Accounting Final Project 6 Tabs

I have upload the word document. you can write it on computer and i will do the handwriting.

Accounting 2301
Candy Lynch
Fall 2023
Project
Purpose: This project is designed to walk a student through all of the steps in the Accounting
Cycle for a business. It is both practice and an evaluation of the student’s knowledge and
application of accounting.
Overview: Transactions are provided for a pretend business, “Davis Designs.” Instructions are
provided to the student throughout the project. Read instructions carefully and compare what is
being asked of you to what you have learned in your chapter material and homework assignments.
If you have questions, you may email your teacher at any time: crl003@shsu.edu.
Resources: In addition to this file, there are PDF files for template journal entries, ledgers, and
trial balances. Please be sure to use these templates to complete your assignment.
Requirements:
1. Due date: the project is due November 21st, 11:59pm. Late submissions will not be
accepted for a grade.
2. This project is worth in total 50 points.
3. Submissions MUST BE handwritten on the templates provided and submitted in
Blackboard as jpegs or scans. I will be comparing hand-writing across the submissions.
See the assignment module to submit your project. Alternatively, you may email them to
your instructor at crl003@shsu.edu.
PROJECT INFORMATION
Maya Davis is a landscape designer. She has training in botany and the artistic aspects of designing
flower, vegetable, and mixed-use gardens. She has decided to form her own company, Davis
Designs. She has hired you as the accountant.
TRANSACTIONS AND LEDGERS
Record the following transactions as journal entries in the journal. Post the transactions to the
ledger accounts. Find the month end balance for each ledger account.
11/1/2020: Maya Davis forms Davis Designs company by contributing $15,000 cash and
$12,000 worth of computer and design software equipment in exchange for Common Stock.
11/1/2020: Davis Designs signs a lease with a lessor for some business office space. The
company pays $2,700 for the first 3 months rent.
11/2/2020: Davis Designs buys $590 of supplies for drawing / sketching / printing, etc.
11/2/2020: Davis Designs pays $900 for a 12-month insurance contract covering the company’s
legal liability and office asset insurance coverage.
11/3/2020: Davis Designs receives $3,500 from the customer Sketcher Logistics for a design
sketch and a plant list that Davis Designs drew up and delivered the same day.
11/6/2020: Davis Designs bills its customer BRX Corporation $2,800 for a sketch performed and
submitted that day. The payment terms offered to BRX Corporation are 2/10, Net/45.
11/10/2020: Davis Designs borrows $50,000 from their bank, in order to have money to pay for
things. The note payable is for 180 days, at 4% interest, and will be paid back with the interest at
the maturity date.
11/15/2020: Davis Designs purchases, on account, a large copy/print machine from Office Worx
for $2,600. The payment terms for Davis Designs are 2/10, Net 30.
11/16/2020: Davis Designs bills its customer Epicenter Construction $1,700 for a design and
plant list drawn and delivered that day. The payment terms offered to Epicenter Construction are
2/10, Net 45.
11/19/2020: Davis Designs pays $1,460 to Make It Market advertising agency for a website
design, business cards, and some other advertising items.
11/21/2020: Davis Designs bills its customer, Hanover Engineering, $2,800 for a design drawn
and delivered that day. The terms offered to Hanover Engineering are 2/10, Net 30.
11/29/2020: Davis Designs receives the full payment from BRX Corporation.
11/30/2020: Davis Designs receives and records the bill for the bundled utility services (electric,
phone, and internet) for the office; the bill is $280. Davis Designs will pay it next month.
11/30/2020: Davis Designs pays Maya Davis $1,000 in dividend distributions.
11/30/2020: You bill Davis Designs for your services, $450. You are not an employee, but
instead a business that bills clients by the hour.
Record the transactions below in the journal; post the entries to the ledgers; find the
12/31/2020 ending balances for each account.
12/1/2020: Davis Design receives $2,900 from its customer, Bradley Earl Inc., for work that
Davis Designs will perform on December 19th.
12/2/2020: Davis Designs pays the bundled utility bill.
