Project milestone 1

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Instructions

Course Project Overview
The Course Project consists of 12 Requirements for you to complete. Part 1 of the Course Project is due at the end of Week 2 and Part 2 at the end of Week 4 and Part 3 is due at the end of week 7. 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 ten (12) assignments in the workbook you will need to complete. • A list of July transactions • A Chart of Accounts reference sheet • A Grading Rubric to help explain what is expected.
Scenario
You’ve just secured a new client in your accounting practice, Jane's Skate Boards Inc., a brand new small business specializing in selling skate boards. The owner, Jane Jones, is good at selling but she needs your help with accounting. You have decided to use the perpetual inventory method to account for inventory and Cost of Goods Sold.
Requirements
ACCT 105: Course Project
Requirement Requirement Description Worksheet Name
1 Prepare the Journal Entries in the General Journal 1 - Journal Entries
2 Post Journal Entries to the General Ledger 2 - General Ledger
3 Prepare a Trial Balance 3 - Trial Balance
4 Prepare the Adjusting Entries 4 &5 - Adjusting Entries
5 Post Adjusting Entries to the General Ledger 4 &5 -Adjusting Entries ( Use worksheet #2)
6 Prepare an Adjusted Trial Balance 6- Adjusted TB
7 Prepare the Financial Statements 7 - Financial Statements
8 Prepare the Closing Entries 8&9 - Closing Entries ( use worksheet #2)
9 Post Closing Entries to the General Ledger 8&9- General Ledger
10 Prepare the Post Closing Trial Balance 10 - Post Closing Trial Balance
11 Prepare ratio analysis 11 -Ratio Analysis
12 Prepare Break-Even Analysis 12 - Break Even
Guidelines
Use the template, guidance in your textbook, and examples in the weekly lectures to complete this project. Should you have any questions contact your professor.
Milestone 1 is due in Week 2 - This includes project requirements 1-3.
Milestone 2 is due in Week 4 - This includes project requirements 4-10.
Milestone 3 is due in Week 7- This includes project requirements 11-12.

Chart of Accounts

Account Name Number Account Type Increase with Decrease with
Cash 111 Asset Debit Credit
Store Supplies 117 Asset Debit Credit
Prepaid Insurance 119 Asset Debit Credit
Merchandise Inventory 130 Asset Debit Credit
Store Fixtures 144 Asset Debit Credit
Accumulated Depreciation -Fixtures 145 Contra Asset Credit Debit
Accounts Payable 212 Liability Credit Debit
Income Tax Payable 213 Liability Credit Debit
Common Stock 311 Owners Equity Credit Debit
Retained Earnings 312 Owners Equity Credit Debit
Dividends 313 Contra Owners Equity Debit Credit
Sales Revenue 411 Revenue Credit Debit
Cost of Good Sold 505 Expense Debit Credit
Store Rent Expense 511 Expense Debit Credit
Telephone Expense 517 Expense Debit Credit
Depreciation Expense 520 Expense Debit Credit
Electric Expense 522 Expense Debit Credit
Insurance Expense 525 Expense Debit Credit
Supplies Expense 530 Expense Debit Credit
Income Tax Expense 535 Expense Debit Credit

Transaction

During its first month of operation, Jane's Skateboards completed the following transactions.
Record these transactions in the Journal entries page
Journal entry # Date of transaction July Transactions
JE01 July 1 Begin business by making a $100,000 deposit into the companies bank account
in exchange for 10,000 shares of common stock -Par value $10
JE02 July 2 Paid $16,000 for Shelves for the Store
JE03 July 3 Paid $6,000 for the premium on a 1-year Insurance policy
JE04 July 5 Paid $3,000 for the July store rent
JE05 July 6 Purchased on Credit - 1000 skateboards costing $25 each from Acme MFG Note: This is different from the videos you watched
JE06 July 8 Purchased on Credit - Store supplies costing $600 from Mikes Supply
JE07 July 10 Paid $200 for for July telephone bill
JE08 July 11 Sold 24 skateboards for $50 each to a customer who paid cash
JE09 July 18 Paid $300 for 1/2 of the Store Supplies purchased on July 8
JE10 July 20 Sold 140 skateboards for $50 each to a customer who paid cash
JE11 July 25 Sold 100 skateboards for $50 each to a customer who paid cash
JE12 July 26 Paid $500 for for July electric bill
JE13 July 30 Paid $1,500 for divident declared on July 30

