Full Accounting Cycle Project

Scenario:

On April $1,2024,$ the following were the account balances of Bonnie's Window Cleaning Services.

Account Balances for Bonnie's Window Cleaning Services

Debit Credit

Cash $$ $$4,300$ Accumulated Depreciation$$Equipment $$ $$300$

Accounts Receivable $1,650$ Accounts Payable $1,420$

Notes Receivable $1,000$ Unearned Service Revenue $850$

Supplies $970$ Salaries and Wages Payable $770$

Equipment $6,000$ Common Stock $9,000$

$$ Retained Earnings $1,580$

$$13,920$ $$13,920$

Transactions:

During April, the following summary transactions were completed.

Transactions

April $1$ Paid $$675$ cash for a billboard ad near the freeway. The billboard will be installed on the $15$th and run for two months.

$3$ Paid April rent $$400.$

$5$ Received $$640$ cash from customers in payment on account.

$10$ Paid $$2,200$ for salaries due to employees, of which $$1,430$ is for April and $$770$ is for March's salaries payable.

$12$ Received $$1,600$ cash for services performed in April.

$15$ Purchased vacuum equipment on account $$1,000.$

$20$ Paid creditors $$500$ of accounts payable due.

$22$ Purchased cleaning supplies on account $$200.$

$25$ Paid $$800$ cash for employees' salaries.

$27$ Billed customers $$610$ for services performed.

$29$ Received $$270$ from customers for services to be performed in the future.

Adjustment data:

A count shows supplies on hand of $$110.$

Accrued but unpaid employees' salaries are $$930.$

Depreciation on cleaning equipment for the month is $$200.$

Cleaning services were performed to satisfy $$200$ of unearned service revenue.

Two weeks' worth of billboard services has been received.

One month of interest revenue related to the $$1,000$ note receivable has accrued. The $6-$month note has an $8\mathrm{.}5\%$ annual interest rate.

To$-$Do:

Enter the April $1$ balances in the ledger accounts. $($Use T$-$accounts.$)$

Journalize the April transactions.

Post to the ledger accounts. The chart of accounts includes Prepaid Advertising, Interest Receivable, Service Revenue, Interest Revenue, Advertising Expense, Depreciation Expense, Supplies Expense, Salaries and Wages Expense, and Rent Expense.

Prepare a trial balance as of April $30.**$Turn$-$in point #$1**$

Journalize and post adjusting entries.

Prepare an adjusted trial balance. $**$Turn$-$in point #$2**$

Prepare an income statement and a retained earnings statement for April and a classified balance sheet on April $30.**$Turn$-$in point #$3**$

Journalize and post$-$closing entries and complete the closing process.

Prepare a post$-$closing trial balance as of April $30.**$Turn$-$in point #$4**$

$**$Turn$-$in points$**$ Turn$-$in points are NOT REQUIRED but HIGHLY RECOMMENDED. These are good points to get feedback before continuing the project $-$ common mistakes can be identified at these points and correctly before continuing. Since this is a cumulative project, many students find it helpful for a quick review of their work prior to moving forward.

Templates Available to Use:

General Journal

T$-$Account Ledgers

Worksheet

You are welcome to create your own Excel spreadsheets or Google Sheets if the templates above don't work for you. You can submit files, links, images, and$/$or emails. Whatever is best for you!!

Grading:

Be sure to review the rubric below for the breakdown of points assigned to each item in the to$-$do list.

Rubric

This criterion is linked to a Learning OutcomeA. Enter the August $1$ balances in the ledger accounts. $($Use T$-$accounts.$)$

$5$ pts

Complete

T$-$accounts are labeled with account titles, beginning balance is entered in correct debit$/$credit location and labeled as $8/1$ or beginning balance.

$2\mathrm{.}5$ pts

Incomplete

T$-$accounts are not labeled with correct account titles, beginning balance is not entered in correct debit$/$credit location and$/$or not labeled as $8/1$ or beginning balance.

$0$ pts

Missing

$5$ pts

This criterion is linked to a Learning OutcomeB. Journalize the August transactions.

$7\mathrm{.}5$ pts

Complete

Journal entries have correct date, correct debit and credit accounts, correct amounts, and complete explanation.

$4$ pts

Incomplete

Journal entries have incorrect date, incorrect debit and credit accounts, incorrect amounts, and$/$or incomplete explanation.

$0$ pts

Missing

$7\mathrm{.}5$ pts

This criterion is linked to a Learning OutcomeC. Post to the ledger accounts.

$5$ pts

Complete

Journal entries are posted with correct debit$/$credit location and labeled with transaction date.

$2\mathrm{.}5$ pts

Incomplete

Journal entries are posted with incorrect debit$/$credit location and$/$or not labeled with transaction date.

$0$ pts

Missing

$5$ pts

This criterion is linked to a Learning OutcomeD. Prepare a trial balance as of August $31.$

$5$ pts

Complete

Trial Balance has proper heading, accounts are listed in financial statement order, dollar signs at top of debit and credit column and for totals, and debit column equals credit column in total.