Accounting Homework

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: 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 – Adjusting Entries 5 Post Adjusting Entries to the General Ledger

2 – General Ledger
6 Prepare an Adjusted Trial Balance 5 –

Adjusted TB 7 Prepare the Financial Statements 6 – Financial Statements 8 Prepare the Closing Entries 7 – Closing Entries 9 Post Closing Entries to the General Ledger

2 – General Ledger
10 Prepare the Post Closing Trial Balance 8 – 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 12

Requirements

for you to complete. The Course Project is due at the end of Week 9. See the Modules section 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

Account

s

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,

Howard’s Flight Radio Management Corporation

(HFRM), a brand new small business specializing in flight management systems (FMS). The owner, Howard Allan, is a former Air Force pilot and retired Colonel, but definitely not an accountant. Your job is to help Howard put his affairs in order. Luckily Howard has only been in operation for a month and things have not gotten too out of hand yet! Howard has to submit his financial statements to his 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 HFRM. Requirements
Guidelines Use the embedded assistance in the template, guidance in your textbook, and examples in the weekly assignments 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 6 – This includes project requirements 4-7. Milestone 3

is due in Week 9 – This includes project requirements 8-12.

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

March Transactions

,000

, in exchange for 2,000 shares of $10 par value common stock.

March 1

.

March 1

.

. Paid $

down and the balance was placed on account. Payments will be $40

per month for 12 months. The first payment is due 4/1. Note: Use

for the Balance Due.

0

.

0

.

flight management system (FMS) repair revenue for the first third of March, $

.

for the second third of March, $

.

.

March 31

March 31

During its first month of operation, HFRM completed the following transactions.

Date

Transaction Description

March 1

Began business by making a deposit in a company bank account of $

20

Paid the premium on a 1-year insurance policy, $

2,

400

Paid the current month’s rent expense, $

1,900

March 3

Purchased repair equipment from Fred Company, $

5,800

1,000

0.00

Accounts Payable

March 8

Purchased repair supplies from Gary Company on credit, $

65

March 10

Paid telephone bill for March, $

34

March 11

Cash

1,

650

March 18

Made payment to Gary Company, $400.

March 20

Cash

FMS repair revenue

2,

450

March 31

Cash FMS repair revenue for the last third of March, $

1,

250

Paid the current month’s electice bill, $250.

Declared and paid cash dividend of $1,000.

Chart of Accounts

Chart of Accounts

Cash

Debit

Debit

Debit

Accounts Payable Credit

Credit

Credit

Credit

Debit

Credit

Debit

Debit

Debit

Debit

Debit

Debit

Debit

Use the following account descriptions for journal entries.
Account Type	Account			Number	Account			Title	Normal Balance
Assets
													111																		Debit
				1	17					Prepaid Insurance
				119						Repair Supplies
			144				Repair Equipment
		145	Accum Dep -Repair Equipment												Credit
Liabilities
					212
		2	13			Income Tax Payable
Stockholders Equity
			311					Common Stock
	312			Retained Earnings
			313				Dividends
Revenue
					411		Bicycle Repair Revenue
Expenses
			511	Store	Rent Expense
			512				Telephone Expense
		513			Insurance Expense
		514			Repair Supplies Expense
		5	15		Dep Expense – Repair Equipment
		516			Income Tax Expense
			517				Electric Expense

1- Journal Entries

General Journal
Date

Debit Credit

111 Cash 20,000

311 Common Stock 20,000
1-Mar 117

111 Cash 2,400
1-Mar 511 Rent Expense 1,900
111 Cash 1,900

144

5,800

111 Cash 1,000
212

119 Repair Supplies 650
212 Account Payable 650

512

340

111 Cash 340

111 Cash 1,650

411

1,650

212 Account Payable 400

111 Cash 400

111 Cash 2,450

411 FMS repair revenue 2,450

111 Cash

411 FMS repair revenue 1,250
31-Mar 517

250

111 Cash 250
31-Mar

313 Dividends 1,000

111 Cash 1,000

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.

Account Number from Chart of Accounts tab

Account Title from Chart of Accounts tab

1-Mar

Pre-paid Insurance

2,400

3-Mar

Repair equipment

Account Payable

4,800

8-Mar

10-Mar

Telephone Bill

11-Mar

(FMS) Repair Revenue

18-Mar

20-Mar

31-Mar

1,250

Electricity Bill

38,090 Harris, Nicole: Debits = $38,090

38,090 Harris, Nicole: Credits = $38,090

1 Journal Entries

Journal Entries

Once you’ve completed this requirement print your General Journal to complete Requirement #2 on the General Ledger worksheet.

2 – General Ledger

Date

.

