I need help with this entire assignment. I have tried to figure it out on my own with no luck.

PRINCIPLES OF ACCOUNTING I ACCT 1010 HOMEWORK PROJECT One homework project is assigned this semester. This assignment is a long, comprehensive problem meant to reinforce and solidify your grasp of the accounting cycle. The Homework Project is to be completed by hand using hard copy working papers. The purpose of this requirement is that students generally have a greater comprehension of the complete accounting cycle by processing the steps by hand. Preparation: Complete the required steps for the project preparing your work in pencil using the hard copy working papers included in this document. Your work should be neat and legible. Refer to the handout on Formatting Rules for Journals (Lesson 2) when preparing your journal entries. You may omit explanations in the journal. Refer to pages 112-113 in your textbook for an example of how to format the financial statements. Submitting Your Project: On ground students will submit the project in class on the due date. Online students will submit the project in hard copy by mailing it to the following address. Projects submitted by mail must be postmarked by the project due date. Laurie Swanson Business Technologies Department Nashville State Community College 120 White Bridge Road Nashville, TN 37209 Due Date: By end of extension Grade Impact & Academic Integrity: This homework project will be worth 5% of your overall course grade. No project grades will be dropped--failure to submit a homework project will result in a grade of -0- for this assessment. Submitting work copied from another source is a violation of the Academic Dishonesty Policy and will result in a grade of -0- for the project. Grading Criteria: This project will be graded on a 100 point scale based on completeness, accuracy, and neatness as shown in the grading details below. Grading Details: Item Journal Entries Adjusting Entries Closing Entries Ledger Acct Balances Unadjusted Trial Balance Adjusted Trial Balance Income Statement Statement of Owner's Equity Balance Sheet Post-Closing Trial Balance Neatness and format Total Possible Points Points 20 points (1 point for each correct account) 17 points (1 point for each correct account; 1 point for each correct amount calculation) 10 points (2 points for each entry; 2 points for correct amounts) 12 points (1/2 point for each correct balance) 3 points for preparation 3 points for preparation 10 points 5 points 10 points 3 points for preparation 7 points 100 Page 1 of 15 Project Data: Callie Jamison owns and operates a consulting firm called Jamison Consulting. The business began operating in October 2016. Transactions for October and November 2016 have been recorded and posted. Jamison Consulting had the following transactions in December 2016. Dec 2Provided $3,950 consulting services to Gomez Company on account. 3Paid $1,025 cash to Hillside Mall for Jamison Consulting's share of mall advertising costs. 4Paid $400 cash for minor repairs to the company's computer. 10Purchased $1,100 of computer supplies on credit from Harris Office Products. 14Paid cash to employee for six days of work at the rate of $125 per day. 15Notified by Alex's Engineering Co. that Jamison Consulting's' bid of $7,000 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Jamison Consulting. 20Completed a project for Lyn Corporation and received $5,625 cash. 28Received $3,000 cash from Gomez Co. on its receivable. 29Reimbursed C. Jamison $193 for business automobile mileage. 31C. Jamison withdrew $1,500 cash from the company for personal use. Page 2 of 15 The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company's first three months of operations: a. The December 31 inventory count of computer supplies shows $320 still available. b. Three of the four months' prepaid rent has expired. c. Three months have expired since the 12-month insurance premium was paid in advance. d. As of December 31, the only employee of Jamison Consulting had not been paid for four days of work at $125 per day. e. The computer system, acquired for $8,000 on October 1, is expected to have a fouryear life with no salvage value. f. The office equipment, acquired for $20,000 on October 1, is expected to have a fiveyear life with no salvage value. Required: 1. Journalize the December transactions for Jamison Consulting. You may omit explanations for the journal entries. Skip a line between each journal entry - see the journal entries for October - November as a formatting example. 2. Post the December transactions to the appropriate accounts in the ledger. 3. Prepare a trial balance to prove the equality of debits and credits prior to continuing with this project. Omit any accounts that have a zero balance. Check figure: $99,816. Consult your instructor if your trial balance does not balance before proceeding with the project. 4. Journalize the adjusting entries to reflect items a through f above. 5. Post the adjusting entries to the appropriate accounts in the ledger. 6. Prepare an adjusted trial balance as of December 31, 2016. Check figure: $101,816. Consult your instructor if your adjusted trial balance does not balance before proceeding with the project. 7. Prepare the three basic financial statements in good form. See pages 120-121 of your accounting text for a good example of financial statement formatting. a. Prepare an income statement for the three months ended December 31, 2016. b. Prepare a statement of owner's equity for the three months ended December 31, 2016. c. Prepare a balance sheet as of December 31, 2016. 8. Journalize and post the necessary closing entries for Jamison Consulting. 9. Prepare a post-closing trial balance as of December 31, 2016. Page 3 of 15 Below are the journal entries recorded by Jamison Consulting for October and November 2016. NOTE: These are for your information only; you do not need to do anything with these entries. GENERAL JOURNAL DATE 2016 Oct ACCOUNT 1 CREDIT 101 163 167 301 45,000 20,000 8,000 Prepaid Insurance Cash 128 101 2,220 Prepaid Rent Cash 131 101 3,300 Computer Supplies Accounts Payable 126 201 2,545 16 Accounts Receivable Computer Services Revenue 106 403 4,800 31 Wages Expense Cash 623 101 875 2 Mileage Expense Cash 676 101 320 Accounts Payable Cash 201 101 2,545 Cash Accounts Receivable 101 106 4,800 14 Cash Computer Services Revenue 101 403 4,633 23 Accounts Receivable Computer Services Revenue 106 5,208 30 C. Jamison, Withdrawals Cash 302 101 2 9 Nov DEBIT Cash Office Equipment Computer Equipment C. Jamison, Capital 1 5 8 Page 4 of 15 1 PAGE POST REF 73,000 2,220 3,300 2,545 4,800 875 320 2,545 4,800 4,633 5,208 2,000 2,000 Homework Project 1 - Working Papers Name:_______ ____________ General Journal for Requirements 1, 4 & 10 GENERAL JOURNAL DATE 2016 Dec ACCOUNT December Transactions (20 points) Page 5 of 15 PAGE POST REF DEBIT CREDIT 2 GENERAL JOURNAL DATE 2016 Dec ACCOUNT Adjusting Entries (17 points) Closing Entries (10 points) Page 6 of 15 PAGE POST REF DEBIT CREDIT 3 Ledger for Requirements 2, 5, & 10 Note: Ledger includes all entries from the first two months of operations for Jamison Consulting. Continue by posting the December transactions. 