12/3/2020: Davis receives payment from its customer, Epicenter Construction.
12/4/2020: Purchased $630 of office supplies on account, terms 2/10, net 30.
12/10/2020: Invoiced the customer Belt and Boots LLC $950 for a design drawn and delivered
that day, terms 2/10, net 30.
12/11/2020: Paid for the office supplies purchased on the 4th of December.
12/12/2020: Invoiced the customer Greer Inc. $1,045 for a design drawn and delivered that day,
receiving payment immediately.
12/14/2020: Took a prospective client to lunch, $68.
12/15/2020: Davis Designs pays your accounting invoice.
12/15/2020: Received payment from Hanover Engineering.
12/21/2020: Paid for the copier that was bought on 11/15/2020.
12/30/2020: Received and recorded the bundled utility bill for December, $416.
12/31/2020: Davis Designs pays Maya Davis a salary of $5,000 for the month of December. The
federal income withholding tax withheld from Maya’s paycheck was $860. FICA-OASDI is
12.4%, of which half is withheld from Maya’s pay, and the other half is paid by the Employer.
Also, FICA-Medicare is 2.9%, and the same rule applies: half comes from Maya’s paycheck and
half paid by Davis Designs. FUTA is .6% (decimal form, .006). Ignore SUTA. The payment to
the IRS for the payroll taxes will be made 1/20/2021.
UNADJUSTED TRIAL BALANCE, ADJUSTING ENTRIES, ADJUSTED TRIAL
BALANCE, FINANCIAL STATEMENTS, CLOSING ENTRIES, POST-CLOSING
TRIAL BALANCE
Prepare the Unadjusted Trial Balance. Make the Adjusting Entries and update ledger accounts.
Prepare the Adjusted Trial Balance.
Adjusting Entry information:
1. Depreciation: the company will depreciate assets straight-line for 6 years, with NO
residual (ie, salvage or trade-in) value. Remember to take into consideration the timing of
when the assets were received and adjust for part-year, and part-month. Round to the
nearest whole dollar.
2. Took a count of office supplies; the office supplies on hand at 12/31 were $160.
3. Look at the Unadjusted trial balance. What other accounts need to be adjusted because of
the passage of time, or accruals recorded? (Hint: 4 journal entries are needed.)
From the Adjusted Trial Balance, prepare the first three Financial Statements (Multi-step Income
Statement, Statement of Retained Earnings, Classified Balance Sheet). Next, prepare the closing
journal entries. Finally, update the Ledgers and prepare the Post-Closing Trial Balance.
Everything that you need for this final part of the project is in chapter 3.
DAVIS DESIGNS LLC
ADJUSTED TRIAL BALANCE
12/31/2020
ACCOUNT
BALANCE
DEBIT
CREDIT
Accounting 2301
Your Name________________________________________
Project Part Number_________________________________
JOURNAL
DATE
ACCOUNT
DEBIT
CREDIT
CASH
ACCOUNTS RECEIVABLE
PREPAID RENT
PREPAID INSURANCE
OFFICE SUPPLIES
ALLOWANCE – BAD DEBT
OFFICE EQUIPMENT
ACCUM. DEPRECIATION
ACCOUNTS PAYABLE
NOTES PAYABLE
SALARIES PAYABLE
UNEARNED REVENUE
INTEREST PAYABLE
PAYROLL TAX PAYABLE
COMMON STOCK
DIVIDENDS
SERVICE REVENUE
RETAINED EARNINGS
UTILITY EXPENSE
RENT EXPENSE
SUPPLIES EXPENSE
INSURANCE EXPENSE
DEPRECIATION EXPS.
SALARIES EXPENSE
PAYROLL TAX EXPS.
INTEREST EXPENSE
ADVERTISING EXPENSE
MEAL & TRAVEL EXPENSE
INCOME SUMMARY
BAD DEBT EXPENSE
DAVIS DESIGNS LLC
POST-CLOSING TRIAL BALANCE
12/31/2020
ACCOUNT
BALANCE
DEBIT
CREDIT