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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

Project 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. • Each worksheet has the Check Figures embedded as a comment.
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 embedded assistance in 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.

Before You Begin:  Reed chapters 1-5 prior to starting work on this project.  Print the Chart of Accounts and July Transactions worksheets for your reference. You will need to refer to both throughout the project.  Review the Grading Criteria.  SAVE your work frequently in this workbook.

July Transactions

During its first month of operation, Jane's Skateboards completed the following transactions.
July Transactions
Date Transaction Description
July 1 Began business by making a deposit in a company bank account of $100,000, in exchange for10,000 shares of $10 par value common stock.
July 1 Purchased shelves for the store for $16,000
July 1 Paid the premium on a 1-year insurance policy, $6,000.
July 1 Paid the current month's store rent expense, $3,000.
July 6 Bought 1,000 skateboards for $25,000 from ACME Manufacturing
July 8 Purchased store supplies from Mike's Supply Company on credit for $600.00.
July 10 Paid telephone bill, $200.
July 11 Sold 12 skateboards for $600
July 18 Made payment to Mikes Supply Company, $300.
July 20 Sold 140 skateboards for $7,000
July 31 Sold 100 skateboards for $5,000
July 31 Paid the current month's electric bill, $500.
July 31 Declared and paid cash dividend $0.10 per share

Chart of Accounts

Use the following account descriptions for journal entries.
Chart of Accounts
Account Type Account Number Account Title Normal Balance
Assets
111 Cash Debit
117 Store Supplies Debit
119 Prepaid Insurance Debit
130 Merchandise Inventory Debit
144 Store Fixtures Debit
145 Accum Dep -Fixtures Credit
Liabilities
212 Accounts Payable Credit
213 Income Tax Payable Credit
Stockholders Equity
311 Common Stock Credit
312 Retained Earnings Credit
313 Dividends Debit
Revenue
411 Sales Revenue Credit
Expenses 505 Cost of Goods Sold Debit
511 Store Rent Expense Debit
512 Telephone Expense Debit
513 Insurance Expense Debit
514 Supplies Expense Debit
515 Dep Expense Fixtures Debit
516 Income Tax Expense Debit
517 Electric Expense Debit

1 - Journal Entries

REQUIREMENT #1: Prepare journal entries to record the July transactions in the General Journal below. Remember that Debits must equal Credits—All of your Journal Entries should balance.
General Journal
Date Account Number from Chart of Accounts tab Account Title from Chart of Accounts tab Debit Credit
1-Jul 111 Cash 100,000
311 Common Stock 100,000
Purchase of Common stock
1-Jul 114 Store Fixtures 16,000
111 Cash 16,000
Purchase of Store Fixtures
1-Jul 119 Prepaid Insurance 6,000
111 Cash 6,000
Yearly Insurance
1-Jul 511 Store Rent Expense 3,000
111 Cash 3,000
July's Rent
6-Jul 130 Merchandise Inventory 25,000
111 Cash 25,000
Purchase Merchandise
8-Jul 117 Store Supplies 600
212 Accounts Payable 600
Purchased Store Supplies
10-Jul 512 Telephone Expense 200
111 Cash 200
Paid Telephone Bill
11-Jul 111 Cash 600
411 Sales Revenue 600
505 Cost of Goods sold 300
130 Merchandise Inventory 300
Invoice #1
18-Jul 212 Accounts Payable 300
111 Cash 300
Payment to Mikes Supplies
20-Jul 111 Cash 7,000
411 Sales Revenue 7,000
505 Cost of Goods sold 3,500
130 Merchandise Inventory 3,500
Invoice #2
31-Jul 111 Cash 5,000
411 Sales Revenue 5,000
505 Cost of Goods sold 2,500
130 Merchandise Inventory 2,500
Invoice #3
31-Jul 517 Electric Expense 500
111 Cash 500
Paid Electricity Bill
31-Jul 313 Dividends 1,000
111 Cash 1,000
Paid Dividends of $0.10 per Share
171,500 171,500

Journal Entries

Once you've completed this requirement print your General Journal to complete Requirement #2 on the General Ledger worksheet.

