Review Of Final Project

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Instructions

Final Project Instructions and Templates
Name: ___________________________________
Final Project
Due by Day 7 of Week 6
This project is worth _20_ points
MAKE SURE TO COMPLETE ALL GRADED REQUIREMENTS LISTED BELOW.
It is recommended that you complete the non-graded requirements for additional practice
All of the templates you need for the project are located in this Workbook.
The instructions and data for the problem is in your Textbook (the "Continuing Cookie Chronicle" at the end of the chapter).
Use the arrow buttons (lower left corner of the window) to navigate through the tabs.
Submit the ENTIRE Workbook (file) to your instructor for the Week 6 Final Project
Column1	Column2
Requirements	Sheet in Workbook
Week One
Chapter 1 and 2 "Continuing Cookie Chronicle" - Review the problem and make notes of your answers.	Chapter 1 & 2 Notes (PRACTICE)
Week Two
Chapter 3, Part A, prepare journal entries to record the November transactions	Journal Entries (PRACTICE)
Chapter 3, Part B, post the journal entries to the general ledger accounts	General Ledger (PRACTICE)
Chapter 3, Part C, prepare a trial balance at November 30, 2017	Trial Balance (PRACTICE)
Week Three
Chapter 4, Part A, Journalize the transactions	Journal Entries (GRADED)
Chapter 4, Part B, Post the December transactions to the general ledger accounts	General Ledger (GRADED)
Chapter 4, Part C, Prepare a trial balance at December 31, 2017	Trial Balance (GRADED)
Chapter 4, Part D, Prepare and post adjusting journal entries for the month of December	Adjusting Entries (GRADED)
Chapter 4, Part E, Prepare an adjusted trial balance as of December 31, 2017	Adjusted Trial Balance (GRADED)
Chapter 4, Part F, Prepare an income statement and a retained earnings statement for the 2-month period ending December 31, 2017, and a classified balance sheet as of December 31, 2017	Financial Statements (GRADED)
Chapter 4, Part G, Prepare and post closing entries as of December 31, 2017	Closing Entries (GRADED)
Chapter 4, Part H, Prepare a post-closing trial balance	Post Closing TB (GRADED)
Week Six
Chapter 13 - Part A, Prepare a horizontal and vertical analysis of the income statement for Cookie & Coffee Creations Inc.	Horiz. & Vert. Analysis (GRADED)
Chapter 13 - Part B, Calculate several financial ratios as indicated	Financial Ratios (GRADED)

Chapter 1 & 2 Notes

Make any notes from Chapters 1 or 2 here.

NOTE: These notes will NOT be included in your grade for the project. They are for your own reference.

Journal Entries (PRACTICE)

REQUIREMENT #1:
Use the following template for the journal entries from Chapter 3: Continuing Cookie Chronicle.
NOTE: This is for your practice only - it will NOT be graded (solutions are found on the last tab marked "Solutions").
a) Prepare journal entries to record the November transactions
General Journal
Date	Description(Account Name)	Debit	Credit

General Ledger (PRACTICE)

This sheet will be used for Part B of Chapter 3.
NOTE: This is for your practice only - it will NOT be graded (solutions are found on the last tab marked "Solutions")
b) Post the journal entries to the following general ledger accounts and compute the account balances
Cash			Equipment
Accounts Receivable			Website
Accounts Payable			Supplies
Unearned Service Revenue			Prepaid Insurance
Notes Payable			Common Stock
Servcice Revenue			Utilities Expense

Trial Balance (PRACTICE)

Part C (Chapter 3)
c) Prepare a trial balance for November 30, 2014
NOTE: This is for your practice only - it will NOT be graded (solutions are found on the last tab marked "Solutions")
Cookie Creations, Inc.
Trial Balance
November 30, 2017
	Debit	Credit
Total	3,910	3,910
*Remember debits MUST equal credits - if they do not, then there is an error somewhere. Double-check your calculations and entries.

