Accounting Milestone

You need to watch the first 3 videos in the classroom. These videos are all about the project and the
steps. The videos are under week 2 learning material and are labeled: Journal entries, Post Journal
Entries and Prepare Trial Balance. IMPORTANT: the videos are examples but may not be the exact
transaction that is in the project.
Here is some information that may give you a course of action.
1. In business every transaction must be recorded by making a journal entry. Each journal entry
must have at least one debit and one credit and total debits must equal total credits. In part one
of the project there are 14 transaction that need to be record. This means you will have 14
journal entries. The template has the first journal entry completed for you to give you an
example of how journal entries are made. You can see that Cash was debited (increased) and
Common stock was credited (increased).
2. Once you make a journal entry it must be posted to the general ledger. You can look at the
examples to see how this is done but normally beginning students are taught to use T-Accounts
to keep it simple. Posting is just a fancy term for copying. Copy the debit to the debit side (left)
of the account and copy the credit to the credit side (right) of the account. Once again you can
look at the example, I posted for the first journal entry. You can concentrate on the T-accounts
tab and ignore the Select General Ledgers tab in Part 1 only, if you want to, both are not
necessary. In Part 2 you will be required to use the General Ledger.
3. After all entries and been made and posted you will need to complete the trial balance. Once
again this is just copying. Go to one T-account or general ledger account at a time and copy the
balance to the correct side of the account. One again if the account has a debit you need to copy
it to the debit (left) side of the trial balance. Credit balances are copied to the credit or right side
of the trail balance. Copy only the balance. Each line on the trial balance can have Either a debit
or a credit not both. You know that you have done things correctly if the total of the debit
column is the same as the total of the credit column.
HINTS on the assignment
You cannot apply one rule for debits and one rule for credits to all accounts. Each type of account is
affected differently depending on the type of accounts. The first thing you need to do is memorize what
type of account each account is in the chart of accounts. Fortunately for us the chart of accounts is built
in order.
Assets
Increased by Debits
Decreased by credits
Liabilities
Increased by Credits
Decreased by Debits
Owners’ Equity Increased by Credits
Decreased by Debits
Revenue
Increased by Credits
Decreased by Debits
Expense
Increased by Debits
Decreased by credits
Here is the breakdown for our problem
Account Name
Number
Account Type
Increase
Decreas
Cash
111 Asset – Current
Debit
Credit
Accounts Receivable
115 Asset – Current
Debit
Credit
Store Supplies
117 Asset – Current
Debit
Credit
Prepaid Insurance
119 Asset – Current
Debit
Credit
Merchandise Inventory
130 Asset- Current
Debit
Credit
Store Fixtures
144 Asset – long term
Debit
Credit
Accumulated Depreciation -Fixtures
145 Contra Asset
Credit
Debit
Accounts Payable
212 Liability – Current
Credit
Debit
Income Tax Payable
213 Liability – Current
Credit
Debit
Common Stock
311 Owners’ Equity
Credit
Debit
Retained Earnings
312 Owners’ Equity
Credit
Debit
Dividends
313 Contra Owners Equity
Debit
Credit
Sales Revenue
411 Revenue
Credit
Debit
Cost of Good Sold
505 Expense
Debit
Credit
Store Rent Expense
511 Expense
Debit
Credit
Telephone & Electric Expense
517 Expense
Debit
Credit
Depreciation Expense
520 Expense
Debit
Credit
Insurance Expense
525 Expense
Debit
Credit
Supplies Expense
530 Expense
Debit
Credit
Income Tax Expense
535 Expense
Debit
Credit
Income Summary
600 Temporary Closing Account
Debit
Credit
Some general Hints -These may seem logical but are important to know
CASH
In a small business 80-90 % of all journal entries will use the cash account.
In the class project part 1 – There are 14 transactions therefore you will have 14 journal entries
Of the 14 journal entries 11 of them will have cash as one of the accounts -either a debit or credit but
never both in the same entry
Of the 14 entries 11 of them use only 2 accounts – 1 debit account 1 credit account
Of the 14 entries 3 of the entries – the ones involving a sale of goods will have 4 accounts- 1 debit and 1
credit to record the sale and one debit and one credit to record the cost of merchandise and removal
from inventory
POSTING to the General Ledger is optional. You may post to the T-accounts instead.
General Ledger
This may seem confusing, but a better description would be Copying to the General Ledger
Each line in a journal entry must be copied to the correct general ledger account. If it is a debit it will be
copied to the first debit column in the account. If it is a credit, it will be copied to the first credit account.
