0

Closing Entries
Month ending 06/30/20XX
			30-Jun
Close revenues
Close Expenses
Close Income Summary
Close Owners Draw

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