Accounting 3313 Spring 2023 Project Purpose: This project is designed to walk a student through all of the steps in the Accounting Cycle for a business. It is both practice and an evaluation of the students knowledge and application of accounting.

Overview: Transactions are provided for a pretend business. Instructions are provided to the student throughout the project. Read instructions carefully and compare what is being asked of you to what you have learned in your chapter material and homework assignments. If you have questions, you may email your teacher at any time. Resources: In addition to this file, there are PDF files for template journal entries, ledgers, and trial balances. Please be sure to use these templates to complete your assignment. Note: the ledger template may not contain all of the accounts that you need; you may handwrite additional ledgers or create some electronically. There are no templates for financial statements; you may either create some electronically (make sure to handwrite some of the items/amounts to receive credit!) or you may handwrite the entire statement.

Requirements: 1. Due dates: the project is due Monday April 17th, 2023 by 11:59pm. It must be turned in via Blackboard via the Project Assignment. (You may also email the submission to me to ensure that your project was submitted for credit this is advisable, since every semester, some blackboard submissions glitch and do not submit.) Late submissions will not be accepted for a grade. 2. This project is worth in total 100 points. 3. Submissions MUST BE handwritten on the templates provided and submitted in Blackboard as jpegs or scans. I will be comparing hand-writing across the submissions. See the assignment module to submit your project. Alternatively, you may email them to your instructor at crl003@shsu.edu.

PROJECT INFORMATION Chelsea Harper and Clint Casey create a partnership, Pedal Pushers LLP. It is a retail store that sells bicycles for long-distance and mountain biking. Chelsea will work the cash register and assist customers, while Clint will manage the inventory, purchasing, etc. They have contracted you on a part-time basis to assist with bookkeeping and reporting.

Inventory: the business will use a perpetual system and LIFO method. Additionally, purchases and sales on account are accounted for Gross Method. Plant Assets: the business will depreciate the office equipment assets straight-line method for 10 years. Record the business activity as journal entries, post to Ledgers, prepare the unadjusted trial balance, prepare any adjusting entries for the month, and create the adjusted trial balance.

11/01/2020: Chelsea contributes $25,000 cash and Clint contributes $6,000 in cash and also contributes industrial shelving and other equipment worth $19,000 (fair value). The shelving and equipment have a useful life of 10 years and no residual value. 1,000 shares of $1 par Common Stock are issued to the Partners for this transaction (equally).

11/01/2020: Pedal Pushers signs a lease with Rightway Realty for retail space and pays $6,600 for the first 6 months rent. 11/01/2020: Pedal Pushers purchases a 12 month insurance policy to insure the business, paying $1,800.

11/02/2020: Pedal Pushers buys a Point-of-Sale (POS) system for the cashier station, $4,500, on account with terms Net 45 FOB Shipping Point. It has an estimated 10 year life and no residual value.

11/04/2020: The POS system arrives and the trucking company presents a freight invoice of $92, which Pedal Pushers pays.

11/04/2020: Pedal Pushers borrows $15,000 from their bank. The amount must be paid back in 90 days with 5% interest.

11/04/2020: Pedal Pushers buys office supplies for $590.

11/04/2020: Pedal Pushers purchases 100 $85 Pro-Cycle bikes (regular size) and 60 $95 Pro-Cycle bikes (XL size) on account from Discount Distribution LLC, terms 4%/15, Net 30, FOB Destination. Pedal Pushers is selling the regular size bike for $165 and the XL size bike for $185. The inventory should be delivered 11/9/2020.

11/05/2020: Pedal Pushers purchases 55 regular size $12 bike helmets and 25 XL size $15 bike helmets from Outfitters Wholesale Corp., terms 3%/10, Net 30, FOB Destination. The helmets should arrive 11/9/2020. The company will charge customers $24 for the regular size and $30 for the larger size.

11/09/2020: Both purchases from the 4th and the 5th arrive at the shop.

11/12/2020: Customer buys a regular size bike, paying cash.

11/14/2020: Customer buys 2 XL bikes, paying cash.

11/21/2020: Pedal Pushers pays for the purchase made on the 4th.

11/22/2020: Customer buys 2 regular sized bikes and 2 regular sized helmets, paying cash.

11/25/2020: Pedal Pushers pays $1,265 to Make Your Mark Advertising; the agency has made a website and brochures for Pedal Pushers. The agency will charge a monthly service fee to maintain and update the website.

11/30/2020: A count of office supplies shows that $320 are remaining. Record the business activity as journal entries, post to Ledgers, prepare the unadjusted trial balance, prepare any adjusting entries for the month, and create the adjusted trial balance.

12/01/2020: Sell on account to Walker Fitness Gym, terms 1/15, n/30, the following: 36 Regular Bikes, 36 Regular Helmets, 14 XL Bikes, 14 XL Helmets.

12/02/2020: Pay for the helmet purchase that was made November 5th.

12/03/2020: Purchase on account, terms 2/15, n/30, FOB Destination from Discount Sports Distribution the following items, and received the same day: 30 Regular Bikes for $92/each 16 XL Bikes for $101/each 80 Regular Helmets for $13/each 40 XL Helmets for $14/each

12/04/2020: Sold to cash customers 6 XL Bikes, 5 XL Helmets, 3 Regular Bikes, and 4 Regular Helmets.

12/5/2020: Sold to cash customers 22 Regular Bikes, 18 Regular Helmets, and 5 XL Bikes.

12/6/2020: Paid the bill for the purchase of the Point-of-Sale system. 12/8/2020: Received a utilities bill for the bundled phone/internet for the shop. Paid it the same day, $245.

12/10/2020: Sold to cash customers 19 Regular Bikes, 2 Regular Helmets, 12 XL Bikes, 6 XL Helmets. 12/11/2020: Sold on account to Ripleys Raceway Park, terms 1/15, n/30, 20 each of the 4 inventory items.

12/12/2020: Received payment from Walkers Fitness Gym for the entire purchase they made with us on December 1st.

12/15/2020: Clint and Chelsea decide to take a $2,000 dividend for each of them.

They will close the shop for a few weeks to enjoy the year-end holidays and resume business the following year. Adjusting entries: you should make adjusting entries for any expense items needed. Also, a count of office supplies shows only $65 remaining. From the Adjusted Trial Balance prepared in Part 1, prepare the four financial statements, followed by closing entries, and the Post-closing Trial Balance.