The last debit and credit account are reserved to keep a running balance in the account. Please review
the attached file with an example
Brent Norris
Course Project Overview
Scenario
Requirements
ACCT 105: Course Project
Requirement
1
2
3
4
5
6
7
8
9
10
11
12
Guidelines
The Course Project consists of 12 Requirements for you to complete.
Part 1 of the Course Project is due at the end of Week 2 and Part 2 at
the end of Week 4 and Part 3 is due at the end of week 7. 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 twelve (12) assignments in the workbook you will need to
complete.
• A list of July transactions
• A Chart of Accounts reference sheet
• A Grading Rubric to help explain what is expected.
The Course Project has help videos for each part. These videos are
similar transactions to guide you BUT are not expected to give you the
exact transactions. They may be different than the project transaction.
You will need to read the transaction descriptions carefully. After each
part you will get an email with a new template for use in the next part.
DO NOT use your part one submission for part two unless the instructor
specially says it is OK to use it. DO NOT use your part two submission for
part three unless the instructor specially says it is OK to use it. In Part 1
you may use either the general ledger or T-accounts. In part 2 you
must use the general ledger.
You’ve just secured a new client in your accounting practice, Jane’s
Skate Boards Inc., a brand new small business specializing in selling
skate boards. The owner, Jane Jones, is good at selling but she needs
your help with accounting. You have decided to use the perpetual
inventory method to account for inventory and Cost of Goods Sold.
ACCT 105: Course Project
Requirement Description
Prepare the Journal Entries in the General Journal
Post Journal Entries to the General Ledger or T-Accounts
Prepare a Trial Balance
Prepare the Adjusting Entries
Post Adjusting Entries to the General Ledger
Prepare an Adjusted Trial Balance
Prepare the Financial Statements
Prepare the Closing Entries
Post Closing Entries to the General Ledger
Prepare the Post Closing Trial Balance
Prepare ratio analysis
Prepare Break-Even Analysis
Use the template, guidance in your textbook, and examples in the
weekly lectures to complete this project. Should you have any
questions contact your professor.
Milestone 1 is due in Week 2 – This includes project requirements 1-3.
Milestone 2 is due in Week 4 – This includes project requirements 4-10.
Milestone 3 is due in Week 7- This includes project requirements 11-12.
Worksheet Name
Journal Entries
General Ledger or T-Accounts
Trial Balance
Adjusting Entries
General Ledger – You can’t use Taccounts in Part 2.
Adjusted Trial Balance
Financial Statements
Closing Entries
General Ledger – You can’t use Taccounts in Part 2.
Post Closing Trial Balance
Ratio Analysis
Break Even
Account Name
Cash
Accounts Receivable
Store Supplies
Prepaid Insurance
Merchandise Inventory
Store Fixtures
Accumulated Depreciation -Fixtures
Accounts Payable
Income Tax Payable
Common Stock
Retained Earnings
Dividends
Sales Revenue
Cost of Good Sold
Store Rent Expense
Telephone Expense
Depreciation Expense
Electric Expense
Insurance Expense
Supplies Expense
Income Tax Expense
Number
111
115
117
119
130
144
145
212
213
311
312
313
411
505
511
517
520
522
525
530
535
Increase Decrease
with
with
Account Type
Asset – Current
Debit
Credit
Asset – Current
Debit
Credit
Asset – Current
Debit
Credit
Asset – Current
Debit
Credit
Asset – Current
Debit
Credit
Asset – Long term
Debit
Credit
Contra Asset
Credit
Debit
Liability – Current
Credit
Debit
Liability – Current
Credit
Debit
Owners Equity
Credit
Debit
Owners Equity
Credit
Debit
Contra Owners Equity
Debit
Credit
Revenue
Credit
Debit
Expense – Variable
Debit
Credit
Expense -Fixed
Debit
Credit
Expense – Fixed
Debit
Credit
Expense – Fixed
Debit
Credit
Expense – Fixed
Debit
Credit
Expense – Fixed
Debit
Credit
Expense – Fixed
Debit
Credit
Expense – Fixed
Debit
Credit
Normal Financial Reported
balance on
Debit
Balance Sheet
Debit
Balance Sheet
Debit
Balance Sheet
Debit
Balance Sheet
Debit
Balance Sheet
Debit
Balance Sheet
Credit
Balance Sheet
Credit
Balance Sheet
Credit
Balance Sheet
Credit
Balance Sheet
Credit
Balance Sheet
Debit
Balance Sheet
Credit Income Statement
Debit Income Statement
Debit Income Statement
Debit Income Statement
Debit Income Statement
Debit Income Statement
Debit Income Statement
Debit Income Statement
Debit Income Statement
During its first month of operation, Jane’s Skateboards completed the following transactions.
