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ACCT 212: 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 Compute Ratios 11-Ratios
12 Interpret the Ratios 12-Interpretation of Ratios

Project Instructions

Course Project Overview
The Course Project consists of 10 Requirements for you to complete. The Course Project is due at the end of Week 6. 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 eight worksheets in the workbook you will need to complete. • A list of March 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, Bethany's Bicycle Corporation (BBC), a brand new small business specializing in bicycle repair. The owner, Bethany Beck, is a terrific cyclist and bike repair specialist, but definitely not an accountant. Your job is to helpBethany put his affairs in order. Luckily Bethany has only been in operation for a month and things have not gotten too out of hand yet! Bethany has to submit his financial statements to her investors and doesn’t know where to begin. It’s your job to go through the complete Accounting cycle to prepare the financial statements for the BBC.
Requirements
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 4 - This includes project requirements 1-3.
Milestone 2 is due in Week 6 - This includes project requirements 4-10.

Before You Begin:  Review the Week 2 Lecture prior to starting work on this project.  Print the Chart of Accounts and October 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.

March Transactions

During its first month of operation, the Bethany's Bicycle Corporation, which specializes in bicycle repairs, completed the following transactions.
March Transactions
Date Transaction Description
March 1 Began business by making a deposit in a company bank account of $20,000, in exchange for 2,000 shares of $10 par value common stock.
March 1 Paid the premium on a 1-year insurance policy, $2,400.
March 1 Paid the current month's store rent expense, $1,900.
March 3 Purchased repair equipment from Andrew Company, $5,800. Paid $1,000 down and the balance was placed on account. Payments will be $400.00 per month for 12 months. The first payment is due 4/1. Note: Use Accounts Payable for the Balance Due.
March 8 Purchased repair supplies from Jackson Company on credit, $650.
March 10 Paid telephone bill for March, $340.
March 11 Cash bicycle repair revenue for the first third of March, $1,650.
March 18 Made payment to Jackson Company, $400.
March 20 Cash bicycle repair revenue for the second third of March, $2,450.
March 31 Cash bicycle repair revenue for the last third of March, $1,250.
March 31 Paid the current month's electice bill, $250.
March 31 Declared and paid cash dividend of $1,000.

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 Prepaid Insurance Debit
119 Repair Supplies Debit
144 Repair Equipment Debit
145 Accum Dep -Repair Equipment 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 Bicycle Repair Revenue Credit
Expenses
511 Store Rent Expense Debit
512 Telephone Expense Debit
513 Insurance Expense Debit
514 Repair Supplies Expense Debit
515 Dep Expense - Repair Equipment Debit
516 Income Tax Expense Debit
517 Electric Expense Debit

1 - Journal Entries

REQUIREMENT #1: Prepare journal entries to record the March 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 Column1
1-Mar 111 Cash 20,000
311 Common Stock (equity) 20,000
1-Mar 117 Prepaid Insurance 2,400
111 Cash 2,400
1-Mar 511 Store Rent Expenses 1,900
111 Cash 1,900
3-Mar 144 Repair Equipment 5,800
212 Accounts Payable 4,800
111 Cash 1,000
8-Mar 119 Repair Supplies 650
212 accounts Payable 650
10-Mar 512 Telephone Expenses 340
111 Cash 340
11-Mar 411 Bicycle Repair Revenue 1,650 The debit account is always on top and credits below
111 Cash 1,650
18-Mar 212 accounts Payable 400
111 Cash 400
20-Mar 411 Bicycle Repair Revenue 2,450 The debit account is always on top and credits below
111 Cash 2,450
31-Mar 411 Bicycle Repair Revenue 1,250
111 Cash 1,250
31-Mar 517 Electric Expense 250
111 Cash 250
31-Mar 313 Dividends 1,000
111 Cash 1,000
38,090
Harris, Nicole: Debits = $38,090 		38,090
Harris, Nicole: Credits = $38,090

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 March journal entries to the following T-Accounts and compute ending balances.
Date Cash (111)
DeVry: The balance of the Cash account after posting journal entries for Part A should be $18,060 .		 Date Bicycle Repair Revenue (411)
1-Mar 20,000 11-Mar 1,650
1-Mar 2,400 20-Mar 2,450
1-Mar 1,900 31-Mar 1,250
3-Mar 1,000 bal 5,350
10-Mar 340
11-Mar 1,650
18-Mar 400
20-Mar 2,450
31-Mar 1,250
31-Mar 250
31-Mar 1,000
Bal 18,060
18,060 This is how excel would be used
Prepaid Insurance (117) Store Rent Expense (511)
March 1 March 1. 2,400 March 1 1900
Trial Balance bal. 2,400 bal 1,900
Repair Supplies (119) Telephone Expense (512)
March 8 march 8 650 march 10. 340
Trial Balance bal 650 bal 340
Repair Equipment (144) Insurance Expense (513)
march 3 5,800 1-Mar 2,400 I don’t see this entry in the Journal entries
bal. 5,800 bal 2,400
Accum. Depr.-Repair Equipment (145) Repair Supplies Expense (514)
Accounts Payable (212) Depr. Exp.-Repair Equipment (515)
March 3 4,800
march 8 650
march 18. 400
bal. 5050
Income Taxes Payable (213) Income Taxes Expense (516)
Common Stock (311) Electric Expense (517)
march 1 20,000 march 31 250
bal. 20,00 bal 250
Retained Earnings (312)
Dividends (313)
March 31. 1000
bal 1,000