2 - General Ledger

REQUIREMENT #2: Post the July journal entries to the following T-Accounts and compute ending balances.
Date Cash (111)
DeVry: The debit balance of the Cash account should be $37,700. 		Date Sales Revenue (411)
1-Jul 100,000 11-Jul 600
1-Jul 16,000 20-Jul 7,000
1-Jul 6,000 31-Jul 5,000
1-Jul 3,000 12,600
6-Jul 25,000 31-Jul 12,600 Closing
10-Jul 200 0
11-Jul 600
18-Jul 300
20-Jul 7,000
31-Jul 5,000
31-Jul 500
31-Jul 1,000
112,600 52,000
60,600
Store Supplies (117) Cost of Goods Sold (505)
8-Jul 600 11-Jul 300
31-Jul 350 20-Jul 3,500
250 31-Jul 2,500
6,300
31-Jul Closing 6,300
0
Prepaid Insurance (119) Store Rent Expense (511)
1-Jul 6,000 1-Jul 3,000
31-Jul 500 31-Jul Closing 3,000
5,500 0
Store Fixtures (114) Telephone Expense (512)
1-Jul 16,000 10-Jul 200
31-Jul Closing 200
0
Merchandise Inventory (130) Insurance Expense (513)
6-Jul 25,000 31-Jul 500
11-Jul 300 31-Jul Closing 500
20-Jul 3,500 0
31-Jul 2,500
25,000 6,300
18,700
Accum. Depr.-Fixtures (145) Supplies Expense (514)
31-Jul 160 31-Jul 350
31-Jul Closing 350
0
Accounts Payable (212) Depr. Exp.-Repair Equipment (515)
8-Jul 600 31-Jul 160
18-Jul 300 31-Jul Closing 160
300 600 0
300
Income Tax Payable (213) Income Tax Expense (516)
31-Jul 295 31-Jul 295
31-Jul Closing 295
0
Common Stock (311) Electric Expense (517)
1-Jul 100,000 31-Jul 500
31-Jul Closing 500
0
Retained Earnings (312)
7/31/22 12,600
11,305
1,000
12,305 12,600
295
Dividends (313)
31-Jul 1,000
31-Jul Closing 1,000
0

This worksheet will be used to complete Requirements #2, #5 and #9. Instructions for #5 can be found on the Adjusting Entries Worksheet. Instructions for #9 can be found on the Closing Entries Worksheet.

3 - Trial Balance

REQUIREMENT #3: Prepare a trial balance for July in the space below.
Jane's Skateboards Inc. Trial Balance July 31
Account Account Balance
Number Title Debit Credit
111 Cash 60,600 - 0
114 Store Fixtures 16,000 - 0
117 Store Supplies 600 - 0
119 Prepaid Insurance 6,000 - 0
130 Merchandise Inventory 18,700 - 0
212 Accounts Payable - 0 300
311 Common Stock - 0 100,000
313 Dividends 1,000 - 0
411 Sales Revenue - 0 12,600
505 Cost of Goods Sold 6,300 - 0
511 Store Rent Expense 3,000 - 0
512 Telephone Expense 200 - 0
517 Electric Expense 500 - 0
112,900 112,900

Journal Entries

Only enter accounts that have a balance.

4&5 Adjusting Entries

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) The remaining inventory of store supplies is $250. c) The estimated depreciation on store fixtures is $160. d) The estimated income taxes are $295.
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
Date Account Number from Chart of Accounts tab Account Title from Chart of Accounts tab Debit Credit
31-Jul 513 Insurance Expense 500
119 Prepaid Insurance 500
Expired Insurance
31-Jul 514 Store Supplies Expense 350
117 Store Supplies 350
Supplies Expended
31-Jul 515 Dep Expense Fixtures 160
145 Accum Dep -Fixtures 160
31-Jul 516 Income Tax Expense 295
213 Income Tax Payable 295
Income Tax payable
1,305 1,305

Journal Entries

6 - Adjusted TB

REQUIREMENT #6: Prepare an Adjusted Trial Balance in the space below.
Jane's Skateboards Inc. Adjusted Trial Balance July 31
Account Account Balance
Number Title Debit Credit
111 Cash 60,600
114 Store Fixtures 16,000
117 Store Supplies 250
119 Prepaid Insurance 5,500
130 Merchandise Inventory 18,700
145 Accum Dep -Fixtures - 0 160
212 Accounts Payable 300
213 Income Tax Payable 295
311 Common Stock 100,000
313 Dividends 1,000
411 Sales Revenue 12,600
505 Cost of Goods Sold 6,300
511 Store Rent Expense 3,000
512 Telephone Expense 200
513 Insurance Expense 500
514 Store Supplies Expense 350
515 Dep Expense Fixtures 160
516 Income Tax Expense 295
517 Electric Expense 500
113,355 113,355

Journal Entries

Only enter accounts that have a balance.

