Principles of Accounting

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PRINCIPLESOFACCOUNTING_FinalProjectOverview.docx
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Final Project Overview Throughout this course, you have learned various components of accounting.  These components work hand-in-hand to create the accounting cycle – the process of recording, summarizing and reporting transactions.  The final project will provide you the opportunity to apply the skills covered in this course through the completion of the accounting cycle.  In addition, you will be able to demonstrate your understanding through analysis of the completed information.  This project will be completed in two parts in Units 3 and 5. Final Project Data  On December 1, 2015 John Trap created a new travel agency, Trap Adventures, Inc. providing exclusive adventure trips.  The following transactions occurred during December 2015. (NOTE: There are no beginning balances – this is a new company.)

Dec 1

John Trap invested $60,000 cash in the company for common stock.

2

Purchase office equipment for $17,500 cash.

2

The company rented furnished office space by paying $18,000 cash for the first six months (December 2015 - May 2016) rent.

3

The company purchased $1,500 of office supplies on account.

10

The company paid $3,600 cash for the premium on a 12-month insurance policy.

14

The company paid $10,750 cash for two weeks' salaries earned by employees.

24

The company collected $54,000 cash on commissions from airlines on tickets obtained for customers.

28

The company paid $12,125 cash for two weeks' salaries earned by employees.

29

The company paid $350 cash for minor repairs to the company's computer.

30

The company paid $450 cash for this month's telephone bill.

30

Dividends of $3,000 cash were paid.

Adjustment Data:

· One month's insurance coverage has expired.

· The company occupied the office space for the month of December.

· At the end of the month, $600 of office supplies are still available.

· This month's depreciation on the computer equipment is $325.

· Employees earned $525 of unpaid and unrecorded salaries as of month-end.

Final Project Requirements Using the spreadsheet attached and information above, complete the following:

1. Journal entries to record the transactions that occurred during the month of December.

2. Prepare an unadjusted trial balance.