Journal Entries

Date Description Post Ref. Debit Credit Post Ref. Account Name Acct #
1 7/1/22 Cash 111 100,000 JE01 Cash 111
Common Stock 311 100,000 JE01 Store Supplies 117
2 JE02 Prepaid Insurance 119
JE02 Merchandise Inventory 130
3 JE03 Store Fixtures 144
JE03 Accumulated Depreciation -Fixtures 145
4 JE04 Accounts Payable 212
JE04 Income Tax Payable 213
5 JE05 Common Stock 311
JE05 Retained Earnings 312
6 JE06 Dividends 313
JE06 Sales Revenue 411
7 JE07 Cost of Good Sold 505
JE07 Store Rent Expense 511
8 JE08 Telephone Expense 517
JE08 Depreciation Expense 520
JE08 Electric Expense 522
JE08 Insurance Expense 525
9 JE09 Supplies Expense 530
JE09 Income Tax Expense 535
10 JE10
JE10
JE10
JE10
11 JE11
JE11
JE11
JE11
12 JE12
JE12
13 JE13
JE13

General Ledger

Account: Cash - 111 JE Number Account Name Acct #
Balance JE#1 Cash 111
Date Description Post Ref. Debit Credit Debit Credit JE#2 Store Supplies 117
7/1/22 JE#1 100,000 100,000 JE#3 Prepaid Insurance 119
JE#4 Merchandise Inventory 130
JE#5 Store Fixtures 144
JE#6 Accumulated Depreciation -Fixtures 145
JE#7 Accounts Payable 212
JE#8 Income Tax Payable 213
JE#9 Common Stock 311
JE#10 Retained Earnings 312
JE#11 Dividends 313
JE#12 Sales Revenue 411
JE#12 Cost of Good Sold 505
JE#13 Store Rent Expense 511
AE#1 Telephone Expense 517
AE#2 Depreciation Expense 520
Store Supplies - 117 AE#3 Electric Expense 522
Balance AE#4 Insurance Expense 525
Date Description Post Ref. Debit Credit Debit Credit CE#1 Supplies Expense 530
CE#2 Income Tax Expense 535
CE#3
CE#4
Prepaid Insurance - 119
Balance
Date Description Post Ref. Debit Credit Debit Credit
Merchandise Inventory - 130
Balance
Date Description Post Ref. Debit Credit Debit Credit
Store Fixtures - 144
Balance
Date Description Post Ref. Debit Credit Debit Credit
Accumulated Depreciation -Fixtures -145
Balance
Date Description Post Ref. Debit Credit Debit Credit
Accounts Payable - 212
Balance
Date Description Post Ref. Debit Credit Debit Credit
Income Tax Payable - 213
Balance
Date Description Post Ref. Debit Credit Debit Credit
Common Stock - 311
Balance
Date Description Post Ref. Debit Credit Debit Credit
7/1/22 JE#1 100,000 100,000
Retained Earnings - 312
Balance
Date Description Post Ref. Debit Credit Debit Credit
Dividends - 313
Balance
Date Description Post Ref. Debit Credit Debit Credit
Sales Revenue - 411
Balance
Date Description Post Ref. Debit Credit Debit Credit
Cost of Good Sold - 505
Balance
Date Description Post Ref. Debit Credit Debit Credit
Store Rent Expense - 511
Balance
Date Description Post Ref. Debit Credit Debit Credit
Telephone Expense - 517
Balance
Date Description Post Ref. Debit Credit Debit Credit
Depreciation Expense - 520
Balance
Date Description Post Ref. Debit Credit Debit Credit
Electrict Expense - 522
Balance
Date Description Post Ref. Debit Credit Debit Credit
Insurance Expense - 525
Balance
Date Description Post Ref. Debit Credit Debit Credit
Supplies Expense - 530
Balance
Date Description Post Ref. Debit Credit Debit Credit
Income Tax Expense - 535
Balance
Date Description Post Ref. Debit Credit Debit Credit

