ACCT 212: Course Project

Requirement

10

11

12
 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

Compute Ratios

Interpret the Ratios

 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-Ratios

12-Interpretation of Ratios
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
Before You Begin:
• A Grading Rubric to help explain what is expected.
• Each worksheet has the Check Figures embedded as a comment. 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.
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

AC C T21 2: C o u rse Pro je c t

Re q uire m e nt Re q u ire m e n t De sc rip tio n Wo rk sh e e t Na m e

1 P re p a re the Jo u rn a l En trie s in th e G e n e ra l Jo u rn a l 1 - J o u rn a l En trie s

2 P o st J o u rn a l En t rie s to t h e G e n e ra l Le d g e r 2 - G e n e ra l Le d g e r

3 P re p a re a Tria l Ba la n c e 3 - Tria l Ba la n c e

4 P re p a re the Ad ju stin g En t rie s 4 &5 - Ad ju st in g En t rie s

5 P o st Ad ju st in g En trie s to th e G e n e ra l Le d g e r 4 &5 -Ad ju st in g En trie s ( Use w o rksh e e t # 2)

6 P re p a re a n Ad ju st e d T
ria l Ba la n c e 6- Ad ju ste d TB

7 P re p a re the Fin a n c ia l Sta t e m e n t s 7 - Fin a n c ia l St a t e m e n t s

8 P re p a re the C lo sin g En trie s 8&9 - C lo sin g En trie s ( u se w o rk sh e e t # 2)

9 P o st C lo sin g En t rie s to t h e G e n e ra l Le d g e r 8&9- G e n e ra l Le d g e r

10 P re p a re the P o st C lo sin g T
ria l Ba la n c e 10 - P o st C lo sin g Tria l Ba la n c e

11 C o m p u te Ra tio s 11-Ra t io s

12 In t e rp re t th e Ra tio s 12-In te rp re ta tio n o f Ra t io s

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 4 - This includes project requirements 1-3.
Use the following account descriptions for journal entries.

Chart of Accounts
Account
Account Type Number Account Title Normal Balance
Assets
111 Cash Debit
Review Chapter 2, p.
117 Prepaid Insurance Debit 90 for more
119 Repair Supplies Debit information on the
144 Repair Equipment Debit Chart of Accounts
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
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.
 Journal Entries

REQUIREMENT #1: Prepare journal entries to record the March transactions in the General Journal below. Remember that Debi
must equal Credits—All of your Journal Entries should balance.

General Journal

Account Number
from Chart of
Date Accounts tab Account Title from Chart of Accounts tab
1-Mar 111 Cash
311 Common Stock
1-Mar 117 Prepaid Insurance
111 Cash
1-Mar 511 Store Rent Expense
111 Cash
3-Mar 144 Repair Equipment
111 Cash
212 Accont Payable - Andrew Company
8-Mar 119 Repair Supplies
212 Account Payable - Jackson Company
10-Mar 512 Telephone Expense
111 Cash
11-Mar 111 Cash
411 Bicycle Repair Revenue (First 3rd of March)
18-Mar 212 Accounts Payable Jackson Company
111 Cash
20-Mar 111 Cash
411 Bicycle Repair Revenue (Second 3rd of March)
31-Mar 111 Cash
411 Bicycle Repair Revenue (Last 3rd of March)
31-Mar 517 Electric Expense
111 Cash
31-Mar 312 Retained Earnings
313 Dividends
31-Mar 313 Dividends
111 Cash
Journal Entries
 Journal Entries

nal below. Remember that Debits

Once you've completed this

requirement print your
Debit Credit General Journal to complete
20,000 Requirement #2 on the
General Ledger worksheet.
20,000
2,400
2,400
1,900
1,900
5,800
1,000
4,800
650
650
340
340
1,650
1,650
400
400
2,450
2,450
1,250
1,250
250
250
1,000
1,000
1,000
1,000
 Journal Entries

39,090 39,090
 REQUIREMENT #2: Post the March journal entries to the following T-Accounts and compute ending bala

Date Cash (111) Date

1-Mar 20,000 11-Mar
1-Mar 2,400 20-Mar
3-Mar 1,900 31-Mar
3-Mar 1,000 Trail Balance
10-Mar 340
11-Mar 1,650
18-Mar 400
20-Mar 2,450
31-Mar 1,250
31-Mar 250
31-Mar 1,000
Total 25,350 7,290
Trail Balance 18,060
Prepaid Insurance (117)
1-Mar 2,400 1-Mar
Trail Balance 2,400 Trail Balance

Repair Supplies (119)

8-Mar 650 10-Mar
Trail Balance 650 Trail Balance

Repair Equipment (144)

3-Mar 5,800
Trail Balance 5,800

Accum. Depr.-Repair Equipment (145)

 Accounts Payable (212)
3-Mar 4,800
8-Mar 650
18-Mar 400
Trail Balance 5,050

Income Taxes Payable (213)

Common Stock (311)

1-Mar 20,000 31-Mar
Trail Balance 20,000 Trail Balance

Retained Earnings (312)

31-Mar 5,350
Trail Balance 5,350

Dividends (313)
31-Mar 1,000
Trail Balance 1,000
g T-Accounts and compute ending balances.

