Complete requirements 11 through 12 of the Jane's Skateboards case for the third milestone of the course project. Use the file you completed in milestone two. Make sure you have updated the file if you have received feedback from your instructor about any errors found when your previous milestones were graded.
Instructions
Course Project Overview | |||
The Course Project consists of 12 Requirements for you to complete. Part 1 of the Course Project is due at the end of Week 2 and Part 2 at the end of Week 4 and Part 3 is due at the end of week 7. 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 ten (12) assignments 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. | |||
Scenario | |||
You’ve just secured a new client in your accounting practice, Jane's Skate Boards Inc., a brand new small business specializing in selling skate boards. The owner, Jane Jones, is good at selling but she needs your help with accounting. You have decided to use the perpetual inventory method to account for inventory and Cost of Goods Sold. | |||
Requirements | |||
ACCT 105: 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 | |
11 | Prepare ratio analysis | 11 -Ratio Analysis | |
12 | Prepare Break-Even Analysis | 12 – Break Even | |
Guidelines | |||
Use the template, guidance in your textbook, and examples in the weekly lectures to complete this project. Should you have any questions contact your professor. | |||
Milestone 1 is due in Week 2 – This includes project requirements 1-3. | |||
Milestone 2 is due in Week 4 – This includes project requirements 4-10. | |||
Milestone 3 is due in Week 7- This includes project requirements 11-12. |
Chart of Accounts
Account Name | Number | Account Type | Increase with | Decrease with |
Cash | 111 | Asset | Debit | Credit |
Store Supplies | 117 | Asset | Debit | Credit |
Prepaid Insurance | 119 | Asset | Debit | Credit |
Merchandise Inventory | 130 | Asset | Debit | Credit |
Store Fixtures | 144 | Asset | Debit | Credit |
Accumulated Depreciation -Fixtures | 145 | Contra Asset | Credit | Debit |
Accounts Payable | 212 | Liability | Credit | Debit |
Income Tax Payable | 213 | Liability | Credit | Debit |
Common Stock | 311 | Owners Equity | Credit | Debit |
Retained Earnings | 312 | Owners Equity | Credit | Debit |
Dividends | 313 | Contra Owners Equity | Debit | Credit |
Sales Revenue | 411 | Revenue | Credit | Debit |
Cost of Good Sold | 505 | Expense | Debit | Credit |
Store Rent Expense | 511 | Expense | Debit | Credit |
Telephone Expense | 517 | Expense | Debit | Credit |
Depreciation Expense | 520 | Expense | Debit | Credit |
Electric Expense | 522 | Expense | Debit | Credit |
Insurance Expense | 525 | Expense | Debit | Credit |
Supplies Expense | 530 | Expense | Debit | Credit |
Income Tax Expense | 535 | Expense | Debit | Credit |
Transaction
During its first month of operation, Jane's Skateboards completed the following transactions. | |||||
Record these transactions in the Journal entries page | |||||
Journal entry # | Date of transaction | July Transactions | |||
JE01 | July 1 | Begin business by making a $100,000 deposit into the companies bank account | |||
in exchange for 10,000 shares of common stock -Par value $10 | |||||
JE02 | July 2 | Paid $16,000 for Shelves for the Store | |||
JE03 | July 3 | Paid $6,000 for the premium on a 1-year Insurance policy | |||
JE04 | July 5 | Paid $3,000 for the July store rent | |||
JE05 | July 6 | Purchased on Credit – 1000 skateboards costing $25 each from Acme MFG | Note: This is different from the videos you watched | ||
JE06 | July 8 | Purchased on Credit – Store supplies costing $600 from Mikes Supply | |||
JE07 | July 10 | Paid $200 for for July telephone bill | |||
JE08 | July 11 | Sold 24 skateboards for $50 each to a customer who paid cash | |||
JE09 | July 18 | Paid $300 for 1/2 of the Store Supplies purchased on July 8 | |||
JE10 | July 20 | Sold 140 skateboards for $50 each to a customer who paid cash | |||
JE11 | July 25 | Sold 100 skateboards for $50 each to a customer who paid cash | |||
JE12 | July 26 | Paid $500 for for July electric bill | |||
JE13 | July 30 | Paid $1,500 for divident declared on July 30 | |||
Journal Entries
Date | Description | Post Ref. | Debit | Credit | Post Ref. | Account Name | Acct # | |||||||
1 | 7/1/22 | Cash | 111 | 100,000 | JE01 | Cash | 111 | |||||||
Common Stock | 311 | 100,000 | JE01 | Store Supplies | 117 | |||||||||
2 | 7/2/22 | Store fixtures | 144 | 16,000 | JE02 | Prepaid Insurance | 119 | |||||||
Cash | 111 | 16,000 | JE02 | Merchandise Inventory | 130 | |||||||||
3 | 7/3/22 | Prepaid Insurance | 119 | 6,000 | JE03 | Store Fixtures | 144 | |||||||
Cash | 111 | 6,000 | JE03 | Accumulated Depreciation -Fixtures | 145 | |||||||||
4 | 7/5/22 | Store Rent Expense | 511 | 3,000 | JE04 | Accounts Payable | 212 | |||||||
Cash | 111 | 3,000 | JE04 | Income Tax Payable | 213 | |||||||||
5 | 7/6/22 | Merchandise Inventory | 130 | 25,000 | JE05 | Common Stock | 311 | |||||||
Accounts Payable | 212 | 25,000 | JE05 | Retained Earnings | 312 | |||||||||
6 | 7/8/22 | Store Supplies | 117 | 600 | JE06 | Dividends | 313 | |||||||
Accounts Payable | 212 | 600 | JE06 | Sales Revenue | 411 | |||||||||
7 | 7/10/22 | Telephone Expense | 517 | 200 | JE07 | Cost of Good Sold | 505 | |||||||
Cash | 111 | 200 | JE07 | Store Rent Expense | 511 | |||||||||
8 | 7/11/22 | Cash | 111 | 1200 | JE08 | Telephone Expense | 517 | |||||||
Sales Revenue | 411 | 1200 | JE08 | Depreciation Expense | 520 | |||||||||
7/11/22 | Cost of Good Sold | 505 | 600 | JE08 | Electric Expense | 522 | ||||||||
Merchandise Inventory | 130 | 600 | JE08 | Insurance Expense | 525 | |||||||||
9 | 7/18/22 | Accounts Payable | 212 | 300 | JE09 | Supplies Expense | 530 | |||||||
Cash | 111 | 300 | JE09 | Income Tax Expense | 535 | |||||||||
10 | 7/20/22 | Cash | 111 | 7000 | JE10 | |||||||||
Sales Revenue | 411 | 7000 | JE10 | |||||||||||
7/20/22 | Cost of Good Sold | 505 | 3500 | JE10 | ||||||||||
Merchandise Inventory | 130 | 3500 | JE10 |