Record these transactions in the Journal entries page
July Transactions
Journal entry #
JE01
Date of transaction
July 1
Begin business by making a $200,000 deposit into the companies bank account
in exchange for 10,000 shares of common stock -Par value $20
JE02
July 2
Paid Cash $25,000 for Display cases for the Store Sales floor
JE03
July 3
Paid Cash $24,000 for the premium on a 2-year Insurance policy
JE04
July 5
Paid Cash $4,000 for the July store rent
JE05
July 6
Paid Cash- 750 skateboards costing $50 each from Skate MFG
JE06
July 7
Purchased on Credit – 750 skateboards costing $50 each from Skate MFG
JE07
July 8
Purchased on Credit – Store supplies costing $1000 from Office Supply Inc.
JE08
July 10
Paid Cash $400 for for July telephone bill
JE09
July 11
Sold 50 skateboards for $100 each to a customer who paid cash
JE10
July 18
Paid Cash $500 for 1/2 of the Store Supplies purchased on July 8
JE11
July 20
Sold 150 skateboards for $90 each to a customer who paid cash
JE12
July 25
Sold 100 skateboards for $95 each to a customer who paid cash
JE13
July 26
Paid Cash $800 for for July electric bill
July 30
Paid Cash $2,000 for dividens on common stock declared on July 30
JE#
1
2
3
4
5
6
7
8
9
10
11
12
13
14
JE#
1
Date
Description
7/1/2022 Cash
Common Stock
2
Post Ref.
111
311
Debit
Credit
Post Ref.
JE01
200,000
200,000
JE01
JE02
JE02
3
JE03
JE03
4
JE04
JE04
5
JE05
JE05
6
JE06
JE06
7
JE07
JE07
8
JE08
JE08
JE09
JE09
9
JE09
JE09
10
11
12
13
14
JE10
JE10
JE11
JE11
JE11
JE11
JE12
JE12
JE12
JE12
JE13
JE13
JE14
JE14
Account Name
Cash
Accounts Receivable
Store Supplies
Prepaid Insurance
Merchandise Inventory
Store Fixtures
Accumulated Depreciation -Fixtures
Accounts Payable
Income Tax Payable
Common Stock
Retained Earnings
Dividends
Sales Revenue
Cost of Good Sold
Store Rent Expense
Telephone Expense
Depreciation Expense
Electric Expense
Insurance Expense
Supplies Expense
Income Tax Expense
Acct #
111
115
117
119
130
144
145
212
213
311
312
313
411
505
511
517
520
522
525
530
535
Account: Cash – 111
Balance
Date
Description
7/1/2022
Post Ref.
JE#1
Debit
Credit
200,000
Debit
Credit
200,000
Accounts Receivable- 115
Balance
Date
Description
Post Ref.
Debit
Credit
Debit
Credit
Store Supplies – 117
Balance
Date
Description
Post Ref.
Debit
Credit
Debit
Credit
Prepaid Insurance – 119
Balance
Date
Description
Post Ref.
Debit
Credit
Debit
Credit
Merchandise Inventory – 130
Balance
Date
Description
Post Ref.
Debit
Credit
Debit
Credit
Store Fixtures – 144
Balance
Date
Description
Post Ref.
Debit
Credit
Debit
Credit
Accumulated Depreciation -Fixtures -145
Balance
Date
Description
Accounts Payable – 212
Post Ref.
Debit
Credit
Debit
Credit
Balance
Date
Description
Post Ref.
Debit
Credit
Debit
Credit
Income Tax Payable – 213
Balance
Date
Description
Post Ref.
Debit
Credit
Debit
Credit
Common Stock – 311
Balance
Date
Description
7/1/2022
Post Ref.
Debit
JE#1
Credit
Debit
Credit
200,000
200,000
Retained Earnings – 312
Balance
Date
Description
Post Ref.
Debit
Credit
Debit
Credit
Dividends – 313
Balance
Date
Description
Post Ref.
Debit
Credit
Debit
Credit
Sales Revenue – 411
Balance
Date
Description
Post Ref.
Debit
Credit
Debit
Credit
Cost of Good Sold – 505
Balance
Date
Description
Post Ref.