7 - 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 - 0 Assets:
Sales Revenue $12,600 Add: Net Income 1,295 Cash $60,600
Total Revenue $12,600 Subtotal 1,295 Store supplies 250
Less: Dividends 1,000 Prepaid Insurance 5,500
Expenses: Retained Earnings, July 31 295 Merchandise Inventory 18,700
Cost of Goods Sold $6,300 Store fixtures 16,000
Store Rent Expense $3,000 Less: Accum. Dep - Fixtures. 160
Telephone Expense 200 Total Assets $100,890
Insurance Expense 500
Store Supplies Exp. 350 Liabilities and Stockholders' Equity
Depreciation Exp. 160 Liabilities:
Income Tax Expense 295 Accounts Payable 300
Electric Expense 500 Income Taxes Payable 295
Total Expenses 11,305 Total Liabilities 595
Net Income $1,295 Stockholders' Equity:
Common Stock 100,000
Retained Earnings 295
Total Stockholders' Equity 100,295
Total Liabilities & Stockholders' Equity $ 100,890

8&9- 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 T-Accounts on the General Ledger ( Step 2) worksheet and compute ending balances. Just add to the adjusted balances already listed.
General Journal
Date Account Number from Chart of Accounts tab Account Title from Chart of Accounts tab Debit Credit
31-Jul 411 Sales Revenue 12,600
31-Jul 312 Retained Earnings 12,600
To Close Revenue account
31-Jul 312 Retained Earnings 11,305
31-Jul 505 Cost of Goods Sold 6,300
31-Jul 511 Store Rent Expense 3,000
31-Jul 512 Telephone Expense 200
31-Jul 513 Insurance Expense 500
31-Jul 514 Supplies Expense 350
31-Jul 515 Dep Expense Fixtures 160
31-Jul 516 Income Tax Expense 295
31-Jul 517 Electric Expense 500
To Close Expenses
31-Jul 312 Retained Earnings 1,000
313 Dividends 1,000
To Close Dividends
24,905 24,905

Journal Entries

See the Week 2 Lecture for how to complete closing entries.

10- Post Closing Trial Balance

Requirement #10: Prepare a post-closing trial balance as of July 31 in the space below.
Jane's Skateboards Inc. Post-Closing Trial Balance July 31
Account Account Balance
Number Title Debit Credit
111 Cash 60,600
114 Store Fixtures 16,000
117 Store Supplies 250
119 Prepaid Insurance 5,500
130 Merchandise Inventory 18,700
145 Accum Dep -Fixtures 160
212 Accounts Payable 300
213 Income Tax Payable 295
311 Common Stock 100,000
312 Retained Earnings 295
101,050 101,050

Journal Entries

11- Ratio Analysis

Ratio Analysis
Compute the folowing: Provide a brief explanation about each ratio.
Curent ratio
Debt to Total Assets
Gross profit percentage
Net Income by Net Sales
Earnings per Common Share
Dividend payout ratio

12- Break Even

Use the income statement below 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

