The goal of this graded project is to create the following financial statements

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The goal of this graded project is to create the following financial statements


061057 ACC111 GRADED PROJECT FORMS FORM A DATE ITEM POST REF. DEBIT CREDIT BALANCE DEBIT CREDIT DATE ITEM POST REF. DEBIT CREDIT BALANCE DEBIT CREDIT FORM B DATE ACCOUNTS POST REF. DR. CR. FORM C ACCOUNT DEBIT CREDIT FORM D FORM E Your project must be submitted as a Word document (.docx, .doc) or an Excel file (.xls or .xlsx). Your project will be individually graded by your instructor and therefore will take up to a few weeks to grade. Be sure that your file contains the following information: ▪ Your name ▪ Your student ID number ▪ The lesson number ▪ Your email address To submit your graded project, follow these steps: ▪ Go to http://www.pennfoster.edu. ▪ Log in to your student portal. ▪ Click on Take Exam next to the lesson you’re working on. ▪ Follow the instructions provided to complete your exam. Be sure to keep a backup copy of any files you submit to the school. Project Goal The goal of this graded project is to create the following financial statements for J & L Accounting, Inc.: • Balance sheet • Income statement • Statement of retained earnings • Post-closing trial balance The financial statements must be created in one Microsoft Word document (.doc or .docx file). Alternatively, an Excel workbook may be used (.xls or .xlsx file). The Word or Excel file will be uploaded for grading. Instructions Read the following instructions thoroughly before beginning your work to get familiar with the project. Students who start on the project right away, thinking they’ll save time, tend to get stuck and spend more time working through the project than is necessary. The material you need to know in order to complete the project has been covered in the textbook and the assigned exercises. If you understand the chapters and completed the http://www.pennfoster.edu/ assigned homework problems, you should have no problem with the project. The project is to be done by hand with a pencil and paper, using the blank forms provided. At the end of the project are instructions for creating and uploading the financial statements in a Word or Excel file for grading. Note: The formatting of financial statements is important. They follow Generally Accepted Accounting Principles (GAAP), which creates a uniformity of financial statements for analyzing. This allows for an easier comparison, as all businesses follow GAAP. The financial statements should be created exactly as shown or described in the textbook. Incorrect formatting will result in a loss of points. Debits equal credits is a fundamental principle of accounting that must not be violated. Debits not equaling credits allows for “cooking the books,” which means presenting false information. It also allows for embezzlement, which is theft by management or employees. If debits don’t equal credits, the cause may be a lack of understanding of accounting principles or a lack of focus and concentration when making journal entries, posting to ledger accounts, or completing math. Remember—instructors are available to help you with material you may be struggling with. Mistakes are best corrected by going back over the work until the error is found. The accounting equation must balance on the balance sheet. This is another fundamental principle of accounting that can’t be violated. When the equation doesn’t balance and the numbers are “fudged,” this is easily detectable by someone who knows accounting. If your debits equal your credits and you understand which general ledger accounts belong on which financial statements, then the accounting equation should balance. The following financial statements are provided from the prior accounting period for J & L Accounting, Inc.: a. Post-closing trial balance b. Balance sheet c. Income statement d. Statement of retained earnings J & L Accounting, Inc. Post-Closing Trial Balance December 31, 2017 Balance Account Title Debit Credit Cash, Business Checking $20,500.00 Accounts Receivable Prepaid Rent Vehicles 48,000.00 Accumulated Depreciation, Vehicles $12,000.00 Equipment 3,600.00 Accumulated Depreciation, Equipment 600.00 Accounts Payable Common Stock 38,000.00 Retained Earnings 21,500.00 Dividends Service Revenue Advertising Expense Rent Expense Office Supplies Expense Telephone Expense Utilities Expense