Debit
Credit
Debit
Credit
Store Rent Expense – 511
Balance
Date
Description
Post Ref.
Debit
Credit
Debit
Credit
Telephone Expense – 517
Balance
Date
Description
Post Ref.
Debit
Credit
Debit
Credit
Depreciation Expense – 520
Balance
Date
Description
Post Ref.
Debit
Credit
Debit
Credit
Electrict Expense – 522
Balance
Date
Description
Post Ref.
Debit
Credit
Debit
Credit
Insurance Expense – 525
Balance
Date
Description
Post Ref.
Debit
Credit
Debit
Credit
Supplies Expense – 530
Balance
Date
Description
Post Ref.
Debit
Credit
Debit
Credit
Income Tax Expense – 535
Balance
Date
Description
Post Ref.
Debit
Credit
Debit
Credit
JE Number
JE#1
JE#2
JE#3
JE#4
JE#5
JE#6
JE#7
JE#8
JE#9
JE#10
JE#11
JE#12
JE#13
JE#14
AE#1
AE#2
AE#3
AE#4
CE#1
CE#2
CE#3
Account Name
Cash
Accounts Receivable
Store Supplies
Prepaid Insurance
Merchandise Inventory
Store Fixtures
Accumulated Depreciation -Fixtures
Accounts Payable
Income Tax Payable
Common Stock
Retained Earnings
Dividends
Sales Revenue
Cost of Good Sold
Store Rent Expense
Telephone Expense
Depreciation Expense
Electric Expense
Insurance Expense
Supplies Expense
Income Tax Expense
Acct #
111
115
117
119
130
144
145
212
213
311
312
313
411
505
511
517
520
522
525
530
535
Date
Acct #
111
7/1/2022
Account Name
Cash
200,000
Totals
200000
Balance
200000
115
Accounts Receivable
Totals
0
Balance
0
117
0
Store Supplies
Totals
0
Balance
0
119
0
Prepaid Insurance
0
Totals
0
Balance
0
130
Merchandise Inventory
Totals
0
Balance
0
144
0
Balance
0
Totals
Totals
0
Accumulated Depreciation
0
Balance
212
0
Store Fixtures
Totals
145
0
0
0
Accounts Payable
0
0
Balance
213
Totals
0
Income Tax Payable
0
0
Balance
311
0
Common Stock
7/1/2022
200,000
Totals
0
Balance
312
Totals
200000
Retained Earnings
0
Balance
313
0
0
Dividends
Totals
0
Balance
0
411
200000
Sales Revenue
0
Totals
0
Balance
505
0
Cost of Goods Sold
Totals
0
Balance
0
511
0
Balance
0
0
Balance
0
0
Depreciation Expense
Totals
0
Balance
0
522
0
Telephone Expense
Totals
520
0
Store Rent Expense
Totals
517
0
Electric Expense
0
Totals
0
Balance
0
525
Insurance Expense
Totals
0
Balance
0
530
Totals
Balance
535
Totals
Balance
0
0
Supplies Expense
0
0
0
Income Tax Expense
0
0
0
Account Name
Acct #
Cash
111
Accounts Receivable
115
Store Supplies
117
Prepaid Insurance
119
Merchandise Inventory
130
Store Fixtures
144
Accumulated Depreciation -Fixtures
145
Accounts Payable
212
Income Tax Payable
213
Common Stock
311
Retained Earnings
312
Dividends
313
Sales Revenue
411
Cost of Good Sold
505
Store Rent Expense
511
Telephone Expense
517
Depreciation Expense
520
Electric Expense
522
Insurance Expense
525
Supplies Expense
530
Income Tax Expense
535
Janes Skateboard
Trial Balance
For the Month Ended July 31, 2022
Trial Balance
Account Name
Acct #
Cash
111
Accounts Receivable
115
Store Supplies
117
Prepaid Insurance
119
Merchandise Inventory
130
Store Fixtures
144
Accumulated Depreciation -Fixtures 145
Accounts Payable
212
Income Tax Payable
213
Common Stock
311
Retained Earnings
312
Dividends
313
Sales Revenue
411
Cost of Good Sold
505
Store Rent Expense
511
Telephone Expense
517
Depreciation Expense
520
Electric Expense
522
Insurance Expense
525
Supplies Expense
530
Income Tax Expense
535
Debit
Credit
—
—
Account Name
Cash
Accounts Receivable
Store Supplies
Prepaid Insurance
Merchandise Inventory
Store Fixtures
Accumulated Depreciation -Fixtures
Accounts Payable
Income Tax Payable
Common Stock
Retained Earnings
Dividends
Sales Revenue
Cost of Good Sold
Store Rent Expense
Telephone Expense
Depreciation Expense
Electric Expense
Insurance Expense
Supplies Expense
Income Tax Expense
Acct #
111
115
117
119
130
144
145
212
213
311
312
313
411
505
511
517
520
522
525
530
535
Requirement #4: Prepare adjusting entries using the following
information in the General Journal below. Show your
calculations!
