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Part A — Requirement s 1, 2 and 3
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.
Oct. 1 Paid the premium on a one-year insurance policy, $1,200.
Oct. 1 Paid the current month’s rent, $1,040.
Oct. 3 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.
Oct. 8 Purchased repair supplies from McKenna Company on credit, $390.
Oct. 12
Paid utility bill for October, $154.
Oct. 16 Cash bicycle repair revenue for the first half of October, $1,362.
Oct. 19 Made payment to McKenna Company, $200.
Oct. 31 Cash bicycle repair revenue for the last half of October, $1,310.
Oct. 31 Declared and paid cash dividend of $800.
Requirement 1 – Prepare the Journal Entries in the General Journal – Journal Entries
Requirement 2 – Post Journal Entries to the General Ledger – General Ledger
Requirement 3 – Prepare a Trial Balance – Trial Balance
Part B — Requirements 4 – 10
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.
Requirement 4 – Prepare the Adjusting Entries – Adjusting Entries
Requirement 5 – Post Adjusting Entries to the General Ledger — General Ledger
Requirement 6 – Prepare an Adjusted Trial Balance – Adjusted TB
Requirement 7 – Prepare the Financial Statements – Financial Statements
Requirement 8 – Prepare the Closing Entries – Closing Entries
Requirement 9 – Post Closing Entries to the General Ledger – General Ledger
Requirement 10 – Prepare the Post Closing Trial Balance – Post Closing TB
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2: Course Project 1
1 Prepare the in the Journal Entries General Ledger Prepare a Trial Balance Prepare the Adjusting Entries General Ledger Prepare the Financial Statements Prepare the Closing Entries General Ledger Prepare the Click on the worksheet link to complete the corresponding Requirement or the
ACCT 2
1
Requirement
Requirement Description
Worksheet
Part A
Journal Entries
General Journal
2 Post Journal Entries to the
General Ledger
3
Trial
Balance
Part B
4
Adjusting Entries
5
Post Adjusting Entries to the General Ledger
6
Prepare an Adjusted Trial Balance
Adjusted TB
7
Financial Statements
8
Closing Entries
9
Post Closing Entries to the General Ledger
1
0
Post Closing Trial Balance
Post Closing TB
Project Instructions
button below for an overview.
Project Instructions
/xl/drawings/drawing1.xml#’Project%20Instructions’!A1
Project Instructions
Course Project #1 consists of two parts, A and B, respectively. There are 10
for you to complete in this exercise, Part A has 1-3 and Part B has 4-10. Part A is due at the end of Week 3. Part B is due at the end of Week 5. See Syllabus/”Due
s for Assignments & Exams” for due date information. All of the information you need to complete Course Project #1 is located in this Workbook.
• There are 8 worksheets in the workbook you will need to complete for Parts A & B.
• A list of October transactions
• A
Chart of
Account
s
reference sheet
• A
Grading Rubric
to help explain what is expected.
• Each worksheet has the Check Figures embedded as a comment.
, (RRC) a brand new small business specializing in bicycle repair. The owner, Rob Rawls, is a terrific cyclist and bike repair specialist, but definitely not an accountant. Your job is to help Rob put his affairs in order. Luckily Rob has only been in operation for a month and things have not gotten too out of hand yet! Rob has to submit his financial statements to his investors and doesn’t know where to begin. It’s your job to go through the complete Accounting cycle to prepare the financial statements for the RRC.
_YourLastName”.
• Type your work directly into the worksheets.
Before You Begin:
Review the Week 2 Lecture prior to starting work on this project.
Print the Chart of Accounts and
October Transactions
worksheets for your reference. You will need to refer to both throughout the project.
Review the Grading
.
SAVE your work frequently in this workbook.
October Transactions
| During its first month of operation, the Rawls Repair Corporation, which specializes in bicycle repairs, completed the following transactions: | |||
| Transaction Description | |||
| 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 store rent expense, $1,040. | |||
| Oct. 3 | 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 | |
| Oct. 8 | Purchased repair supplies from McKenna Company on credit, $390. | ||
| Oct. 12 | Paid utility bill for October, $154. | ||
| Oct. 16 | Cash | ||
| Oct. 19 | Made payment to McKenna Company, $200. | ||
| Oct. 31 | Cash bicycle repair revenue for the last half of October, $1,310. | ||
| Declared and paid cash dividend of $800. |
Chart of Accounts
| Use the following account descriptions for journal entries. | |||||||||||||||||
| Account Type | Account Number | Account | Title | Normal Balance | |||||||||||||
| Assets | |||||||||||||||||
| 111 | Debit | ||||||||||||||||
| 117 | Prepaid Insurance | ||||||||||||||||
| 119 | Repair Supplies | ||||||||||||||||
| 144 | Repair Equipment | ||||||||||||||||
| 145 | Accum Dep -Repair Equipment | Credit | |||||||||||||||
| Liabilities | |||||||||||||||||
| 213 | Income Tax Payable | ||||||||||||||||
| Stockholders Equity | |||||||||||||||||
| 311 | Common Stock | ||||||||||||||||
| 312 | Retained Earnings | ||||||||||||||||
| 313 | Dividends | ||||||||||||||||
| Revenue | |||||||||||||||||
| 411 | Bicycle Repair Revenue | ||||||||||||||||
| Expenses | |||||||||||||||||
| 511 | Store Rent Expense | ||||||||||||||||
| 512 | Utility Expense | ||||||||||||||||
| 513 | Insurance Expense | ||||||||||||||||
| 514 | Repair Supplies Expense | ||||||||||||||||
| 515 | Dep Expense – Repair Equipment | ||||||||||||||||
| 516 | Income Tax Expense |
Journal Entries
| REQUIREMENT #1: Prepare journal entries to record the October transactions in the General Journal below. Remember that Debits must equal Credits – All of your Journal Entries should balance. | ||
| Description (Account Name) | ||
| 0 Harris, Nicole: Debits = $22,856 |
– 0 Harris, Nicole: Credits = $22,856 |
Journal Entries
Once you’ve completed this requirement print your General Journal to complete Requirement #2 on the General Ledger worksheet.
