Accounting Milestone 1

Course Project OverviewScenario
Requirements
ACCT 105: Course Project
Requirement
1
2
3
4
5
6
7
8
9
10
11
12
Guidelines
se Project Overview
The Course Project consists of 12 Requirements for you to complete. Part 1 of the Course
Project is due at the end of Week 2 and Part 2 at the end of Week 4 and Part 3 is due at the
end of week 7. 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 ten (12) assignments in the workbook you will need to complete.
• A list of July transactions
• A Chart of Accounts – Tip: Make reference to this worksheet often to determine if a
transaction should be recorded as a “Debit” or “Credit”
• A Grading Rubric to help explain what is expected.
You’ve just secured a new client in your accounting practice, Jane’s Skateboards Inc., a
brand new small business specializing in selling skate boards. The owner, Jane Jones, is good at
selling skateboards, but she needs your help with accounting. You have decided to use the
perpetual inventory method to account for inventory and Cost of Goods Sold.
ACCT 105: Course Project
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 *** You have the Option to do this by completing
the General Ledger worksheet or the Use T-Accounts Worksheet.
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
Prepare ratio analysis
Prepare Break-Even Analysis
Use 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 2 – This includes project requirements 1-3.
Milestone 2 is due in Week 4 – This includes project requirements 4-10.
Milestone 3 is due in Week 7- This includes project requirements 11-12.
Worksheet Name
1 – Journal Entries
2 – General Ledger
3 – Trial Balance
4 &5 – Adjusting Entries
4 &5 -Adjusting Entries ( Use worksheet #2)
6- Adjusted TB
7 – Financial Statements
8&9 – Closing Entries ( use worksheet #2)
8&9- General Ledger
10 – Post Closing Trial Balance
11 -Ratio Analysis
12 – Break Even
***Make reference this worksheet often to determine if a transaction should b
“Credit”
Chart of Accounts
Account Name
Cash
Store Supplies
Prepaid Insurance
Merchandise Inventory
Store Fixtures
Accumulated Depreciation -Fixtures
Accounts Payable
Income Tax Payable
Common Stock
Retained Earnings
Dividends
Sales Revenue
Cost of Good Sold
Store Rent Expense
Telephone Expense
Depreciation Expense
Electric Expense
Insurance Expense
Supplies Expense
Income Tax Expense
Number
111
117
119
130
144
145
212
213
311
312
313
411
505
511
517
520
522
525
530
535
ne if a transaction should be recorded as a “Debit” or
t of Accounts
Account Type
Asset
Asset
Asset
Asset
Asset
Contra Asset
Liability
Liability
Owners Equity
Owners Equity
Contra Owners Equity
Revenue
Expense
Expense
Expense
Expense
Expense
Expense
Expense
Expense
Increase with Decrease with
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Debit
Credit
Credit
Debit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
During its first month of operation (July), Jane’s Skateboards completed the following transacti
Instructions: Record these transactions in the next worksheet titled “1 – Journal Entries”.
Note: These figures are different from the demo videos you watched under the Content Tab in the Onl
Journal
Entry #
Date
JE01
July 1
JE02
July 2
JE03
July 3
JE04
July 5
JE05
July 6
JE06
July 8
JE07
July 10
JE08
July 11
JE09
July 18
JE10
July 20
JE11
July 25
JE12
July 26
JE13
July 30
month of operation (July), Jane’s Skateboards completed the following transactions:
ns: Record these transactions in the next worksheet titled “1 – Journal Entries”.
different from the demo videos you watched under the Content Tab in the Online Classroom
Transactions
Begin business by making a $100,000 deposit into the company’s bank account in exchange for
10,000 shares of common stock – Par value $10
Paid $16,000 for shelf fixtures for the Jane’s Skateboard storefront
Paid $6,000 for the premium on a 1-year insurance policy
Paid $3,000 for the Jane’s Skateboards store rent
Purchased on Credit – 1000 skateboards costing $25 each from Acme MFG
Purchased on Credit – Store supplies costing $600 from Mike’s Supply
Paid $200 for Jane’s Skateboards July telephone bill
Sold 24 skateboards for $50 each to a customer who paid cash
Paid $300 for 1/2 of the Store Supplies purchased on July 8 from Mike’s Supply
Sold 140 skateboards for $50 each to a customer who paid cash
Sold 100 skateboards for $50 each to a customer who paid cash
Paid $500 for Jane’s Skateboards July electric bill
Paid $1,500 to Jane’s Skateboards shareholder(s) for dividend declared on July 30
REQUIREMENT #1: Prepare journal entries to record the July transactions in the
General Journal below. Remember that Debits must equal Credits—All of your
Journal Entries should balance.
General Journal
Date
Account Name
7/1/2022 Cash
Common Stock
Account Number
111
311
Debit
100,000
Credit
100,000
Total:
100,000
100,000
Post Ref.