1) One month’s insurance has expired.
2) The remaining inventory of store supplies is $400.
3) The estimated depreciation on store fixtures is $300 per
month
4) The estimated income taxes are $1000.
Requirement #5: Post the adjusting entries on July 31 below to the General Ledger accounts (Step 2) . A
entries are referenced in the General Ledger as AE#1 ,2 etc.
AE#
1
2
3
4
Date
below to the General Ledger accounts (Step 2) . Ajusting
,2 etc.
Description
Post Ref.
Debit
Credit
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
Account Name
Cash
Accounts Receivable
Store Supplies
Prepaid Insurance
Merchandise Inventory
Store Fixtures
Accumulated Depreciation -Fixtures
Accounts Payable
Income Tax Payable
Common Stock
Retained Earnings
Dividends
Sales Revenue
Cost of Good Sold
Store Rent Expense
Telephone Expense
Depreciation Expense
Electric Expense
Insurance Expense
Supplies Expense
Income Tax Expense
Acct #
111
115
117
119
130
144
145
212
213
311
312
313
411
505
511
517
520
522
525
530
535
Janes Skateboard
Adjusted Trial Balance
For the Month Ended July 31, 2022
Trial Balance
Account Name
Acct #
Cash
111
Accounts Receivable
115
Store Supplies
117
Prepaid Insurance
119
Merchandise Inventory
130
Store Fixtures
144
Accumulated Depreciation -Fixtures 145
Accounts Payable
212
Income Tax Payable
213
Common Stock
311
Retained Earnings
312
Dividends
313
Sales Revenue
411
Cost of Good Sold
505
Store Rent Expense
511
Telephone Expense
517
Depreciation Expense
520
Electric Expense
522
Insurance Expense
525
Supplies Expense
530
Income Tax Expense
535
Debit
Credit
—
—
Account Name
Cash
Accounts Receivable
Store Supplies
Prepaid Insurance
Merchandise Inventory
Store Fixtures
Accumulated Depreciation -Fixtures
Accounts Payable
Income Tax Payable
Common Stock
Retained Earnings
Dividends
Sales Revenue
Cost of Good Sold
Store Rent Expense
Telephone Expense
Depreciation Expense
Electric Expense
Insurance Expense
Supplies Expense
Income Tax Expense
Acct #
111
115
117
119
130
144
145
212
213
311
312
313
411
505
511
517
520
522
525
530
535
Requirement #7: Prepare the financial statements for Jane’s Skateboard’s as of July 31 in the space below
Jane’s Skateboards Inc.
Income Statement
For the Month Ending July 31
Revenues:
Sales Revenue
Total Revenue
Jane’s Skateboards Inc.
Statement of Retained Earnings
For the Month Ending July 31
0
Expenses:
Cost of Goods Sold
Store Rent Expense
Telephone Expense
Insurance Expense
Store Supplies Exp.
Depreciation Exp.
Income Tax Expense
Electric Expense
Total Expenses
0
Net Income
$0
Retained Earnings, July 1
Add: Net Income
Subtotal
Less : Dividends
Retained Earnings, July 31
0
–
1 in the space below.
Jane’s Skateboards Inc.
Balance Sheet
July 31
Assets:
Cash
Accounts Receivable
Store supplies
Prepaid Insurance
Merchandise Inventory
Store fixtures
Less: Accum. Dep – Fixtures.
Total Assets
$0
Liabilities and Stockholders’ Equity
Liabilities:
Accounts Payable
Income Taxes Payable
Total Liabilities
–
Stockholders’ Equity:
Common Stock
Retained Earnings
Total Stockholders’ Equity
–
Total Liabilities & Stockholders’ Equity $
–
Requirement #8: Prepare the closing entries at July 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 Accounts on
the General Ledger ( Step 2) worksheet and compute
ending balances. Closing entries are referenced in the
General Ledger as CE#1 ,2 etc.
CE#
1
Date
Description
Post Ref.