Bicycle Repair Revenue (411)

1,650
2,450 This worksheet will be used
1,250 to complete Requirements
5,350 #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.

Store Rent Expense (511)

1,900
1,900

Telephone Expense (512)

340
340

Insurance Expense (513)

Repair Supplies Expense (514)

Depr. Exp.-Repair Equipment (515)

Income Taxes Expense (516)

Electric Expense (517)

250
250
 Journal Entries

REQUIREMENT #3: Prepare a trial balance for March in the space below.

Bethany's Bicycle Corporation

Trial Balance Only enter
March 31 accounts that have
a balance.
Account Balance
Title Debit Credit
Cash 18,060
Prepaid Insurance 2,400
Repair Supplies 650
Repair Equipment 5,800
Accounts Payable 5,050
Common Stock 20,000
Retained Earnings 5,350
Dividends 1,000
Store Rent Expense 1,900
Telephone Expense 340
Electric Expense 250

30,400 30,400
 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 $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

Account Number
from Chart of
Date Accounts tab Account Title from Chart of Accounts tab Debit

0
 Journal Entries

Show your calculations!

) and compute adjusted

Credit

0
 Journal Entries

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

Bethany's BicycleCorporation
Adjusted Trial Balance Only enter
March 31 accounts that have
a balance.
Account Balance
Title Debit Credit

0 0
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

Income Statement Statement of Retained Earnings
For the Month Ending March 31 For the Month Ending March 31

Revenues: Retained Earnings, March 1

Bicycle Repair Revenue Add: Net Income
Total Revenue Subtotal
Less: Dividends
Expenses: Retained Earnings, March 31
Store Rent Expense
Telephone Expense
Insurance Expense
Repair Supplies Exp.
Depreciation Exp.
Income Taxes Expense
Electric Expense
Total Expenses

Net Income
 of March 31 in the space below.
he Balance Sheet.
his project.

cycle Corporation Bethany's Bicycle Corporation

Retained Earnings Balance Sheet
Ending March 31 March 31

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

Stockholders' Equity:
Common Stock
Retained Earnings
Total Stockholders' Equity

Total Liabilities & Stockholders'

Equity
 Journal 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

Account Number
from Chart of
Date Accounts tab Account Title from Chart of Accounts tab Debit

0
 Journal Entries

ances for each account

nd compute ending

Credit

See the Week 2 Lecture for

examples of how to complete
closing entries.

0
 Journal Entries

equirement #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 Balance
Title Debit Credit

- -
Course Project Grading Rubric - Students

Criteria Excellent

Step 1 —Journal Journal entries use accurate

Entries accounts and amounts; and
debits and credits are used
correctly.
Milestone 1
Step 1 Grading Scale 30-27
Step 2 Ledger Posting and Posting is done in the correct
Balancing accounts and at the correct side
(Dr./Cr.) and balances are
correct.

Milestone 1
Step 2 Grading Scale 20-18
Step 3 - Unadjusted Trial Accounts are listed correctly
Balance and in the proper order leading
to an accurate trial balance.

Milestone 1
Step 3 Grading Scale 21-18
Milestone 1 CO2 - Given economic The student's submission fully
transactions and events, analyze analyzes and records all
and record them leading to the transactions, and provides a
development and analysis of a trial complete and accurate trial
balance and reports important for
balance.
decision-making.

CO 2 Grading Scale 4

Step 4 — Journal entries use accurate

Adjusting Journal Entries
Milestone 2
Step 4 Grading Scale
accounts and amounts; and
debits and credits are used
correctly.
25-23
 Steps 5 and 6 Posting is correct leading to an
—Posted and Adjusted Trial accurate trial balance.
Balance.
Milestone 2
Steps 5/6 Grading Scale 15-14
Step 7.1 - Income Statement The income statement is
prepared completely and
accurately.
Milestone 2
Step 7.1 Grading Scale 10-9
Step 7.2 -Retained Earnings The retained earnings statement
Statement is prepared completely and
accurately.
Milestone 2
Step 7.2 Grading Scale 6
Step 7.3 - Balance Sheet The balance sheet is prepared
completely and accurately.

