Acct 212 course project 2

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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 3 - This includes project requirements 1-3.
Milestone 2 is due in Week 5 - This includes project requirements 4-10.
Milestone 3 is due in Week 7 - This includes project requirements 11-12.
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
March 1st 111 Cash 20,000
311 Common Stock 20,000
March 1st 117 Prepaid Insurance 2,400
111 Cash 2,400
March 1st 511 Store rent expenses 1,900
111 Cash 1,900
March 3rd 144 Repair Equipment 5,800
111 Cash 1,000
212 Account Payable to Andrew Company 4,800
March 8th 119 Repair Supplies 650
212 Account Payable to Jackson Company 650
March 10th 512 Telephone Expenses 340
111 Cash 340
March 11th 111 Cash 1,650
411 Bicycle Repair Revenue 1,650
March 18th 212 Account Payable to Jackson Company 400
111 Cash 400
March 20th 111 Cash 2,450
411 Bicycle Repair Revenue 2,450
March 31st 111 Cash 1,250
411 Bicycle Repair Revenue 1,250
March 31st 517 Electric Expenses 250
111 Cash 250
March 31st 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 2,400
1-Mar 1,900 20-Mar 1,250
3-Mar 1,000
10-Mar 340
11-Mar 1,650 Bal 5,300
18-Mar 400
20-Mar 2,450
31-Mar 1,250 250
31-Mar 1,000
bal 18,060
Prepaid Insurance (117) Store Rent Expense (511)
1-Mar 2,400 1-Mar 1,900
31-Mar 200 1,900
bal 1,900
bal 2,200
Repair Supplies (119) Telephone Expense (512)
8-Mar 650 10-Mar 340
31-Mar 450 10-Mar 340
bal 200 bal 0
Repair Equipment (144) Insurance Expense (513)
3-Mar 5,800 31-Mar 200
31-Mar 120 31-Mar 200
bal 5,680 bal 0
Accum. Depr.-Repair Equipment (145) Repair Supplies Expense (514)
31-Mar 120 31-Mar 450
31-Mar 450
Bal 120 bal 0
Accounts Payable (212) Depr. Exp.-Repair Equipment (515)
3-Mar 4,800 31-Mar 120
8-Mar 650 31-Mar 120
18-Mar 400 bal 0
Bal 5,050
Income Taxes Payable (213) Income Taxes Expense (516)
31-Mar 65 31-Mar 65
31-Mar 65
Bal 65 bal 0
Common Stock (311) Electric Expense (517)
1-Mar 20,000 31-Mar 250
31-Mar 250
bal 0
Bal 20,000
Retained Earnings (312)
31-Mar 5,350
31-Mar 3,325
31-Mar 1,000
bal 1,025
Dividends (313)
31-Mar 1,000
31-Mar 1,000
bal 0
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
117 Prepaid Insurance 2,400
119 repair Service 650
144 repair eqipment 5,800
212 Accounts Payable 5,050
311 Common stocks 20,000
313 Dividends 1,000
411 Bicycle repair revenue 5,350
511 Store rent Expense 1,900
512 Telephone Expense 340
517 Electric Expense 250
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
31-Mar 513 Insurance Expense (2,400/12) 200
517 Prepaid Insurance 200
31-Mar 514 Repair Supplies Expense 450
119 Repair Supplies 450
To record one month repair supplies used (650-200)
31-Mar 515 Dep Expense -Repair Equipment 120
145 Accum Dep -Repair Equipment 120
To record depreciation of repair equipment for 1 month
31-Mar 516 Income Tax Expense 65
213 Income Tax Payable 65
To record Income Tax payable
835
Bruce: Balance $ 835.00 835
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
111 Cash 18,060
117 Prepaid Insurance 2,200
119 Repair Supplies 200
144 Repair Equipment 5,800
145 Accum Dep -Repair Equipment 120
212 Accounts Payable 5,050
213 Income Tax Payable 65
311 Common Stock 20,000
313 Dividends 1,000
411 Bicycle Repair Revenue 5,350
511 Store Rent Expense 1,900
512 Telephone Expense 340
513 Insurance Expense 200
514 Repair Supplies Expense 450
515 Dep Expense - Repair Equipment 120
516 Income Tax Expense 65
517 Electric Expense 250
30,585
User: Debit Balance = $30,585 30,585
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 $0 Assets:
Bicycle Repair Revenue $5,350 Add: Net Income 2,025 Cash $18,060
Total Revenue 5,350 Subtotal 2,025 Prepaid Insurance 2,200
Less: Dividends (1,000) Repair Supplies 200
Expenses: Retained Earnings, March 31 $1,025
User: Retained Earnings = $1,025 Repair Equipment 5,920
Store Rent Expense 1,900 Less: Accum. Depr. (120)
Telephone Expense 340 Total Assets $26,260
User: $26,140
Insurance Expense 250
Repair Supplies Exp. 200 Liabilities and Stockholders' Equity
Depreciation Exp. 450 Liabilities:
Income Taxes Expense 120 Accounts Payable $5,050
Electric Expense 65 Income Taxes Payable 65
Total Expenses 3,325 Total Liabilities 5,115
Net Income 2,025
User: Net Income = $2,025 Stockholders' Equity:
Common Stock 20,000
Retained Earnings 1,025
Total Stockholders' Equity
21,025
Total Liabilities & Stockholders' Equity $26,140
User: $26,140
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
31-Mar 411 Bicycle Repair Revenue 5,350
312 Retained Earnings 5,350
(To Record closing of Income Account)
31-Mar 312 Retained Earnings 3,325
511 Store Rent Expenses 1,900
513 Telephone Expenses 340
517 Electric Expenses 200
513 Insurance Expenses 450
514 Repair Supplies Expenses 120
515 Depreciation Expenses - Repair Equipment 65
516 Income Tax Expenses 250
(To Record closing of all Expenses Account)
31-Mar 312 Retained Earnings 1,000
313 Dividends 1,000
(To Record closing of Dividend Account)
9,675
Bruce: Debit $9,675 9,675
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
111 Cash 18,060
117 Prepaid Insurance 2,200
119 Repair Supplies 200
144 Repair Equipment 5,800
145 Accumulated dep repair equip. 120
212 Accounts Payable 5,050
213 Income Taxes Payable 65
311 Common Stock 20,000
312 Retained Earnings 1,025
26,260
User: Debits = $26,260 26,260
User: Credits = 26,260