Date

(411)

1-Mar 20,000 11-Mar 1,650
1-Mar 2,400 20-Mar 2,450
1-Mar 1,900 31-Mar 1,250
3-Mar 1,000 Trial Balance

10-Mar 340 Adjusted TB 5,350
11-Mar 1,650

5,350

18-Mar 400

0

20-Mar 2,450
31-Mar 1,250
31-Mar 250
31-Mar 1,000
Trial Balance 18,060

18,060

18,060

1-Mar 2,400 1-Mar 1,900

2,400 Trial balance 1,900

usting
Elizabeth Rolison: Adjusting entries in blue type

Adjusted TB 1,900

Adjusted TB

closing 1,900

Post Closing TB 2,200

Post Closing TB 0
8-Mar 650 10-Mar 340
Trial balance 650 Trial balance 340
adj 450 Adjusted TB 340
Adjusted TB 200 closing 340
Post Closing TB 200 Post Closing TB 0
3-Mar 5,800

Trial balance 5,800 Adjusted TB 200
Adjusted TB 5,800 closing 200
Post Closing TB 5,800 Post Closing TB 0

Repair Equipment

(145)

adjusting

adjusting 450

Adjusted TB 120 Adjusted TB 450
Post Closing TB 120 closing 450
Post Closing TB 0
3-Mar 4,800 adjusting 120
8-Mar 650 Adjusted TB 120
18-Mar 400 closing 120
Trial Balance

Post Closing TB 0

Adjusted TB 5,050
Post Closing TB 5,050
adjusting 65 adjusting 65
Adjusted TB 65 Adjusted TB 65
Post Closing TB 65 closing 65

Post Closing TB 0

1-Mar 20,000 31-Mar 250
Trial Balance 20,000 Trial Balance 250
Adjusted TB 20,000 Adjusted TB 250
Post Closing TB 20,000 closing 250

Post Closing TB 0

closing 1,000
closing

closing
Post Closing TB

31-Mar 1,000
Trial Balance 1,000
closing 1,000

Post Closing TB 0

REQUIREMENT #2: Post the March journal entries to the following T-Accounts and compute ending balances.

Cash (111) DeVry: The balance of the Cash account after posting journal entries for Part A should be $

18,060

FMS Repair Revenue

5,350

closing

Post Closing TB

Adjuted TB

Post Clossing TB

Prepaid Insurance (117)

Rent Expense (511)

Trial balance

adj

200

2,200

Repair Supplies (119)

Telepone Bill (512)

Repair Equipment (144)

Insurance Expense (513)

adjusting

Accum Dep –

Repair Supplies Expense (514)

120

Accounts Payable (212)

Dep expense – Repair Equipment (515)

5,050

Income Tax Payable (213)

Income Tax Expense (516)

Common Stock (311)

Electric Expense (517)

Retained Earnings (312)

2,025

1,025

Dividends (313)

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

Account Account Balance
Number Title Debit Credit
111 Cash 18,060
117 Prepaid Insurance 2,400

119 Repair Supplies 650

144 Repair Equipment 5,800
212 Accounts Payable 5,050

311 Common Stock 20,000
313 Dividends 1,000

411 FMS Repair Revenue 5,350
511

1,900

512 Telephone Expense 340
517 Electric Expense 250

REQUIREMENT #3: Prepare a trial balance for March in the space below.
Howard’s Flight Radio Management Corporation Trial Balance March 31
		Store Rent Expense
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

General Journal
Date Account Number from Chart of Accounts tab Account Title from Chart of Accounts tab Debit Credit

31-Mar 513

200

117 Prepaid Insurance 200
31-Mar

514 Repair Supplies Expense 450
119 Repair Supplies 450
31-Mar 515 Dep Expense – Repair Equipment 120
145 Accum Dep – Repair Equipment 120
31-Mar 516 Income Tax Expense 65
213 Income Tax Payable 65

835
Bruce: Balance $406.00

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 and compute adjusted balances. Just add to the balances that are already listed.
Insurance expense
	835 Bruce: Balance $406.00

Journal Entries

6 – Adjusted TB

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 – 120

212 Accounts Payable 5,050
213 Income Tax Payable 65
311 Common Stock 20,000

312 Retained Earnings 0.00

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

120

516 Income Tax Expense 65

517 Electric Expense 250

REQUIREMENT #6: Prepare an Adjusted Trial Balance in the space below.
Howard’s Flight Radio Management Corporation Adjusted Trial Balance March 31
Depreciation Expense – Repair Equipment
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

, Statement of Retained Earning, and the

.
The Statement of Cash Flows is a required Financial Statement, but is not required for this project.

