accounting project

weekly project that can be done in 3 hours. the information is all their in attachment I did the begining journal entries and general ledger with those entries.

  

X=0 Y=0 Z=3

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ACCOUNTING PRINCIPLES I

ACCOUNTING PROJECT 2

DATA AND REQUIREMENTS

Spring 2013

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Below are the financial statements of Zipparoo, Inc. Zipparoo sells rubber work boots called “Zips”.
In this assignment, you will account for complex transactions and update existing account balances.
Students are asked to complete the assignment on their own, but may obtain instructional assistance
from the professor or TAs. The assignment is meant to help the student get ready for the second
exam. Below are the financial statements for the previous month.

Income Statement (previous month)
Sales Revenue 60,000
Cost of Goods Sold 12,000
Gross Profit 48,000
Salaries Expense 9,000
Bad Debt Expense 6,000
Rent Expense 7,000
Office Supplies Expense 3,000
Depreciation Expense 8,000 33,000
Operating Income 15,000
Gain on Sale of Equipment 3,000
Interest Expense (5,000) (2,000)
Net Income 13,000

Statement of Retained Earnings

(previous month)

Beginning Retained Earnings 40,000
Net Income 13,000
Dividends (3,000)
Ending Retained Earnings 50,000

Balance Sheet (previous month)
Assets Liabilities
Cash 54,000 Accounts Payable 9,000
Accounts Receivable 30,000 Salaries Payable 2,000
Allow For Doubtful Accts (3,000) Unearned Revenues 20,000
Office Supplies 7,000 Long-term Debt 27,000
Inventory 18,000 Total Liabilities 58,000
Prepaid Rent 48,000
Equipment 100,000 Equities
Accumulated Depreciation (35,000) Common Stock 111,000
Retained Earnings 50,000
Total Equities 161,000
Total Assets 219,000 Total Liab and Equities 219,000

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Below are the transactions for the current month. You will notice that there is an “X” or “Y” or “Z”
in many of the numbers. You MUST substitute the appropriate number from your ZipCard to get the
correct answers. Each letter corresponds to the following number of your ZipCard.

X = third from last number of ZipCard Number
Y = second from last number of ZipCard Number
Z = last number of ZipCard Number

For example, if your ZipCard Number is 1234567:
X = 5
Y = 6
Z = 7

You must do this substitution correctly or you will not obtain the correct answers.

Additional information at the BEGINNING of the month:

1. Inventory consists of 1,000 pairs of “Zips”, each costing $18. Zipparoo uses the LIFO
inventory method. Round all inventory calculations to the nearest dollar.

2. The net method is used for recording purchases.
3. The Equipment of $100,000 was originally purchased 10 years ago. At that time, it was

estimated that the equipment would have a useful life of 20 years and a salvage value of
$30,000. Zipparoo uses the straight-line depreciation method.

4. Zipparoo uses the Balance Sheet method of accounting for bad debts.
5. Round all calculations to the nearest dollar.

Transactions during the month:
Jan. 1 Paid $1,800 for a one year premium on property and casualty insurance. The policy covers
the period January 1, 20X1 to December 31, 20X1.
Jan. 1 Sold 6X0 pairs of “Zips” to Joey on account for $6X each, terms 2/10, net 30.
Jan. 2 Zipparoo purchased additional equipment for cash for $2Y,000. The equipment has an
expected life of 10 years and an estimated salvage value of $4,Z00.
Jan. 5 Joey returned 7X pairs of “Zips” because of defections. The inventory could not be resold
and was disposed of.
Jan. 8 Purchased 7X0 pairs of “Zips” from Bluey on account for $2X each, terms 3/10, net 60.
Jan. 9 Office supplies totaling $7,Y00 were purchased on account.
Jan. 10 Joey paid full amount owed. Round calculations to the nearest dollar.
Jan. 12 Sold 7X0 pairs of “Zips” to Pete on account for $7X each, terms 2/10, net 30.
Jan. 14 Purchased 4Z0 pairs of “Zips” from Kanga on account for $1Z each, terms 2/10, net 30.
Jan. 17 Paid full amount owed to Bluey from Jan. 8 purchase.
Jan. 18 Paid $1X,000 for workers’ salaries. This amount includes amounts owed from the previous
month.
Jan. 23 Delivered 3Y0 pairs of “Zips” to Flash who had purchased them in advance last month,
$1Y,000.
Jan. 24 Paid interest on Long-Term Debt, $5,Z00.
Jan. 25 Paid dividends to stockholders, $3,Z00.
Jan. 26 Received cash from customers billed in the previous month, $1X,000.
Jan. 27 Pete paid full amount owed.
Jan. 27 Paid full amount owed to Kanga from Jan. 14 purchase.
Jan. 28 One of Zipparoo’s customers, Rooth, owes $2,Y00 but has informed Zipparoo that he will not
pay because of bankruptcy. Zipparoo writes off Rooth’s account as uncollectible.
Jan. 30 Paid utilities for January of $475.

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REQUIREMENTS:

1. Make copies of the required forms (see attached forms and instructions). Then, using the chart of

accounts shown below, set up the general ledger. NOTE: YOU MUST USE THE
DOWNLOADED FORMS TO RECEIVE CREDIT FOR THE PROBLEM.

