This is a one whole project.

. Purpose: The purpose of this assignment is to help you learn how the accounting cycle works in all businesses. The accounting cycle is the process of assembling accounting information for use by decision makers for businesses in every accounting period. If you understand how the accounting cycle works, you will be more effective in making decisions to advance any business you manage or own. If you master the accounting cycle as presented in this project now, the remainder of accounting principles will be much easier to master. Skills: This assignment will help you practice the following skills that are important for your success in school and work: Analyze business transactions. Record transactions in a journal and post entries to a ledger. Prepare a trial balance. Prepare adjusting entries. Prepare an adjusted trial balance. Prepare basic financial statements from an adjusted trial balance. Prepare closing entries. Prepare a post-closing trial balance. Knowledge: This assignment will also help you: Identify, record, and communicate any organization's business activities. Interpret financial statements. Become an effective business decision maker. . . . . . . Task: To complete this assignment, follow these steps: The Accounting Cycle Project is to be completed by hand using hard copy working papers. (Print the project to begin) 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 packet. Your work should be neat and legible. You may omit explanations when recording journal entries. Refer to page 131 in your textbook for an example of how to format the financial statements. Page 1 of 15 Requirements: 1. Journalize the December transactions for Parker 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. Continue with the ending November balances that are already in the ledger. Post the December transactions to the appropriate accounts in the modified ledger and update balances. 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: $100,616. 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, 2020. Check figure: $102,766. 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, 2020. b. Prepare a statement of owner's equity for the three months ended December 31, 2020. c. Prepare a balance sheet as of December 31, 2020. 8. Journalize and post the necessary closing entries for Parker Consulting. 9. Prepare a post-closing trial balance as of December 31, 2020 Page 2 of 15 Project Data: Sam Parker owns and operates a consulting firm called Parker Consulting. The business began operating in October 2020. Transactions for October and November 2020 have been recorded and posted. Parker Consulting had the following transactions in December 2020 Dec 2 Provided $3,950 consulting services to Gomez Company on account. 3 Paid $1,025 cash to Hillside Mall for Parker Consulting's share of mall advertising costs. 4 Paid $400 cash for minor repairs to the company's computer. 10 Purchased $1,100 of computer supplies on credit from Harris Office Products 14 Paid cash to employee for six days of work at the rate of $125 per day. 15 Notified by Alex's Engineering Co, that Parker Consulting's' bid of $7,000 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Parker Consulting 20 Completed a project for Lyn Corporation and received $6.425 cash. 28 Received $3,000 cash from Gomez Co. on its receivable. 29 Reimbursed S. Parker $193 for business automobile mileage. 31 S. Parker withdrew $2,100 cash from the company for personal use. 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 Parker 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 five-year life with no salvage value. f. The office equipment, acquired for $20,000 on October 1. is expected to have a four- year life with no salvage value. Page 3 of 15 Below are the journal entries recorded by Parker Consulting for October and November 2020. NOTE: These are for your information only; you do not need to do anything with these entries. 