Journal Entries (GRADED)

REQUIREMENT #1:
Use the following template for the journal entries from Chapter 4: Continuing Cookie Chronicle.
a) Prepare journal entries to record the December transactions.
NOTE: This sheet WILL be graded when you submit your assignment.
General Journal
Date	Description (Account Name)	Debit	Credit
1-Dec	No entry
5-Dec	Cash	90
	Unearned service revenue	60
	Service revenue		150
8-Dec	Cash	300
	Account receivable		300
9-Dec	Cash	750
	Unearned service revenue		750
15-Dec	Accounts payable	50
	Cash		50
16-Dec	Accounts payable	600
	Cash		600
19-Dec	Cash	60
	Unearned service revenue		60
23-Dec	Cash	3,000
	Account receivable	1,000
	Service revenue		4,000
23-Dec	Supplies	1,250
	Cash		1,250
23-Dec	Salaries expense	800
	Cash		800
28-Dec	Dividend	500
	Cash		500
	Total	8,460	8,460

General Ledger (GRADED)

This sheet will be used for Part B of Chapter 3.
REQUIREMENT #2:
Post the journal entries to the following general ledger accounts and compute the account balances.
NOTE: This sheet WILL be graded when you submit your assignment.
Cash		Dividends		Unearned Service Revenue		Retained Earnings
340		500			60
90	50		500	60	750
300	600				60
750	1,250			450	1,250
60	800			510	2,120
3,000	500			1,610
4,540	3,200
	1,340
Accounts Receivable		Income Summary		Supplies Expense		Amortization Expense
300				45		25
1,000	300			1,025			25
	1,000				1,070
450
	450
Service Revenue		Supplies
400	150		220
450	4,000	1,250	45
	450
850	4,600		985
3,750
Utilities Expense		Prepaid Insurance
75			100
	75	100
Salaries & Wages Expense		Equipment
800	56
	744
Accumulated Depreciation Equipment		Website
	40		25
40		25
Insurance Expense		Interest Expense
100		15
	100		15
Accounts Payable		Depreciation Expense
	75	40
75			40
Interest Payable		Notes Payable
	15
15
Common Stock		Salaries & Wages Payable
		56
			56

Trial Balance (GRADED)

Part C (Chapter 4)
NOTE: This sheet WILL be graded when you submit your assignment.
c) Prepare a trial balance for December 31, 2017
Cookie Creations, Inc.
Trial Balance
December 31, 2017
	Debit	Credit
Cash	1,340
Advance for service		740
Service		4,150
Supplies	1,250
Dividend	500
Salary	800
A/R	1,000
Total	4,890	4,890
*Remember debits MUST equal credits - if they do not, then there is an error somewhere. Double-check your calculations and entries.

Adjusting Entries (GRADED)

Chapter 4, Part D: Prepare and post adjusting entries for December.
NOTE: This part WILL be graded when you submit your assignment to the instructor.
General Journal
Date	Description (Account Name)	Debit	Credit
1	Supplies expense	45
	Supplies		45
2	Depreciation expense	40
	Accumulated depreciation		40
3	Amortization expense	25
	Website		25
4	Interest expense	15
	Interest payable		15
5	Insurance expense	100
	Prepaid insurance		100
6	Account receivable	450
	Service revenue		450
7	Baking supplies expense	1025
	Baking supplies		1025
8	Utilities expense	75
	Accounts payable		75
9	Salaries and wages expense	56
	Salaries and wages payable		56
10	Unearned service revenue	450
	Service revenue		450

Adjusted TB (GRADED)

Chapter 4, Part E: Prepare an adjusted trial balance.
Note: This part WILL be graded when you submit your assignment to the instructor.
Cookie Creations Inc
Adjusted Trial Balance
December 31, 2017
Cash	1340
Unearned service revenue		1410
Account receivable	450
Supplies expense	1070
Amortization expense	25
Service revenue		3485
Supplies	985
Utilities expense	75
Prepaid insurance	100
Salaries and wages	744
Accumulated depreciation		40
Website	25
Insurance expense	100
Interest expense	15
Account payable		75
Depreciation expense	40
Interest payable		15
Salaries and wages payable	56
	5025	5025	0
*Remember debits MUST equal credits - if they do not, then there is an error somewhere. Double-check your calculations and entries.

