PRINCIPLES OF ACCOUNTING I ACCT 1010 HOMEWORK PROJECT
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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.
Paul Koulakov
Business Technologies Department
Nashville State Community College
120 White Bridge Road
Nashville, TN 37209
Due Date:
See syllabus
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
Points
Journal Entries
20 points (1 point for each correct account)
Adjusting Entries
17 points (1 point for each correct account; 1 point for each correct amount calculation)
Closing Entries
10 points (2 points for each entry; 2 points for correct amounts)
Ledger Acct Balances
12 points (1/2 point for each correct balance)
Unadjusted Trial Balance
3 points for preparation
Adjusted Trial Balance
3 points for preparation
Income Statement
10 points
Statement of Owner’s Equity
5 points
Balance Sheet
10 points
Post-Closing Trial Balance
3 points for preparation
Neatness and format
7 points
Total Possible Points
100
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
2
Provided $3,950 consulting services to Gomez Company on account.
3
Paid $1,025 cash to Hillside Mall for Jamison 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 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.
20
Completed a project for Lyn Corporation and received $5,625 cash.
28
Received $3,000 cash from Gomez Co. on its receivable.
29
Reimbursed C. Jamison $193 for business automobile mileage.
31
C. Jamison withdrew $1,500 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:
- The December 31 inventory count of computer supplies shows $320 still available.
- Three of the four months' prepaid rent has expired.
- Three months have expired since the 12-month insurance premium was paid in advance.
- As of December 31, the only employee of Jamison Consulting had not been paid for four days of work at $125 per day.
- The computer system, acquired for $8,000 on October 1, is expected to have a four-year life with no salvage value.
- The office equipment, acquired for $20,000 on October 1, is expected to have a five-year life with no salvage value.
Required:
- 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.
- Post the December transactions to the appropriate accounts in the ledger.
- 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.
- Journalize the adjusting entries to reflect items a through f above.
- Post the adjusting entries to the appropriate accounts in the ledger.
- 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.
- 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.
- Prepare an income statement for the three months ended December 31, 2016.
- Prepare a statement of owner's equity for the three months ended December 31, 2016.
- Prepare a balance sheet as of December 31, 2016.
- Journalize and post the necessary closing entries for Jamison Consulting.
- Prepare a post-closing trial balance as of December 31, 2016.
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
PAGE
1
DATE
ACCOUNT
POST REF
DEBIT
CREDIT
2016
Oct
1
Cash
101
45,000
Office Equipment
163
20,000
Computer Equipment
167
8,000
C. Jamison, Capital
301
73,000
1
Prepaid Insurance
128
2,220
Cash
101
2,220
2
Prepaid Rent
131
3,300
Cash
101
3,300
9
Computer Supplies
126
2,545
Accounts Payable
201
2,545
16
Accounts Receivable
106
4,800
Computer Services Revenue
403
4,800
31
Wages Expense
623
875
Cash
101
875
Nov
2
Mileage Expense
676
320
Cash
101
320
5
Accounts Payable
201
2,545
Cash
101
2,545
8
Cash
101
4,800
Accounts Receivable
106
4,800
14
Cash
101
4,633
Computer Services Revenue
403
4,633
23
Accounts Receivable
106
5,208
Computer Services Revenue
5,208
30
C. Jamison, Withdrawals
302
2,000
Cash
101
2,000
Homework Project 1 – Name:_______ ____________
Working Papers
General Journal for Requirements 1, 4 & 10
GENERAL JOURNAL
PAGE
2
DATE
ACCOUNT
POST REF
DEBIT
CREDIT
2016
December Transactions (20 points)
Dec
2
Accounts Receivable
106
3,950
Computer Services Revenue
403
3,950
3
Advertising
1,025
Cash
101
1,025
4
Repairs
684
400
Cash
101
400
10
Computer Supplies
126
1,100
Accounts Payable
201
1,100
14
Wages Expense
623
150
Cash
101
150
15
Cash
101
1,500
Computer Services Revenue
403
1,500
20
Cash
101
5,625
Computer Services Revenue
403
5,625
28
Cash
101
3,000
Accounts Receivable
106
3,000
29
Mileage Expense
676
193
Cash
101
193
31
C. Jamison, Withdrawals
302
1,500
Cash
101
1,500
GENERAL JOURNAL
PAGE
3
DATE
ACCOUNT
POST REF
DEBIT
CREDIT
2016
Adjusting Entries (17 points)
Dec
31
shrinkage
3,325
Computer supplies
3,325
31
Rent expense
2,475
Prepaid rent
2,475
Insurance expense
555
Prepaid insurance
555
Wage expense
500
Wages payable
500
Depreciation expense- computer system
500
Acc. Depreciation- computer system
500
Depreciation expense- Office eqp.
1000
Acc. Depreciation Office eqp
1,000
Closing Entries (10 points)
Dec
31
shrinkage
3,325
Computer supplies
3,325
31
Rent expense
2,475
Prepaid rent
2,475
Insurance expense
555
Prepaid insurance
555
Wage expense
500
Wages payable
500
Depreciation expense- computer system
500
Acc. Depreciation- computer system
500
Depreciation expense- Office eqp.
1000
Acc. Depreciation Office eqp
1,000
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
Acct. No. 101
Date
Explanation
PR
Debit
Credit
Balance
Oct.