Howard’s Flight Radio Management Corporation Howard’s Flight Radio Management Corporation Howard’s Flight Radio Management Corporation
Income Statement

Balance Sheet

For the Month Ending March 31 March 31

FMS Repair Revenue

2,025 Cash

Revenue

5,350

2,025 Prepaid Insurance 2,200

Repair Supplies 200

Repair Equipment 5,800

Store Rent Expense 1,900

Telephone Expense 340

Insurance Expense 200

450

120

65 Accounts Payable

Electric Expense 250

65

Net Income

Common Stock 20,000
Retained Earnings 1,025

Requirement #7: Prepare the financial statements for Howard’s Flight Radio Management Corporation as of March 31 in the space below. You will only be preparing the	Income Statement	Balance Sheet
Statement of Retained Earnings
	For the Month Ending March 31
Revenues:	Retained Earnings, March 1	$0	Assets:
$5,350	Add:	Net Income	$18,060
			Total	Subtotal
Less: Dividends	(1,000)
Expenses:	Retained Earnings, March 31	$1,025 User: Retained Earnings = $1,025
Less: Accum. Depr.	(120)
Total Assets	$26,140 User: $26,140
Repair Supplies Exp.	Liabilities and Stockholders’ Equity
Depreciation Exp.	Liabilities:
Income Taxes Expense	$5,050
Income Taxes Payable
Total Expenses	3,325	Total Liabilities	5,115
2,025 User: Net Income = $2,025	Stockholders’ Equity:
Total Stockholders’ Equity	21,025
Total Liabilities & Stockholders’ Equity	$26,140 User: $26,140
User: $26,140	User: Net Income = $2,025

8 & 9- – Closing Entries

General Journal
Date Account Number from Chart of Accounts tab Account Title from Chart of Accounts tab Debit Credit

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 worksheet and compute ending balances. Just add to the adjusted balances already listed.
0 Bruce: Debit $9,675	0 Bruce: Credit $9,675

Journal Entries

10 – Post Closing Trial Balance

Account Account Balance
Number Title Debit Credit

Requirement #10: Prepare a post-closing trial balance as of March 31 in the space below.
Howard’s Flight Radio Management Corporation Post-Closing Trial Balance March 31
– 0 User: Debits = $26,260	– 0 User: Credits = $26,260

Journal Entries

11- Ratios

Requirement #11: Ratios

Using the data from Income Statement and Balance Sheet prepared by you in step 7 compute the following ratios.

Current Ratio

Leverage Ratio

Asset Turnover Ratio

Net Profit Margin Ratios

Rate of Return on Total Assets

12- Interpretaion of Ratio

Grading Rubric

Criteria

Milestone 1

20

Milestone 1

The submission does not meet this requirement. Little-to-no work was completed.

13

Milestone 1 Total

Milestone 2

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. Journal entries have some errors in use of accounts and amounts; and debits and credits are not used correctly. The submission does not meet this requirement. Little-to-no work was completed.

0 8

Milestone 2

Posting is correct leading to an accurate trial balance.

Posting has several errors leading to a trial balance with several errors. Posting is done poorly or not at all, leading to inaccurate or no trial balance. The submission does not meet this requirement. Little-to-no work was completed.

8-7 6-5 4-3

10

Milestone 2

The submission does not meet this requirement. Little-to-no work was completed.

15

Milestone 2 Total 33
Milestone 3

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. Journal entries have some errors in use of accounts and amounts; and debits and credits are not used correctly. The submission does not meet this requirement. Little-to-no work was completed.

1 0 7

Milestone 3

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. Posting is done poorly or not at all, leading to inaccurate or no trial balance. The submission does not meet this requirement. Little-to-no work was completed.

10-9 8-7 6-5 4-3 2-0 10

Milestone 3

17-15 14-12 11-9

17

Milestone 3 Total 34

Project 1 Grading Rubric – Students

Excellent

Good

Poor

Very Poor

Unacceptable

Points Available

Step 1 —Journal Entries (20 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.

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

The submission does not meet this requirement. Little-to-no work was completed.

Step 1 Grading Scale

20-18

17-15

14-12

11-9

8-0

Steps 2 and 3 —Posted an Unadjusted Trial Balance. (13 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.

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

Step 2 & 3 Grading Scale

13-11

10-8

7-5

4-2

1-0

33

Step 4 —Adjusting Journal Entries (8 points)

Step 4 Grading Scale

8-7

6-5

4-3

2-1

Steps 5 and 6 —Posted and Adjusted Trial Balance. (10 points)

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

Step 5 & 6 Grading Scale

10-9

2-0

Step 7 —Financial Statements (15 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.

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

Step 7 Grading Scale

15-13

12-10

9-7

6-4

3-0

Step 8 —Closing Journal Entries (7 points)

Step 8 Grading Scale

7-6

5-4

3-2

Steps 9 and 10 —Posted a Post-closingTrial Balance. (10 points)

Step 9 & 10 Grading Scale

Steps 11 and 12 —Ratios and Interpretation. (17 points)

Ratios are calculated correctly. Math process is present. Interpretation of ratios are accurate.

Ratios are calculated mostly correctly. Math process is present. Interpretation of ratios are mostly accurate.

Ratios calculations have some errors. Math process is present. Interpretation of ratios is flawed.

Ratios calculations have various errors. Math process is present. Interpretation of ratios is severely flawed.

The submission does not meet this requirement. Little-to-no work was completed. No math process is present.

Step 11 & 12 Grading Scale

8-6

5-0