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ACCT 212: Course Project 1
Requirement Requirement Description Worksheet
Part A
1 Prepare the Journal Entries in the General Journal Journal Entries
2 Post Journal Entries to the General Ledger General Ledger
3 Prepare a Trial Balance Trial Balance
Part B
4 Prepare the Adjusting Entries Adjusting Entries
5 Post Adjusting Entries to the General Ledger General Ledger
6 Prepare an Adjusted Trial Balance Adjusted TB
7 Prepare the Financial Statements Financial Statements
8 Prepare the Closing Entries Closing Entries
9 Post Closing Entries to the General Ledger General Ledger
10 Prepare the Post Closing Trial Balance Post Closing TB

Click on the worksheet link to complete the corresponding Requirement or the Project Instructions button below for an overview.

Project Instructions

/xl/drawings/drawing1.xml#'Project%20Instructions'!A1

Project Instructions

Course Project #1 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 October 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, the Rawls Repair Corporation (RRC), a brand new small business specializing in bicycle repair. The owner, Rob Rawls, is a terrific cyclist and bike repair specialist, but definitely not an accountant. Your job is to help Rob put his affairs in order. Luckily Rob has only been in operation for a month and things have not gotten too out of hand yet! Rob has to submit his financial statements to his 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 RRC.
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.

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.

October Transactions

During its first month of operation, the Rawls Repair Corporation, which specializes in bicycle repairs, completed the following transactions.
October Transactions
Date Transaction Description
Oct. 1 Began business by making a deposit in a company bank account of $12,000, in exchange for 1,200 shares of $10 par value common stock.
Oct. 1 Paid the premium on a 1-year insurance policy, $1,200.
Oct. 1 Paid the current month's store rent expense, $1,040.
Oct. 3 Purchased repair equipment from Conklin Company, $4,400. Paid $600 down and the balance was placed on account. Payments will be $200.00 per month for 19 months. The first payment is due 11/1. Note: Use Accounts Payable for the Balance Due.
Oct. 8 Purchased repair supplies from McKenna Company on credit, $390.
Oct. 12 Paid utility bill for October, $154.
Oct. 16 Cash bicycle repair revenue for the first half of October, $1,362.
Oct. 19 Made payment to McKenna Company, $200.
Oct. 31 Cash bicycle repair revenue for the last half of October, $1,350.
Oct. 31 Declared and paid cash dividend of $800.

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 Utility Expense Debit
513 Insurance Expense Debit
514 Repair Supplies Expense Debit
515 Dep Expense - Repair Equipment Debit
516 Income Tax Expense Debit

Journal Entries

REQUIREMENT #1: Prepare journal entries to record the October transactions in the General Journal below. Remember that Debits must equal Credits—All of your Journal Entries should balance.
General Journal
Date Description (Account Name) Debit Credit
1-Oct Cash (Beginning Business Bal) 12,000
Common Stocks (1200 Shares x 10) 12,000
1-Oct Prepaid Insurance (12 x 100) 1,200
Cash 1,200
Insurance premium paid for 1 year
1-Oct Store Rent Expense 1,040
Cash 1,040
October rent
3-Oct Repair Equipment 4,400
Cash 600
Acounts Payable (200 x 19) 3,800
Cranklin Co Equipment repair Purchase
8-Oct Repair Supplies 390
Accounts Payable 390
McKenna Co Supplies Repair Purchase
15-Oct Utility Expenses 154
Cash 154
Paid utility for the month
16-Oct Cash 1,362
Bicyce repair Revenue 1,362
First half of Oct Repair Revenue
19-Oct Accounts Payable (Accounts to McKenna Co) 200
Cash 200
Payment to McKenna Co
31-Oct Cash 1,350
Bicycle Repair Revenue 1,350
Second Half October Bicycle Repair Revenue
31-Oct Dividends 800
Cash 800
Paid Cash Dividends
22,896
Harris, Nicole: Debits = $22,896		 22,896
Harris, Nicole: Credits = $22,896

Journal Entries

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

General Ledger

REQUIREMENT #2: Post the October journal entries to the following T-Accounts and compute ending balances.
Cash (111)
DeVry: The balance of the Cash account after posting journal entries for Part A should be $10,718.		 Bicycle Repair Revenue (411)
Prepaid Insurance (117) Store Rent Expense (511)
Repair Supplies (119) Utility Expense (512)
Repair Equipment (144) Insurance Expense (513)
Accum. Depr.-Repair Equipment (145) Repair Supplies Expense (514)
Accounts Payable (212) Depr. Exp.-Repair Equipment (515)
Income Taxes Payable (213) Income Taxes Expense (516)
Common Stock (311)
Retained Earnings (312)
Dividends (313)

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.

