ACC201 3-2 Milestone One

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.

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
Acct #
Cash
Accounts Receivable
Prepaid Rent
Prepaid Insurance
Office Supplies
Vehicle
Accumulated Depreciation (contra asset)
101
102
103
104
105
106
107
Liability Accounts
Acct #
Notes Payable
Accounts Payable
Wages Payable
201
202
203
Equity Accounts
Acct #
Owner’s Capital
Owner Draws
301
302
Revenue Accounts
Acct #
Service Revenue
401
Expense Accounts
Acct #
Rent expense
Business License Expense
Telephone expense
Repairs and Maintenance
Advertising Expense
Wages Expense
Depreciation Expense
501
502
503
504
506
507
508
A Company
General Journal Entries
Date
Accounts
Debit
Credit
Total
–
–
Journal Entry Tips
The debited account is recorded first, credited account recorded second.
Debits and credits must always equal!
There can be compound entries in which two accounts receive a debt to an equivalent credited amount to on
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.
If Red, this means your debits and credits do not equal. Be sure to review for errors.
$
$
Assets
Liabilities
Cash
Notes Payable
–
$
–
$
Accounts Rec.
$
$
–
$
–
$
–
–
$
–
$
–
$
$
–
Wages Payable
–
Prepaid Insurance
$
$
$
Accounts Payable
Prepaid Rent
$
$
–
–
$
–
$
$
–
$
Office Supplies
$
$
–
$
–
Vehicle
$
$
–
$
–
Accumulated Depreciation
$
–
$
$
–
ies
$
Payable
Equity
Revenue
Owner’s Capital
Service Revenue
–
$
$
–
$
–
–
$
–
Owner Draws
$
$
–
$
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
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),
this means that there is an error.
Revenue
Expenses
Service Revenue
Rent Expense
$
$
–
$
$
–
$
–
Business License Expense
$
–
$
$
–
$
–
Telephone Expense
account you identified in the entry.
he ending balance.
l debits = total credits),
$
$
–
$
–
Repairs & Maint.
$
–
$
–
$
Advertising Expense
$
$
–
$
–
Wages Expense
$
$
–
$
–
Depreciation Expense
$
$
–
$
–
Trial Balance
As of 06/30/20XX
Unadjusted trial balance
Account
Cash
Accounts Receivable
Prepaid Rent
Prepaid Insurance
Vehicle
Office Supplies
Accumulated Depreciation
Notes Payable
Accounts Payable
Wages Payable
Owner’s Capital
Owner Draws
Service Revenue
Rent Expense
Business License Expense
Telephone Expense
Repairs and Maintenance Expense
Advertising Expense
Wages Expense
Depreciation Expense
Total:
Debit
Credit
–
Debits should equal credits
`
–
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!
A Company
Income Statement
For Month ending 06/30/20XX
Revenues
Total Revenues
$
–
Operating Expenses:
Total Operating Expenses:
–
Net Income
–
Company Name
Statement of Owner’s Equity
Period Ending 06/30/20XX
Beginning Capital on 6/01/20XX
Increases to capital
Net income/loss:
Owner Contributions
Subtotal:
$
–
$
–
$
–
Decreases to capital
Owner Draws
Ending Equity as of 06/30/20XX
A Company
Balance Sheet
As of June 30, 20XX
Assets
Current Assets:
Total Current Assets
–
Non-Current Assets:
Total Non Current/Fixed Assets
–
Total Assets:
–
Liabilities and Owners’ Equity
Current Liabilities:
Total Current Liabilities
Long Term Liabilities:
–
Total Long Term Liabilities:
–
Total Liabilities:
–
Owner’s Equity
Total Equity
–
Total Liabilities & Equity
–