Depreciation Expense Totals $72,100.00 $72,100.00 J & L Accounting, Inc. Balance Sheet As of December 31, 2017 Assets Cash, Business Checking $20,500.00 Accounts Receivable 0.00 Prepaid Rent 0.00 Vehicles $48,000.00 Less: Accumulated Depreciation, Vehicles 12,000.00 36,000.00 Equipment 3,600.00 Less: Accumulated Depreciation, Equipment 600.00 3,000.00 Total Assets $59,500.00 Liabilities Accounts Payable $0.00 Total Liabilities $0.00 Stockholders' Equity Common Stock $38,000.00 Retained Earnings 21,500.00 Total Stockholders' Equity $59,500.00 Total Liabilities and Stockholders' Equity $59,500.00 J & L Accounting, Inc. Income Statement For the Month Ending December 31, 2017 Revenues Service Revenue $10,275.00 Expenses Advertising Expense $2,300.00 Rent Expense 1,000.00 Office Supplies Expenses 300.00 Telephone Expense 750.00 Utilities Expense 3,200.00 Depreciation Expense 1,100.00 Total Expenses 8,650.00 Net Income $1,625.00 J & L Accounting, Inc. Statement of Retained Earnings For the Month Ending December 31, 2017 Retained Earnings December 1, 2017 $19,875.00 Add: Net Income 1,625.00 Subtotal 21,500.00 Less: Dividends 0.00 Retained Earnings, December 31, 2017 $21,500.00 1. Using Form A from the graded project forms you downloaded (make as many copies as necessary), set up the accounts for the general ledger and insert the beginning balances for the accounts from the post-closing trial balance. The balances from the post-closing trial balance become the beginning balances of the accounts for the next account period. 2. Journalize the following transactions in the general journal using Form B from the graded project forms you downloaded (make as many copies as needed). Each journal entry’s debits should equal its credits. This is a fundamental GAAP that can’t be violated. (A journal entry error, such as posting $1,010 instead of $1,100, can be corrected at the adjusting/correcting journal entries step.) a. On January 1, 2018, a payment in cash for $12,000 is made for prepaying rent for the entire year 2018. b. On January 4, 2018, accounting services are performed and payment is received in cash for the amount of $1,900. c. On January 9, 2018, a payment in cash for advertising is made in the amount of $850. d. On January 10, 2018, office supplies are purchased in the amount of $75 with cash. e. On January 14, 2018, accounting services are performed and payment is received in cash for the amount of $2,725. f. On January 20, 2018, the telephone bill for the amount of $660 is received and paid with cash. g. On January 20, 2018, the utility bill for $2,925 is received. The bill won’t be paid until it’s due on February 15, 2018. h. On January 27, 2018, accounting services are performed on account in the amount of $3,750. i. On January 28, 2018, a payment in cash for $1,500 is made for a bill from an advertising agency. 3. Post the general journal entries from the journal to the corresponding general ledger accounts, paying particular attention to whether they’re debits or credits. Use the Post Ref. column to ensure that each line item of the journal entries is posted correctly to each general ledger account. Posting from the journal to the general ledger is simply rearranging the information. If the debits equal the credits for a particular journal entry and the information is posted correctly, the total of the debits should equal the total of the credits in the general ledger. 4. Calculate the balances in the general ledger accounts, running the numbers several times for accuracy. Often, debits won’t equal credits on the trial balance because a hand-held calculator is used and the math is done only once. Using a hand-held calculator can introduce errors. This is why an Excel spreadsheet is recommended. However, if a hand-held calculator is all that’s available to you, be sure to do the math enough times that you know the calculations are accurate. To calculate the balances in the ledger accounts, do the following: ▪ Add the debits. ▪ Add the credits. ▪ Subtract the larger amount from the other, or, alternatively, keep the running balance of the amount in the account and whether it’s a debit or credit on the ledger. 5. Create an unadjusted trial balance from the balances in the general ledger accounts. If the debit and credit columns are unequal, an error has been made and must be found and corrected. See Section 1.3 for an example of an unadjusted trial balance. Use Form C from the Graded Project Forms you downloaded. 6. Journalize the following adjusting journal entries in the general journal, being sure that the debits equal the credits: a. Calculate and make the adjustment for the amount of prepaid rent that has been used. b. Make an adjusting journal entry in the amount of $1,000 for depreciation of
