ACCT 212: Course Project

Requirement

Part A
1
2
3

Part B
4
5
6
7
8
9
10

ACCT 212: 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
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

Project
Worksheet

Journal Entries
General Ledger
Trial Balance

Click on the worksheet

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

Adjusting Entries

Project Instructions
General Ledger
Adjusted TB
Financial Statements
Closing Entries
General Ledger
Post Closing TB

Course Project #1 Overview

Scenario

Requirements

Guidelines

t #1 Overview

The Course Project consists of 10 Requirements for you to complete. The Course Project is due at the e
6. See the Syllabus section Due Dates for Assignments & Exams for due date information. All of the
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 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 s
definitely not an accountant. Your job is to help Rob put his affairs in order. Luckily Rob has only been
for a month and things have not gotten too out of hand yet! Rob has to submit his financial statement
investors and doesnt know where to begin. Its your job to go through the complete Accounting cycle
the financial statements for the RRC.

Use the embedded assistance in the template, guidance in your textbook, and examples in the weekly
complete this project. Should you have any questions contact your professor.

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

Oct. 1
Oct. 1
Oct. 3

Oct. 8
Oct. 12
Oct. 16
Oct. 19
Oct. 31
Oct. 31

st month of operation, the Rawls Repair Corporation, which

n bicycle repairs, completed the following transactions.

October Transactions
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.
Paid the premium on a 1-year insurance policy, $1,200.
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 19 months. The first
payment is due 11/1. Note: Use Accounts Payable for the
Balance Due.
Purchased repair supplies from McKenna Company on credit,
$390.
Paid utility bill for October, $154.
Cash bicycle repair revenue for the first half of October,
$1,362.
Made payment to McKenna Company, $200.
Cash bicycle repair revenue for the last half of October,
$1,350.
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

es.

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 CreditsAll of your Journal
Entries should balance.

General Journal
Date

Description (Account Name)

Debit

Credit

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)

Bicycle Repair Revenue (411)

Prepaid Insurance (117)

Store Rent Expense (511)

Repair Supplies (119)

Utility Expense (512)

Repair Equipment (144)

Insurance Expense (513)

Accum. Depr.-Repair Equipment (145)

Repair Supplies Expense (514)

Accounts Payable (212)

Depr. Exp.-Repair Equipment (515)

Income Taxes Payable (213)

Income Taxes Expense (516)

Common Stock (311)

Retained Earnings (312)

Dividends (313)

T-Accounts and compute

e Repair Revenue (411)

e Rent Expense (511)

ility Expense (512)

rance Expense (513)

Supplies Expense (514)

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)

e Taxes Expense (516)

Journal Entries

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

below.

Rawls Repair Corporation

Trial Balance
October 31
Account
Title

Only enter
accounts that
have a
balance.

Balance
Debit
Credit

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)

Debit

Credit

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.

Journal Entries

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

Rawls Repair Corporation

Adjusted Trial Balance
October 31
Account
Title

Only enter
accounts that
have a
balance.

Balance
Debit
Credit

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 Sh
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

Rawls Repair Corporation

Statement of Retained Earnings
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

Retained Earnings, October 1

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

oration as of October 31 in the space below.

rning, and the Balance Sheet.
equired for this project.

ir Corporation
Retained Earnings
Ending October 31

Rawls Repair Corporation

Balance Sheet
October 31

October 1
0
0

Assets:
Cash
Prepaid Insurance
Repair Supplies
Repair Equipment
Less: Accum. Depr.
Total Assets

Liabilities and Stockholders' Equity

Liabilities:
Accounts Payable
Income Taxes Payable
Total Liabilities
0
Stockholders' Equity:
Common Stock
Retained Earnings
Total Stockholders' Equity
Total Liabilities &
Stockholders' Equity

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)

Debit

Credit

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

Balance
Debit
Credit

Project 1 Grading Rubric - Students

Criteria
Parts:

Excellent

Good

Poor

90% to 100%
Step 1
Journal entries use
Journal accurate accounts
Entries (20
and amounts; and
points)
debits and credits
are used correctly.

70% to 89%
Journal entries
mostly use
accurate accounts
and amounts; and
debits and credits
are used correctly.

50% to 69%
Journal entries
have some errors in
use of accounts
and amounts; and
debits and credits
are only somewhat
used correctly.

Steps 2 and 3 Posting is correct

leading to an
Posted and accurate trial
Unadjusted
balance.
Trial Balance.
(10 points)

Posting is mostly
correct leading to
a mostly correct
trial balance.

Posting has several

errors leading to a
trial balance with
several errors.

Step 4

Adjusting
Journal
Entries (10
points)

Journal entries
mostly use
accurate accounts
and amounts; and
debits and credits
are used correctly.

Journal entries
have some errors in
use of accounts
and amounts; and
debits and credits
are only somewhat
used correctly.

Posting is mostly
correct leading to
a mostly correct
trial balance.

Posting has several

errors leading to a
trial balance with
several errors.

Journal entries use

accurate accounts
and amounts; and
debits and credits
are used correctly.

Steps 5 and 6 Posting is correct

leading to an
Posted and accurate trial
Adjusted Trial balance.
Balance. (10
points)

Step 7

Financial
Statements
(10 points)

All four financial

statements are
prepared
accurately and in
an appropriate
format.

Three of four
financial
statements are
prepared
accurately and
mostly in an
appropriate
format, one
statement has
some errors.

Two of four
financial
statements are
prepared
accurately and
mostly in an
appropriate format,
two statements
have some errors.

Step 8
Closing
Journal
Entries (10
points)

Journal entries use

accurate accounts
and amounts; and
debits and credits
are used correctly.

Journal entries
mostly use
accurate accounts
and amounts; and
debits and credits
are used correctly.

Journal entries
have some errors in
use of accounts
and amounts; and
debits and credits
are only somewhat
used correctly.

Steps 9 and
10
Posted
and PostclosingTrial
Balance. (10
points)

Posting is correct
leading to an
accurate trial
balance.

Posting is mostly
correct leading to
a mostly correct
trial balance.

Posting has several

errors leading to a
trial balance with
several errors.

Very Poor
Less than 50%
Journal entries
have some errors in
use of accounts
and amounts; and
debits and credits
are not used
correctly.

Posting is done
poorly or not at all,
leading to
inaccurate or no
trial balance.
Journal entries
have some errors in
use of accounts
and amounts; and
debits and credits
are not used
correctly.

Posting is done
poorly or not at all,
leading to
inaccurate or no
trial balance.

One or fewer of
four financial
statements are
prepared
accurately and
mostly in an
appropriate format,
three or all
statements have
some errors.

Journal entries
have some errors in
use of accounts
and amounts; and
debits and credits
are not used
correctly.

Posting is done
poorly or not at all,
leading to
inaccurate or no
trial balance.