1 PAGE CREDIT GENERAL JOURNAL ACCOUNT POST DEBIT DATE 2020 Oct 1 101 163 167 301 45.000 20.000 8,000 Cash Office Equipment Computer Equipment S. Parker Capital 73.000 2.220 1 2.220 128 101 Prepaid Insurance Cash 131 3.300 3,300 2 Prepaid Rent Cash 101 2,545 126 201 9 Computer Supplies Accounts Payable 2.545 4.800 106 403 16 Accounts Receivable Computer Services Revenue 4,800 875 623 101 31 Wages Expense Cash 875 320 Nov 2 Mileage Expense Cash 676 101 320 2545 5 Accounts Payable Cash 201 101 2.545 4,800 8 Cash Accounts Receivable 101 106 4.800 4,633 14 Cash Computer Services Revenue 101 403 4,633 106 5.208 23 Accounts Receivable Computer Services Revenue 5.208 2.000 30 S. Parker, Withdrawals Cash 302 101 2,000 Page 4 of 15 PAGE 2 Working Papers General Journal for Requirements 1,4 & 10 GENERAL JOURNAL DATE ACCOUNT 2020 December Transactions (20 points) Dec POST REF DEBIT CREDIT Page 5 of 15 PADE 3 POST REF DEBIT CREDIT GENERAL JOURNAL ACCOUNT Adjusting Entries (17 points) DATE 2020 Dec Closing Entries (10 points) Page 6 of 15 Ledger for Requirements 2, 5, & 10 Note: Ledger includes all entries from the first two months of operations for Parker Consulting Continue by posting the December transactions Date Oct. 16 Nov. 8 Nov. 23 106: Accounts Receivable Debit Credit Balance 4.800 4.800 4.800 0 5,208 5,208 Date Oct. 1 Oct. 1 Oct. 2 Oct. 31 Nov. 2 Nov. 5 Nov. 8 Nov. 14 Nov. 30 101: Cash Debit Credit 45,000 2.220 3,300 875 320 2,545 4,800 4,633 2.000 Balance 45,000 42.780 39,480 38,605 38,285 35,740 40.540 45,173 43,173 126: Computer Supplies Debit Credit Balance 2,545 2,545 Date Oct. 9 128: Prepaid Insurance Debit Credit 2.220 Date Oct. 1 Balance 2.220 Date 131: Prepaid Rent Debit Credit 3.300 Balance 3,300 Date Oct. 1 163: Office Equipment Debit Credit 20,000 Balance 20.000 Oct. 2 164: Accum Dep Office Equipment Date Debit Credit Balance Date Oct. 1 167: Computer Equipment Debit Credit Balance 8.000 8,000 Page 7 of 15 Ledger (Continued) 168: Accum Dep Computer Equipment Debit Credit Balance Date Date Oct. 9 Nov. 5 201: Accounts Payable Debit Credit 2.545 2545 Balance 2.545 210: Wages Payable Debit Credit 236: Unearned Consulting Revenue Date Debit Credit Balance Date Balance 301: S. Parker, Capital Debit Credit 73,000 Date Oct. 1 302: S. Parker, Withdrawals Date Debit Credit Balance Nov. 30 2.000 2.000 Balance 73,000 612: Dep. Expense - Office Equipment Date Debit Credit Balance Date Oct. 16 Nov. 14 Nov. 23 403: Consulting Revenue Debit Credit Balance 4,800 4,800 4,633 9,433 5,208 14,641 613: Dep. Expense-Computer Equipment Date Debit Credit Balance Date Oct. 31 623: Wages Expense Debit Credit 875 Balance 875 637: Insurance Expenses Debit Credit Balance 640: Rent Expense Debit Credit Date Date Balance Page 8 of 15 Ledger (Continued) 652: Computer Supplies Expense Date Debit Credit Balance 655: Advertising Expense Debit Credit Balance Date 676: Mileage Expenses Debit Credit 320 684: Repairs Expense--Computer Date Debit Credit Balance Date Nov. 2 Balance 320 901: Income Summary Debit Credit Date Balance Page 9 of 15 Working Paper for Requirement 3 3 points Parker Consulting Trial Balance December 31, 2020 DEBIT CREDIT Page 10 of 15 Working Paper for Requirement 6 3 points Parker Consulting Adjusted Trial Balance December 31, 2020 DEBIT CREDIT Page 11 of 15 Working Papers for Requirements 7, 8 & 9 Parker Consulting Income Statement (10 points) For Three Months Ended December 31, 2020 Parker Consulting Statement of Owner's Equity (5 points) For Three Months Ended December 31, 2020 Working Papers for Requirements 6, 7 & 8 (continued) Parker Consulting Balance Sheet (10 points) December 31, 2020 Working Papers for Requirement 10 Parker Consulting Post-Closing Trial Balance December 31, 2020 DEBIT CREDIT Page 14 of 15