Debit
Credit
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
Account Name
Cash
Accounts Receivable
Store Supplies
Prepaid Insurance
Merchandise Inventory
Store Fixtures
Accumulated Depreciation -Fixtures
Accounts Payable
Income Tax Payable
Common Stock
Retained Earnings
Dividends
Sales Revenue
Cost of Good Sold
Store Rent Expense
Telephone Expense
Depreciation Expense
Electric Expense
Insurance Expense
Supplies Expense
Income Tax Expense
Acct #
111
115
117
119
130
144
145
212
213
311
312
313
411
505
511
517
520
522
525
530
535
Janes Skateboard
Post Closing Trial Balance
For the Month Ended July 31, 2022
Trial Balance
Account Name
Acct #
Cash
111
Accounts Receivable
115
Store Supplies
117
Prepaid Insurance
119
Merchandise Inventory
130
Store Fixtures
144
Accumulated Depreciation -Fixtures 145
Accounts Payable
212
Income Tax Payable
213
Common Stock
311
Retained Earnings
312
Dividends
313
Sales Revenue
411
Cost of Good Sold
505
Store Rent Expense
511
Telephone Expense
517
Depreciation Expense
520
Electric Expense
522
Insurance Expense
525
Supplies Expense
530
Income Tax Expense
535
Debit
Credit
—
—
Account Name
Acct #
Cash
111
Accounts Receivable
115
Store Supplies
117
Prepaid Insurance
119
Merchandise Inventory
130
Store Fixtures
144
Accumulated Depreciation -Fixtures
145
Accounts Payable
212
Income Tax Payable
213
Common Stock
311
Retained Earnings
312
Dividends
313
Sales Revenue
411
Cost of Good Sold
505
Store Rent Expense
511
Telephone Expense
517
Depreciation Expense
520
Electric Expense
522
Insurance Expense
525
Supplies Expense
530
Income Tax Expense
535
Ratio Analysis
Compute the folowing:
Current ratio
Debt to Total Assets
Gross profit percentage
Net Income by Net Sales
Earnings per Common Share
Dividend payout ratio
Show Formula used
Show Calculations
Answer
Complete the income statement below then us it to compute Break-eve
Jane’s Skateboards Inc.
Income Statement
For the Month Ending July 31
Revenues:
Sales Revenue
Less: Cost of Goods Sold
Contribution Margin
Contribution Margin Percentage
Less: Fixed expenses
Operating income
Break-even in sales dollars =
Break-even in units =
0.00%
$0
it to compute Break-even analysis;
Jane’s Skateboards Inc.
Break-even dollars check
For the Month Ending July 31
DO NOT TYPE IN THE AREA BELOW IF YOU DID YOUR $ CALCULATIONS CORRECTLY OPERAT
INCOME WILL BE 0
Break-even in sales dollars
Break-even in units
Revenues:
Sales Revenue
Less: Variable Expenses
Contribution Margin
Less: Fixed expenses
Operating income
Revenues:
Sales Revenue
0 Less: Variable Expenses
Contribution Margin
0 Less: Fixed expenses
$0 Operating income
Hint: Use the form below to calculate the weighted average Sales dollars per unit
You will need this to calculate the break-even units
Sales date
Sale Price Total Revenue
Units Sold
7/11/2022
7/20/2022
7/25/2022
Totals
Average Sale Price
Purchase date
Units bought
7/6/2022
7/7/2022
Totals
Average Purchase Price
0
0
0
0
0
0
Purchase
Price
Total Purchase
0
0
0
0
0
–
CORRECTLY OPERATING
0
0
$0
Course Project Grading Rubric – Students
Criteria
Excellent
Good
Step 1
—Journal Entries
Journal entries use
Journal entries mostly
accurate accounts and
accurate accounts a
amounts; and debits and amounts; and debits a
credits are used correctly. credits are used corre
Step 1 Grading Scale
Step 2 Ledger Posting
and Balancing
24-22
21-19
Posting is done in the
Posting is done mostly
correct accounts and at the correct accounts
the correct side (Dr./Cr.)
mostly at the correct
and balances are correct. side(Dr./Cr.) and bala
are mostly correct.
Step 2 Grading Scale
Step 3 – Unadjusted Trial
Balance
16-15
14-13
Accounts are listed
Most accounts are list
correctly and in the
correctly leading to a
proper order leading to
mostly correct trial
an accurate trial
balance.
balance.