Financial Statements (GRADED)

Chapter 4, Part F: Prepare financial statement.
Note: This part WILL be graded when you submit your assignment to the instructor.
You will only be preparing the income statement, statement of retained earning and the balance sheet.
Cookie Creations, Inc.			Cookie Creations		Cookie Creations
Income Statement			Statement of Retained Earnings		Balance Sheet
For the Month Ending December 31, 2017			For the Month Ending December 31, 2017		December 31, 2017
Revenues:			Retained Earnings, December 1	$ -	Current Assets
Service revenue		$ 3,485	Add: Net Income	2,160	Cash		1,340
			Subtotal	2,160	Account receivable		450
Operating Expenses:			Less: Dividends	500	Supplies		985
supplies expense	1,070		Retained Earnings, December 31	$ 1,660	Prepaid insurance		100
amortization expense	25				Total Current Assets		2,875
Utilities expense	75				Property, Plant & Equipment
Insurance expense	100				Equipment	1,200
interest expense	15				Accumulated depreciation	40	1,160
depreciation expense	40				Intangible Assets
					website	25	25
Total Operating Expenses		1,325			Total Assets		4,060
Net Income		$ 2,160			Liabilities & Stockholder's Equity
					Account payable		75
					Interest payable		15
					salaries and wages payable		56
					Total Current Liabilities		146
					Long- Term Liabilities		2000
					Total Liabilities		2,146
					Stockholder's Equity
					Common Stock		$ 800
					Retained Earning		$ 1,114
					Total Stockholder's Equity		1,914
					Total Liabilities & Stockholder's Equity		$ 4,060
*Remember, assets and liabilities MUST be the same amount. If they are different, then there is an error somewhere. Double-check your calculations and entries.

Closing Entries (GRADED)

Chapter 4 - Part G: Prepare closing entries.
Note: This part WILL be graded when you submit your assignment to the instructor.
Hint: Use the balances for each account which appear on the adjusted trial balance for your closing entries.
		General Journal
Date	Description (Account Name)		Debit	Credit
	Service revenue		3,485
	Income Summary			3,485
	(to close revenue account)
	Income Summary		1,325
	supplies expense			1,070
	amortization expense			25
	Utilities expense			75
	Insurance expense			100
	interest expense			15
	depreciation expense			40
	(to close expense account)
	Income summary		2160
	Retained earning			2160
	Retained earning		2160
	Capital			2160

Post Closing TB (GRADED)

Chapter 4 - Part H: Prepare post-closing trial balance.
Note: This part WILL be graded when you submit your assignment to the instructor.
Cookie Creations, Inc.
Post-Closing Trial Balance
December 31, 2017
Cash	1,340
Unearned service revenue		1,410
Account receivable	450
Supplies	985
Prepaid insurance	100
Salaries and wages	744
Accumulated depreciation		40
Website	25
Account payable		75
Interest payable		15
Salaries and wages payable	56
	3,700	1,540

Horiz. & Vert Analysis (GRADED)

Chapter 13, Part A of the Continuing Cookie Chronicle: Prepare a horizontal and vertical analysis
Note: This part WILL be graded when you submit your assignment to the instructor
Instructions: Prepare a horizontal analysis of the income statement for Cookie & Coffee Creations Inc. using 2019 as a base year (which is a continuation of the Continuing Cookie Chronicle)
Note: Do not use the information presented on the Textbook website, it is different from what is required below. You may refer to the information within Chapter 13 (week 6) for assistance in completing this tab.
COOKIE & COFFEE CREATIONS INC.
Income Statement
For the Year Ended October 31
				Horizontal
	2020	2019	Difference	Analysis
Sales	$485,625	$462,500	$23,125	5.00%
Cost of goods sold	222,694	208,125	$14,569	7.00%
Gross profit	262,931	254,375	$8,556	3.36%
Operating expenses
Salaries & wages expense	147,979	146,350	$1,629	1.11%
Depreciation expense	17,600	9,100	$8,500	93.41%
Other operating expenses	48,186	42,925	$5,261	12.26%
Total operating expenses	213,765	198,375	$15,390	7.76%
Income from operations	49,166	56,000	($6,834)	-12.20%
Other expenses
Interest expense	413	0	$413	100.00%
Loss on sale of computer
equipment	2,500	0	$2,500	100.00%
Total other expenses	2,913	0	$2,913	100.00%
Income before income tax	46,253	56,000	($9,747)	-17.41%
Income tax expense	9,251	14,000	($4,749)	-33.92%
Net income	$37,002	$42,000	($4,998)	-11.90%
Prepare a vertical analysis of the income statement for Cookie & Coffee Creations for 2020 and 2019
COOKIE & COFFEE CREATIONS INC.
Income Statement
For the Year Ended October 31
		Vertical		Vertical
	2020	Analysis	2019	Analysis
Sales	$485,625	100.00%	$462,500	100.00%
Cost of goods sold	222,694	45.86%	208,125	45.00%
Gross profit	262,931	54.14%	254,375	55.00%
Operating expenses
Salaries & wages expense	147,979	30.47%	146,350	31.64%
Depreciation expense	17,600	3.62%	9,100	1.97%
Other operating expenses	48,186	9.92%	42,925	9.28%
Total operating expenses	213,765	44.02%	198,375	42.89%
Income from operations	49,166	10.12%	56,000	12.11%
Other expenses
Interest expense	413	0.09%	0	0.00%
Loss on sale of computer
equipment	2,250	0.46%	0	0.00%
Total other expenses	2,663	0.55%	0	0.00%
Income before income tax	46,253	9.52%	56,000	12.11%
Income tax expense	9,251	1.90%	14,000	3.03%
Net income	$37,002	7.62%	$42,000	9.08%

