ACC 001A: Project 'Interior Designs for You Overview This project provides students the opportunity to apply concepts learned in class to a typical business. Through this process, students will demonstrate how these individual concepts work together to achieve comprehensive financial reporting Submissions: Guidelines for submission include: Work submitted must reflect each student's individual work (na plagiarism group wark, or peer collaboration is permitted). Please don't cheat. I will find it, I will report it, and it is not worth it. Projects must be neatly hand-written with the exception of the Typed Responses section). Project Information: Reggie and Hazel have started their own interior design company. The two are known for their fresh, innovate designs and have been featured in many megazines and streaming shows. They started their business in 2019 and decided that neither should be burdened with personal liability for their jaint business. Below is the beginning balances they start January 2020 with: Account Account No. Amount Account Account No. Amount Cash 101 $7,000 Accounts payable 201 $8,250 A/R 102 11,000 Waces payable 202 1.750 Equipment 120 3,000 Note payable (due in 5 years! 220 15,000 Furniture 125 10,500 Retained earnings 301 6,500 Additional accounts include Prepaid Advertising (105), Unearned Revenue (2015), Business Loan (218), Common Stock (302), Dividends (303), Design Fees Earned (401), Wage Expense (501), Rent Expense (510), Utility Expense (515), and Advertising Expense (520) 50 points 1 January Transactions: The following information was provided to you by the owners. It is important to note that the owners not accountants they do not know exactly what information you need to prepare the financial statements. Therefore, it is your responsibility to use your knowledge of financial accounting to determine the relevant accounting information Interior Desiens for You General Journal 1 Date Accounts P.R Debit Credit lan 1 Reegle and Hazel contribute $2.500 each to the company Jan. 2 Paid Ianuary office rent of $6,500 Jan. 3 Paid $1,750 of the wages owed to their one employee, Hilda Jan. 4 Reggie paid $1,500 for rent on his personal loft from his personal savings account Jan. 5 Collect $2,200 from a customer's past due account Jan. 10 Provide $8,000 of designing services for client - Mr Rover who will pay by the end of the month. Jan. 11 Received customer's prepayment of $9,500 for design services to be provided on site next month Jan. 12 Was interviewed by Architectural Digest for a piece that will run in March. This type of publicity will likely double the company's sales. Jan. 15 Paid Hilda her bi-weekly wages of $1,750. Jan. 20 Took out business loan from local bank for $5,000. Jan. 21 Provided design services to Dr. Rothenberg Optometry for $2,250 and received check upon completion of job same day Jan. 22 Paid $3,000 of the company's accounts payable balance Jan. 23 Visited local gallery for appointment to view original artwork for the office space. Considering purchasing a piece priced at $15,000. The gallery offers 3% financing for local businesses. Jan. 25 Prepaid $2,000 for ad to run in the lune issue of HGTV Magazine. Regele & Hazel believe this ad & will increase sales by 50%. Jan. 26 Received bill for January's utilities of $300 and will send payment next month. Jan. 29 Received $2,000 from Mr. Rover for services provided on January 10. Jan. 30 Rergie and Hazel each take out $3,000 cash from the company. Jan. 31 Paid Hilda her bi-weekly wages of $1,750. Requirements: 1.) Prepare any necessary journal entries for January 2.) Post the entries to the general ledger T-accounts and calculate the ending balances. Remember to input ony beginning balances before posting January's transactions).* 3.) Prepare the unadjusted trial balance for the company for January." 4) Using the information on the Adjustments Page, prepare any adjusting journal entries. 5.) Past the adjusting entries to the same general ledger Taccounts you used in step 2. Calculate your new ending, adjusted, account balances.' 