Zipparoo

Chart of Accounts

11 Cash
12 Accounts Receivable

13 Allowance for Doubtful Accounts
14 Office Supplies
15 Prepaid Rent
16 Inventory
17 Prepaid Insurance
18 Equipment
19 Accumulated Depreciation
21 Accounts Payable
22 Salaries Payable
23 Unearned Revenues
25 Long-term Debt
31 Common Stock
34 Retained Earnings
35 Dividends
37 Income Summary
41 Sales Revenue
42 Sales Returns and Allowances
43 Sales Discounts
51 Insurance Expense
52 Uncollectible Account Expense
53 Rent Expense
54 Cost of Goods Sold
55 Office Supplies Expense
56 Interest Expense
57 Depreciation Expense
58 Utilities Expense
59 Salaries Expense
60 Purchase Discount Lost/Taken

2. Journalize each of the above transactions. EXPLANATIONS ARE NOT REQUIRED.
3. Post the entries to the ledger.
4. Prepare a trial balance as of January 31, 20X1. USE THE FORMAT SHOWN ON PAGE 109

OF THE CLASS TEXT.
5. Journalize and post the adjusting entries using the following information:

a. Zipparoo estimates that 10% of accounts owed to the company would not be collected. Round
to the dollar.

b. Office Supplies at the end of the year totaled $2,500.
c. Must take depreciation for equipment use this month for both old and new equipment. Round

Total depreciation to the dollar.
d. Salaries of $2,Y00 for January will not be paid until February 5 of next month.

Set up the entire general
ledger using these
accounts before you
start into the project.
Keep the accounts in
numeric order.

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e. In a prior month, 12 months rent had been purchased in advance for $96,000.
f. Must record insurance use this month.
g. A physical count of inventory indicates there is $1,500 of inventory on hand.

6. Prepare an adjusted trial balance. USE THE FORMAT SHOWN ON PAGE 158 OF THE
CLASS TEXT.

7. Using the adjusted trial balance, prepare an income statement, a statement of retained earnings,
and a balance sheet. USE THE FORMATS SHOWN ON PAGE 194 OF THE CLASS TEXT.
You will have to include the Merchandising Company requirements of the Income
Statement. Note: For our problem, there are no income taxes.

8. Journalize and post the closing entries.
9. Prepare a post-closing trial balance. USE THE FORMAT SHOWN ON PAGE 203.
10. After you have completed the problem, arrange the pages of your solution in the following

order (DO NOT turn in the problem requirements packet or any pages other than those
listed below!):

a. Project Title Page
b. Journals
c. Ledger
d. Trial Balance
e. Adjusted Trial Balance
f. Post-closing Trial Balance
g. Income Statement
h. Statement of Retained Earnings
i. Balance Sheet

PRINT your name in the lower right corner of each page. STAPLE the pages together in the
upper left hand corner.

IMPORTANT NOTES

1. The instructor will not accept the problem if the pages are not arranged as
described in paragraph 10, above.

2.
3. Do not type the answers or use a computer.

4. Do not write your answer in ink. Use a #2 pencil to complete the problem.

5. Form, style, and neatness will be graded.

6. THE PROBLEM MUST BE COMPLETED AND SUBMITTED ON THE

DATE ANNOUNCED BY THE INSTRUCTOR. NO TIME
EXTENSION WILL BE GRANTED.

CHECK FIGURES

There is an excel spreadsheet on Springboard where you can enter the LAST 3 digits of your
Akron Student ID # (on the back of your Zip Card) to obtain your personal check figures for
the project.

Attached are copies of the forms required for the project. You will need to make copies,
as shown below, to complete the project.

You must use the attached forms. DO NOT MAKE UP FORMS OF YOUR OWN.

# of Copies
You will

Form Need
Cover Sheet 1
General Journal 2-3
General Ledger 5
Trial Balance 1
Adjusted Trial Balance 1
Post Closing Trial Balance 1
Income Statement 1
Balance Sheet 1
Statement of Retained Earnings 1

FORMS FOR THE PROJECT

Accounting 201

Spring 2013

Project 2

Section # ________
Instructor ________________

Student’s Name:____________________________
Student’s UA ID # (Zip Card #): _____________

Zipparoo
General Journal

January 1 to

January 31, 20X1

Page: _____

Post.
Date Description Ref.

Debit Credit

Section # ________
Instructor ________________ Student’s Name:____________________________

Zipparoo
General Ledger

January 1 to January 31, 20X1

Acct Name: Acct No: Acct Name: Acct No:
Date Debit Credit Balance Date Debit Credit Balance

Acct Name: Acct No: Acct Name: Acct No:
Date Debit Credit Balance Date Debit Credit Balance
Acct Name: Acct No: Acct Name: Acct No:
Date Debit Credit Balance Date Debit Credit Balance

Student’s Name:_____________________________

Zipparoo
Trial Balance

January 31, 20X1
Debit Credit

Student’s Name:______________________________

Zipparoo
Adjusted Trial Balance

January 31, 20X1
Debit Credit
Student’s Name:______________________________

Zipparoo
Post-Closing Trial Balance

January 31, 20X1
Debit Credit
Student’s Name:______________________________

Zipparoo
Income Statement

January 1 to January 31, 20X1

Student’s Name ______________________________

Zipparoo
Statement Of Retained Earnings

For The Month Ended January 31, 20X1

Student’s Name ______________________________

Zipparoo
Balance Sheet

For the Month Ended January 31, 20X1

Student’s Name ______________________________

Project 2
• Accounting Project 2 Forms
• Accounting Project 2 Forms pg 2
• Accounting Project 2 Forms pg 3