12 points Cash Date Oct. Nov. Date Oct. Nov. Date Oct. Date Oct. Explanation 1 1 2 31 2 5 8 14 30 PR J1 J1 J1 J1 J1 J1 J1 J1 J1 Debit 45,000 4,800 4,633 Acct. No. 101 Credit Balance 45,000 2,220 42,780 3,300 39,480 875 38,605 320 38,285 2,545 35,740 40,540 45,173 2,000 43,173 Accounts Receivable Explanation PR Debit J1 4,800 J1 J1 5,208 Acct. No. 106 Credit Balance 4,800 4,800 0 5,208 9 Computer Supplies Explanation PR J1 Debit 2,545 Acct. No. 126 Credit Balance 2,545 1 Prepaid Insurance Explanation PR J1 Debit 2,220 Acct. No. 128 Credit Balance 2,220 16 8 23 Ledger (Continued) Page 7 of 15 Date Oct. Date Oct. 2 Prepaid Rent Explanation PR J1 1 Office Equipment Explanation PR J1 Debit 3,300 Acct. No. 131 Credit Balance 3,300 Debit 20,000 Acct. No. 163 Credit Balance 20,000 Acct. No. 164 Date Date Oct. Date Accumulated DepreciationOffice Equipment Explanation PR Debit Credit 1 Computer Equipment Explanation PR Debit J1 8,000 Balance Acct. No. 167 Credit Balance 8,000 Accumulated DepreciationComputer Equipment Acct. No. 168 Explanation PR Debit Credit Balance Acct. No. 201 Date Oct. Nov. 9 5 Accounts Payable Explanation PR Debit J1 J1 2,545 Wages Payable PR Credit 2,545 Balance 2,545 0 Date Explanation Debit Acct. No. 210 Credit Balance Date Unearned Consulting Revenue Explanation PR Debit Acct. No. 236 Credit Balance Page 8 of 15 Ledger (Continued) Date Oct. Date Nov. Date Oct. Nov. C. Jamison, Capital Explanation PR Debit J1 Acct. No. 301 Credit Balance 73,000 73,000 30 C. Jamison, Withdrawals Explanation PR Debit J1 2,000 Acct. No. 302 Credit Balance 2,000 16 14 23 Consulting Revenue Explanation PR Debit J1 J1 J1 Acct. No. 403 Credit Balance 4,800 4,800 4,633 9,433 5,208 14,641 1 Date Depreciation ExpenseOffice Equipment Acct. No. 612 Explanation PR Debit Credit Balance Date Depreciation ExpenseComputer Equipment Acct. No. 613 Explanation PR Debit Credit Balance Date Oct. 31 Wages Expense Explanation PR J1 Page 9 of 15 Debit 875 Acct. No. 623 Credit Balance 875 Ledger (Continued) Insurance Expense Explanation PR Debit Date Date Explanation Debit Acct. No. 640 Credit Balance Date Computer Supplies Expense Explanation PR Debit Acct. No. 652 Credit Balance Date Advertising Expense Explanation PR Debit Acct. No. 655 Credit Balance Date Nov. Mileage Expense Explanation PR J1 Acct. No. 676 Credit Balance 320 2 Rent Expense PR Acct. No. 637 Credit Balance Debit 320 Date Repairs ExpenseComputer Explanation PR Debit Acct. No. 684 Credit Balance Date Income Summary Explanation PR Acct. No. 901 Credit Balance Debit Page 10 of 15 Working Paper for Requirement 3 3 points Jamison Consulting Trial Balance December 31, 2016 DEBIT Page 11 of 15 CREDIT Working Paper for Requirement 6 3 points Jamison Consulting Adjusted Trial Balance December 31, 2016 DEBIT Page 12 of 15 CREDIT Working Papers for Requirements 7, 8 & 9 Jamison Consulting Income Statement (10 points) For Three Months Ended December 31, 2016 Jamison Consulting Statement of Owner's Equity (5 points) For Three Months Ended December 31, 2016 Page 13 of 15 Working Papers for Requirements 6, 7 & 8 (continued) Jamison Consulting Balance Sheet (10 points) December 31, 2016 Page 14 of 15 Working Papers for Requirement 10 Jamison Consulting Post-Closing Trial Balance December 31, 2016 DEBIT Page 15 of 15 CREDIT Janison Consulting General Journal For the period ended 31-12-2016 GENERAL JOURNAL DATE ACCOUNT PAGE POST REF DEBIT CREDIT 2016 Oct 1 1 2 9 16 31 Nov 2 5 8 14 23 Cash Office Equipment Computer Equipment C. Jamison, Capital 101 163 167 301 45000 20000 8,000 Prepaid Insurance Cash 128 101 2,220 Prepaid Rent Cash 131 101 3,300 Computer Supplies Accounts Payable 126 201 2,545 Accounts Receivable Computer Services Revenue 106 403 4,800 Wages Expense Cash 623 101 875 Mileage Expense Cash 676 101 320 Accounts Payable Cash 201 101 2,545 Cash Accounts Receivable 101 106 4,800 Cash Computer Services Revenue 101 403 4,633 Accounts Receivable Computer Services Revenue 106 5,208 73,000 2,220 3,300 2,545 4,800 875 320 2,545 4,800 4,633 5,208 30 C. Jamison, Withdrawals Cash 302 101 2,000 Accounts receivable Computer Services Revenue 106 3950 2,000 Dec 2 3 4 10 14 15 20 28 29 31 Dec 31 3,950 Advertising expenses Cash 1025 1,025 Computer Repairs Cash 400 Computer supplies Accounts Payable 1100 Salaries and wages cash 750 Cash Deferred Revenue 1500 Cash Computer Consulting Revenue 5625 400 1,100 750 1,500 5,625 Cash Accounts Receivable 3000 3,000 Mileage expenses Cash 193 Drawings Cash 1500 Adjustments Computer Supplies expense Computer supplies Rent Expense Prepaid rent Insurance Expense 193 1,500 3,325 3,325 2,475 2,475 555 Prepaid Insurance 555 Wages Expense Wages Payable 500 Depreciation-Computer system Acc Depreciation-Comp system 500 Depreciation-Office equipment Acc Depreciation-Office Equipment 500 500 1,000 1,000 1 CREDIT 73,000 2,220 3,300 2,545 4,800 875 320 2,545 4,800 4,633 5,208 2,000 3,950 1,025 400 1,100 750 1,500 5,625 3,000 193 1,500 3,325 2,475 555 500 500 1,000 Cash Date Oct. Nov. Dec Explanation 1 1 2 31 2 5 8 14 30 3 4 14 15 20 28 29 31 PR Acct. No. 101 Debit J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 Credit 45,000 2,220 3,300 875 320 2,545 4,800 4,633 2,000 1025 400 750 1500 5625 3000 193 1500 Accounts Receivable Date Oct. Nov. Dec Explanation 16 8 23 2 28 PR Acct. No. 106 Debit J1 J1 J1 J1 J1 Credit 4,800 4,800 5,208 3950 3000 Computer Supplies Date Oct. Dec Explanation 9 10 PR J1 J1 Acct. No. 126 Debit Credit 2,545 1100 31 3325 Prepaid Insurance Date Oct. Dec Explanation 1 31 PR Acct. No. 128 Debit J1 Credit 2,220 555 Prepaid Rent Date Oct. Dec Explanation PR 2 31 Acct. No. 131 Debit J1 Credit 3,300 2475 Office Equipment Date Oct. Explanation 1 PR J1 Acct. No. 163 Debit Credit 20,000 Acct. No. 164 Accumulated DepreciationOffice Equipment Date Dec Explanation PR Debit Credit 31 1,000 Computer Equipment Date Oct. Explanation 1 PR J1 Debit Credit 8,000 Accumulated DepreciationComputer Equipment Date Dec Explanation PR Debit Credit 31 Accounts Payable