5) Prepare the adjusted trial balance for the company for January 7.) Prepare the income statement, statement of retained carnings, and balance sheet for January 8.) Answer the questions. Your responses should be typed. Templates provided on the following pages 2 3 Page 2 of 10 JZ Interior Desiens for You General Journal Interior Desiens for You General Ledger 105 Prepaid Ady 101 Date Accounts PR Debit Credit mecani 120 Equioment A/R 202 20: Furniture > A/P Wages Payable Uneamed 205 Business 218 2201 Revenue Loan NAP 401 Retained Carrings Common Stock Dividends on Design Fees Carned 501 510 515 Wages Expense Rent Expense Utility Expense Add FX 4 5 Page 4 of 10 Interior Designs for You Unadjusted Trial Balance January 31, 2020 Adjustments Page At the end of the period the following items are discovered: a.) According to a report from their advertising agency, half of the prepaid advertising has been used at January 31 b. At the end of the month, it is discovered that $1,250 of work is unbilled. C. The company had been able to start early on the prepaid design services (in account 205) and had performed one-fourth of the work as of January 31 Use the space below to prepare any adjusting entries needed based on the above information. Interior Designs for You General Journal J3 Date Accounts P.R Debit Credit Check oure, Totals: $56,800 Page 6 of 10 Prepare the company's financial statement at January 31, 2020. Interior Designs for You Adjusted Trial Balance January 31, 2020 Check figure Totals: $58 050 Typed Responses After completing the accounting services for the new company, answer the below questions. Responses should be typed, double spaced, in complete sentences, and free of spelling or grammatical errors. Use MLA format when citing your sources. 1.) What type of business structure does 'Interior Designs for You' have? How do you know that? 2.) Which other accounts might require adjustments? Why? 2.) When this company closes its books at the end of the period, which specific accounts will be closed? 4.) After reviewing the data and financial statements, what is your opinion of the financial condition of the company? Do you have any specific concerns? Ote specific figures in your response and explain your reasoning 5.) What suggestions do you have for the owners to either improve their overall business or accounting procedures? Remember to add external support to your responses. Cite sources such as your textbook or other credible sources. Anything you write that is not your original thought must be cited. A minimum of two sources should be used in this section 10 Page 10 of 10 ACC 001A: Project 'Interior Designs for You Overview This project provides students the opportunity to apply concepts learned in class to a typical business. Through this process, students will demonstrate how these individual concepts work together to achieve comprehensive financial reporting Submissions: Guidelines for submission include: Work submitted must reflect each student's individual work (na plagiarism group wark, or peer collaboration is permitted). Please don't cheat. I will find it, I will report it, and it is not worth it. Projects must be neatly hand-written with the exception of the Typed Responses section). Project Information: Reggie and Hazel have started their own interior design company. The two are known for their fresh, innovate designs and have been featured in many megazines and streaming shows. They started their business in 2019 and decided that neither should be burdened with personal liability for their jaint business. Below is the beginning balances they start January 2020 with: Account Account No. Amount Account Account No. Amount Cash 101 $7,000 Accounts payable 201 $8,250 A/R 102 11,000 Waces payable 202 1.750 Equipment 120 3,000 Note payable (due in 5 years! 220 15,000 Furniture 125 10,500 Retained earnings 301 6,500 Additional accounts include Prepaid Advertising (105), Unearned Revenue (2015), Business Loan (218), Common Stock (302), Dividends (303), Design Fees Earned (401), Wage Expense (501), Rent Expense (510), Utility Expense (515), and Advertising Expense (520) 50 points 1 January Transactions: The following information was provided to you by the owners. It is important to note that the owners not accountants they do not know exactly what information you need to prepare the financial statements. Therefore, it is your responsibility to use your knowledge of financial accounting to determine the relevant accounting information Interior Desiens for You General Journal 1 Date Accounts P.R Debit Credit lan 1 Reegle and Hazel contribute $2.500 each to the company Jan. 2 Paid Ianuary office rent of $6,500 Jan. 3 Paid $1,750 of the wages owed to their one employee, Hilda Jan. 4 Reggie paid $1,500 for rent on his personal loft from his personal savings account Jan. 5 