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Your Intermediate Accounting I Course Project will entail completing the accounting cycle for a small auto supply company. The transactions that you will focus on
Your Intermediate Accounting I Course Project will entail completing the accounting cycle for a small auto supply company. The transactions that you will focus on will relate to several of the topics and transaction cycles that you will focus on in this course.
Course Project TemplateLinks to an external site.
The scenario of this Course Project is the following.
You've just secured a new client in your accounting practice, Peter's Auto Supply Corporation (PASC), a brand-new small business specializing in providing auto supplies to car repair shops. The owner, Peter Peck, is a terrific auto mechanic, but definitely not an accountant. Your job is to help Peter put his affairs in order. Luckily, Peter has only been in operation for a month and things have not gotten too out of hand yet! Peter has to submit his financial statements to his investors and doesn't know where to begin. It's your job to go through the complete accounting cycle to prepare the financial statements for PASC.
In this project, you will need to complete the following steps for PASC.
- Prepare the Journal Entries in the General Journal
- Post Journal Entries to the General Ledger
- Prepare a Trial Balance
- Prepare the Adjusting Entries
- Post Adjusting Entries to the General Ledger
- Prepare an Adjusted Trial Balance
- Prepare the Financial Statements
- Prepare the Closing Entries
- Post Closing Entries to the General Ledger
- Prepare the Post Closing Trial Balance
| Requirement | Requirement Description | Worksheet Name |
| 1 | Prepare the Journal Entries in the General Journal | 1 - Journal Entries |
| 2 | Post Journal Entries to the General Ledger | 2 - General Ledger |
| 3 | Prepare a Trial Balance | 3 - Trial Balance |
| 4 | Prepare the Adjusting Entries | 4 &5 - Adjusting Entries |
| 5 | Post Adjusting Entries to the General Ledger | 4 &5 -Adjusting Entries ( Use worksheet #2) |
| 6 | Prepare an Adjusted Trial Balance | 6- Adjusted TB |
| 7 | Prepare the Financial Statements | 7 - Financial Statements |
| 8 | Prepare the Closing Entries | 8&9 - Closing Entries ( use worksheet #2) |
| 9 | Post Closing Entries to the General Ledger | 8&9- General Ledger |
| 10 | Prepare the Post Closing Trial Balance | 10 - Post Closing Trial Balance |
| The Course Project consists of 10 Requirements for you to complete. The project is due at the end of Week 4. See the Syllabus section Due Dates for Assignments & Exams for due date information. All of the information you need to complete the Course Project is located in this Workbook. There are eight worksheets in the workbook you will need to complete. A list of July transactions A Chart of Accounts reference sheet A Grading Rubric to help explain what is expected. Each worksheet has the Check Figures embedded as a comment. | ||
| Scenario | ||
| Youve just secured a new client in your accounting practice, Peter's Auto Supply Corporation (PASC), a brand new small business specializing in providing auto supplies to car repair shops. The owner, Peter Peck, is a terrific auto mechanic, but definitely not an accountant. Your job is to help Peter put his affairs in order. Luckily, Peter has only been in operation for a month and things have not gotten too out of hand yet! Peter 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 PASC. | ||
| Requirements | ||
| ACCT 212: Course Project | ||
| Requirement | Requirement Description | Worksheet Name |
| 1 | Prepare the Journal Entries in the General Journal | 1 - Journal Entries |
| 2 | Post Journal Entries to the General Ledger | 2 - General Ledger |
| 3 | Prepare a Trial Balance | 3 - Trial Balance |
| 4 | Prepare the Adjusting Entries | 4 &5 - Adjusting Entries |
| 5 | Post Adjusting Entries to the General Ledger | 4 &5 -Adjusting Entries ( Use worksheet #2) |
| 6 | Prepare an Adjusted Trial Balance | 6- Adjusted TB |
| 7 | Prepare the Financial Statements | 7 - Financial Statements |
| 8 | Prepare the Closing Entries | 8&9 - Closing Entries ( use worksheet #2) |
| 9 | Post Closing Entries to the General Ledger | 8&9- General Ledger |
| 10 | Prepare the Post Closing Trial Balance | 10 - Post Closing Trial Balance |
| Guidelines | ||
| Use the embedded assistance in the template, guidance in your textbook, and examples in the weekly lectures to complete this project. Should you have any questions contact your professor. | ||
| The project is due at the end of Week 4 - This includes project requirements 1-10. | ||
| July Transactions | |
| Date | Transaction Description |
| July 1 | Issued Common Stock in exchange for $100,000 cash. |
| July 1 | Paid $4,000 rent for the months of July and August |
| July 2 | Paid the insurance company $2,400 for a one year insurance policy, beginning July 1. |
| July 5 | Purchased inventory on account for $35,000 (Assume that the perpetual inventory system is used.) |
| July 6 | Borrowed $36,500 from a local bank and signed a note. The interest rate is 10%, and principal and interest is due to be repaid in six months. |
| July 8 | Sold inventory on account for $17,000. The cost of the inventory is $7,000. |
| July 15 | Paid employees $6,000 salaries for the first half of the month. |
| July 18 | Sold inventory for $15,000 cash. The cost of the inventory was $6,000. |
| July 20 | Paid $15,000 to suppliers for the inventory purchased on January 5. |
| July 26 | Collected $6,000 on account from customers. |
| July 30 | Paid $1,000 to the local utility company for July gas and electricity. |
| Account Type | Account Number | Account Title | Normal Balance |
| Assets | |||
| 111 | Cash | Debit | |
| 112 | Accounts Receivable | Debit | |
| 115 | Inventory | Debit | |
| 117 | Prepaid Rent | Debit | |
| 119 | Prepaid Insurance | Debit | |
| Liabilities | |||
| 212 | Accounts Payable | Credit | |
| 213 | Notes Payable | Credit | |
| 214 | Salaries Payable | Credit | |
| 215 | Interest Payable | Credit | |
| Stockholders Equity | |||
| 311 | Common Stock | Credit | |
| 312 | Retained Earnings | Credit | |
| Revenue | |||
| 411 | Sales Revenue | Credit | |
| Expenses | |||
| 500 | Cost of Goods Sold | Debit | |
| 511 | Rent Expense | Debit | |
| 512 | Insurance Expense | Debit | |
| 513 | Salaries Expense | Debit | |
| 514 | Interest Expense | Debit | |
| 515 | Utilities Expense | Debit | |
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