Date Oct. Nov. Dec Explanation 9 5 10 PR Debit J1 J1 J1 Credit 2,545 1100 Wages Payable Date Dec Explanation PR Debit Credit 31 Unearned Consulting Revenue Date Explanation PR Debit Credit Dec C. Jamison, Capital Date Oct. Explanation 1 PR Acct Debit Credit J1 73,000 C. Jamison, Withdrawals Date Nov. Dec Explanation 30 31 PR J1 J1 Debit Credit 2,000 1500 Consulting Revenue Date Oct. Nov. Dec Explanation 16 14 23 4 20 PR Acct Debit Credit J1 J1 J1 J1 J1 4,800 4,633 5,208 3950 5625 Depreciation ExpenseOffice Equipment Date Dec Explanation PR Debit 31 Acct Credit 1000 Depreciation ExpenseComputer Equipment Date Dec Explanation PR Debit 31 Acct Credit 500 Wages Expense Date Oct. Dec Dec Explanation 31 14 31 PR J1 J1 Insurance Expense Acct Debit Credit 875 750 500 Acct. No. 637 Date Dec Explanation PR Debit 31 Credit 555 555 Rent Expense Date Dec Explanation PR Acct. No. 640 Debit 31 Credit 2475 Dec Explanation PR Acct. No. 652 Debit 31 Credit 3325 Explanation PR Acct. No. 655 Debit 3/12/2016 Credit 1025 Nov. Dec Explanation 2 29 PR Acct. No. 676 Debit J1 J1 Credit 320 193 4/12/2016 Explanation PR Balance 320 513 Repairs ExpenseComputer Date Balance 1025 Mileage Expense Date Balance 3325 Advertising Expense Date Balance 2475 Computer Supplies Expense Date Balance Acct. No. 684 Debit Credit 400 Balance 400 Income Summary Date Dec Explanation PR Acct. No. 901 Debit 31 31 Credit 12,298 Changes in equity 12,298 Balance 12,298 - Acct. No. 101 Balance 45,000 42,780 39,480 38,605 38,285 35,740 40,540 45,173 43,173 42,148 41,748 40,998 42,498 48,123 51,123 50,930 49,430 Acct. No. 106 Balance 4,800 0 5,208 9,158 6,158 Acct. No. 126 Balance 2,545 3,645 320 Acct. No. 128 Balance 2,220 1,665 Acct. No. 131 Balance 3,300 825 Acct. No. 163 Balance 20,000 Acct. No. 164 Balance 1,000 Acct. No. 167 Credit Balance 8,000 Acct. No. 168 Credit Balance 500 Acct. No. 201 Credit Balance 2,545 1100 2,545 0 1,100 Acct. No. 210 Credit Balance 500 500 Acct. No. 236 Credit Balance 1500 Acct. No. 301 redit redit 500 Balance 73,000 73,000 Acct. No. 302 Balance 2,000 3,500 1500 Acct. No. 403 redit redit redit redit Balance 4,800 4,633 5,208 3950 5625 4,800 9,433 14,641 18,591 24,216 Acct. No. 612 Balance 1000 Acct. No. 613 Balance 500 Acct. No. 623 Balance 875 1,625 2,125 Unadjusted Trial Balance Adjustments DR CR DR CR Cash 49,430 Accounts Receivable 6,158 Computer Supplies 3,645 3,325 Prepaid Insurance 2,220 555 Prepaid rent 3,300 2,475 Office Equipment 20,000 Accumulated Depreci 1,000 Computer Equipmen 8,000 Accumulated Depre-Comp 500 Accounts Payable 1,100 Wages Payable 500 Unearned Revenue 1,500 Capital Contribution 73,000 Withdrawals 3,500 Consulting Revenue 24,216 Depreciation expense 1,000 Depreciation Expens 500 Wages expense 1,625 500 Insurance Expense 555 Rent Expense 2,475 Computer Supplies 3,325 Advertising Expense 1,025 Mileage Expense 513 Computer Repairs 400 99,816 99,816 8,355 8,355 Adjusted Trial Balance DR CR 49,430 6,158 320 1,665 825 20,000 1,000 8,000 500 1,100 500 1,500 73,000 3,500 24,216 1,000 500 2,125 555 2,475 3,325 1,025 513 400 101,816 101,816 Jamison Consulting Income statement For the period ended 31-Dec-2016 Consulting Revenue Less Expenses Depreciation Wages Expense Insurance expense Rent Expense Computer Supplies Advertising Expenses Mileage Expense Computer Repairs Total Expenses Net Profit for the period 24,216 (1,500) (2,125) (555) (2,475) (3,325) (1,025) (513) (400) (11,918) 12,298 Jamison Consulting. Statement of Changes in Equity Asat 31-Dec-2016. Capaital contibuted-01-10-2016 Drawings Profits for the period Total Equity as at 31-12-2016 73,000 (3,500) 12,298 81,798 Jamison Consulting. Statement of Finacial Position As at 31-12-2016 Non Current Assets Office Equipment Computer Equipment Total Non Current Assets Current Assets Cash Computer Supplies Accounts Receivable Prepaid Insurance Prepaid Rent Total Assets Equity and Liabilities Current Liabilities Accounts Payable Wages Payable Eunearned Revenue Equity Total Equity and Liabilities 19,000 7,500 26,500 49,430 320 6,158 1,665 825 58,398 84,898 1,100 500 1,500 3,100 81,798 84,898 Jamison Consulting Closing Trial Balance As at 31-12-2016 Office equipment Accumulated depr-off Computer Equipment Accumulated depr-c Cash Accounts Receivable Prepaid Insurance Computer Supplies Prepaid Rent Accounts Payable Wages payable Unearned Revenue Capital DR 20,000 8,000 49,430 6,158 1,665 320 825 86,398 CR 1,000 500 1,100 500 1,500 81,798 86,398 Janison Consulting General Journal For the period ended 31-12-2016 GENERAL JOURNAL DATE ACCOUNT PAGE POST REF DEBIT CREDIT 2016 Oct 1 1 2 9 16 31 Nov 2 5 8 14 23 Cash Office Equipment Computer Equipment C. Jamison, Capital 101 163 167 301 45000 20000 8,000 Prepaid Insurance Cash 128 101 2,220 Prepaid Rent Cash 131 101 3,300 Computer Supplies Accounts Payable 126 201 2,545 Accounts Receivable Computer Services Revenue 106 403 4,800 Wages Expense Cash 623 101 875 Mileage Expense Cash 676 101 320 Accounts Payable Cash 201 101 2,545 Cash Accounts Receivable 101 106 4,800 Cash Computer Services Revenue 101 403 4,633 Accounts Receivable Computer Services Revenue 106 5,208 73,000 2,220 3,300 2,545 4,800 875 320 2,545 4,800 4,633 5,208 30 C. Jamison, Withdrawals Cash 302 101 2,000 Accounts receivable Computer Services Revenue 106 3950 2,000 Dec 2 3 4 10 14 15 20 28 29 31 Dec 31 3,950 Advertising expenses Cash 1025 1,025 Computer Repairs Cash 400 Computer supplies Accounts Payable 1100 Salaries and wages cash 750 Cash Deferred Revenue 1500 Cash Computer Consulting Revenue 5625 400 1,100 750 1,500 5,625 Cash Accounts Receivable 3000 3,000 Mileage expenses Cash 193 Drawings Cash 1500 Adjustments Computer Supplies expense Computer supplies Rent Expense Prepaid rent Insurance Expense 193 1,500 3,325 3,325 2,475 2,475 555 Prepaid Insurance 555 Wages Expense Wages Payable 500 Depreciation-Computer system Acc Depreciation-Comp system 500 Depreciation-Office equipment Acc Depreciation-Office Equipment 500 500 1,000 1,000 1 CREDIT 73,000 2,220 3,300 2,545 4,800 875 320 2,545 4,800 4,633 5,208 2,000 3,950 1,025 400 1,100 750 1,500 5,625 3,000 193 1,500 3,325 2,475 555 500 500 1,000 Cash Date Oct. Nov. Dec Explanation 1 1 2 31 2 5 8 14 30 3 4 14 15 20 28 29 31 PR Acct. No. 101 Debit J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 Credit 45,000 2,220 3,300 875 320 2,545 4,800 4,633 2,000 1025 400 750 1500 5625 3000 193 1500 Accounts Receivable Date Oct. Nov. Dec Explanation 16 8 23 2 28 PR Acct. No. 106 Debit J1 J1 J1 J1 J1 Credit 4,800 4,800 5,208 3950 3000 Computer Supplies Date Oct. Dec Explanation 9 10 PR J1 J1 Acct. No. 126 Debit Credit 