Accounting project 1 answers

Project Principles of Accounting I Student Name Student ID ACCT 104 Dear Student : Please use the following sheets to answer all the requirements in your Accounting Project When you complete each requirement , don’t forget to save your work . NO 1 2 3 4 5 6 7 8 9 10 11 Sheet Name general journal general ledger-Mar general ledger-Feb Feb worksheet Feb IS Feb BS Feb post close TB Mar worksheet Mar IS Mar BS Mar post close TB rinciples of Accounting I ACCT 104 heets to answer all the requirements in your Accounting Project equirement , don’t forget to save your work . Purpose Use to record all the journal entries Use to post to the general ledger accounts Use to post to the general ledger accounts Use to prepare the worksheet - For February Use to prepare the income statement - For February Use to prepare the Balance sheet - For February Use to prepare the post close Trial Balance - For February Use to prepare the worksheet - For March Use to prepare the income statement - For March Use to prepare the Balance sheet - For March Use to prepare the post close Trial Balance - For March ACCT 104: Principles of Accounting I Financial Statement Preparation Project PART 1: Avery Morgan, a snowboarding enthusiast, opened Avery's Snowboarding Company in Stowe, Vermont on February 1, 2011, by investing $25000 in cash into the business. The business issued $25000 worth of common stock to Avery in return. While Avery is an excellent snowboarder, she did not take accounting in college. You have been hired by Avery's Snowboarding Company to maintain the company’s financial records. In order to have enough cash to pay employees and to cover other operating expenses, Avery took out a loan from the Montpelier County bank in the amount of $27200 on February 1. The loan is due in 5 years, and has an annual interest rate of 9%. Avery took out an insurance policy to cover the business in the amount of $4800. This is a 12 month policy that Avery paid for with cash all at once on the first of the month. On February 2, Avery hired two snowboard instructors. The instructors will be paid on the 1st and 15th of each month. Avery purchased computer equipment costing $16450 on February 4. In order to conserve cash, Avery purchased the computer equipment on credit. The bill for the computer equipment is due in 90 days. Avery expects to use the computer equipment for 5 years. Avery plans to use straight line depreciation to allocate the cost of all plant assets. In order to let people know about the snowboarding lessons, Avery purchases an advertising slot on Vermont Public Radio on February 5. The advertisement cost $700. Avery paid cash for the advertisement. On February 10, Avery's Snowboarding Company provides its first snowboarding lesson. On February 14, Avery and her two employees provided snowboarding lessons to a large and the school district paid for the lesson on credit. The school district agreed to pay for Wages were paid on February 15 in the amount of $2120. On February 20, Avery received On February 21, Avery’s Snowboarding provides snowboarding lessons to a large family for a total fee of $1750. The family paid for the lesson with cash. Avery's Snowboarding Company receives a cash payment from the school district in Massachusetts in the amount of $3500 on February 23, for the group lesson provided to the high school students on February 14. On February 28, Avery's Snowboarding Company provides snowboarding lessons to a large group of vacationers from Florida.The fee for the lessons is $4000. The group pays in cash at the end of the lesson. Wages for the last 2 weeks of February in the amount of $2120 will be paid on March 1. Required: For the month of February: 1. Prepare a general journal and record all transactions in journal entry form. Make sure to include the date and explanations. 2. Prepare general ledger accounts for all accounts and post the journal entries from the general journal to the general ledger accounts. 3. Prepare a worksheet with the following columns: Trial Balance, Adjustments, Adjusted Trial ,Balance, Income Statement, Balance Sheet 4. Update the worksheet to reflect the unadjusted trial balance. 5. Prepare all necessary month-end adjusting entries.