16-15
14-13
The student’s submission
The student’s submissio
fully analyzes and records properly analyzes and
all transactions, and
records the given
provides a complete and transactions, and prov
accurate trial balance.
a trial balance that is
accurate based on th
entries recorded.
Milestone 1
Milestone 1
Milestone 1
Step 3 Grading Scale
Milestone 1
CO2 – Given economic
transactions and events,
analyze and record them
leading to the
development and analysis
of a trial balance and
reports important for
decision-making.
CO 2 Grading Scale
Step 4
—Adjusting Journal
Entries
Milestone 2
4
3
Journal entries use
Journal entries mostly
accurate accounts and
accurate accounts a
amounts; and debits and amounts; and debits a
credits are used correctly. credits are used corre
Step 4
—Adjusting Journal
Entries
Journal entries use
Journal entries mostly
accurate accounts and
accurate accounts a
amounts; and debits and amounts; and debits a
credits are used correctly. credits are used corre
Step 4 Grading Scale
Steps 5 and 6
—Posted and Adjusted
Trial Balance.
15-14
Posting is correct leading
to an accurate trial
balance.
Steps 5/6 Grading Scale
15-14
Milestone 2
13-12
Posting is mostly corre
leading to a mostly co
trial balance.
Milestone 2
Step 7.1 – Income
Statement
Milestone 2
Step 7.1 Grading Scale
Step 7.2 -Retained
Earnings Statement
Milestone 2
Step 7.2 Grading Scale
Step 7.3 – Balance Sheet
Milestone 2
Step 7.3 Grading Scale
Step 8
—Closing Journal Entries
13-12
The income statement is The income statemen
prepared completely and prepared accurately,
accurately.
may have some mino
errors.
10-9
8
The retained earnings
statement is prepared
completely and
accurately.
6
The retained earnings
statement is prepared
accurately, but may
some minor errors.
5
The balance sheet is
prepared completely
and accurately.
The balance sheet is
prepared accurately
mostly, but may have
some minor errors.
15-14
13-12
Journal entries use
Journal entries mostly
accurate accounts and
accurate accounts a
amounts; and debits and amounts; and debits a
credits are used correctly. credits are used corre
Milestone 2
Step 8 Grading Scale
Steps 9 and 10 —Posted
and Post-closing Trial
Balance
20-18
Posting is correct leading
to an accurate trial
balance.
17-16
Posting is mostly corre
leading to a mostly co
trial balance.
Milestone 2
Steps 9-10 Grading Scale
Milestone 2
15-14
13-12
CO 3 – Given a trial
The student’s submission
The student’s submissio
balance sheet and
fully and properly
analyzes the adjusting
economic financial
analyzes the adjusting
information, resulting
information, analyze and
information, resulting in an mostly accurate adju
record adjusting and
accurate adjusted trial
trial balance and fina
closing journal entries
statements. The subm
leading to the creation and balance and financial
analysis of financial
statements. The
also contains closing
statements using the
submission also contains
entries that are accur
accrual accounting
closing entries that are
prepared, resulting in
method.
fully and accurately
mostly accurate postprepared, resulting in an closing trial balance.
accurate adjusted trial
closing journal entries
leading to the creation and balance and financial
analysis of financial
statements. The
statements using the
submission also contains
accrual accounting
closing entries that are
method.
CO 3 Grading Scale
fully and accurately
prepared, resulting in an
accurate post-closing trial
balance.
4
trial balance and fina
statements. The subm
also contains closing
entries that are accur
prepared, resulting in
mostly accurate postclosing trial balance.
3
Good
Journal entries mostly use
accurate accounts and
amounts; and debits and
. credits are used correctly.
Fair
Poor
Unacceptable
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.
The submission does
not meet this
requirement.
16-15
Listing of accounts is mostly
incorrect with most
incorrect accounts and
incorrect Dr./Cr. Most
ledger balances are
incorrect.
10-9
Listing of accounts is done
poorly or not at all, leading
to inaccurate or no trial
balance.
14-0
The submission does
not meet this
requirement, or
posting is not done a
all.
21-19
18-17
Posting is done mostly in
Posting has errors with
the correct accounts and incorrect accounts and
mostly at the correct
incorrect debits/credits
t. side(Dr./Cr.) and balances and incorrect balances.
are mostly correct.
14-13
Most accounts are listed
correctly leading to a
mostly correct trial
balance.
14-13
The student’s submission
s properly analyzes and
records the given
d transactions, and provides
a trial balance that is
accurate based on the
entries recorded.
