Overview
	Consists of two parts, A and B, respectively. There are 10 Requirements for you to complete in this exercise, Part A has 1-3 and Part B has 4-10. All of the information you need to complete this is located in this Workbook. There are 8 worksheets in the workbook you will need to complete for Parts A & B. A list of October transactions A Chart of Accounts reference sheet
Scenario
	Youve 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 doesnt know where to begin. Its your job to go through the complete Accounting cycle to prepare the financial statements for the RRC.
Requirements	Requirement description Worksheet
Part 1
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 2
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
Guidelines
	For Part A:
	Complete Requirements 1-3 on the Journal Entries, General Ledger, and Trial Balance worksheets.
	Type your work directly into the worksheets.
	For Part B:
	Using feedback from your instructor and Part A, complete Requirements 4-10.
	Type your work directly into the worksheets.

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 one-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 nineteen 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, $1,310.
Oct. 31	Declared and paid cash dividend of $800.

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

REQUIREMENT #1: Prepare journal entries to record the October transactions in the General Journal below. Remember that Debits must equal Credits - All of your Journal Entries should balance.

REQUIREMENT #2: Post the October journal entries to the following T-Accounts and compute ending balances.

REQUIREMENT #3: Prepare a trial balance for October

Requirement #4: Prepare adjusting entries using the following information in the General Journal below. Show your calculations!

a) One month's insurance has expired.

b) The remaining inventory of repair supplies is $194.

c) The estimated depreciation on repair equipment is $70.

d) The estimated income taxes are $40.

Requirement #5: Post the adjusting entries on October 31 below to the General Ledger T-accounts and compute adjusted balances. Just add to the balances that are already listed.

Requirement 6: Prepare an adjusted trial balance

Requirement #7: Prepare the financial statements for Rawls Repair Corporation as of October 31 in the space below.

You will only be preparing the Income Statement, Statement of Retained Earning and the Balance Sheet.

The Statement of Cash Flows is a required Financial Statement, but is not required for this Project.

Requirement #8: Prepare the closing entries at October 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 worksheet and compute ending balances. Just add to the adjusted balances already listed.

Requirement #10: Prepare a post-closing trial balance as of October 31