Prepare adjusting entries using the following information in the General Journal below. Show your calculations!
a) One month’s insurance has expired.
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prepare adjusting entries
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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.
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ACCT
|
2
|
| 1 |
2: 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
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|
| Balance |
| 3 – Trial Balance |
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| 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 |
1
|
| 0 |
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
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|
|
|
| Date |
s 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
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|
|
| Account |
s
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. |
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| Milestone 1 |
is due in Week 4 – This includes project requirements 1-3.
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| 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 $
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| 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, $
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| 2,
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|
| 400 |
.
March 1
| Paid the current month’s store rent expense, $
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| 1,900 |
.
| March 3 |
Purchased repair equipment from Andrew Company, $
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| 5,800 |
. Paid $
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|
| 1,000 |
down and the
bal |
ance 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, $
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| 650 |
.
| March 10 |
Paid telephone bill for March, $
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| 340 |
.
| March 11 |
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| Cash |
bicycle repair revenue |
for the first third of March, $
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| 1,650 |
.
| March 18 |
Made payment to Jackson Company, $400. |
| March 20 |
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| Cash |
bicycle repair revenue for the second third of March, $
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| 2,450 |
.
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| March 31 |
Cash bicycle repair revenue for the last third of March, $
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| 1,
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| 25 |
0
.
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 |
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| 111 |
Cash
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| Debit |
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| 117 |
|
| Prepaid Insurance |
Debit
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| 119 |
|
| Repair Supplies |
Debit
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| 144 |
| Repair Equipment |
Debit
| 145 |
Accum Dep -Repair Equipment |
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| Credit |
| Liabilities |
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| 21 |
2
Accounts Payable Credit
| 213 |
Income Tax Payable |
Credit
| Stockholders Equity |
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| 311 |
| Common Stock |
Credit
| 312 |
| Retained Earnings |
Credit
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| 313 |
| Dividends |
Debit
| Revenue |
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| 411 |
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| Bicycle Repair Revenue |
Credit
| Expenses |
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| 511 |
| Store Rent Expense |
Debit
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| 512 |
| Telephone Expense |
Debit
| 513 |
| Insurance Expense |
Debit
| 514 |
| Repair Supplies |
Expense
Debit
| 5
|
| 15 |
Dep Expense – Repair Equipment |
Debit
| 516 |
Income Tax Expense |
Debit
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| 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 |
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|
| 1-Mar |
111 Cash 20,000
311
| Common Stock (equity) |
20,000
1-Mar 117 Prepaid Insurance
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| 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
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| 20-Mar |
411 Bicycle Repair Revenue 2,450 The debit account is always on top and credits below
111 Cash 2,450
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| 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. |
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| The submission does not meet this requirement. |
| Step 1 Grading Scale |
30-27 |
26-24 |
23-21 |
| 20-18 |
1
|
| 7-0 |
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 |
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| 15-14 |
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| 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 Entries
4 &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 Entries
8&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 |
|
| 2 |
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| |
ACCT
2
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| 1 |
2: 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 |
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| 3 |
Prepare a Trial
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| Balance |
| 3 – Trial Balance |
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| 4 |
Prepare the Adjusting Entries |
4 &
| 5 |
– Adjusting Entries
5
| Post Adjusting Entries to the General Ledger |
4 &5 -Adjusting Entries ( Use worksheet #2) |
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| 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 |
1
|
| 0 |
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
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| Date |
s 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
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| Account |
s
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. |
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| Milestone 1 |
is due in Week 4 – This includes project requirements 1-3.
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| 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. |
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| March 31 |
Cash bicycle repair revenue for the last third of March, $1,
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| 25 |
0.
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
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| Number |
Account
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| Title |
Normal Balance |
| Assets |
| 111 |
Cash
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| Debit |
| 117 |
| Prepaid Insurance |
Debit
| 119 |
| Repair Supplies |
Debit
| 144 |
| Repair Equipment |
Debit
| 145 |
Accum Dep -Repair Equipment |
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| Credit |
| Liabilities |
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| 21 |
2
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
| 5
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| 15 |
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
|
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| Account Number from Chart of Accounts tab |
|
| Account Title from Chart of Accounts tab |
Debit Credit
0
Harris, Nicole: Debits = $38,090
|
– 0
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) |
| Prepaid Insurance (117) |
Store Rent Expense (511) |
| Repair Supplies (119) |
Telephone 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) |
Electric Expense (517) |
| 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.
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
0
User: Debit Balance = $
| 30 |
,400
0
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
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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 |
|
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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 |
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| Journal entries use accurate accounts and amounts; and debits and credits are used correctly. |
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| Journal entries mostly use accurate accounts and amounts; and debits and credits are used correctly. |
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| Journal entries have some errors in use of accounts and amounts; and debits and credits are only somewhat used correctly. |
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| Journal entries have some errors in use of accounts and amounts; and debits and credits are not used correctly. |
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| The submission does not meet this requirement. |
| Step 1 Grading Scale |
30-27 |
26-24 |
23-21 |
| 20-18 |
1
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| 7-0 |
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 |
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| 15-14 |
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| 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 |
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| 25-23 |
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| 22-20 |
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| 19-17 |
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| 16-14 |
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| 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 Entries
4 &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 Entries
8&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 |