2,545 1100 31 3325 Prepaid Insurance Date Oct. Dec Explanation 1 31 PR Acct. No. 128 Debit J1 Credit 2,220 555 Prepaid Rent Date Oct. Dec Explanation PR 2 31 Acct. No. 131 Debit J1 Credit 3,300 2475 Office Equipment Date Oct. Explanation 1 PR J1 Acct. No. 163 Debit Credit 20,000 Acct. No. 164 Accumulated DepreciationOffice Equipment Date Dec Explanation PR Debit Credit 31 1,000 Computer Equipment Date Oct. Explanation 1 PR J1 Debit Credit 8,000 Accumulated DepreciationComputer Equipment Date Dec Explanation PR Debit Credit 31 Accounts Payable Date Oct. Nov. Dec Explanation 9 5 10 PR Debit J1 J1 J1 Credit 2,545 1100 Wages Payable Date Dec Explanation PR Debit Credit 31 Unearned Consulting Revenue Date Explanation PR Debit Credit Dec C. Jamison, Capital Date Oct. Explanation 1 PR Acct Debit Credit J1 73,000 C. Jamison, Withdrawals Date Nov. Dec Explanation 30 31 PR J1 J1 Debit Credit 2,000 1500 Consulting Revenue Date Oct. Nov. Dec Explanation 16 14 23 4 20 PR Acct Debit Credit J1 J1 J1 J1 J1 4,800 4,633 5,208 3950 5625 Depreciation ExpenseOffice Equipment Date Dec Explanation PR Debit 31 Acct Credit 1000 Depreciation ExpenseComputer Equipment Date Dec Explanation PR Debit 31 Acct Credit 500 Wages Expense Date Oct. Dec Dec Explanation 31 14 31 PR J1 J1 Insurance Expense Acct Debit Credit 875 750 500 Acct. No. 637 Date Dec Explanation PR Debit 31 Credit 555 555 Rent Expense Date Dec Explanation PR Acct. No. 640 Debit 31 Credit 2475 Dec Explanation PR Acct. No. 652 Debit 31 Credit 3325 Explanation PR Acct. No. 655 Debit 3/12/2016 Credit 1025 Nov. Dec Explanation 2 29 PR Acct. No. 676 Debit J1 J1 Credit 320 193 4/12/2016 Explanation PR Balance 320 513 Repairs ExpenseComputer Date Balance 1025 Mileage Expense Date Balance 3325 Advertising Expense Date Balance 2475 Computer Supplies Expense Date Balance Acct. No. 684 Debit Credit 400 Balance 400 Income Summary Date Dec Explanation PR Acct. No. 901 Debit 31 31 Credit 12,298 Changes in equity 12,298 Balance 12,298 - Acct. No. 101 Balance 45,000 42,780 39,480 38,605 38,285 35,740 40,540 45,173 43,173 42,148 41,748 40,998 42,498 48,123 51,123 50,930 49,430 Acct. No. 106 Balance 4,800 0 5,208 9,158 6,158 Acct. No. 126 Balance 2,545 3,645 320 Acct. No. 128 Balance 2,220 1,665 Acct. No. 131 Balance 3,300 825 Acct. No. 163 Balance 20,000 Acct. No. 164 Balance 1,000 Acct. No. 167 Credit Balance 8,000 Acct. No. 168 Credit Balance 500 Acct. No. 201 Credit Balance 2,545 1100 2,545 0 1,100 Acct. No. 210 Credit Balance 500 500 Acct. No. 236 Credit Balance 1500 Acct. No. 301 redit redit 500 Balance 73,000 73,000 Acct. No. 302 Balance 2,000 3,500 1500 Acct. No. 403 redit redit redit redit Balance 4,800 4,633 5,208 3950 5625 4,800 9,433 14,641 18,591 24,216 Acct. No. 612 Balance 1000 Acct. No. 613 Balance 500 Acct. No. 623 Balance 875 1,625 2,125 Unadjusted Trial Balance Adjustments DR CR DR CR Cash 49,430 Accounts Receivable 6,158 Computer Supplies 3,645 3,325 Prepaid Insurance 2,220 555 Prepaid rent 3,300 2,475 Office Equipment 20,000 Accumulated Depreci 1,000 Computer Equipmen 8,000 Accumulated Depre-Comp 500 Accounts Payable 1,100 Wages Payable 500 Unearned Revenue 1,500 Capital Contribution 73,000 Withdrawals 3,500 Consulting Revenue 24,216 Depreciation expense 1,000 Depreciation Expens 500 Wages expense 1,625 500 Insurance Expense 555 Rent Expense 2,475 Computer Supplies 3,325 Advertising Expense 1,025 Mileage Expense 513 Computer Repairs 400 99,816 99,816 8,355 8,355 Adjusted Trial Balance DR CR 49,430 6,158 320 1,665 825 20,000 1,000 8,000 500 1,100 500 1,500 73,000 3,500 24,216 1,000 500 2,125 555 2,475 3,325 1,025 513 400 101,816 101,816 Jamison Consulting Income statement For the period ended 31-Dec-2016 Consulting Revenue Less Expenses Depreciation Wages Expense Insurance expense Rent Expense Computer Supplies Advertising Expenses Mileage Expense Computer Repairs Total Expenses Net Profit for the period 24,216 (1,500) (2,125) (555) (2,475) (3,325) (1,025) (513) (400) (11,918) 12,298 Jamison Consulting. Statement of Changes in Equity Asat 31-Dec-2016. Capaital contibuted-01-10-2016 Drawings Profits for the period Total Equity as at 31-12-2016 73,000 (3,500) 12,298 81,798 Jamison Consulting. Statement of Finacial Position As at 31-12-2016 Non Current Assets Office Equipment Computer Equipment Total Non Current Assets Current Assets Cash Computer Supplies Accounts Receivable Prepaid Insurance Prepaid Rent Total Assets Equity and Liabilities Current Liabilities Accounts Payable Wages Payable Eunearned Revenue Equity Total Equity and Liabilities 19,000 7,500 26,500 49,430 320 6,158 1,665 825 58,398 84,898 1,100 500 1,500 3,100 81,798 84,898 Jamison Consulting Closing Trial Balance As at 31-12-2016 Office equipment Accumulated depr-off Computer Equipment Accumulated depr-c Cash Accounts Receivable Prepaid Insurance Computer Supplies Prepaid Rent Accounts Payable Wages payable abugak at yahoo dot com Unearned Revenue Capital DR 20,000 8,000 49,430 6,158 1,665 320 825 - CR 1,000 500 1,100 500 86,398 1,500 81,798 86,398 PRINCIPLES OF ACCOUNTING I ACCT 1010 HOMEWORK PROJECT One homework project is assigned this semester. This assignment is a long, comprehensive problem meant to reinforce and solidify your grasp of the accounting cycle. The Homework Project is to be completed by hand using hard copy working papers. The purpose of this requirement is that students generally have a greater comprehension of the complete accounting cycle by processing the steps by hand. Preparation: Complete the required steps for the project preparing your work in pencil using the hard copy working papers included in this document. Your work should be neat and legible. Refer to the handout on Formatting Rules for Journals (Lesson 2) when preparing your journal entries. You may omit explanations in the journal. Refer to pages 112-113 in your textbook for an example of how to format the financial statements. Submitting Your Project: On ground students will submit the project in class on the due date. Online students will submit the project in hard copy by mailing it to the following address. Projects submitted by mail must be postmarked by the project due date. Laurie Swanson Business Technologies Department Nashville State Community College 120 White Bridge Road Nashville, TN 37209 Due Date: By end of extension Grade Impact & Academic Integrity: This homework project will be worth 5% of your overall course grade. No project grades will be dropped--failure to submit a homework project will result in a grade of -0- for this assessment. Submitting work copied from another source is a violation of the