T-Accounts

Date Acct # Account Name Account Name Acct #
111 Cash Cash 111
7/1/22 100,000 Store Supplies 117
Prepaid Insurance 119
Merchandise Inventory 130
Store Fixtures 144
Accumulated Depreciation -Fixtures 145
Accounts Payable 212
Income Tax Payable 213
Common Stock 311
Retained Earnings 312
Dividends 313
Sales Revenue 411
Cost of Good Sold 505
Store Rent Expense 511
Totals 100000 0 Telephone Expense 517
Balance 100000 Depreciation Expense 520
117 Store Supplies Electric Expense 522
Insurance Expense 525
Supplies Expense 530
Income Tax Expense 535
Totals 0 0
Balance 0
119 Prepaid Insurance
Totals 0 0
Balance 0
130 Merchandise Inventory
Totals 0 0
Balance 0
144 Store Fixtures
Totals 0 0
Balance 0
145 Accumulated Depreciation
Totals 0 0
Balance 0
212 Accounts Payable
Totals 0 0
Balance 0
213 Income Tax Payable
Totals 0 0
Balance 0
311 Common Stock
7/1/22 100,000
Totals 0 100000
Balance 100000
312 Retained Earnings
Totals 0 0
Balance 0
313 Dividends
Totals 0 0
Balance 0
411 Sales Revenue
Totals 0 0
Balance 0
505 Cost of Goods Sold
Totals 0 0
Balance 0
511 Store Rent Expense
Totals 0 0
Balance 0
517 Telephone Expense
Totals 0 0
Balance 0
520 Depreciation Expense
Totals 0 0
Balance 0
522 Electric Expense
Totals 0 0
Balance 0
525 Insurance Expense
Totals 0 0
Balance 0
530 Supplies Expense
Totals 0 0
Balance 0
535 Income Tax Expense
Totals 0 0
Balance 0

Trial Balance

Janes Skateboard Account Name Acct #
Trial Balance Cash 111
For the Month Ended July 31, 2022 Store Supplies 117
Prepaid Insurance 119
Merchandise Inventory 130
Trial Balance Store Fixtures 144
Accumulated Depreciation -Fixtures 145
Account Name Debit Credit Accounts Payable 212
Income Tax Payable 213
Cash 111 Common Stock 311
Store Supplies 117 Retained Earnings 312
Prepaid Insurance 119 Dividends 313
Merchandise Inventory 130 Sales Revenue 411
Store Fixtures 144 Cost of Good Sold 505
Accumulated Depreciation -Fixtures 145 Store Rent Expense 511
Accounts Payable 212 Telephone Expense 517
Income Tax Payable 213 Depreciation Expense 520
Common Stock 311 Electric Expense 522
Retained Earnings 312 Insurance Expense 525
Dividends 313 Supplies Expense 530
Sales Revenue 411 Income Tax Expense 535
Cost of Good Sold 505
Store Rent Expense 511
Telephone Expense 517
Depreciation Expense 520
Electric Expense 522
Insurance Expense 525
Supplies Expense 530
Income Tax Expense 535
— 0 — 0
tc={3FF1E32B-1F2D-4BF7-9762-1DD69FEF5DFC}: [Threaded comment] Your version of Excel allows you to read this threaded comment; however, any edits to it will get removed if the file is opened in a newer version of Excel. Learn more: https://go.microsoft.com/fwlink/?linkid=870924 Comment: Total should be $138,500

Adjusting Entries

Requirement #4: Prepare adjusting entries using the following information in the General Journal below. Show your calculations! 1) One month's insurance has expired. 2) The remaining inventory of store supplies is $250. 3) The estimated depreciation on store fixtures is $160. 4) The estimated income taxes are $295.
Requirement #5: Post the adjusting entries on July 31 below to the General Ledger accounts (Step 2) . Ajusting entries are referenced in the General Ledger as AE#1 ,2 etc.
Date Description Post Ref. Debit Credit Account Name Acct #
1 1 Cash 111
2 Store Supplies 117
2 3 Prepaid Insurance 119
4 Merchandise Inventory 130
3 5 Store Fixtures 144
6 Accumulated Depreciation -Fixtures 145
4 7 Accounts Payable 212
8 Income Tax Payable 213
5 9 Common Stock 311
10 Retained Earnings 312
6 11 Dividends 313
12 Sales Revenue 411
7 13 Cost of Good Sold 505
14 Store Rent Expense 511
8 15 Telephone Expense 517
16 Depreciation Expense 520
9 17 Electric Expense 522
18 Insurance Expense 525
10 19 Supplies Expense 530
20 Income Tax Expense 535
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Adjusted Trial Balance

Janes Skateboard Account Name Acct #
Adjusted Trial Balance Cash 111
For the Month Ended July 31, 2022 Store Supplies 117
Prepaid Insurance 119
Merchandise Inventory 130
Trial Balance Store Fixtures 144
Accumulated Depreciation -Fixtures 145
Account Name Debit Credit Accounts Payable 212
Income Tax Payable 213
Cash 111 Common Stock 311
Store Supplies 117 Retained Earnings 312
Prepaid Insurance 119 Dividends 313
Merchandise Inventory 130 Sales Revenue 411
Store Fixtures 144 Cost of Good Sold 505
Accumulated Depreciation -Fixtures 145 Store Rent Expense 511
Accounts Payable 212 Telephone Expense 517
Income Tax Payable 213 Depreciation Expense 520
Common Stock 311 Electric Expense 522
Retained Earnings 312 Insurance Expense 525
Dividends 313 Supplies Expense 530
Sales Revenue 411 Income Tax Expense 535
Cost of Good Sold 505
Store Rent Expense 511
Telephone Expense 517
Depreciation Expense 520
Electric Expense 522
Insurance Expense 525
Supplies Expense 530
Income Tax Expense 535
— 0 — 0