Trial Balance

REQUIREMENT #3: Prepare a trial balance for October in the space below.
Rawls Repair Corporation Trial Balance October 31
Account Balance
Title Debit Credit
0
User: Debit Balance = $18,702 		0
User: Credit Balance = $18,702

Journal Entries

Only enter accounts that have a balance.

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 $194. c) The estimated depreciation on repair equipment is $70. d) The estimated income taxes are $40.
Requirement #5: Post the adjusting entries on October 31 below to the General Ledger T-accounts and compute adjusted balances. Just add to the balances that are already listed.
General Journal
Date Description (Account Name) Debit Credit
0
Bruce: Balance $406.00		 0
Bruce: Balance $406.00

Journal Entries

Click here to go to the General Ledger worksheet to complete Requirement #5.

/xl/drawings/drawing7.xml#'General%20Ledger'!A1

Adjusted TB

REQUIREMENT #6: Prepare an Adjusted Trial Balance in the space below.
Rawls Repair Corporation Adjusted Trial Balance October 31
Account Balance
Title Debit Credit
0
User: Debit Balance = $18,812		 0
User: Credit Balance = $18,812

Journal Entries

Only enter accounts that have a balance.

Financial Statements

Requirement #7: Prepare the financial statements for Rawls Repair Corporation as of October 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.
Rawls Repair Corporation Rawls Repair Corporation Rawls Repair Corporation
Income Statement Statement of Retained Earnings Balance Sheet
For the Month Ending October 31 For the Month Ending October 31 October 31
Revenues: Retained Earnings, October 1 Assets:
Bicycle Repair Revenue Add: Net Income Cash
Total Revenue 0 Subtotal 0 Prepaid Insurance
Less: Dividends Repair Supplies
Expenses: Retained Earnings, October 31 0
User: Retained Earnings = $312 		Repair Equipment
Store Rent Expense Less: Accum. Depr.
Utility Expense Total Assets 0
User: $16,342
Insurance Expense
Repair Supplies Exp. Liabilities and Stockholders' Equity
Depreciation Exp. Liabilities:
Income Taxes Exp. Accounts Payable
Total Expenses 0 Income Taxes Payable
Total Liabilities 0
Net Income 0
User: Net Income = $1,112
Stockholders' Equity:
Common Stock
Retained Earnings
Total Stockholders' Equity 0
Total Liabilities & Stockholders' Equity 0
User: $16,342

User: $16,342
User: Net Income = $1,112

Closing Entries

Requirement #8: Prepare the closing entries at October 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 worksheet and compute ending balances. Just add to the adjusted balances already listed.
General Journal
Date Description (Account Name) Debit Credit
0
Bruce: Debit $5,112		 0
Bruce: Credit $5,112

Journal Entries

Click here to go to the General Ledger worksheet to complete Requirement #9.

/xl/drawings/drawing9.xml#'General%20Ledger'!A1

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

Post Closing Trial Balance

Requirement #10: Prepare a post-closing trial balance as of October 31 in the space below.
Rawls Repair Corporation Post-Closing Trial Balance October 31
Account Balance
Title Debit Credit
0
User: Debits = $16,412		 0
User: Credits = $16,412

Journal Entries

Grading Rubric

Project 1 Grading Rubric - Students
Criteria Excellent Good Poor Very Poor
Parts: 90% to 100% 70% to 89% 50% to 69% Less than 50%
Step 1 —Journal Entries (20 points) 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.
Steps 2 and 3 —Posted and Unadjusted Trial Balance. (10 points) 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.
Step 4 —Adjusting Journal Entries (10 points) 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.
Steps 5 and 6 —Posted and Adjusted Trial Balance. (10 points) 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.
Step 7 —Financial Statements (10 points) All four financial statements are prepared accurately and in an appropriate format. Three of four financial statements are prepared accurately and mostly in an appropriate format, one statement has some errors. Two of four financial statements are prepared accurately and mostly in an appropriate format, two statements have some errors. One or fewer of four financial statements are prepared accurately and mostly in an appropriate format, three or all statements have some errors.
Step 8 —Closing Journal Entries (10 points) 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.
Steps 9 and 10 —Posted and Post-closingTrial Balance. (10 points) 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.