Academic Dishonesty Policy and will result in a grade of -0- for the project. Grading Criteria: This project will be graded on a 100 point scale based on completeness, accuracy, and neatness as shown in the grading details below. Grading Details: Item Journal Entries Adjusting Entries Closing Entries Ledger Acct Balances Unadjusted Trial Balance Adjusted Trial Balance Income Statement Statement of Owner's Equity Balance Sheet Post-Closing Trial Balance Neatness and format Total Possible Points Points 20 points (1 point for each correct account) 17 points (1 point for each correct account; 1 point for each correct amount calculation) 10 points (2 points for each entry; 2 points for correct amounts) 12 points (1/2 point for each correct balance) 3 points for preparation 3 points for preparation 10 points 5 points 10 points 3 points for preparation 7 points 100 Page 1 of 15 Project Data: Callie Jamison owns and operates a consulting firm called Jamison Consulting. The business began operating in October 2016. Transactions for October and November 2016 have been recorded and posted. Jamison Consulting had the following transactions in December 2016. Dec 2Provided $3,950 consulting services to Gomez Company on account. 3Paid $1,025 cash to Hillside Mall for Jamison Consulting's share of mall advertising costs. 4Paid $400 cash for minor repairs to the company's computer. 10Purchased $1,100 of computer supplies on credit from Harris Office Products. 14Paid cash to employee for six days of work at the rate of $125 per day. 15Notified by Alex's Engineering Co. that Jamison Consulting's' bid of $7,000 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Jamison Consulting. 20Completed a project for Lyn Corporation and received $5,625 cash. 28Received $3,000 cash from Gomez Co. on its receivable. 29Reimbursed C. Jamison $193 for business automobile mileage. 31C. Jamison withdrew $1,500 cash from the company for personal use. Page 2 of 15 The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company's first three months of operations: a. The December 31 inventory count of computer supplies shows $320 still available. b. Three of the four months' prepaid rent has expired. c. Three months have expired since the 12-month insurance premium was paid in advance. d. As of December 31, the only employee of Jamison Consulting had not been paid for four days of work at $125 per day. e. The computer system, acquired for $8,000 on October 1, is expected to have a fouryear life with no salvage value. f. The office equipment, acquired for $20,000 on October 1, is expected to have a fiveyear life with no salvage value. Required: 1. Journalize the December transactions for Jamison Consulting. You may omit explanations for the journal entries. Skip a line between each journal entry - see the journal entries for October - November as a formatting example. 2. Post the December transactions to the appropriate accounts in the ledger. 3. Prepare a trial balance to prove the equality of debits and credits prior to continuing with this project. Omit any accounts that have a zero balance. Check figure: $99,816. Consult your instructor if your trial balance does not balance before proceeding with the project. 4. Journalize the adjusting entries to reflect items a through f above. 5. Post the adjusting entries to the appropriate accounts in the ledger. 6. Prepare an adjusted trial balance as of December 31, 2016. Check figure: $101,816. Consult your instructor if your adjusted trial balance does not balance before proceeding with the project. 7. Prepare the three basic financial statements in good form. See pages 120-121 of your accounting text for a good example of financial statement formatting. a. Prepare an income statement for the three months ended December 31, 2016. b. Prepare a statement of owner's equity for the three months ended December 31, 2016. c. Prepare a balance sheet as of December 31, 2016. 8. Journalize and post the necessary closing entries for Jamison Consulting. 9. Prepare a post-closing trial balance as of December 31, 2016. Page 3 of 15 Below are the journal entries recorded by Jamison Consulting for October and November 2016. NOTE: These are for your information only; you do not need to do anything with these entries. GENERAL JOURNAL DATE 2016 Oct ACCOUNT 1 CREDIT 101 163 167 301 45,000 20,000 8,000 Prepaid Insurance Cash 128 101 2,220 Prepaid Rent Cash 131 101 3,300 Computer Supplies Accounts Payable 126 201 2,545 16 Accounts Receivable Computer Services Revenue 106 403 4,800 31 Wages Expense Cash 623 101 875 2 Mileage Expense Cash 676 101 320 Accounts Payable Cash 201 101 2,545 Cash Accounts Receivable 101 106 4,800 14 Cash Computer Services Revenue 101 403 4,633 23 Accounts Receivable Computer Services Revenue 106 5,208 30 C. Jamison, Withdrawals Cash 302 101 2 9 Nov DEBIT Cash Office Equipment Computer Equipment C. Jamison, Capital 1 5 8 Page 4 of 15 1 PAGE POST REF 73,000 2,220 3,300 2,545 4,800 875 320 2,545 4,800 4,633 5,208 2,000 2,000 Homework Project 1 - Working Papers Name:_______ ____________ General Journal for Requirements 1, 4 & 10 GENERAL JOURNAL DATE 2016 Dec ACCOUNT December Transactions (20 points) Page 5 of 15 PAGE POST REF DEBIT CREDIT 2 GENERAL JOURNAL DATE 2016 Dec ACCOUNT Adjusting Entries (17 points) Closing Entries (10 points) Page 6 of 15 PAGE POST REF DEBIT CREDIT 3 Ledger for Requirements 2, 5, & 10 Note: Ledger includes all entries from the first two months of operations for Jamison Consulting. Continue by posting the December transactions. 12 points Cash Date Oct. Nov. Date Oct. Nov. Date Oct. Date Oct. Explanation 1 1 2 31 2 5 8 14 30 PR J1 J1 J1 J1 J1 J1 J1 J1 J1 Debit 45,000 4,800 4,633 Acct. No. 101 Credit Balance 45,000 2,220 42,780 3,300 39,480 875 38,605 320 38,285 2,545 35,740 40,540 45,173 2,000 43,173 Accounts Receivable Explanation PR Debit J1 4,800 J1 J1 5,208 Acct. No. 106 Credit Balance 4,800 4,800 0 5,208 9 Computer Supplies Explanation PR J1 Debit 2,545 Acct. No. 126 Credit Balance 2,545 1 Prepaid Insurance Explanation PR J1 Debit 2,220 Acct. No. 128 Credit Balance 2,220 16 8 23 Ledger (Continued) Page 7 of 15 Date Oct. Date Oct. 2 Prepaid Rent Explanation PR J1 1 Office Equipment Explanation PR J1 Debit 3,300 Acct. No. 131 Credit Balance 3,300 Debit 20,000 Acct. No. 163 Credit Balance 20,000 Acct. No. 164 Date Date Oct. Date Accumulated DepreciationOffice Equipment Explanation PR Debit Credit 1 Computer Equipment Explanation PR Debit J1 8,000 Balance Acct. No. 167 Credit Balance 8,000 Accumulated DepreciationComputer Equipment Acct. No. 168 Explanation PR Debit Credit Balance