3
Journal entries mostly use
accurate accounts and
amounts; and debits and
. credits are used correctly.
12-11
Listing of accounts has
several errors leading to
incorrect trial balance.
8-0
The submission does
not meet this
requirement.
12-11
10-9
8-0
The student’s submission
The student’s submission
The student’s
demonstrates analysis and demonstrates limited
submission does not
recording of transactions, analysis and recording of
meet the criteria of
although several analysis transactions, and significant the outcome.
errors exist, leading to a
errors exist, leading to an
trial balance that is
inaccurate or incomplete
somewhat inaccurate.
trial balance.
2
1
0
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.
The submission does
not meet this
requirement.
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.
13-12
11-10
Posting is mostly correct
Posting has several errors
leading to a mostly correct leading to a trial balance
trial balance.
with several errors.
13-12
The income statement is
d prepared accurately, but
may have some minor
errors.
8
11-10
The income statement is
prepared with several
errors.
7
Journal entries have some
errors in use of accounts
and amounts; and debits
and credits are not used
correctly.
9-8
7-0
Posting is done poorly or not The submission does
at all, leading to inaccurate not meet this
or no trial balance.
requirement.
9-8
The income statement is
prepared with significant
errors.
6
The retained earnings
The retained earnings
The retained earnings
statement is prepared
statement is prepared with statement is prepared with
accurately, but may have several errors.
significant errors.
some minor errors.
5
4
3
The balance sheet is
prepared accurately and
mostly, but may have
some minor errors.
13-12
Journal entries mostly use
accurate accounts and
amounts; and debits and
. credits are used correctly.
The balance sheet is
prepared with several
errors.
11-10
Journal entries have some
errors in use of accounts
and amounts; and debits
and credits are only
somewhat used correctly.
17-16
15-14
Posting is mostly correct
Posting has several errors
leading to a mostly correct leading to a trial balance
trial balance.
with several errors.
The submission does
not meet this
requirement.
The balance sheet is
prepared with significant
errors.
7-0
The submission does
not meet this
requirement.
5-0
The submission does
not meet this
requirement.
2-0
The submission does
not meet this
requirement.
9-8
7-0
Journal entries have some The submission does
errors in use of accounts
not meet this
and amounts; and debits
requirement.
and credits are not used
correctly.
13-12
11-0
Posting is done poorly or not The submission does
at all, leading to inaccurate not meet this
trial balance, or no trial
requirement.
balance was prepared.
13-12
11-10
9-8
7-0
The student’s submission
The student’s submission
The student’s submission
The student’s
analyzes the adjusting
demonstrates analysis of
demonstrates limited
submission does not
information, resulting in a the adjusting information
analysis of the adjusting
meet the criteria of
n mostly accurate adjusted and the preparation of an information and the
the outcome.
trial balance and financial adjusted trial balance and preparation of an adjusted
statements. The submission financial statements,
trial balance and financial
also contains closing
although several errors
statements, however
entries that are accurately exist. The closing entries
significant errors exist. The
prepared, resulting in a
are prepared with several closing entries are prepared
mostly accurate posterrors, resulting in the
with significant errors,
closing trial balance.
completion of a postresulting in an inaccurate
trial balance and financial adjusted trial balance and preparation of an adjusted
statements. The submission financial statements,
trial balance and financial
also contains closing
although several errors
statements, however
entries that are accurately exist. The closing entries
significant errors exist. The
prepared, resulting in a
are prepared with several closing entries are prepared
mostly accurate posterrors, resulting in the
with significant errors,
closing trial balance.
completion of a postresulting in an inaccurate
al
closing trial balance, that post-closing trial balance.
has limited accuracy.
3
2
1
0
Unacceptable
e
Points
Available
The submission does
not meet this
requirement.
14-0
y The submission does
not meet this
requirement, or
posting is not done at
all.
24
8-0
e
The submission does
g not meet this
requirement.
16
8-0
The student’s
submission does not
meet the criteria of
nt the outcome.
16
e
0
The submission does
not meet this
requirement.
4
e
The submission does
not meet this
requirement.
7-0
not The submission does
ate not meet this
requirement.
h
7-0
15
15
The submission does
not meet this
requirement.
5-0
10
The submission does
not meet this
requirement.
2-0
6
The submission does
not meet this
requirement.
7-0
The submission does
not meet this
requirement.
15
11-0
not The submission does
ate not meet this
requirement.
20
7-0
The student’s
submission does not
meet the criteria of
the outcome.
15
e
d
al
ed
d
al
ed
0
4