Milestone 2
Step 7.3 Grading Scale 15-14
Step 8 —Closing Journal entries use accurate
Journal Entries accounts and amounts; and
debits and credits are used
correctly.
Milestone 2
Step 8 Grading Scale 25-23
Steps 9 and 10 —Posted and Posting is correct leading to an
Post-closing Trial Balance accurate trial balance.

Milestone 2
Steps 9-10 Grading Scale
Milestone 2 CO 3 - Given a trial balance sheet
and economic financial
information, analyze and record
adjusting and closing journal
entries leading to the creation and
analysis of financial statements
using the accrual accounting
method.
25-23
The student's submission fully
and properly analyzes the
adjusting information, resulting
in an accurate adjusted trial
balance and financial
statements. The submission also
contains closing entries that are
fully and accurately prepared,
resulting in an accurate post-
closing trial balance.

CO 3 Grading Scale 4
 Good Fair
Journal entries mostly use Journal entries have some errors
accurate accounts and amounts; in use of accounts and amounts;
and debits and credits are used and debits and credits are only
correctly. somewhat used correctly.
26-24 23-21
Posting is done mostly in the Posting has errors with
correct accounts and mostly at incorrect accounts and incorrect
the correct side(Dr./Cr.) and debits/credits and incorrect
balances are mostly correct. balances.
17-16 15-14
Most accounts are listed Listing of accounts has several
correctly leading to a mostly errors leading to incorrect trial
correct trial balance. balance.
17-16 15-14
The student's submission The student's submission
properly analyzes and records demonstrates analysis and
the given transactions, and recording of transactions,
provides a trial balance that is although several analysis errors
accurate based on the entries exist, leading to a trial balance
recorded. that is somewhat inaccurate.
3 2
Journal entries mostly use Journal entries have some errors
accurate accounts and amounts; in use of accounts and amounts;
and debits and credits are used and debits and credits are only
correctly. somewhat used correctly.
22-20 19-17
Poor
Journal entries have some errors in
use of accounts and amounts; and
debits and credits are not used
correctly.
20-18
Listing of accounts is mostly
incorrect with most incorrect
accounts and incorrect Dr./Cr.
Most ledger balances are
incorrect.
13-12
Listing of accounts is done poorly
or not at all, leading to inaccurate
or no trial balance.
13-12
The student's submission
demonstrates limited analysis and
recording of transactions, and
significant errors exist, leading to
an inaccurate or incomplete trial
balance.
1
Journal entries have some errors in
use of accounts and amounts; and
debits and credits are not used
correctly.
16-14
Posting is mostly correct Posting has several errors Posting is done poorly or not at
leading to a mostly correct trial leading to a trial balance with all, leading to inaccurate or no
balance. several errors. trial balance.

13-12 11-10 9-8

The income statement is The income statement is The income statement is prepared
prepared accurately, but may prepared with several errors. with significant errors.
have some minor errors.

8 7 6
The retained earnings statement The retained earnings statement The retained earnings statement is
is prepared accurately, but may is prepared with several errors. prepared with significant errors.
have some minor errors.

5 4 3
The balance sheet is prepared The balance sheet is prepared The balance sheet is prepared with
accurately and mostly, but may with several errors. significant errors.
have some minor errors.

13-12 11-10 9-8

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

22-20 19-17 16-14

Posting is mostly correct Posting has several errors Posting is done poorly or not at
leading to a mostly correct trial leading to a trial balance with all, leading to inaccurate trial
balance. several errors. balance, or no trial balance was
prepared.

22-20 19-17 16-14

The student's submission The student's submission The student's submission
analyzes the adjusting demonstrates analysis of the demonstrates limited analysis of
information, resulting in a adjusting information and the the adjusting information and the
mostly accurate adjusted trial preparation of an adjusted trial preparation of an adjusted trial
balance and financial statements. balance and financial statements, balance and financial statements,
The submission also contains although several errors exist. The however significant errors exist.
closing entries that are closing entries are prepared with The closing entries are prepared
accurately prepared, resulting in several errors, resulting in the with significant errors, resulting in
a mostly accurate post-closing completion of a post-closing trial an inaccurate post-closing trial
trial balance. balance, that has limited balance.
accuracy.

3 2 1
 Unacceptable Points Available

The submission does not

meet this requirement.

17-0 30
The submission does not
meet this requirement, or
posting is not done at all.

11-0 20
The submission does not
meet this requirement.

11-0 21
The student's submission
does not meet the criteria
of the outcome.

0 4

The submission does not

meet this requirement.

13-0 25
The submission does not
meet this requirement.

7-0 15
The submission does not
meet this requirement.

5-0 10
The submission does not
meet this requirement.

2-0 6
The submission does not
meet this requirement.

7-0 15
The submission does not
meet this requirement.

13-0 25
The submission does not
meet this requirement.

13-0 25
The student's submission
does not meet the criteria
of the outcome.

0 4