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ACCT 212: 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 Ledge
3 Prepare a Trial Balance 3 - Trial Balance
4 Prepare the Adjusting Entries 4 &5 - Adjusting Entries
5 Post Adjusting Entries to the General Ledger 4 &5 -Adjusting Entries ( Use worksheet #2)
6 Prepare an Adjusted Trial Balance 6- Adjusted TB
7 Prepare the Financial Statements 7 - Financial Statements
8 Prepare the Closing Entries 8&9 - Closing Entries ( use worksheet #2)
9 Post Closing Entries to the General Ledger 8&9- General Ledge
10 Prepare the Post Closing Trial Balance 10 - Post Closing Trial Balance
Project Instructions
Course Project Overview
The Course Project consists of 10 Requirements for you to complete. Part 1 of the Course Project is due at the end of Week 4 and Part 2 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 July transactions
• A Chart of Accounts reference sheet
• A Grading Ru
ic 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, Peter's Pool Corporation (PPC), a
and new small business specializing in pool service. The owner, Peter Peck, is a te
ific swimmer and pool repair specialist, but definitely not an accountant. Your job is to help Peter put his affairs in order. Luckily, Peter has only been in operation for a month and things have not gotten too out of hand yet! Peter 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 PPC.
Requirements
ACCT 212: 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 Ledge
3 Prepare a Trial Balance 3 - Trial Balance
4 Prepare the Adjusting Entries 4 &5 - Adjusting Entries
5 Post Adjusting Entries to the General Ledger 4 &5 -Adjusting Entries ( Use worksheet #2)
6 Prepare an Adjusted Trial Balance 6- Adjusted TB
7 Prepare the Financial Statements 7 - Financial Statements
8 Prepare the Closing Entries 8&9 - Closing Entries ( use worksheet #2)
9 Post Closing Entries to the General Ledger 8&9- General Ledge
10 Prepare the Post Closing Trial Balance 10 - Post Closing Trial Balance
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.
Milestone 2 is due in Week 6 - This includes project requirements 4-10.
Before You Begin:
Review the Week 2 Lecture prior to starting work on this project.
Print the Chart of Accounts and July 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.
July Transactions
During its first month of operation, Peter's Pool Corporation, which specializes in pool repairs, completed the following transactions.
July Transactions
Date Transaction Description
July 1 Began business by making a deposit in a company bank account of $40,000, in exchange for 4,000 shares of $10 par value common stock.
July 1 Paid the premium on a 1-year insurance policy, $4,800.
July 1 Paid the cu
ent month's store rent expense, $3,600.
July 6 Purchased repair equipment from Paul's Pool Equipment Company, $7,800. Paid $600 down and the balance was placed on account.
July 8 Purchased repair supplies from Mary's Repair Company on credit, $450.
July 10 Paid telephone bill, $300.
July 11 Cash pool service revenue for the first third of July, $2,650.
July 18 Made payment to Mary's Repair Company, $300.
July 20 Cash pool service revenue for the second third of July, $4,000.
July 31 Cash pool service revenue for the last third of July, $2,250.
July 31 Paid the cu
ent month's electric bill, $500.
July 31 Declared and paid cash dividend of $1,100.
Chart of Accounts
Use the following account descriptions for journal entries.
Chart of Accounts
Account Type Account Number Account Title Normal Balance
Assets
111 Cash Debit
117 Repair Supplies Debit
119 Prepaid Insurance Debit
144 Repair Equipment Debit
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 Pool Service 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
1 - Journal Entries
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 Number from Chart of Accounts tab Account Title from Chart of Accounts tab Debit Credit
1-Jul 111 Cash 40,000
311 Common stock 40,000
(To record cash invested)
1-Jul 119 Prepaid insurance 4,800
111 Cash 4,800
(To record prepaid insurance
1-Jul 511 Store rent expense 3,600
Cash 3,600
(To record payment of expense)
6-Jul 144 Repair Equipment 7,800
111 cash 600
212 accounts payable 7,200
(To record purchase of equipment)
8-Jul 117 Repair supplies 450
30-Jul accounts payable 450
(To record purchase of supplies)
10-Jul 512 Telephone Expense 300
111 Cash 300
(To record payment of expense)
11-Jul 111 Cash 2,650
411 pool service revenue 2,650
(To record receipt of revenue)
18-Jul 213 accounts payable 300
111 cash 300
(To record payment made)
20-Jul 111 Cash 4,000
411 pool service revenue 4,000
(To record receipt of revenue)
31-Jul 111 Cash 2,250
411 pool service revenue 2,250
(To record receipt of revenue)
31-Jul 517 Electric expense 500
111 cash 500
(To record payment of expense)
31-Jul 8-Nov Dividends 1,100
20-Apr Cash 1,100
(To record payment of dividend)
67,750
Windows User: Debits equal $67,750.
67,750
Windows User: Credits equal $67,750.
Journal Entries
Once you've completed this requirement print your General Journal to complete Requirement #2 on the General Ledger worksheet.
2 - General Ledge
REQUIREMENT #2: Post the July journal entries to the following T-Accounts and compute ending balances.
Date Cash (111)
DeVry: The debit balance of the Cash account
should be $37,700.