JE01
JE01
JE02
JE02
JE03
JE03
JE04
JE04
JE05
JE05
JE06
JE06
JE07
JE07
JE08
JE08
JE08
JE08
JE09
JE09
JE10
JE10
JE10
JE10
JE11
JE11
JE11
JE11
JE12
JE12
JE13
JE13
REQUIREMENT #2: Post the July journal entries to the following TAccounts and compute ending balances.
General Ledger
Account: Cash – 111
Balance
Post
Ref.
7/1/2022 JE#1
Date
Debit
Credit
100,000
Debit
Credit
100,000
Store Supplies – 117
Balance
Date
Post
Ref.
Debit
Credit
Debit
Credit
Prepaid Insurance – 119
Balance
Date
Post
Ref.
Debit
Merchandise Inventory – 130
Credit
Debit
Credit
Balance
Date
Post
Ref.
Debit
Credit
Debit
Credit
Store Fixtures – 144
Balance
Date
Post
Ref.
Debit
Credit
Debit
Credit
Accumulated Depreciation -Fixtures -145
Balance
Date
Post
Ref.
Debit
Credit
Debit
Credit
Accounts Payable – 212
Balance
Date
Post
Ref.
Debit
Credit
Debit
Credit
Income Tax Payable – 213
Balance
Date
Post
Ref.
Common Stock – 311
Debit
Credit
Debit
Credit
Balance
Post
Ref.
7/1/2022 JE#1
Date
Debit
Credit
Debit
100,000
Credit
100,000
Retained Earnings – 312
Balance
Date
Post
Ref.
Debit
Credit
Debit
Credit
Dividends – 313
Balance
Date
Post
Ref.
Debit
Credit
Debit
Credit
Sales Revenue – 411
Balance
Date
Post
Ref.
Debit
Credit
Debit
Credit
Cost of Good Sold – 505
Balance
Date
Post
Ref.
Debit
Credit
Debit
Credit
Store Rent Expense – 511
Balance
Date
Post
Ref.
Debit
Credit
Debit
Credit
Telephone Expense – 517
Balance
Date
Post
Ref.
Debit
Credit
Debit
Credit
Depreciation Expense – 520
Balance
Date
Post
Ref.
Debit
Credit
Debit
Credit
Electric Expense – 522
Balance
Date
Post
Ref.
Debit
Credit
Debit
Credit
Insurance Expense – 525
Balance
Date
Post
Ref.
Debit
Credit
Debit
Credit
Supplies Expense – 530
Balance
Date
Post
Ref.
Debit
Credit
Debit
Credit
Income Tax Expense – 535
Balance
Date
Post
Ref.
Debit
Credit
Debit
Credit
Date
Account Number
111
7/1/2022
Account Name
Cash
100,000
Totals
100,000
Account Balance
100,000
117
Store Supplies
Totals
–
Account Balance
–
119
–
–
Prepaid Insurance
Totals
–
Account Balance
–
–
130
Merchandise Inventory
Totals
–
Account Balance
–
144
Store Fixtures
Totals
–
Account Balance
–
145
Totals
Account Balance
Totals
–
Accounts Payable
–
Account Balance
213
–
Accumulated Depreciation
–
212
–
–
Income Tax Payable
Totals
–
–
Account Balance
311
Common Stock
7/1/2022
100,000
Totals
–
Account Balance
312
Totals
100,000
100,000
Retained Earnings
–
Account Balance
313
Dividends
Totals
–
Account Balance
–
411
–
Sales Revenue
–
Totals
–
Account Balance
505
Cost of Goods Sold
Totals
–
Account Balance
–
511
–
Account Balance
–
–
Telephone Expense
Totals
–
Account Balance
–
520
–
Store Rent Expense
Totals
517
–
Depreciation Expense
–
Totals
–
Account Balance
–
522
Electric Expense
Totals
–
Account Balance
–
525
–
Account Balance
–
–
Account Balance
–
Totals
Account Balance
–
Supplies Expense
Totals
535
–
Insurance Expense
Totals
530
–
–
Income Tax Expense
–
–
REQUIREMENT #3: Prepare a trial balance for July in the space below.
Janes Skateboard
Trial Balance
For the Month Ended July 31, 20XX
Account
Number
Cash
111
Store Supplies
117
Prepaid Insurance
119
Merchandise Inventory
130
Store Fixtures
144
Accumulated Depreciation -Fixtures
145
Accounts Payable
212
Income Tax Payable
213
Common Stock
311
Retained Earnings
312
Dividends
313
Sales Revenue
411
Cost of Good Sold
505
Store Rent Expense
511
Telephone Expense
517
Depreciation Expense
520
Electric Expense
522
Insurance Expense
525
Supplies Expense
530
Income Tax Expense
535
Total:
Account Name
Debit
–
e below.
XX
Credit
–
Requirement #4: Prepare adjusting entries using the following information in the General
Journal below. Show your calculations using Excel formulas!
1) One month’s insurance has expired.
2) The remaining inventory of store supplies is $250.
3) The estimated depreciation on store fixtures is $160.
4) The estimated income taxes are $295.
Requirement #5: Post the adjusting entries on July 31 below to the General Ledger
accounts (2 – General Ledger worksheet). Adjusting entries are referenced in the General
Ledger as AE#1, AE#2, etc.