Acct. No. 201 Date Oct. Nov. 9 5 Accounts Payable Explanation PR Debit J1 J1 2,545 Wages Payable PR Credit 2,545 Balance 2,545 0 Date Explanation Debit Acct. No. 210 Credit Balance Date Unearned Consulting Revenue Explanation PR Debit Acct. No. 236 Credit Balance Page 8 of 15 Ledger (Continued) Date Oct. Date Nov. Date Oct. Nov. C. Jamison, Capital Explanation PR Debit J1 Acct. No. 301 Credit Balance 73,000 73,000 30 C. Jamison, Withdrawals Explanation PR Debit J1 2,000 Acct. No. 302 Credit Balance 2,000 16 14 23 Consulting Revenue Explanation PR Debit J1 J1 J1 Acct. No. 403 Credit Balance 4,800 4,800 4,633 9,433 5,208 14,641 1 Date Depreciation ExpenseOffice Equipment Acct. No. 612 Explanation PR Debit Credit Balance Date Depreciation ExpenseComputer Equipment Acct. No. 613 Explanation PR Debit Credit Balance Date Oct. 31 Wages Expense Explanation PR J1 Page 9 of 15 Debit 875 Acct. No. 623 Credit Balance 875 Ledger (Continued) Insurance Expense Explanation PR Debit Date Date Explanation Debit Acct. No. 640 Credit Balance Date Computer Supplies Expense Explanation PR Debit Acct. No. 652 Credit Balance Date Advertising Expense Explanation PR Debit Acct. No. 655 Credit Balance Date Nov. Mileage Expense Explanation PR J1 Acct. No. 676 Credit Balance 320 2 Rent Expense PR Acct. No. 637 Credit Balance Debit 320 Date Repairs ExpenseComputer Explanation PR Debit Acct. No. 684 Credit Balance Date Income Summary Explanation PR Acct. No. 901 Credit Balance Debit Page 10 of 15 Working Paper for Requirement 3 3 points Jamison Consulting Trial Balance December 31, 2016 DEBIT Page 11 of 15 CREDIT Working Paper for Requirement 6 3 points Jamison Consulting Adjusted Trial Balance December 31, 2016 DEBIT Page 12 of 15 CREDIT Working Papers for Requirements 7, 8 & 9 Jamison Consulting Income Statement (10 points) For Three Months Ended December 31, 2016 Jamison Consulting Statement of Owner's Equity (5 points) For Three Months Ended December 31, 2016 Page 13 of 15 Working Papers for Requirements 6, 7 & 8 (continued) Jamison Consulting Balance Sheet (10 points) December 31, 2016 Page 14 of 15 Working Papers for Requirement 10 Jamison Consulting Post-Closing Trial Balance December 31, 2016 DEBIT Page 15 of 15 CREDIT Janison Consulting General Journal For the period ended 31-12-2016 GENERAL JOURNAL DATE ACCOUNT PAGE POST REF DEBIT CREDIT 2016 Oct 1 1 2 9 16 31 Nov 2 5 8 14 23 Cash Office Equipment Computer Equipment C. Jamison, Capital 101 163 167 301 45000 20000 8,000 Prepaid Insurance Cash 128 101 2,220 Prepaid Rent Cash 131 101 3,300 Computer Supplies Accounts Payable 126 201 2,545 Accounts Receivable Computer Services Revenue 106 403 4,800 Wages Expense Cash 623 101 875 Mileage Expense Cash 676 101 320 Accounts Payable Cash 201 101 2,545 Cash Accounts Receivable 101 106 4,800 Cash Computer Services Revenue 101 403 4,633 Accounts Receivable Computer Services Revenue 106 5,208 73,000 2,220 3,300 2,545 4,800 875 320 2,545 4,800 4,633 5,208 30 C. Jamison, Withdrawals Cash 302 101 2,000 Accounts receivable Computer Services Revenue 106 3950 2,000 Dec 2 3 4 10 14 15 20 28 29 31 Dec 31 3,950 Advertising expenses Cash 1025 1,025 Computer Repairs Cash 400 Computer supplies Accounts Payable 1100 Salaries and wages cash 750 Cash Deferred Revenue 1500 Cash Computer Consulting Revenue 5625 400 1,100 750 1,500 5,625 Cash Accounts Receivable 3000 3,000 Mileage expenses Cash 193 Drawings Cash 1500 Adjustments Computer Supplies expense Computer supplies Rent Expense Prepaid rent Insurance Expense 193 1,500 3,325 3,325 2,475 2,475 555 Prepaid Insurance 555 Wages Expense Wages Payable 500 Depreciation-Computer system Acc Depreciation-Comp system 500 Depreciation-Office equipment Acc Depreciation-Office Equipment 500 500 1,000 1,000 1 CREDIT 73,000 2,220 3,300 2,545 4,800 875 320 2,545 4,800 4,633 5,208 2,000 3,950 1,025 400 1,100 750 1,500 5,625 3,000 193 1,500 3,325 2,475 555 500 500 1,000 Cash Date Oct. Nov. Dec Explanation 1 1 2 31 2 5 8 14 30 3 4 14 15 20 28 29 31 PR Acct. No. 101 Debit J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 Credit 45,000 2,220 3,300 875 320 2,545 4,800 4,633 2,000 1025 400 750 1500 5625 3000 193 1500 Accounts Receivable Date Oct. Nov. Dec Explanation 16 8 23 2 28 PR Acct. No. 106 Debit J1 J1 J1 J1 J1 Credit 4,800 4,800 5,208 3950 3000 Computer Supplies Date Oct. Dec Explanation 9 10 PR J1 J1 Acct. No. 126 Debit Credit 2,545 1100 31 3325 Prepaid Insurance Date Oct. Dec Explanation 1 31 PR Acct. No. 128 Debit J1 Credit 2,220 555 Prepaid Rent Date Oct. Dec Explanation PR 2 31 Acct. No. 131 Debit J1 Credit 3,300 2475 Office Equipment Date Oct. Explanation 1 PR J1 Acct. No. 163 Debit Credit 20,000 Acct. No. 164 Accumulated DepreciationOffice Equipment Date Dec Explanation PR Debit Credit 31 1,000 Computer Equipment Date Oct. Explanation 1 PR J1 Debit Credit 8,000 Accumulated DepreciationComputer Equipment Date Dec Explanation PR Debit Credit 31 Accounts Payable Date Oct. Nov. Dec Explanation 9 5 10 PR Debit J1 J1 J1 Credit 2,545 1100 Wages Payable Date Dec Explanation PR Debit Credit 31 Unearned Consulting Revenue Date Explanation PR Debit Credit Dec C. Jamison, Capital Date Oct. Explanation 1 PR Acct Debit Credit J1 73,000 C. Jamison, Withdrawals Date Nov. Dec Explanation 30 31 PR J1 J1 Debit Credit 2,000 1500 Consulting Revenue Date Oct. Nov. Dec Explanation 16 14 23 4 20 PR Acct Debit Credit J1 J1 J1 J1 J1 4,800 4,633 5,208 3950 5625 Depreciation ExpenseOffice Equipment Date Dec Explanation PR Debit 31 Acct Credit 1000 Depreciation ExpenseComputer Equipment Date Dec Explanation PR Debit 31 Acct Credit 500 Wages Expense Date Oct. Dec Dec Explanation 31 14 31 PR J1 J1 Insurance Expense Acct Debit Credit 875 750 500 Acct. No. 637 Date Dec Explanation PR Debit 31 Credit 555 555 Rent Expense Date Dec Explanation PR Acct. No. 640 Debit 31 Credit 2475 Dec Explanation PR Acct. No. 652 Debit 31 Credit 3325 Explanation PR Acct. No. 655 Debit 3/12/2016 Credit 1025 Nov. Dec Explanation 2 29 PR Acct. No. 676 Debit J1 J1 Credit 320 193 4/12/2016 Explanation PR Balance 320 513 Repairs ExpenseComputer Date Balance 1025 Mileage Expense Date Balance 3325 Advertising Expense Date Balance 2475 Computer Supplies Expense Date Balance Acct. No. 684 Debit Credit 400 Balance 400 Income Summary Date Dec Explanation PR Acct. No. 901 Debit 31 31 Credit 12,298 Changes in equity 12,298 Balance 12,298 - Acct. No. 101 Balance 45,000 42,780 39,480 38,605 38,285 35,740 40,540 45,173 43,173 42,148 41,748 40,998 42,498 48,123 51,123 50,930 49,430 Acct. No. 106 Balance 4,800 0 5,208 9,158 6,158 Acct. No. 126 Balance 2,545 3,645 320 Acct. No. 128 