Date Pool Service Revenue (411)
1-Jul 40,000 11-Jul 2,650
1-Jul 4,800 20-Jul 4,000
1-Jul 3,600 31-Jul 2,250
6-Jul 600 Balance 8,900
10-Jul 300
11-Jul 2,650
18-Jul 300
20-Jul 4,000
31-Jul 2,250
31-Jul 500
31-Jul 1,100
Balance 37,700
Repair Supplies (117) Store Rent Expense (511)
8-Jul 450 1-Jul 3,600
Prepaid Insurance (119) Telephone Expense (512)
1-Jul 4,800 10-Jul 300
Repair Equipment (144) Insurance Expense (513)
6-Jul 7,800
Accum. Depr.-Repair Equipment (145) Repair Supplies Expense (514)
Accounts Payable (212) Depr. Exp.-Repair Equipment (515)
6-Jul 7,200
8-Jul 450
18-Jul 300
Balance 7,350
Income Tax Payable (213) Income Tax Expense (516)
Common Stock (311) Electric Expense (517)
1-Jul 40,000 31-Jul 500
Retained Earnings (312)
Dividends (313)
31-Jul 1,100
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
REQUIREMENT #3: Prepare a trial balance for July in the space below.
Peter's Pool Corporation
Trial Balance
July 31
Account Account Balance
Number Title Debit Credit
111 Cash 37,700
117 Repair supplies 450
119 Prepaid Insurance 4,800
144 Repair Equipment 7,800
212 Accounts Payable 7,350
311 Common Stock 40,000
313 Dividends 1,100
411 Pool Service Revenue 8,900
511 Store Rent Expense 3,600
512 Telephone Expense 300
517 Electric Expense 500
56,250
Windows User: Debit Balance equals $56,250 56,250
Windows User: Credit Balance equals $56,250.
Journal Entries
Only enter accounts that have a balance.
4&5 Adjusting 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.
) The remaining inventory of repair supplies is $250.
c) The estimated depreciation on repair equipment is $160.
d) The estimated income taxes are $95.
Requirement #5: Post the adjusting entries on July 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
Date Account Number from Chart of Accounts tab Account Title from Chart of Accounts tab Debit Credit
0
Windows User: Debits equal $855.
0
Windows User: Credits equal $855.
Journal Entries
6 - Adjusted TB
REQUIREMENT #6: Prepare an Adjusted Trial Balance in the space below.
Peter's Pool Corporation
Adjusted Trial Balance
July 31
Account Account Balance
Number Title Debit Credit
0
Windows User: Debit Balance equals $56,505.
0
Windows User: Credit Balance equals $56,505.
Journal Entries
Only enter accounts that have a balance.
7 - Financial Statements
Requirement #7: Prepare the financial statements for Peter's Pool Corporation as of July 31 in the space below.
You will only be preparing the Income Statement, Statement of Retained Earnings, and the Balance Sheet.
The Statement of Cash Flows is a required Financial Statement, but is not required for this project.
Peter's Pool Corporation Peter's Pool Corporation Peter's Pool Corporation
Income Statement Statement of Retained Earnings Balance Sheet
For the Month Ending July 31 For the Month Ending July 31 July 31
Revenues: Retained Earnings, July 1 Assets:
Pool Repair Revenue Add: Net Income Cash
Total Revenue Subtotal Repair Supplies
Less: Dividends Prepaid Insurance
Expenses: Retained Earnings, July 31
Windows User: Retained Earnings, July 31 equals $2,545.
Repair Equipment
Store Rent Expense Less: Accum. Dep - Repair Equipment.
Telephone Expense Total Assets
Insurance Expense
Repair Supplies Exp. Liabilities and Stockholders' Equity
Depreciation Exp. Liabilities:
Income Tax Expense Accounts Payable
Electric Expense Income Taxes Payable
Total Expenses Total Liabilities
Net Income Stockholders' Equity:
Common Stock
Retained Earnings
Total Stockholders' Equity
Total Liabilities & Stockholders' Equity
Windows User: Total Liabilities & Stockholders' Equity equals $49,990.
Windows User: Total Assets equals $49,990.
Windows User: Net Income equals $3,645.
8&9- Closing Entries
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 T-Accounts on the General Ledger ( Step 2) worksheet and compute ending balances. Just add to the adjusted balances already listed.
General Journal
Date Account Number from Chart of Accounts tab Account Title from Chart of Accounts tab Debit Credit
0
Windows User: Debits equal $15,255.
0
Windows User: Credits equal $15,255.
Journal Entries
See the Week 2 Lecture for how to complete closing entries.
10- Post Closing Trial Balance
Requirement #10: Prepare a post-closing trial balance as of July 31 in the space below.
Peter's Pool Corporation
Post-Closing Trial Balance
July 31
Account Account Balance
Number Title Debit Credit
- 0
Windows User: Debit Balance equals $50,150.
- 0
Windows User: Credit Balance equals $50,150.
Journal Entries
Grading Ru
ic
Course Project Grading Ru
ic - Students
Criteria Excellent Good Fair Poor Unacceptable Points Available
Milestone 1 Step 1 —Journal Entries Journal entries use accurate accounts and amounts; and debits and credits are used co
ectly. Journal entries mostly use accurate accounts and amounts; and debits and credits are used co
ectly. Journal entries have some e
ors in use of accounts and amounts; and debits and credits are only somewhat used