ACCT 212: Course Project 1

Requirement

Part A
1
2
3

Part B
4
5
6
7
8
9
10

ACCT 212: Course Project 1

Requirement Description

Prepare the Journal Entries in the General Journal

Post Journal Entries to the General Ledger
Prepare a Trial Balance

Prepare the Adjusting Entries

Post Adjusting Entries to the General Ledger
Prepare an Adjusted Trial Balance
Prepare the Financial Statements
Prepare the Closing Entries
Post Closing Entries to the General Ledger
Prepare the Post Closing Trial Balance

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

roject 1
Worksheet

Click onJournal
the
Entries
worksheet link to
complete the
General Ledger
corresponding
Requirement or the
Project
Instructions
Project
Trial Balance
button below
for an
Instructions
overview.

Adjusting Entries
General Ledger
Adjusted TB
Financial Statements
Closing Entries
General Ledger
Post Closing TB

Course Project #1 Overview

Scenario

Requirements

Guidelines

t #1 Overview

Course Project #1 consists of two parts, A and B, respectively. There are 10 Requirements for you to c
this exercise, Part A has 1-3 and Part B has 4-10. Part A&B is due on Wednesday, 18 July 2012. Al
information you need to complete Course Project #1 is located in this Workbook.
There are 8 worksheets in the workbook you will need to complete for Parts A & B.
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.

Youve just secured a new client in your accounting practice, the Rawls Repair Corporation, (RRC) a bra
small business specializing in bicycle repair. The owner, Rob Rawls, is a terrific cyclist and bike repair
but definitely not an accountant. Your job is to help Rob put his affairs in order. Luckily Rob has only b
operation for a month and things have not gotten too out of hand yet! Rob has to submit his financial
to his investors and doesnt know where to begin. Its your job to go through the complete Accounting
prepare the financial statements for the RRC.

For Part A:

Complete Requirements 1-3 on the Journal Entries, General Ledger, and Trial Balance
Type your work directly into the worksheets.
Save your workbook as CourseProject1A_ ACCT212_YourLastNames.
A total of 927 words disucssing the first 3 steps in the accounting cycle.

Part A is it on spread sheet

For Part B:

Using feedback from your instructor and Part A, complete Requirements 4-10.
Type your work directly into the worksheets.
Save your workbook as CourseProject1B_ACCT212_YourLastNames.
A total of 927 words disucssing the 4-10 steps in the accounting cycle.

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.

During its first month of operation, the Rawls Repair Corporation, which
specializes in bicycle repairs, completed the following transactions:

October Transactions
Date
Oct. 1

Transaction Description
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 one-year insurance policy, $1,200.

Oct. 1
Oct. 3

Paid the current month's store rent expense, $1,040.

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 nineteen 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
Oct. 16

Paid utility bill for October, $154.

Cash bicycle repair revenue for the first half of October,
$1,362.

Oct. 19
Oct. 31

Made payment to McKenna Company, $200.

Cash bicycle repair revenue for the last half of October,
$1,310.

Oct. 31

Declared and paid cash dividend of $800.

Use the following account descriptions for journal entries.

Chart of Accounts
Account Type
Assets

Account
Number

Account Title

111
117
119
144
145

Cash
Prepaid Insurance
Repair Supplies
Repair Equipment
Accum Dep -Repair Equipment

212
213

Accounts Payable
Income Tax Payable

311
312
313

Common Stock
Retained Earnings
Dividends

411

Bicycle Repair Revenue

511
512
513
514
515
516

Store Rent Expense

Utility Expense
Insurance Expense
Repair Supplies Expense
Dep Expense - Repair Equipment
Income Tax Expense

Liabilities

Stockholders Equity

Revenue

Expenses

ies.

Normal Balance
Debit
Debit
Debit
Debit
Credit

Credit
Credit

Credit
Credit
Debit

Credit

Debit
Debit
Debit
Debit
Debit
Debit

Review Chapter
2, p. 90 for more
information on the
Chart of Accounts

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)

October 1

Cash

Debit

Credit

12,000

Common Stock
Issued common stock at par for cash
October 1

October 1

October 3

October 8

October 12

October 16

12,000

Prepaid Insurance
Cash
Paid one year insurance policy

1,200

Store Rent Expense

Cash
Paid one month store rent

1,040

Repair Equipment
Cash
Accounts Payable
Purchase equipment from Conklin Company

4,400

1,200

1,040

600
3,800

Repair Supplies
Accounts Payable
Bought repair supplies from McKenna Company

390

Utility Expense
Cash
Paid utilities for the month

154

Cash

390

154

1,362

Bicycle Repair Revenue

Record cash revenue for the first half of the month
October 19

October 31

Accounts Payable
Cash
Partial payment of account for McKenna Company
Cash

1,362

200
200

1,310

Journal Entries

Once you've completed

this requirement print
your General Journal to
complete Requirement
#2 on the General
Ledger worksheet.

REQUIREMENT #2: Post the October journal entries to the following T-Accounts and compute
ending balances.
Cash (111)
12,000
1,362
1,310

14,672
14,672
Prepaid Insurance (117)
1,200
1,200

Repair Supplies (119)

390
390

Bicycle Repair Revenue (411)

1,200
1,040
600
154
200
800
3,994
10,678 Ending Bal.
14,672

100
1,100 Ending Bal.
1,200

196
194 Ending bal.
390

2,672

Store Rent Expense (511)

1,040

Utility Expense (512)

154

Repair Equipment (144)

4,400

Insurance Expense (513)

100

Accum. Depr.-Repair Equipment (145)

70

Repair Supplies Expense (514)

196

Accounts Payable (212)

200
3,800

Depr. Exp.-Repair Equipment (515)

70

390
200
3,990
4,190

4,190
Ending bal.
4,190

Income Taxes Payable (213)

40

Common Stock (311)

12,000

Retained Earnings (312)

1,600
2,672
800
2,400
2,672
272
Ending bal.
2,672
2,672
Dividends (313)
800

800
0 Bal.