Balance 2,220 1,665 Acct. No. 131 Balance 3,300 825 Acct. No. 163 Balance 20,000 Acct. No. 164 Balance 1,000 Acct. No. 167 Credit Balance 8,000 Acct. No. 168 Credit Balance 500 Acct. No. 201 Credit Balance 2,545 1100 2,545 0 1,100 Acct. No. 210 Credit Balance 500 500 Acct. No. 236 Credit Balance 1500 Acct. No. 301 redit redit 500 Balance 73,000 73,000 Acct. No. 302 Balance 2,000 3,500 1500 Acct. No. 403 redit redit redit redit Balance 4,800 4,633 5,208 3950 5625 4,800 9,433 14,641 18,591 24,216 Acct. No. 612 Balance 1000 Acct. No. 613 Balance 500 Acct. No. 623 Balance 875 1,625 2,125 Unadjusted Trial Balance Adjustments DR CR DR CR Cash 49,430 Accounts Receivable 6,158 Computer Supplies 3,645 3,325 Prepaid Insurance 2,220 555 Prepaid rent 3,300 2,475 Office Equipment 20,000 Accumulated Depreci 1,000 Computer Equipmen 8,000 Accumulated Depre-Comp 500 Accounts Payable 1,100 Wages Payable 500 Unearned Revenue 1,500 Capital Contribution 73,000 Withdrawals 3,500 Consulting Revenue 24,216 Depreciation expense 1,000 Depreciation Expens 500 Wages expense 1,625 500 Insurance Expense 555 Rent Expense 2,475 Computer Supplies 3,325 Advertising Expense 1,025 Mileage Expense 513 Computer Repairs 400 99,816 99,816 8,355 8,355 Adjusted Trial Balance DR CR 49,430 6,158 320 1,665 825 20,000 1,000 8,000 500 1,100 500 1,500 73,000 3,500 24,216 1,000 500 2,125 555 2,475 3,325 1,025 513 400 101,816 101,816 Jamison Consulting Income statement For the period ended 31-Dec-2016 Consulting Revenue Less Expenses Depreciation Wages Expense Insurance expense Rent Expense Computer Supplies Advertising Expenses Mileage Expense Computer Repairs Total Expenses Net Profit for the period 24,216 (1,500) (2,125) (555) (2,475) (3,325) (1,025) (513) (400) (11,918) 12,298 Jamison Consulting. Statement of Changes in Equity Asat 31-Dec-2016. Capaital contibuted-01-10-2016 Drawings Profits for the period Total Equity as at 31-12-2016 73,000 (3,500) 12,298 81,798 Jamison Consulting. Statement of Finacial Position As at 31-12-2016 Non Current Assets Office Equipment Computer Equipment Total Non Current Assets Current Assets Cash Computer Supplies Accounts Receivable Prepaid Insurance Prepaid Rent Total Assets Equity and Liabilities Current Liabilities Accounts Payable Wages Payable Eunearned Revenue Equity Total Equity and Liabilities 19,000 7,500 26,500 49,430 320 6,158 1,665 825 58,398 84,898 1,100 500 1,500 3,100 81,798 84,898 Jamison Consulting Closing Trial Balance As at 31-12-2016 Office equipment Accumulated depr-off Computer Equipment Accumulated depr-c Cash Accounts Receivable Prepaid Insurance Computer Supplies Prepaid Rent Accounts Payable Wages payable abugak at yahoo dot com Unearned Revenue Capital DR 20,000 8,000 49,430 6,158 1,665 320 825 - CR 1,000 500 1,100 500 86,398 1,500 81,798 86,398 PRINCIPLES OF ACCOUNTING I ACCT 1010 HOMEWORK PROJECT One homework project is assigned this semester. This assignment is a long, comprehensive problem meant to reinforce and solidify your grasp of the accounting cycle. The Homework Project is to be completed by hand using hard copy working papers. The purpose of this requirement is that students generally have a greater comprehension of the complete accounting cycle by processing the steps by hand. Preparation: Complete the required steps for the project preparing your work in pencil using the hard copy working papers included in this document. Your work should be neat and legible. Refer to the handout on Formatting Rules for Journals (Lesson 2) when preparing your journal entries. You may omit explanations in the journal. Refer to pages 112-113 in your textbook for an example of how to format the financial statements. Submitting Your Project: On ground students will submit the project in class on the due date. Online students will submit the project in hard copy by mailing it to the following address. Projects submitted by mail must be postmarked by the project due date. Laurie Swanson Business Technologies Department Nashville State Community College 120 White Bridge Road Nashville, TN 37209 Due Date: By end of extension Grade Impact & Academic Integrity: This homework project will be worth 5% of your overall course grade. No project grades will be dropped--failure to submit a homework project will result in a grade of -0- for this assessment. Submitting work copied from another source is a violation of the Academic Dishonesty Policy and will result in a grade of -0- for the project. Grading Criteria: This project will be graded on a 100 point scale based on completeness, accuracy, and neatness as shown in the grading details below. Grading Details: Item Journal Entries Adjusting Entries Closing Entries Ledger Acct Balances Unadjusted Trial Balance Adjusted Trial Balance Income Statement Statement of Owner's Equity Balance Sheet Post-Closing Trial Balance Neatness and format Total Possible Points Points 20 points (1 point for each correct account) 17 points (1 point for each correct account; 1 point for each correct amount calculation) 10 points (2 points for each entry; 2 points for correct amounts) 12 points (1/2 point for each correct balance) 3 points for preparation 3 points for preparation 10 points 5 points 10 points 3 points for preparation 7 points 100 Page 1 of 15 Project Data: Callie Jamison owns and operates a consulting firm called Jamison Consulting. The business began operating in October 2016. Transactions for October and November 2016 have been recorded and posted. Jamison Consulting had the following transactions in December 2016. Dec 2Provided $3,950 consulting services to Gomez Company on account. 3Paid $1,025 cash to Hillside Mall for Jamison Consulting's share of mall advertising costs. 4Paid $400 cash for minor repairs to the company's computer. 10Purchased $1,100 of computer supplies on credit from Harris Office Products. 14Paid cash to employee for six days of work at the rate of $125 per day. 15Notified by Alex's Engineering Co. that Jamison Consulting's' bid of $7,000 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Jamison Consulting. 20Completed a project for Lyn Corporation and received $5,625 cash. 28Received $3,000 cash from Gomez Co. on its receivable. 29Reimbursed C. Jamison $193 for business automobile mileage. 