General Ledger
| REQUIREMENT #2: Post the October journal entries to the following T-Accounts and compute ending balances. | ||
| Cash (111) DeVry: The balance of the Cash account after posting journal entries for Part A should be $10,678. |
Bicycle Repair Revenue (411) | |
| Prepaid Insurance (117) | Store Rent Expense (511) | |
| Repair Supplies (119) | Utility Expense (512) | |
| Repair Equipment (144) | Insurance Expense (513) | |
| Accum. Depr.-Repair Equipment (145) | Repair Supplies Expense (514) | |
| Accounts Payable (212) | Depr. Exp.-Repair Equipment (515) | |
| Income Taxes Payable | Income Taxes Expense (516) | |
| Common Stock (311) | ||
| Retained Earnings (312) | ||
| Dividends (313) |
This worksheet will be used to complete Requirements #2, #5 and #9. Instructions for #5 can be found on the Adjusting Entries Worksheet. Instructions for #9 can be found on the Closing Entries Worksheet.
Trial Balance
| REQUIREMENT #3: Prepare a trial balance for October in the space below. | |
| Rawls Repair Corporation Trial Balance | October 31 |
| 0 User: Debit Balance = $18,662 |
0 User: Credit Balance = $18,662 |
Journal Entries
Only enter accounts that have a balance.
Adjusting Entries
| 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. |
| Requirement #5: Post the adjusting entries on October 31 below to the General Ledger T-accounts and compute adjusted balances. Just add to the balances that are already listed. |
Journal Entries
Click here to go to the General Ledger worksheet to complete Requirement #5.
/xl/drawings/drawing7.xml#’General%20Ledger’!A1
Adjusted TB
| REQUIREMENT #6: Prepare an Adjusted Trial Balance in the space below. | |
| Rawls Repair Corporation Adjusted Trial Balance October 31 |
|
| 0 User: Debit Balance = $18,772 |
0 User: Credit Balance = $18,772 |
Journal Entries
Only enter accounts that have a balance.
Financial Statements
| 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 | Balance Sheet |
| Statement of Retained Earnings | ||
| For the Month Ending October 31 | ||
| Revenues: | Retained Earnings, October 1 | Assets: |
| Add: | Net Income | |
| Total Revenue | Subtotal | |
| Less: Dividends | ||
| Expenses: | Retained Earnings, October 31 | 0 User: Retained Earnings = $272 |
| Less: Accum. Depr. | ||
| Total Assets | 0 User: $16,302 |
|
| Repair Supplies Exp. | Liabilities and Stockholders’ Equity | |
| Depreciation Exp. | Liabilities: | |
| Income Taxes Exp. | ||
| Total Expenses | ||
| Total Liabilities | ||
| 0 User: Net Income = $1,072 |
||
| Stockholders’ Equity: | ||
| Total Stockholders’ Equity | ||
| Total Liabilities & Stockholders’ Equity | 0 User: $16,302 |
|
| User: $16,302 | User: Net Income = $1,072 |
Closing Entries
| 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. |
| Requirement #9: Post the closing entries to the T-Accounts on the General Ledger worksheet and compute ending balances. Just add to the adjusted balances already listed. |
Journal Entries
Click here to go to the General Ledger worksheet to complete Requirement #9.
/xl/drawings/drawing9.xml#’General%20Ledger’!A1
See the Week 2 Lecture for examples of how to complete closing entries.
Post Closing Trial Balance
| 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 |
|
| 0 User: Debits = $16,372 |
0 User: Credits = $16,372 |
Journal Entries
Grading Rubric
| Project 1 Grading Rubric – Students | ||||||||||||
| Excellent | Good | Poor | Very Poor | |||||||||
| Parts: | 90% to 100% | 70% to 89% | 50% to 69% | Less than 50% | ||||||||
| Step 1 -Journal Entries (60pts) | 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. | Journal Entries have some errors in use of accounts and amounts; and debits and credits are not used correctly. | ||||||||
| Step 2&3 -Posted and Unadjusted Trial Balance. (10pts) | Posting is correct leading to an accurate trial balance. | Posting is mostly correct leading to a mostly correct trial balance. | Posting has several errors leading to a trial balance with several errors. | Posting is done poorly or not at all, leading to inaccurate or no trial balance. | ||||||||
| Step 4 -Adjusting Journal Entries (22pts) | ||||||||||||
| Step 5&6 -Posted and Adjusted Trial Balance. (11pts) | ||||||||||||
| Step 7 -Financial Statements (33pts) | All four Financial Statements are prepared accurately and in an appropriate format. | Three of four Financial Statements are prepared accurately and mostly in an appropriate format, one statement has some errors. | Two of four Financial Statements are prepared accurately and mostly in an appropriate format, two statements have some errors. | One or fewer of four Financial Statements are prepared accurately and mostly in an appropriate format, three or all statements have some errors. | ||||||||
| Step 8 -Closing Journal Entries (22pts) | ||||||||||||
| Step 9&10 -Posted and Post-closingTrial Balance. (12pts) |