Income Taxes Expense (516)

40

T-Accounts and compute

e Repair Revenue (411)

1,362
1,310
2,672
0 Bal.

e Rent Expense (511)

1,040
0 Bal.

ility Expense (512)

154
0 Bal.

rance Expense (513)

100
0 Bal.

Supplies Expense (514)

196
0 Bal.

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.

p.-Repair Equipment (515)

70
0 Bal.

e Taxes Expense (516)

40
0 Bal.

Journal Entries

REQUIREMENT #3: Prepare a trial balance for October in the space

below.

Rawls Repair Corporation

Trial Balance
October 31
Account
Title
Cash
Prepaid Insurance
Repair Supplies
Repair Equipment
Accounts Payable
Common Stock
Dividends
Bicycle Repair Revenue
Store Rent Expense
Utility Expense

Balance
Debit
Credit
10,678
1,200
390
4,400
3,990
12,000
800
2,672
1,040
154

18,662

18,662

Only enter
accounts that
have a
balance.

Journal 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)

October 31

Insurance Expense
Prepaid Insurance
to record expired portion of insurance policy

100

Repair Supplies Expense

Repair Supplies
to record repair supplies used

196

October 31

October 31

October 31

Debit

Credit
100

196

Depreciation Expense - Repair Equipment

Accumulated Depreciation - Repair Equipment
to record depreciation of repair equipment

70

Income Tax Expense

Income Tax Payable
to record estimated income taxes

40

70

40

406

406

Click
Click here
here to
to
General Led
to
to complete
complete
#5.
#5.

Journal Entries

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

Computations:
1200 x 1/12 = 100 insurance expense
390 - 194 = 196 repair supplies expense

Journal Entries

REQUIREMENT #6: Prepare an Adjusted Trial Balance in the space below.

Rawls Repair Corporation

Adjusted Trial Balance
October 31
Account
Title
Cash
Prepaid Insurance
Repair Supplies
Repair Equipment
Accumulated Depreciation - Repair Equipment
Accounts Payable
Income Tax Payable
Common Stock
Dividends
Bicycle Repair Revenue
Store Rent Expense
Utility Expense
Insurance Expense
Repair Supplies Expense
Depreciation Expense - Repair Equipment
Income Tax Expense

Balance
Debit
Credit
10,678
1,100
194
4,400
70
3,990
40
12,000
800
2,672
1,040
154
100
196
70
40

18,772

18,772

Only enter
accounts that
have a
balance.

Requirement #7: Prepare the financial statements for Rawls Repair Corporation as of October 31 in
You will only be preparing the Income Statement, Statement of Retained Earning and the Balance She
The Statement of Cash Flows is a required Financial Statement, but is not required for this Project.

Rawls Repair Corporation

Income Statement
For the Month Ending October 31
Revenues:
Bicycle Repair Revenue
Total Revenue
Expenses:
Store Rent Expense
Utility Expense
Insurance Expense
Repair Supplies Exp.
Depreciation Exp.
Income Taxes Exp.
Total Expenses
Net Income

2,672
1,040
154
100
196
70
40
-

Rawls Repair Corporation

Statement of Retained Earnings
For the Month Ending October 31

2,672

1,600
1,072

Retained Earnings, October 1

Add: Net Income
Subtotal
Less: Dividends
Retained Earnings, October 3

ration as of October 31 in the space below.

rning and the Balance Sheet.
equired for this Project.

ir Corporation
Retained Earnings
Ending October 31
October 1
1,072
1,072
800
272

Rawls Repair Corporation

Balance Sheet
October 31
Assets:
Cash
Prepaid Insurance
Repair Supplies
Repair Equipment
Less: Accum. Depr.
Total Assets

10,678
1,100
194
4,400
70
16,302

Liabilities and Stockholders' Equity

Liabilities:
Accounts Payable
3,990
Income Taxes Payable
40
Total Liabilities
4,030
Stockholders' Equity:
Common Stock
Retained Earnings
Total Stockholders' Equity

12,000
272
12,272

Total Liabilities &

Stockholders' Equity

16,302

Journal 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)

October 31

Bicycle Repair Revenue

Retained Earnings
to close revenue account

2,672

Retained Earnings
Store Rent Expense
Utility Expense
Insurance Expense
Repair Supplies Expense
Depreciation Expense - Repair Equipment
Income Tax Expense
to close expense accounts

1,600

October 31

October 31

Retained Earnings
Dividends

Debit

Credit
2,672

1,040
154
100
196
70
40

800
800

5,072

5,072

Journal Entries

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

See the Week 2

Lecture for examples
of how to complete
closing entries.

Journal Entries

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
Title
Cash
Prepaid Insurance
Repair Supplies
Repair Equipment
Accumulated Depreciation - Repair Equipment
Accounts Payable
Income Tax Payable
Common Stock
Retained Earnings

Balance
Debit
Credit
10,678
1,100
194
4,400
70
3,990
40
12,000
272

16,372

16,372