Overview

The milestone for Project One involves applying accounting principles and methods to long-term liabilities and equity. You will also evaluate these financial statement components for adherence to accounting principles and methods. In this assignment, which directly supports Project One, you will analyze the scenario in Project One to calculate and record financial data accurately. You will have an opportunity to correct journal entries and ledger accounts in Project One based on feedback from your instructor for this assignment. It is imperative to keep accurate and complete records.

Directions

Using the scenario provided in the Project One Guidelines and Rubric (found in the Supporting Materials section below), you will be preparing journal entries related to long-term liabilities and equity in the Milestone Journal Entries tab of the Project One Workbook Template and based on the transactions listed in the Project One Appendix. You will also complete the Milestone Ledger Accounts tab by filling in the amounts in the appropriate account bucket.

To access the Project One Workbook Template, use Microsoft Excel on the virtual desktop infrastructure (VDI) to complete this assignment.

Note: You may choose to complete an assignment using a desktop program instead of SNHU's virtual desktop (VDI); however, technical support will not be provided by SNHU if you select this option.

The Project One Workbook Template is provided for you to prepare the journal entries. It contains several tabs: Chart of Accounts, Milestone Journal Entries, Corrected Journal Entries, Milestone Ledger Accounts, Corrected Ledger Accounts, Income Statement, Balance Sheet, Statement of Retained Earnings, Cash Flow Worksheet, Statement of Cash Flows, and Ratios. Please keep in mind, for this milestone you will only be completing the Milestone Journal Entries and Milestone Ledger Accounts tabs of the workbook.

Note: Remember to save your file on your OneDrive before exiting the VDI because work is not saved once you exit the VDI.

Specifically, you must address the following rubric criteria:

Milestone Journal Entries Tab

1. Prepare accurate journal entries with the correct ledger accounts on the Milestone Journal Entries tab of the workbook. Be sure to refer to the Chart of Accounts tab for the account names when preparing journal entries. Include the following details in your response:
   1. Show calculations necessary to prepare the journal entries. Not all journal entries will require a calculation. Rows with an asterisk require formulas in the debit or credit column.
2. Prepare journal entries that are completefrom the transactions listed in Project One Appendix on the Milestone Journal Entries tab of the workbook. There are a total of 12 entries.

Milestone Ledger Accounts Tab

1. Prepare the ledger accounts correctly on the Milestone Ledger Accounts tab in the workbook. This requires inputting the information accurately.
2. Prepare the ledger accounts completely on the Milestone Ledger Accounts tab in the workbook. This requires including all the information needed.

ACC 318 Project One Appendix

The following events occurred during the first half of the year.Book the entries necessary for the corresponding transactions that have occurred.

January 22: Issued $75,000 of 6% term bonds due on January 1, 2025 (10 periods) with interest payable each June 30 and December 31. Investors require an effective interest rate of 8%. Record the entries for issuance of the bond.

February 28: A new long-term lease is entered into for extra storage space for the new product line of ink cartridges. The net present value of the future lease payments is $120,400. The lease is for two years at $5,000 per month beginning March 1.

March 6: A long-term note for $60,000 was taken out from the bank. The loan is for two years with an interest rate of 6% repayable at maturity.

April 22: New equipment was purchased to make printers for $55,000. Use straight line depreciation assuming a 4-year life, with no residual value. Use full year’s depreciation for the first year.

April 17: 200 shares of common stock with a $1 par value were sold for $20 per share.

May 5: Paid cash dividends to stockholders of $22,500.

June 22: Purchased 50 shares of the company’s stock at $25 per share.

June 30: Book the depreciation for the first half of the year on the printer equipment purchased April 22.

June 30: Book the interest for the first half of the year on the loan you took out on March 6.

June 30: Book the interest payment and amortization on discount for bond.

June 30: Paid the rent expense for the first half of the year in cash.

June 30: Book the service revenue of $100,000 for the first half of the year paid in cash.

Answer rating: 100% (QA)

Step 12 Answer Following are the required journal entries for the given case Date Particulars Debit ... View the full answer