Your Intermediate Accounting I Course Project will entail completing the accounting cycle for a small auto supply company. The transactions that you will focus on will relate to several of the topics and transaction cycles that you will focus on in this course.

Course Project Template Links to an external site. The scenario of this Course Project is the following.

You've just secured a new client in your accounting practice, Peter's Auto Supply Corporation (PASC), a brand-new small business specializing in providing auto supplies to car repair shops. The owner, Peter Peck, is a terrific auto mechanic, but definitely not an accountant. Your job is to help Peter put his affairs in order. Luckily, Peter has only been in operation for a month and things have not gotten too out of hand yet! Peter 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 PASC.

In this project, you will need to complete the following steps for PASC.

1. Prepare the Journal Entries in the General Journal
2. Post Journal Entries to the General Ledger
3. Prepare a Trial Balance
4. Prepare the Adjusting Entries
5. Post Adjusting Entries to the General Ledger
6. Prepare an Adjusted Trial Balance
7. Prepare the Financial Statements
8. Prepare the Closing Entries
9. Post Closing Entries to the General Ledger
10. Prepare the Post Closing Trial Balance

July TransactionsDateTransaction DescriptionJuly 1Issued Common Stock in exchange for $100,000 cash.July 1Paid $4,000 rent for the months of July and AugustJuly 2Paid the insurance company $2,400 for a one year insurance policy, beginning July 1.July 5Purchased inventory on account for $35,000 (Assume that the perpetual inventory system is used.)July 6Borrowed $36,500 from a local bank and signed a note. The interest rate is 10%, and principal and interest is due to be repaid in six months.July 8Sold inventory on account for $17,000. The cost of the inventory is $7,000.July 15Paid employees $6,000 salaries for the first half of the month.July 18Sold inventory for $15,000 cash. The cost of the inventory was $6,000.July 20Paid $15,000 to suppliers for the inventory purchased on January 5.July 26Collected $6,000 on account from customers.July 30Paid $1,000 to the local utility company for July gas and electricity.

Account TypeAccount NumberAccount TitleNormal BalanceAssets 111Cash Debit 112Accounts ReceivableDebit 115InventoryDebit 117Prepaid RentDebit 119Prepaid InsuranceDebit Liabilities 212Accounts Payable Credit 213Notes PayableCredit 214Salaries PayableCredit 215Interest PayableCredit Stockholders Equity 311Common Stock Credit 312Retained Earnings Credit Revenue 411Sales RevenueCredit Expenses 500Cost of Goods SoldDebit 511Rent ExpenseDebit 512Insurance ExpenseDebit 513Salaries ExpenseDebit 514Interest ExpenseDebit 515Utilities ExpenseDebit 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) One month's prepaid Rent has expired. c) The company accrued salaries of $6,000 that will be paid in August. d) Accrued interest on the note payable amounts to$250.Requirement #5: Post the adjusting entries on July 31 below to the General Ledger T-accounts (Step 2) and compute adjusted balances. Just add to the balances that are already listed. Requirement #4 DateAccount Number from Chart of Accounts tabAccount Title from Chart of Accounts tabDebitCredit 0 0