Course Project Grading Rubric - Students
Criteria Excellent Good Fair Poor Unacceptable Points Available
Milestone 1 Step 1 —Journal Entries 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. The submission does not meet this requirement.
Step 1 Grading Scale 24-22 21-19 18-17 16-15 14-0 24
Milestone 1 Step 2 Ledger Posting and Balancing Posting is done in the correct accounts and at the correct side (Dr./Cr.) and balances are correct. Posting is done mostly in the correct accounts and mostly at the correct side(Dr./Cr.) and balances are mostly correct. Posting has errors with incorrect accounts and incorrect debits/credits and incorrect balances. Listing of accounts is mostly incorrect with most incorrect accounts and incorrect Dr./Cr. Most ledger balances are incorrect. The submission does not meet this requirement, or posting is not done at all.
Step 2 Grading Scale 16-15 14-13 12-11 10-9 8-0 16
Milestone 1 Step 3 - Unadjusted Trial Balance Accounts are listed correctly and in the proper order leading to an accurate trial balance. Most accounts are listed correctly leading to a mostly correct trial balance. Listing of accounts has several errors leading to incorrect trial balance. Listing of accounts is done poorly or not at all, leading to inaccurate or no trial balance. The submission does not meet this requirement.
Step 3 Grading Scale 16-15 14-13 12-11 10-9 8-0 16
Milestone 1 CO2 - Given economic transactions and events, analyze and record them leading to the development and analysis of a trial balance and reports important for decision-making. The student's submission fully analyzes and records all transactions, and provides a complete and accurate trial balance. The student's submission properly analyzes and records the given transactions, and provides a trial balance that is accurate based on the entries recorded. The student's submission demonstrates analysis and recording of transactions, although several analysis errors exist, leading to a trial balance that is somewhat inaccurate. The student's submission demonstrates limited analysis and recording of transactions, and significant errors exist, leading to an inaccurate or incomplete trial balance. The student's submission does not meet the criteria of the outcome.
CO 2 Grading Scale 4 3 2 1 0 4
Milestone 2 Step 4 —Adjusting Journal Entries 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. The submission does not meet this requirement.
Step 4 Grading Scale 15-14 13-12 11-10 9-8 7-0 15
Milestone 2 Steps 5 and 6 —Posted and Adjusted Trial Balance. 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. The submission does not meet this requirement.
Steps 5/6 Grading Scale 15-14 13-12 11-10 9-8 7-0 15
Milestone 2 Step 7.1 - Income Statement The income statement is prepared completely and accurately. The income statement is prepared accurately, but may have some minor errors. The income statement is prepared with several errors. The income statement is prepared with significant errors. The submission does not meet this requirement.
Step 7.1 Grading Scale 10-9 8 7 6 5-0 10
Milestone 2 Step 7.2 -Retained Earnings Statement The retained earnings statement is prepared completely and accurately. The retained earnings statement is prepared accurately, but may have some minor errors. The retained earnings statement is prepared with several errors. The retained earnings statement is prepared with significant errors. The submission does not meet this requirement.
Step 7.2 Grading Scale 6 5 4 3 2-0 6
Milestone 2 Step 7.3 - Balance Sheet The balance sheet is prepared completely and accurately. The balance sheet is prepared accurately and mostly, but may have some minor errors. The balance sheet is prepared with several errors. The balance sheet is prepared with significant errors. The submission does not meet this requirement.
Step 7.3 Grading Scale 15-14 13-12 11-10 9-8 7-0 15
Milestone 2 Step 8 —Closing Journal Entries 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. The submission does not meet this requirement.
Step 8 Grading Scale 20-18 17-16 15-14 13-12 11-0 20
Milestone 2 Steps 9 and 10 —Posted and Post-closing Trial Balance 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 trial balance, or no trial balance was prepared. The submission does not meet this requirement.
Steps 9-10 Grading Scale 15-14 13-12 11-10 9-8 7-0 15
Milestone 2 CO 3 - Given a trial balance sheet and economic financial information, analyze and record adjusting and closing journal entries leading to the creation and analysis of financial statements using the accrual accounting method. The student's submission fully and properly analyzes the adjusting information, resulting in an accurate adjusted trial balance and financial statements. The submission also contains closing entries that are fully and accurately prepared, resulting in an accurate post-closing trial balance. The student's submission analyzes the adjusting information, resulting in a mostly accurate adjusted trial balance and financial statements. The submission also contains closing entries that are accurately prepared, resulting in a mostly accurate post-closing trial balance. The student's submission demonstrates analysis of the adjusting information and the preparation of an adjusted trial balance and financial statements, although several errors exist. The closing entries are prepared with several errors, resulting in the completion of a post-closing trial balance, that has limited accuracy. The student's submission demonstrates limited analysis of the adjusting information and the preparation of an adjusted trial balance and financial statements, however significant errors exist. The closing entries are prepared with significant errors, resulting in an inaccurate post-closing trial balance. The student's submission does not meet the criteria of the outcome.
CO 3 Grading Scale 4 3 2 1 0 4