ACCT 212: Course Project 1

ACCT 212: Course Project 1
Requirement Requirement Description Worksheet
Part A
1 Prepare the Journal Entries in the General Journal Journal Entries
2 Post Journal Entries to the General Ledger General Ledger
3 Prepare a Trial Balance Trial Balance
Part B
4 Prepare the Adjusting Entries Adjusting Entries
5 Post Adjusting Entries to the General Ledger General Ledger
6 Prepare an Adjusted Trial Balance Adjusted TB
7 Prepare the Financial Statements Financial Statements
8 Prepare the Closing Entries Closing Entries
9 Post Closing Entries to the General Ledger General Ledger
10 Prepare the Post Closing Trial Balance Post Closing TB

Course Project #1 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 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.
"
Scenario

You’ve just secured a new client in your accounting practice, the Rawls
Repair Corporation (RRC), a brand new small business specializing in
bicycle repair. The owner, Rob Rawls, is a terrific cyclist and bike
repair specialist, but definitely not an accountant. Your job is to help
Rob put his affairs in order. Luckily Rob has only been in operation
for a month and things have not gotten too out of hand yet! Rob 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 RRC.
During its first month
of operation, the Rawls Repair Corporation, which specializes in bicycle
repairs, completed the following transactions.

October Transactions
Date Transaction Description
Oct.
1 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.
Oct. 1 Paid the premium on a 1-year insurance policy, $1,200.
Oct. 1 Paid the current month's store rent expense, $1,040.
Oct.
3 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.
Oct. 8 Purchased repair supplies from McKenna Company on credit, $390.
Oct. 12 Paid utility bill for October, $154.
Oct. 16 Cash bicycle repair revenue for the first half of October, $1,362.
Oct. 19 Made payment to McKenna Company, $200.
Oct. 31 Cash bicycle repair revenue for the last half of October, $1,350.
Oct. 31 Declared and paid cash dividend of $800.

Use the following account descriptions for journal entries.

Chart of Accounts
Account Type Account Number Account Title Normal Balance
Assets
111 Cash Debit
117 Prepaid Insurance Debit
119 Repair Supplies 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 Bicycle Repair Revenue Credit

Expenses
511 Store Rent Expense Debit
512 Utility Expense Debit
513 Insurance Expense Debit
514 Repair Supplies Expense Debit
515 Dep Expense - Repair Equipment Debit
516 Income Tax Expense Debit

Project 1 Grading Rubric - Students

Criteria Excellent Good Poor Very Poor
Parts: 90% to 100% 70% to 89% 50% to 69% Less than 50%

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.

Steps 2 and 3 —Posted and Unadjusted Trial
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. Posting is done poorly or not at all, leading to
inaccurate or no trial balance.
Step 4
—Adjusting 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. Journal entries have some errors in use of accounts and
amounts; and debits and credits are not used correctly.
Steps 5 and 6
—Posted and Adjusted Trial 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.
Posting is done poorly or not at all, leading to inaccurate or no trial
balance.
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. One or
fewer of four financial statements are prepared accurately and mostly
in an appropriate format, three or all 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. Journal entries have some errors in use of
accounts and amounts; and debits and credits are not used correctly.

Steps 9 and 10 —Posted and Post-closingTrial
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. Posting is done poorly or not at all, leading to
inaccurate or no trial balance.
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