Accounting Cycle Project

The following is the post$-$closing trial balance for Kennesaw Company, Inc $($KCI$),$ a merchandising company, at December $31,2024.$

$\backslash$table$[[$Account Title,Debit,Credit$],[$Cash$,9,000,],[$Accounts Receivable,$2,000,],[$Allowance for Uncollectible Accounts,,$500],[$Supplies$,1,500,],[$Inventory$,2,000,],[$Equipment$,4,000,],[$Accumulated Depreciation b b$$q$$a$,($big bal,$400],[$Accounts Payable,,$4,500],[$Stock$,,10,500],[$Retained Earnings,,$2,600],[$Total$,18,500,18,500]]$

The following are the transactions for the month of January, $2025$:

A On January $2,KCl$ purchased inventory for $$4000$ on account.

B On January $3,$ KCI sold merchandise to a customer for $$1200$ and accepted a $9-$month, $10\%$ note. The merchandise cost $KCl$$$360.$

C On January $5,$KCI paid $$600$ for a one$-$year insurance policy.

D On January $8,$ KCI collected $$1500$ from customers previously billed.

E On January $9,KCl$ wrote off $$200$ in accounts receivable for a customer that filed bankruptcy.

F On January $10,$KCI received $$800$ from a customer as a deposit for future merchandise purchase.

G On January $15,KCl$ paid $$700$ for employee salaries for work performed in January.

H On January $20,KCl$ sold $$3000$ of inventory on account that cost $$900.$

I On January $28,KCl$ purchases land for $$6000$ and incurs title investigation costs of $$250.$

J On January $30,KCl$ paid $$150$ for dividends.

Additional information for adjusting journal entries:

K A count of supplies at the close of business on January $31$ reveals that $$1200$ are still on hand.

L Determined that the required balance in the Allowance for Uncollectible Accounts should be $$580.$

M Depreciation for the equipment was $$100.$

$N$ Interest has accrued on the note, but will not be received until later.

O One month of insurance has expired.

PART $1$ Due hardcopy no later than Tuesday, April $2.$ Emailed projects will not be accepted. INCLUDE PROJECT INSTRUCTIONS AND RUBRIC

$1$ Prepare the monthly journal entries for transactions A$-$J$.$

$2$ Post the monthly journal entries to the general ledger $($t$-$accounts$).$ If you do not already have a taccount, create a new one.

$3$ Using the $t-$account balances, prepare an unadjusted trial balance.

$4$ Prepare the adjusting journal entries for transactions K$-$O$.$

$5$ Post the adjusting journal entries to the general ledger $($t$-$accounts$).$ If you do not already have a $t$ account, create a new one.

$6$ Using the $t-$account balances, prepare an adjusted trial balance.

FINAL SUBMISSION Due hardcopy no later than Tuesday, April $16.$ Emailed projects will not be accepted.

Turn in Corrected PART $1$ WITH GRADED RUBRIC plus the following:

Prepare an income statement $($single step$),$ statement of retained earnings, and balance sheet $($not

$7$ classified$)$ for the month.

$8$ Prepare the three closing journal entries $($Do not use Income Summary$).$

$9$ Post the closing journal entries to the general ledger $($t$-$accounts$).$ If you do not already have a t$-$account, create a new one.

$10$ Using the $t-$account balances, prepare a post$-$closing trial balance.

Hint: You should start with the following t$-$accounts:

$\backslash$table$[[$Cash$],[9,000,],[$Supplies$],[1,500,]]$

$\frac{\text{A}\text{c}\text{c}\text{o}\text{u}\text{n}\text{t}\text{s}\text{R}\text{e}\text{c}\text{e}\text{i}\text{v}\text{a}\text{b}\text{l}\text{e}}{2,000}$

$\backslash$table$[[$Allowance for U$.$A$.]]$

$$AccumDeprec

$\backslash$table$[[$Accounts Payable$],[,4,500]]$

$\frac{\text{E}\text{q}\text{u}\text{i}\text{p}\text{m}\text{e}\text{n}\text{t}}{4,000}$

$\backslash$table$[[$Retained Earnings$],[2,600]]$