1
J1
45,000
45,000
1
J1
2,220
42,780
2
J1
3,300
39,480
31
J1
875
38,605
Nov.
2
J1
320
38,285
5
J1
2,545
35,740
8
J1
4,800
40,540
14
J1
4,633
45,173
30
J1
2,000
43,173
Dec
3
J1
1,025
42,148
4
J1
400
41,748
14
J1
150
41,598
15
J1
1,500
43,098
20
J1
5,625
48,723
28
J1
3,000
51,723
29
J1
193
51,916
31
J1
1,500
50,416
Accounts Receivable
Acct. No. 106
Date
Explanation
PR
Debit
Credit
Balance
Oct.
16
J1
4,800
4,800
Nov.
8
J1
4,800
0
23
J1
5,208
5,208
Dec
2
J1
3,950
9,158
28
J1
3,000
6,158
Computer Supplies
Acct. No. 126
Date
Explanation
PR
Debit
Credit
Balance
Oct.
9
J1
2,545
2,545
Dec
10
J1
1,100
3,645
Dec
31
J1
3,325
320
Prepaid Insurance
Acct. No. 128
Date
Explanation
PR
Debit
Credit
Balance
Oct.
1
J1
2,220
2,220
Dec
31
J1
555
1,665
Ledger (Continued)
Prepaid Rent
Acct. No. 131
Date
Explanation
PR
Debit
Credit
Balance
Oct.
2
J1
3,300
3,300
Dec
31
J1
2,475
825
Office Equipment
Acct. No. 163
Date
Explanation
PR
Debit
Credit
Balance
Oct.
1
J1
20,000
20,000
Accumulated Depreciation—Office Equipment
Acct. No. 164
Date
Explanation
PR
Debit
Credit
Balance
Dec
31
J1
1,000
1,000
Computer Equipment
Acct. No. 167
Date
Explanation
PR
Debit
Credit
Balance
Oct.
1
J1
8,000
8,000
Accumulated Depreciation—Computer Equipment
Acct. No. 168
Date
Explanation
PR
Debit
Credit
Balance
Dec
31
J1
500
500
Accounts Payable
Acct. No. 201
Date
Explanation
PR
Debit
Credit
Balance
Oct.
9
J1
2,545
2,545
Nov.
5
J1
2,545
0
Dec
10
J1
1,100
1,100
Wages Payable
Acct. No. 210
Date
Explanation
PR
Debit
Credit
Balance
Dec
31
J1
500
500
Unearned Consulting Revenue
Acct. No. 236
Date
Explanation
PR
Debit
Credit
Balance
Dec
15
J1
1,500
1,500
Ledger (Continued)
C. Jamison, Capital
Acct. No. 301
Date
Explanation
PR
Debit
Credit
Balance
Oct.
1
J1
73,000
73,000
C. Jamison, Withdrawals
Acct. No. 302
Date
Explanation
PR
Debit
Credit
Balance
Nov.
30
J1
2,000
2,000
Dec
31
J1
1,500
3,500
Consulting Revenue
Acct. No. 403
Date
Explanation
PR
Debit
Credit
Balance
Oct.
16
J1
4,800
4,800
Nov.
14
J1
4,633
9,433
23
J1
5,208
14,641
Dec
2
J1
3,950
18,591
15
J1
1,500
20,091
20
J1
5,625
25,716
Depreciation Expense—Office Equipment
Acct. No. 612
Date
Explanation
PR
Debit
Credit
Balance
Dec
31
J1
1,000
1,000
Depreciation Expense—Computer Equipment
Acct. No. 613
Date
Explanation
PR
Debit
Credit
Balance
Dec
31
J1
500
500
Wages Expense
Acct. No. 623
Date
Explanation
PR
Debit
Credit
Balance
Oct.
31
J1
875
875
Dec
14
J1
150
1,025
Ledger (Continued)
Insurance Expense
Acct. No. 637
Date
Explanation
PR
Debit
Credit
Balance
Dec
31
J1
555
555
Rent Expense
Acct. No. 640
Date
Explanation
PR
Debit
Credit
Balance
Dec
31
J1
2,475
2,475
Computer Supplies Expense
Acct. No. 652
Date
Explanation
PR
Debit
Credit
Balance
Dec
10
J1
1,100
1,100
J1
Advertising Expense
Acct. No. 655
Date
Explanation
PR
Debit
Credit
Balance
Dec
3
J1
1,025
1,025
Mileage Expense
Acct. No. 676
Date
Explanation
PR
Debit
Credit
Balance
Nov.
2
J1
320
[Solved] PRINCIPLES OF ACCOUNTING I ACCT 1010 HOMEWORK PROJECT
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- Mtishwrite
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Prin of Finance
PRINCIPLES OF ACCOUNTING I ACCT 1010 HOMEWORK PROJECT
Acct220: Principles of Accounting I Final Examination Complete Solution
A. $1,794.60
b.$1,719.60
c.$1,638.00
d.$1,713.00
e.$1,876.20
a.Deducted from the balance per books
b.Deducted from the balance per bank statement
c.Added to the balance per ...
Acct220: Principles of Accounting I Final Examination Complete Solution Required
A. $1,794.60
b.$1,719.60
c.$1,638.00
d.$1,713.00
e.$1,876.20
a.Deducted from the balance per books
b.Deducted from the balance per bank statement
c.Added to the balance per ...