Collect $2,200 from a customer's past due account Jan. 10 Provide $8,000 of designing services for client - Mr Rover who will pay by the end of the month. Jan. 11 Received customer's prepayment of $9,500 for design services to be provided on site next month Jan. 12 Was interviewed by Architectural Digest for a piece that will run in March. This type of publicity will likely double the company's sales. Jan. 15 Paid Hilda her bi-weekly wages of $1,750. Jan. 20 Took out business loan from local bank for $5,000. Jan. 21 Provided design services to Dr. Rothenberg Optometry for $2,250 and received check upon completion of job same day Jan. 22 Paid $3,000 of the company's accounts payable balance Jan. 23 Visited local gallery for appointment to view original artwork for the office space. Considering purchasing a piece priced at $15,000. The gallery offers 3% financing for local businesses. Jan. 25 Prepaid $2,000 for ad to run in the lune issue of HGTV Magazine. Regele & Hazel believe this ad & will increase sales by 50%. Jan. 26 Received bill for January's utilities of $300 and will send payment next month. Jan. 29 Received $2,000 from Mr. Rover for services provided on January 10. Jan. 30 Rergie and Hazel each take out $3,000 cash from the company. Jan. 31 Paid Hilda her bi-weekly wages of $1,750. Requirements: 1.) Prepare any necessary journal entries for January 2.) Post the entries to the general ledger T-accounts and calculate the ending balances. Remember to input ony beginning balances before posting January's transactions).* 3.) Prepare the unadjusted trial balance for the company for January." 4) Using the information on the Adjustments Page, prepare any adjusting journal entries. 5.) Past the adjusting entries to the same general ledger Taccounts you used in step 2. Calculate your new ending, adjusted, account balances.' 5) Prepare the adjusted trial balance for the company for January 7.) Prepare the income statement, statement of retained carnings, and balance sheet for January 8.) Answer the questions. Your responses should be typed. Templates provided on the following pages 2 3 Page 2 of 10 JZ Interior Desiens for You General Journal Interior Desiens for You General Ledger 105 Prepaid Ady 101 Date Accounts PR Debit Credit mecani 120 Equioment A/R 202 20: Furniture > A/P Wages Payable Uneamed 205 Business 218 2201 Revenue Loan NAP 401 Retained Carrings Common Stock Dividends on Design Fees Carned 501 510 515 Wages Expense Rent Expense Utility Expense Add FX 4 5 Page 4 of 10 Interior Designs for You Unadjusted Trial Balance January 31, 2020 Adjustments Page At the end of the period the following items are discovered: a.) According to a report from their advertising agency, half of the prepaid advertising has been used at January 31 b. At the end of the month, it is discovered that $1,250 of work is unbilled. C. The company had been able to start early on the prepaid design services (in account 205) and had performed one-fourth of the work as of January 31 Use the space below to prepare any adjusting entries needed based on the above information. Interior Designs for You General Journal J3 Date Accounts P.R Debit Credit Check oure, Totals: $56,800 Page 6 of 10 Prepare the company's financial statement at January 31, 2020. Interior Designs for You Adjusted Trial Balance January 31, 2020 Check figure Totals: $58 050 Typed Responses After completing the accounting services for the new company, answer the below questions. Responses should be typed, double spaced, in complete sentences, and free of spelling or grammatical errors. Use MLA format when citing your sources. 1.) What type of business structure does 'Interior Designs for You' have? How do you know that? 2.) Which other accounts might require adjustments? Why? 2.) When this company closes its books at the end of the period, which specific accounts will be closed? 4.) After reviewing the data and financial statements, what is your opinion of the financial condition of the company? Do you have any specific concerns? Ote specific figures in your response and explain your reasoning 5.) What suggestions do you have for the owners to either improve their overall business or accounting procedures? Remember to add external support to your responses. Cite sources such as your textbook or other credible sources. Anything you write that is not your original thought must be cited. A minimum of two sources should be used in this section 10 Page 10 of 10