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 March in the space below.
Bethany's Bicycle Corporation Trial Balance March 31
Account Account Balance
Number Title Debit Credit
111 Cash 18,060
119 Repair Supplies 650
144 Repair Equipment 5,800
117 prepaid insurance 2,400
212 acounts payable 5,050
311 common stock 20,000
313 dividends 1,000
411 bicycle repair revenue 5,350
511 store rent expenses 1,900
512 telephone expense 340
517 electric expense 250
These should be in numerical order
30,400
User: Debit Balance = $30,400 		30,400
User: Credit Balance = $30,400

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 repair supplies is $200. c) The estimated depreciation on repair equipment is $120. d) The estimated income taxes are $65.
Requirement #5: Post the adjusting entries on March 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
0
Bruce: Balance $ 835.00 		0
Bruce: Balance $835.00

Journal Entries

6 - Adjusted TB

REQUIREMENT #6: Prepare an Adjusted Trial Balance in the space below.
Bethany's BicycleCorporation Adjusted Trial Balance March 31
Account Account Balance
Number Title Debit Credit
0
User: Debit Balance = $30,585 		0
User: Credit Balance = $30,585

Journal Entries

Only enter accounts that have a balance.

7 - Financial Statements

Requirement #7: Prepare the financial statements for Bethany's Bicycle Corporation as of March 31 in the space below. You will only be preparing the Income Statement, Statement of Retained Earning, and the Balance Sheet. The Statement of Cash Flows is a required Financial Statement, but is not required for this project.
Bethany's Bicycle Corporation Bethany's Bicycle Corporation Bethany's Bicycle Corporation
Income Statement Statement of Retained Earnings Balance Sheet
For the Month Ending March 31 For the Month Ending March 31 March 31
Revenues: Retained Earnings, March 1 Assets:
Bicycle Repair Revenue Add: Net Income Cash
Total Revenue Subtotal Prepaid Insurance
Less: Dividends Repair Supplies
Expenses: Retained Earnings, March 31
User: Retained Earnings = $1,025 		Repair Equipment
Store Rent Expense Less: Accum. Depr.
Telephone Expense Total Assets
Insurance Expense
Repair Supplies Exp. Liabilities and Stockholders' Equity
Depreciation Exp. Liabilities:
Income Taxes Expense Accounts Payable
Electric Expense Income Taxes Payable
Total Expenses Total Liabilities
Net Income Stockholders' Equity:
Common Stock
Retained Earnings
Total Stockholders' Equity
Total Liabilities & Stockholders' Equity

User: $26,140
User: $26,140
User: Net Income = $2,025

8&9- Closing Entries

Requirement #8: Prepare the closing entries at March 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
0
Bruce: Debit $9,675 		0
Bruce: Credit $9,675

Journal Entries

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

10- Post Closing Trial Balance

Requirement #10: Prepare a post-closing trial balance as of March 31 in the space below.
Bethany's Bicycle Corporation Post-Closing Trial Balance March 31
Account Account Balance
Number Title Debit Credit
- 0
User: Debits = $26,260		 - 0
User: Credits = 26,260

Journal Entries

Grading Rubric (2)

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 30-27 26-24 23-21 20-18 17-0 30
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 20-18 17-16 15-14 13-12 11-0 20
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 21-18 17-16 15-14 13-12 11-0 21
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 25-23 22-20 19-17 16-14 13-0 25
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 25-23 22-20 19-17 16-14 13-0 25
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 25-23 22-20 19-17 16-14 13-0 25
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

RequirementRequirement DescriptionWorksheet Name

1

Prepare the Journal Entries in the General Journal1 - Journal Entries

2

Post Journal Entries to the General Ledger2 - General Ledger

3

Prepare a Trial Balance3 - Trial Balance

4

Prepare the Adjusting Entries4 &5 - Adjusting Entries

5

Post Adjusting Entries to the General Ledger4 &5 -Adjusting Entries ( Use worksheet #2)

6

Prepare an Adjusted Trial Balance6- Adjusted TB

7

Prepare the Financial Statements7 - Financial Statements

8

Prepare the Closing Entries8&9 - Closing Entries ( use worksheet #2)

9

Post Closing Entries to the General Ledger8&9- General Ledger

10

Prepare the Post Closing Trial Balance10 - Post Closing Trial Balance

11

Compute Ratios11-Ratios

12

Interpret the Ratios12-Interpretation of Ratios

ACCT 212: Course Project