Finantial Ratios (GRADED)

Chapter 13, Part B of the Continuing Cookie Chronicle: Calculate the following financial ratios using the information from the financial statements below.
Note: This part WILL be graded when you submit your assignment to the instructor
Note: Do not use the information presented on the Textbook website, it is different from what is required below. You may refer to the information within Chapter 13 (week 6) for assistance in completing this tab.
Instructions: Using the financial statements below, compute the following ratios for 2019 only: Current Ratio, Debt to total Assets, Gross Profit Rate, Profit Margin, Return on Assets, and Return on Common Stockholder's Equity. Enter your computations in the yellow boxes following the format in the example.
COOKIE & COFFEE CREATIONS INC.			EXAMPLE:
Income Statement			Name of Ratio	=	1,234	=	1.00
For the Year Ended October 31			Ratio		1,234
	2020	2019	Your Answers (2019):
Sales	$485,625	$462,500	Current	=	21,760	=	0.61
Cost of goods sold	222,694	208,125	Ratio		35,480
Gross profit	262,931	254,375
Operating expenses			Debt to	=	0	=	0.00
Salaries & wages expense	147,979	146,350	Total Assets		88,160
Depreciation expense	17,600	9,100
Other operating expenses	48,186	42,925	Gross Profit	=	254,375	=	55%
Total operating expenses	213,765	198,375	Rate		462,500
Income from operations	49,166	56,000
Other expenses			Profit	=	42,000	=	9%
Interest expense	413	0	Margin		462,500
Loss on sale of computer
equipment	2,500	0	Return on	=	42,000	=	48%
Total other expenses	2,913	0	Assets		88,160
Income before income tax	46,253	56,000
Income tax expense	9,251	14,000
Net income	$37,002	$42,000	Return on common	=	42,000	=	1.67
			Stockholder's Equity		25,180
COOKIE & COFFEE CREATIONS INC.			NOTE: Dividends on preferred stock were $16,800 in 2019
Balance Sheet
October 31, 2012
Assets	2020	2019
Cash	$ 22,324	$ 5,550
Accounts Receivable	3,250	2,710
Inventory	7,897	7,450
Prepaid Expenses	5,800	6,050
Equipment	102,000	75,500
Accumulated depreciation	(25,200)	(9,100)
Total assets	$ 116,071	$ 88,160
Liabilities and Stockholders' Equity
Accounts Payable	9,251	7,200
Income taxes payable	27,000	27,000
Salaries payable	7,250	1,280
Interest payable	188	0
Note payable - current portion	4,000	0
Note payable - long-term portion	6,000	0
Preferred stock, no par, $6 cumulative - 3,000 and 2,800 shares issued, respectively	15,000	14,000
Common stock, $1 par - 25,180 shares issued	25,180	25,180
Additional paid-in capital - treasury stock	250	250
Retained earnings	20,802	10,800
Total liabilities and stockholders' equity	$ 116,071	$ 88,160