31C. Jamison withdrew $1,500 cash from the company for personal use. Page 2 of 15 The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company's first three months of operations: a. The December 31 inventory count of computer supplies shows $320 still available. b. Three of the four months' prepaid rent has expired. c. Three months have expired since the 12-month insurance premium was paid in advance. d. As of December 31, the only employee of Jamison Consulting had not been paid for four days of work at $125 per day. e. The computer system, acquired for $8,000 on October 1, is expected to have a fouryear life with no salvage value. f. The office equipment, acquired for $20,000 on October 1, is expected to have a fiveyear life with no salvage value. Required: 1. Journalize the December transactions for Jamison Consulting. You may omit explanations for the journal entries. Skip a line between each journal entry - see the journal entries for October - November as a formatting example. 2. Post the December transactions to the appropriate accounts in the ledger. 3. Prepare a trial balance to prove the equality of debits and credits prior to continuing with this project. Omit any accounts that have a zero balance. Check figure: $99,816. Consult your instructor if your trial balance does not balance before proceeding with the project. 4. Journalize the adjusting entries to reflect items a through f above. 5. Post the adjusting entries to the appropriate accounts in the ledger. 6. Prepare an adjusted trial balance as of December 31, 2016. Check figure: $101,816. Consult your instructor if your adjusted trial balance does not balance before proceeding with the project. 7. Prepare the three basic financial statements in good form. See pages 120-121 of your accounting text for a good example of financial statement formatting. a. Prepare an income statement for the three months ended December 31, 2016. b. Prepare a statement of owner's equity for the three months ended December 31, 2016. c. Prepare a balance sheet as of December 31, 2016. 8. Journalize and post the necessary closing entries for Jamison Consulting. 9. Prepare a post-closing trial balance as of December 31, 2016. Page 3 of 15 Below are the journal entries recorded by Jamison Consulting for October and November 2016. NOTE: These are for your information only; you do not need to do anything with these entries. GENERAL JOURNAL DATE 2016 Oct ACCOUNT 1 CREDIT 101 163 167 301 45,000 20,000 8,000 Prepaid Insurance Cash 128 101 2,220 Prepaid Rent Cash 131 101 3,300 Computer Supplies Accounts Payable 126 201 2,545 16 Accounts Receivable Computer Services Revenue 106 403 4,800 31 Wages Expense Cash 623 101 875 2 Mileage Expense Cash 676 101 320 Accounts Payable Cash 201 101 2,545 Cash Accounts Receivable 101 106 4,800 14 Cash Computer Services Revenue 101 403 4,633 23 Accounts Receivable Computer Services Revenue 106 5,208 30 C. Jamison, Withdrawals Cash 302 101 2 9 Nov DEBIT Cash Office Equipment Computer Equipment C. Jamison, Capital 1 5 8 Page 4 of 15 1 PAGE POST REF 73,000 2,220 3,300 2,545 4,800 875 320 2,545 4,800 4,633 5,208 2,000 2,000 Homework Project 1 - Working Papers Name:_______ ____________ General Journal for Requirements 1, 4 & 10 GENERAL JOURNAL DATE 2016 Dec ACCOUNT December Transactions (20 points) Page 5 of 15 PAGE POST REF DEBIT CREDIT 2 GENERAL JOURNAL DATE 2016 Dec ACCOUNT Adjusting Entries (17 points) Closing Entries (10 points) Page 6 of 15 PAGE POST REF DEBIT CREDIT 3 Ledger for Requirements 2, 5, & 10 Note: Ledger includes all entries from the first two months of operations for Jamison Consulting. Continue by posting the December transactions. 12 points Cash Date Oct. Nov. Date Oct. Nov. Date Oct. Date Oct. Explanation 1 1 2 31 2 5 8 14 30 PR J1 J1 J1 J1 J1 J1 J1 J1 J1 Debit 45,000 4,800 4,633 Acct. No. 101 Credit Balance 45,000 2,220 42,780 3,300 39,480 875 38,605 320 38,285 2,545 35,740 40,540 45,173 2,000 43,173 Accounts Receivable Explanation PR Debit J1 4,800 J1 J1 5,208 Acct. No. 106 Credit Balance 4,800 4,800 0 5,208 9 Computer Supplies Explanation PR J1 Debit 2,545 Acct. No. 126 Credit Balance 2,545 1 Prepaid Insurance Explanation PR J1 Debit 2,220 Acct. No. 128 Credit Balance 2,220 16 8 23 Ledger (Continued) Page 7 of 15 Date Oct. Date Oct. 2 Prepaid Rent Explanation PR J1 1 Office Equipment Explanation PR J1 Debit 3,300 Acct. No. 131 Credit Balance 3,300 Debit 20,000 Acct. No. 163 Credit Balance 20,000 Acct. No. 164 Date Date Oct. Date Accumulated DepreciationOffice Equipment Explanation PR Debit Credit 1 Computer Equipment Explanation PR Debit J1 8,000 Balance Acct. No. 167 Credit Balance 8,000 Accumulated DepreciationComputer Equipment Acct. No. 168 Explanation PR Debit Credit Balance Acct. No. 201 Date Oct. Nov. 9 5 Accounts Payable Explanation PR Debit J1 J1 2,545 Wages Payable PR Credit 2,545 Balance 2,545 0 Date Explanation Debit Acct. No. 210 Credit Balance Date Unearned Consulting Revenue Explanation PR Debit Acct. No. 236 Credit Balance Page 8 of 15 Ledger (Continued) Date Oct. Date Nov. Date Oct. Nov. C. Jamison, Capital Explanation PR Debit J1 Acct. No. 301 Credit Balance 73,000 73,000 30 C. Jamison, Withdrawals Explanation PR Debit J1 2,000 Acct. No. 302 Credit Balance 2,000 16 14 23 Consulting Revenue Explanation PR Debit J1 J1 J1 Acct. No. 403 Credit Balance 4,800 4,800 4,633 9,433 5,208 14,641 1 Date Depreciation ExpenseOffice Equipment Acct. No. 612 Explanation PR Debit Credit Balance Date Depreciation ExpenseComputer Equipment Acct. No. 613 Explanation PR Debit Credit Balance Date Oct. 31 Wages Expense Explanation PR J1 Page 9 of 15 Debit 875 Acct. No. 623 Credit Balance 875 Ledger (Continued) Insurance Expense Explanation PR Debit Date Date Explanation Debit Acct. No. 640 Credit Balance Date Computer Supplies Expense Explanation PR Debit Acct. No. 652 Credit Balance Date Advertising Expense Explanation PR Debit Acct. No. 655 Credit Balance Date Nov. Mileage Expense Explanation PR J1 Acct. No. 676 Credit Balance 320 2 Rent Expense PR Acct. No. 637 Credit Balance Debit 320 Date Repairs ExpenseComputer Explanation PR Debit Acct. No. 684 Credit Balance Date Income Summary Explanation PR Acct. No. 901 Credit Balance Debit Page 10 of 15 Working Paper for Requirement 3 3 points Jamison Consulting Trial Balance December 31, 2016 DEBIT Page 11 of 15 CREDIT Working Paper for Requirement 6 3 points Jamison Consulting Adjusted Trial Balance December 31, 2016 DEBIT Page 12 of 15 CREDIT Working Papers for Requirements 7, 8 & 9 Jamison Consulting Income Statement (10 points) For Three Months Ended December 31, 2016 Jamison Consulting Statement of Owner's Equity (5 points) For Three Months Ended December 31, 2016 Page 13 of 15 Working Papers for Requirements 6, 7 & 8 (continued) Jamison Consulting Balance Sheet (10 points) December 31, 2016 Page 14 of 15 Working Papers for Requirement 10 Jamison Consulting Post-Closing Trial Balance December 31, 2016 DEBIT Page 15 of 15 CREDIT