(SOLVED)-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.

Laurie Swanson

Business Technologies Department

Nashville State Community College

120 White Bridge Road

Nashville, TN  37209

 

Due Date:

By end of extension

 

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:

  1. The December 31 inventory count of computer supplies shows $320 still available.
  2. Three of the four months’ prepaid rent has expired.
  3. Three months have expired since the 12-month insurance premium was paid in advance.
  4. As of December 31, the only employee of Jamison Consulting had not been paid for four days of work at $125 per day.
  5. The computer system, acquired for $8,000 on October 1, is expected to have a four-year life with no salvage value.
  6. The office equipment, acquired for $20,000 on October 1, is expected to have a five-year life with no salvage value.

Required:

  1. 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.
  2. Post the December transactions to the appropriate accounts in the ledger.
  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: $99,816. 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, 2016. Check figure: $101,816. 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.
    1. Prepare an income statement for the three months ended December 31, 2016.
    2. Prepare a statement of owner’s equity for the three months ended December 31, 2016.
    3. