Overview and Guidelines

The Course Project has 10 requirements for you to complete. The Course Project is due at the end of Week 6. See Syllabus/"Due Dates for Assignments & Exams" for due date information.

The Course Project template has all of the information you will need to complete the project. The template also includes:

• Detailed Project Instructions (with requirements)
• A reference list of October transactions
• A Chart of Accounts reference sheet
• A Grading Rubric to help explain what is expected.
• Each worksheet has the Check Figures embedded as a comment.

Download the Excel template named ACCT212_CourseProject located on the Doc Sharing tab in the course shell.

To complete the Course Project (due at the end of Week 6):

• Complete Requirements 1-10 on the worksheets.
• Type your work directly into the worksheets.
• Save your workbook as "CourseProject_ ACCT212_YourLastName".

ACCT 212: Course Project 1 Requirement Requirement Description Worksheet Part A 1 Prepare the Journal Entries in the General Journal Journal Entries 2 Post Journal Entries to the General Ledger General Ledger 3 Prepare a Trial Balance Trial Balance Part B 4 Prepare the Adjusting Entries Adjusting Entries 5 Post Adjusting Entries to the General Ledger General Ledger 6 Prepare an Adjusted Trial Balance Adjusted TB 7 Prepare the Financial Statements Financial Statements 8 Prepare the Closing Entries Closing Entries 9 Post Closing Entries to the General Ledger General Ledger Prepare the Post Closing Trial Balance Post Closing TB Click on the worksheet link to complete the corresponding Requirement or the Project Instructions button below for an overview. 10 Project Instructions Course Project #1 Overview The Course Project consists of 10 Requirements for you to complete. The Course Project is due at the end of Week 6. 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 eight worksheets in the workbook you will need to complete. A list of October transactions A Chart of Accounts reference sheet A Grading Rubric to help explain what is expected. Each worksheet has the Check Figures embedded as a comment. Scenario You've just secured a new client in your accounting practice, the Rawls Repair Corporation (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. Requirements Guidelines Use the embedded assistance in the template, guidance in your textbook, and examples in the weekly lectures to complete this project. Should you have any questions contact your professor. 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 Criteria. SAVE your work frequently in this workbook. During its first month of operation, the Rawls Repair Corporation, which specializes in bicycle repairs, completed the following transactions. October Transactions Date Oct. 1 Transaction Description 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 Oct. 1 Oct. 3 Paid the premium on a 1-year insurance policy, $1,200. Paid the current month's store rent expense, $1,040. 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 19 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 Oct. 16 Paid utility bill for October, $154. Cash bicycle repair revenue for the first half of October, $1,362. Oct. 19 Oct. 31 Made payment to McKenna Company, $200. Cash bicycle repair revenue for the last half of October, $1,350. Oct. 31 Declared and paid cash dividend of $800. Use the following account descriptions for journal entries. Chart of Accounts Account Number Account Title Normal Balance 111 117 119 144 145 Cash Prepaid Insurance Repair Supplies Repair Equipment Accum Dep -Repair Equipment Debit Debit Debit Debit Credit 212 213 Accounts Payable Income Tax Payable Credit Credit 311 312 313 Common Stock Retained Earnings Dividends Credit Credit Debit 411 Account Type Assets Bicycle Repair Revenue Credit 511 512 513 514 515 516 Store Rent Expense Utility Expense Insurance Expense Repair Supplies Expense Dep Expense - Repair Equipment Income Tax Expense Debit Debit Debit Debit Debit Debit Liabilities Stockholders Equity Revenue Expenses Review Chapter 2, p. 90 for more information on the Chart of Accounts REQUIREMENT #1: Prepare journal entries to record the October transactions in the General Journal below. Remember that Debits must equal CreditsAll of your Journal Entries should balance. General Journal Date Description (Account Name) Debit Credit 0 Once you've completed this requirement print your General Journal to complete Requirement #2 on the General Ledger worksheet. - REQUIREMENT #2: Post the October journal entries to the following T-Accounts and compute ending balances. Cash (111) Bicycle Repair Revenue (411) 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. 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 (213) Income Taxes Expense (516) Common Stock (311) Retained Earnings (312) Dividends (313) REQUIREMENT #3: Prepare a trial balance for October in the space below. Rawls Repair Corporation Trial Balance October 31 Account Title Only enter accounts that have a balance. Balance Debit Credit 0 0 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. General Journal Date Description (Account Name) Debit Credit 0 0 Click here to go to the General Ledger worksheet to complete Requirement #5. REQUIREMENT #6: Prepare an Adjusted Trial Balance in the space below. Rawls Repair Corporation Adjusted Trial Balance October 31 Account Title Only enter accounts that have a balance. Balance Debit Credit 0 0 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, Statement of Retained Earning, and the Balance Sheet. The Statement of Cash Flows is a required Financial Statement, but is not required for this project. Rawls Repair Corporation Income Statement For the Month Ending October 31 Revenues: Bicycle Repair Revenue Total Revenue Rawls Repair Corporation Statement of Retained Earnings For the Month Ending October 31 0 Expenses: Store Rent Expense Utility Expense Insurance Expense Repair Supplies Exp. Depreciation Exp. Income Taxes Exp. Total Expenses 0 Net Income Retained Earnings, October 1 Add: Net Income Subtotal Less: Dividends Retained Earnings, October 3 Rawls Repair Corporation Balance Sheet October 31 0 0 Assets: Cash Prepaid Insurance Repair Supplies Repair Equipment Less: Accum. Depr. Total Assets 0 0 Liabilities and Stockholders' Equity Liabilities: Accounts Payable Income Taxes Payable Total Liabilities 0 Stockholders' Equity: Common Stock Retained Earnings Total Stockholders' Equity 0 Total Liabilities & Stockholders' Equity 0 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. Click here to go to the General Ledger worksheet General Ledger worksheet to complete Requirement #9. General Journal Date Description (Account Name) Debit Credit See the Week 2 Lecture for examples of how to complete closing entries. 0 0 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 Account Title Balance Debit Credit 0 0 Project 1 Grading Rubric - Students Criteria Parts: Excellent Good Poor 90% to 100% Step 1 Journal entries use Journal accurate accounts Entries (20 and amounts; and points) debits and credits are used correctly. 70% to 89% Journal entries mostly use accurate accounts and amounts; and debits and credits are used correctly. 50% to 69% Journal entries have some errors in use of accounts and amounts; and debits and credits are only somewhat used correctly. Less than 50% Journal entries have some errors in use of accounts and amounts; and debits and credits are not used correctly. Steps 2 and 3 Posting is correct leading to an Posted and accurate trial Unadjusted balance. Trial Balance. (10 points) 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 (10 points) 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. Steps 5 and 6 Posting is correct leading to an Posted and accurate trial Adjusted Trial balance. Balance. (10 points) 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 7 Journal entries use accurate accounts and amounts; and debits and credits are used correctly. Very Poor Financial Statements (10 points) 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 (10 points) 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. Steps 9 and 10 Posted and PostclosingTrial Balance. (10 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. Answers to Week 1 and week 2 Course Project E 117A Req. 1 (Amounts in millions) Total Req. 2 Assets $280 430 170 $880 = = Liabilities $170 300 $470 Resources Req. 3 Amount to work with owed to creditors + Stockholders' Equity + $410 Req. 4 Actually owned by company stockholders Journal DATE Aug. ACCOUNT TITLES AND EXPLANATION 6 9 DEBIT Cash............................................... Common Stock Issued stock to owner. 39,000 Land 29,000 39,000 Cash . Purchased land. 12 Medical Supplies Accounts Payable Purchased supplies on account. CREDIT 29,000 1,700 1,700 15 Not a transaction of the business. 15-31 Cash Accounts Receivable Service Revenue Performed service for cash and on account. 3,800 3,800 Salary Expense Rent Expense Utilities Expense Cash Paid expenses. 1,300 700 500 Cash 700 15-31 31 Medical Supplies 7,600 2,500 700 Sold supplies. 31 Cash 12,000 Note Payable Borrowed money. 31 Accounts Payable Cash Paid on account. 12,000 800 800