Grading Rubric

Final Project Grading Rubric - 20 points total (20% of overall course grade)
Criteria		Excellent	Good	Poor	Very Poor
Parts:		90% to 100%	70% to 89%	50% to 69%	Less than 50%
Chapter 4	Part A & B - Journal Entries (4pts)	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.
Chapter 4	Part C - Unadjusted Trial Balance. (1pt)	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.
Chapter 4	Part D - Adjusting Journal Entries (2pts)	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.
Chapter 4	Part E - Posted Adjusted Trial Balance. (2pts)	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.
Chapter 4	Part F - Financial Statements (4pts)	All three Financial Statements are prepared accurately and in an appropriate format.	Two of three Financial Statements are prepared accurately and mostly in an appropriate format, one statement has some errors.	One of three Financial Statements are prepared accurately and mostly in an appropriate format, two statements have some errors.	One or fewer of three Financial Statements are prepared accurately and mostly in an appropriate format, three or all statements have some errors.
Chapter 4	Part G - Closing Journal Entries (2pts)	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.
Chapter 4	Part H- Posted and Post-closingTrial Balance. (1pt)	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.
Chapter 13	Horizontal & Vertical Analysis (2pts)	Horizontal and Vertical analysis is 90% to 100% correct	Horizontal and Vertical analysis is 70% to 89% correct	Horizontal and Vertical analysis is 50% to 69% correct	Horizontal and Vertical analysis has less than 50% correct answers.
Chapter 13	Financial Ratios (2pts)	All ratios are properly calculated with none or only one ratio being incorrect.	Most of the ratios are properly calcluated with only two or three ratios being incorrect.	There are three or four errors in the calculation of financial ratios	There are more than four errors in the calculation of the financial ratios.

Journal Entries Solutions

Solutions for the Practice Exercise (From Chapter 3 of Continuing Cookie Chronicles)
Solutions
a) Prepare journal entries to record the December transactions.
General Journal
Date	Description (Account Name)	Debit	Credit
Nov. 8	No journal entry required
Nov 8.	No journal entry required
Nov. 8	Cash	500
	Common Stock		500
Nov. 11	Supplies	95
	Cash		95
Nov. 14	Supplies	125
	Cash		125
Nov. 15	Equipment	300
	Common Stock		300
Nov. 16	Cash	2,000
	Notes Payable		2,000
Nov. 17	Equipment	900
	Cash		900
Nov. 18	No journal entry required
Nov. 25	Cash	60
	Unearned Service Revenue		60
Nov. 29	Cash	100
	Service Revenue		100
Nov. 30	Website	600
	Accounts Payable		600
Nov. 30	Prepaid Insurance	1,200
	Cash		1,200
Nov. 30	Accounts Receivable	300
	Servcie Revenue		300
Nov. 30	Utilities Expense	50
	Accounts Payable		50
	Total	6,230	6,230

General Ledger Solutions

This sheet will be used for Part B of Chapter 3.
Solutions
Post the journal entries to the following general ledger accounts and compute the account balances.
Cash		Equipment
Nov. 8 500	Nov. 11 95	Nov. 15 300
Nov. 16 2,000	Nov. 14 125	Nov. 17 900
Nov. 25 60	Nov. 17 900	Nov. 30 Bal 1,200
Nov. 29 100	Nov. 30 1,200
Nov. 30 Bal. 340
Accounts Receivable		Website
Nov. 30 300		Nov. 30 600
Nov. 30 Bal. 300		Nov. 30 Bal. 600
Accounts Payable		Supplies
	Nov. 30 600	Nov. 11 95
	Nov. 30 50	Nov. 11 125
	Nov. 30. Bal 650	Nov. 30 Bal 220
Unearned Service Revenue		Prepaid Insurance
	Nov. 25 60	Nov. 30 1,200
	Nov. 30. Bal. 60	Nov. 30 Bal. 1,200
Notes Payable		Common Stock
	Nov. 16 2,000		Nov. 8 500
	Nov. 30. Bal. 2,000		Nov. 15 300
			Nov. 30. Bal 800
Service Revenue		Utilities Expense
	Nov. 29 100	Nov. 30 50
	Nov. 30 300	Nov. 30 Bal. 50
	Nov. 30 Bal. 400

Trial Balance Solutions

Part C (Chapter 3)
Solutions
Prepare a trial balance for November 30, 2014.
Cookie Creations, Inc.
Trial Balance
November 30, 2014
	Debit	Credit
Cash	$ 340
Accounts Receivable	300
Supplies	220
Prepaid Insurance	1,200
Equipment	1,200
Website	600
Accounts Payable		$ 650
Unearned Service Revenue		60
Notes Payable		2,000
Common Stock		800
Service Revenue		400
Utilities Expense	50
Total	$ 3,910	$ 3,910
*Note that debits equal credits.