Date
Account Name
Account Number
Debit
n in the General
eral Ledger
nced in the General
Credit
REQUIREMENT #6: Prepare an Adjusted Trial Balance in the space below.
Janes Skateboard
Adjusted Trial Balance
For the Month Ended July 31, 20XX
Account
Number
Cash
111
Store Supplies
117
Prepaid Insurance
119
Merchandise Inventory
130
Store Fixtures
144
Accumulated Depreciation -Fixtures
145
Accounts Payable
212
Income Tax Payable
213
Common Stock
311
Retained Earnings
312
Dividends
313
Sales Revenue
411
Cost of Good Sold
505
Store Rent Expense
511
Telephone Expense
517
Depreciation Expense
520
Electric Expense
522
Insurance Expense
525
Supplies Expense
530
Income Tax Expense
535
Total:
Account Name
Debit
–
pace below.
XX
Credit
–
Requirement #7: Prepare the financial statements for Jane’s Skateboard’s as of July 31 in the s
You will only be preparing the Income Statement, Statement of Retained Earnings, and the Bala
The Statement of Cash Flows is a required Financial Statement, but is not required for this proje
Jane’s Skateboards Inc.
Income Statement
For the Month Ending July 31
Revenues:
Sales Revenue
Total Revenue
–
Expenses:
Cost of Goods Sold
Store Rent Expense
Telephone Expense
Insurance Expense
Store Supplies Exp.
Depreciation Exp.
Income Tax Expense
Electric Expense
Total Expenses
–
Net Income
–
Janes Skateboards Inc
Cashflow Statement
For the Month Ending July 31
Cash flow from Operating activies
Net income
Depreciation
Increase in store supplies
Increase in Prepaid Insurance
Increase in Inventory
Increase in Accounts Payable
Increase in Taxes Payable
Net cash flow from Operations
Cash flow from Investing
–
Fixtures
Net cash flow from Investing
Cash flow from Financing
Common stock issued
Dividends
Net cash flow from Financing
Cash flow for July
–
ane’s Skateboard’s as of July 31 in the space below.
ment of Retained Earnings, and the Balance Sheet.
tement, but is not required for this project.
Jane’s Skateboards Inc.
Statement of Retained Earnings
For the Month Ending July 31
Retained Earnings, July 1
Add: Net Income
Subtotal
Less: Dividends
Retained Earnings, July 31
–
Jane’s Skateboards Inc.
Balance Sheet
July 31
Assets
Assets:
Cash
Store supplies
Prepaid Insurance
Merchandise Inventory
Store fixtures
Less: Accum. Dep – Fixtures.
Total Assets
–
Liabilities and Stockholders’ Equity
Liabilities:
Accounts Payable
Income Taxes Payable
Total Liabilities
–
Stockholders’ Equity:
Common Stock
Retained Earnings
Total Stockholders’ Equity
–
Total Liabilities & Stockholders’ Equity
–
Requirement #8: Prepare the closing entries at July 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 Accounts on the “2 – General
Ledger” worksheet and compute ending balances. Closing entries are referenced in
the General Ledger as CE#1, CE#2, etc.
Date
Account Name
Account Number
Total:
Debit
Credit
–
–
Requirement #10: Prepare a post-closing trial balance as of July 31 in the space below.
Janes Skateboard
Post Closing Trial Balance
For the Month Ended July 31, 20XX
Account
Number
Cash
111
Store Supplies
117
Prepaid Insurance
119
Merchandise Inventory
130
Store Fixtures
144
Accumulated Depreciation -Fixtures
145
Accounts Payable
212
Income Tax Payable
213
Common Stock
311
Retained Earnings
312
Dividends
313
Sales Revenue
411
Cost of Good Sold
505
Store Rent Expense
511
Telephone Expense
517
Depreciation Expense
520
Electric Expense
522
Insurance Expense
525
Supplies Expense
530
Income Tax Expense
535
Total:
Account Name
Debit
–
y 31 in the space below.
XX
Credit
–
Instructions: Ensure your Excel solutions below are rounded to nearest hundredth place (i.e. 5
Ratio Analysis Compute the
Following:
Current Ratio
Debt to Total Assets
Gross Profit Percentage
Net Income by Net Sales
Earnings per Common Share (EPS)
Payout Ratio on Common Stock
utions below are rounded to nearest hundredth place (i.e. 55.476, should round to 55.48)
Using Words, Show Formula (i.e. Owner’s Equity =
Assets – Liabilities)
hould round to 55.48)
Show Calculations Using an Excel Formula
Explain What the Ratio Means, as it
relates to Jane’s Skateboards
Instructions: Complete the income statement below then us it to compute
Break-Even analysis.
Jane’s Skateboards Inc.
Income Statement
For the Month Ending July 31
Revenues:
Sales Revenue
Less: Variable Expenses
Contribution Margin
Less: Fixed Expenses
Operating Income
Break-Even in Sales Dollars =
Break-Even in Units =