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Accounting230ProjectPhase1.pdf
230 Course Project Phase 1
Last Name: _______________ First Name: ______________ ID__________ SEC___
For this project, assume that you started a corporation called Classic Canine Cuts in December, 2019. Your year-end is each December 31. During the month of December, the corporation set up a retail location where it provided pet grooming services to its customers. You are the President and Treasurer of the Corporation and you are responsible for recording all the business transactions for the month and completing the entire accounting cycle for the year ending December 31, 2019 (through the post-closing trial balance).
You must complete the accounting cycle on the various templates provided in
this packet in your own handwriting. When you complete the project, you will need to make one additional copy from your completed original. You will keep the copy for yourself (this is a copy so you do not need to hand complete the project again). You will need this copy in order to complete the grading for the project phase 1. Turn in the original in class by Wednesday March 6th 2019.
No late submissions will be accepted so if you are going to be gone next week
you must turn in the project original into the TA office during TA hours before your leave.
Submissions are required to be handwritten on the templates provided so do not submit spreadsheets as they will not be accepted.
This is an individual project and must be your own work. All the transactions
have been covered in the videos, class lectures or homework so you are required to complete this project on your own. If you need help review the videos, class lecture notes and quiz keys provided in blackboard. Remember this phase of the project will help prepare you for the final proctored project.
Page 2
Part 1: Record the following transactions for Classic Canine Cuts for the month of December in
the General Journal.
Transaction Date Description
1 12/1 Issued 100,000 shares of common stock for $100,000.
2 12/2 A retail space is rented. Paid for one year of rent in advance
totaling $24,000. (rent is $2,000 per month)
3 12/4 Purchased equipment for the business totaling $36,000.
4 12/5 Purchased $1,500 of supplies on account.
5 12/7 Provided services to customers for cash totaling $5,000.
6 12/9 Purchased an ad in the local newspaper to run during December
for $400.
7 12/12 Customers purchased $1,000 of gift certificates for services to be
provided in the future (pre-paid for future services).
8 12/15 Paid employee salaries for the first half of December totaling
$1,200.
9 12/17 Paid $1,000 for the supplies that were purchased on December 5th.
10 12/20 Provided $2,500 of services to customers on account.
11 12/25 Paid a cash dividend of $800 to the shareholders.
12 12/30 Received $1,500 on account for services provided on 12/20.
Part 2: Post all of the transactions for the month of December from the General Journal to the
General Ledger.
Part 3: Complete a Trial Balance as of December 31, 2019.
Page 3
Part 4: Record the adjusting entries for Classic Canine Cuts for the month of December in the
General Journal.
Transaction Date Description
Adj. 1 12/31 One month of rent that was prepaid has been used for the month
of December.
Adj. 2 12/31 The equipment purchased for $36,000 has a useful life of 5 years
and no salvage value. (Monthly depreciation is $600.)
Adj. 3 12/31 At the end of December, $1,000 of supplies remain on hand.
Adj. 4 12/31
By the end of December $700 worth of the gift certificates had
been redeemed by customers (revenue earned) for
grooming services and had not been recorded.
Adj. 5 12/31 Salaries for the second half of December are $1,400, but they
will not be paid until January 3rd.
Part 5: Post all of the adjusting entries for the month of December from the General Journal to
the General Ledger.
Part 6: Complete an Adjusted Trial Balance as of December 31, 2019.
* Remember a balance in an account on the trial balance will carry over to the adjusted
trial balance if it was not changed by an adjusting journal entry.*
Part 7: Complete an Income Statement for the month ended December 31, 2019.
Part 8: Complete a Statement of Retained Earnings for the month ended December 31, 2019.
Part 9: Prepare a Balance Sheet as of December 31, 2019.
Part 10. Record the closing entries for the year ending December 31, 2019.
Part 11. Post all of the year end closing entries from the General Journal to the General Ledger.
Part 12. Prepare a Post-Closing Trial Balance.
Page 4
General Journal Part 1
Ref # Date Account Debit Credit
1
2
3
4
5
6
7
8
9
Page 5
General Journal Part 1 (Continued)
Ref # Date Account Debit Credit
10
11
12
General Journal – Adjusting Entries Part 4
Ref # Date Account Debit Credit
A 1
A 2
A 3
A. 4
A. 5
Page 6
General Ledger Parts 2,5,11 TB = Trial Balance Total ATB = Adjusted Trial Balance Total CB= Closing Balance Total
Post Journal references in left column for debits and right column for credits in each account.
Assets
Ref
# Cash Ref
#
Debit Credit
TB
Ref
#
# Accounts Receivable
Ref
#
Debit Credit
TB
Ref # Supplies
Ref #
Debit Credit
TB
ATB
Ref
# Prepaid Rent Ref
#
Debit Credit
TB
ATB
Ref
# Equipment Ref
#
Debit Credit
TB
Ref
# Accumulated Depreciation Ref
#
Debit Credit
ATB
Page 7
Liabilities
Ref
# Accounts Payable Ref
#
Debit Credit
TB
Ref
# Salaries Payable Ref
#
Debit Credit
ATB
Ref
# Unearned (Deferred) Revenue Ref
#
Debit Credit
TB
ATB
Page 8
Stockholders’ Equity
Ref
# Common Stock Ref
#
Debit Credit
TB
Ref
# Dividends Ref
#
Debit Credit
TB
CB
Ref
# Retained Earnings Ref
#
Debit Credit
CB
Page 9
Revenue
Ref
# Service Revenue Ref
#
Debit Credit
TB
ATB
CB
Expenses
Ref
# Advertising Expense Ref
#
Debit Credit
TB
CB
Page 10
Ref
# Salaries Expense Ref
#
Debit Credit
TB
ATB
CB
Ref
# Depreciation Expense Ref
#
Debit Credit
ATB
CB
Ref
# Rent Expense Ref
#
Debit Credit
ATB
CB
Ref
# Supplies Expense Ref
#
Debit Credit
ATB
CB
Page 11
Part 3
Classic Canine Cuts
Trial Balance
December 31, 2019
Account Debit Credit
$ $
Total $ $
Page 12
Part 6
Classic Canine Cuts
Adjusted Trial Balance
December 31, 2019
Account Debit Credit
$ $
Total $ $
Page 13
Part 7
Classic Canine Cuts
Income Statement
For the Month Ended December 31, 2019
Revenue
$
Expenses
$
Total Expenses $
Net Income $
Part 8
Classic Canine Cuts
Statement of Retained Earning
December 31, 2019
Retained Earnings
Beginning Balance, December 1, 2019 $
Ending Balance, December 31, 2019 $
Page 14
Part 9
Classic Canine Cuts
Balance Sheet
December 31, 2019
Assets
Liabilities
Total Current Liabilities
Total Current Assets
Property Plant and Equipment Total Liabilities
Stockholders’ Equity
Total Property Plant and
Equipment
Total Stockholders’ Equity
Total Assets
Total Liabilities and
Stockholders’ Equity
Page 15
General Journal – Closing Entries Part 10
Revenue, Expense and Dividend accounts.
Ref # Date Account Debit Credit
C.1
C.2
C.3
Page 16
Part 12
Classic Canine Cuts
Post-Closing Trial Balance
December 31, 2019
Account Debit Credit
$ $
Total $ $