Answered 2 days AfterMay 19, 2022

Answer To: The goal of this graded project is to create the following financial statements

Prince answered on May 22 2022
84 Votes
Point 1,3,4,7,11,12
    Cash
    Date        Item    Post Ref.    Debit    Credit    Balance
                            Debit    Credit
    Jan    1    Opening Balance                20,500.00
        1    Rent Paid for Entire Year            12,000.00    8,500.00
        4    Cash Received for Services Performed        1,900.00        10,400.00
        9    Cash Paid for Advertising
            850.00    9,550.00
        10    Purchased Office Supplies            75.00    9,475.00
        14    Cash Received for Services Performed        2,725.00        12,200.00
        20    Paid Telephone Bill            660.00    11,540.00
        28    Paid Advertising Bill            1,500.00    10,040.00
    Vehicles
    Date        Item    Post Ref.    Debit    Credit    Balance
                            Debit    Credit
    Jan     1    Opening Balance                48,000.00
    Accumulated Depreciation - Vehicles
    Date        Item    Post Ref.    Debit    Credit    Balance
                            Debit    Credit
    Jan     1    Opening Balance                    12,000.00
        31    Adjust the Depreciation for one Month on Vehicles            1,000.00        13,000.00
    Equipment
    Date        Item    Post Ref.    Debit    Credit    Balance
                            Debit    Credit
    Jan    1    Opening Balance                3,600.00
    Accumulated Depreciation - Equipment
    Date        Item    Post Ref.    Debit    Credit    Balance
                            Debit    Credit
    Jan    1    Opening Balance                    600.00
        31    Adjust the Depreciation for one Month on Equipment            100.00        700.00
    Accounts Payable
    Date        Item    Post Ref.    Debit    Credit    Balance
                            Debit    Credit
    Jan    20    Unpaid Utilities Expenses            2,925.00        2,925.00
    Accounts Receivable
    Date        Item    Post Ref.    Debit    Credit    Balance
                            Debit    Credit
    Jan    27    Payment not received for Services Performed        3,750.00        3,750.00
    Rent Expenses
    Date        Item    Post Ref.    Debit    Credit    Balance
                            Debit    Credit
    Jan    31    Adjust the Rent Expenses for Jan from Prepaid Rent        1,000.00        1,000.00
        31    Balance Transferred to Income Summary            1,000.00    0.00
    Common Stock
    Date        Item    Post Ref.    Debit    Credit    Balance
                            Debit    Credit
    Jan    1    Opening Balance                    38,000.00
    Retained Earnings
    Date        Item    Post Ref.    Debit    Credit    Balance
                            Debit    Credit
    Jan    1    Opening Balance                    21,500.00
    Prepaid Rent
    Date        Item    Post Ref.    Debit    Credit    Balance
                            Debit    Credit
    Jan    1    Rent Paid for Entire Year         12,000.00        12,000.00
        31    Adjust the Rent Expenses for Jan from Prepaid Rent            1,000.00    11,000.00
    Service Revenue
    Date        Item    Post Ref.    Debit    Credit    Balance
                            Debit    Credit
    Jan    4    Services Performed for Cash            1,900.00        1,900.00
        14    Services Performed for Cash            2,725.00        4,625.00
        27    Services Performed on Account            3,750.00        8,375.00
        31    Balance Transferred to Income Summary        8,375.00            0.00
    Advertising Expenses
    Date        Item    Post Ref.    Debit    Credit    Balance
                            Debit    Credit
    Jan    9    Paid Cash for Advertising         850.00        850.00
        28    Paid Cash for Advertising         1,500.00        2,350.00
        31    Balance Transferred to Income Summary            2,350.00    0.00
    Office Supplies
    Date        Item    Post...
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