Financial Statements

Requirement #7: Prepare the financial statements for Jane's Skateboard's as of July 31 in the space below. You will only be preparing the Income Statement, Statement of Retained Earnings, and the Balance Sheet. The Statement of Cash Flows is a required Financial Statement, but is not required for this project.
Jane's Skateboards Inc. Jane's Skateboards Inc. Jane's Skateboards Inc.
Income Statement Statement of Retained Earnings Balance Sheet
For the Month Ending July 31 For the Month Ending July 31 July 31
Revenues: Retained Earnings, July 1 Assets:
Sales Revenue Add: Net Income Cash
Total Revenue Subtotal 0 Store supplies
Less: Dividends Prepaid Insurance
Expenses: Retained Earnings, July 31 - 0 Merchandise Inventory
Cost of Goods Sold Store fixtures
Store Rent Expense Less: Accum. Dep - Fixtures.
Telephone Expense Total Assets $0
Insurance Expense
Store Supplies Exp. Liabilities and Stockholders' Equity
Depreciation Exp. Liabilities:
Income Tax Expense Accounts Payable
Electric Expense Income Taxes Payable
Total Expenses Total Liabilities - 0
Net Income $0 Stockholders' Equity:
Common Stock
Retained Earnings - 0
Total Stockholders' Equity - 0
Total Liabilities & Stockholders' Equity $ - 0

Closing Entries

Requirement #8: Prepare the closing entries at July 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 Accounts on the General Ledger ( Step 2) worksheet and compute ending balances. Closing entries are referenced in the General Ledger as CE#1 ,2 etc.
Date Description Post Ref. Debit Credit Account Name Acct #
1 1 Cash 111
2 Store Supplies 117
3 Prepaid Insurance 119
4 Merchandise Inventory 130
5 Store Fixtures 144
6 Accumulated Depreciation -Fixtures 145
7 Accounts Payable 212
8 Income Tax Payable 213
9 Common Stock 311
10 Retained Earnings 312
11 Dividends 313
12 Sales Revenue 411
13 Cost of Good Sold 505
14 Store Rent Expense 511
15 Telephone Expense 517
16 Depreciation Expense 520
17 Electric Expense 522
18 Insurance Expense 525
19 Supplies Expense 530
20 Income Tax Expense 535
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Post closing Trial Balance

Janes Skateboard Account Name Acct #
Post Closing Trial Balance Cash 111
For the Month Ended July 31, 2022 Store Supplies 117
Prepaid Insurance 119
Merchandise Inventory 130
Trial Balance Store Fixtures 144
Accumulated Depreciation -Fixtures 145
Account Name Debit Credit Accounts Payable 212
Income Tax Payable 213
Cash 111 Common Stock 311
Store Supplies 117 Retained Earnings 312
Prepaid Insurance 119 Dividends 313
Merchandise Inventory 130 Sales Revenue 411
Store Fixtures 144 Cost of Good Sold 505
Accumulated Depreciation -Fixtures 145 Store Rent Expense 511
Accounts Payable 212 Telephone Expense 517
Income Tax Payable 213 Depreciation Expense 520
Common Stock 311 Electric Expense 522
Retained Earnings 312 Insurance Expense 525
Dividends 313 Supplies Expense 530
Sales Revenue 411 Income Tax Expense 535
Cost of Good Sold 505
Store Rent Expense 511
Telephone & Electric Expense 517
Depreciation Expense 520
Insurance Expense 525
Supplies Expense 530
Income Tax Expense 535
— 0 — 0

Ratio Analysis

Ratio Analysis Show Formula used Show Calculations Answer
Compute the following:
Current ratio
Debt to Total Assets
Gross profit percentage
Net Income by Net Sales
Earnings per Common Share
Dividend payout ratio

Break Even

Complete the income statement below then us it to compute Break-even analysis;
Jane's Skateboards Inc.
Income Statement
For the Month Ending July 31
Revenues:
Sales Revenue
Less: Variable Expenses
Contribution Margin
Less: Fixed expenses
Operating income
Break-even in sales dollars =
Break-even in units =

Grading Rubric

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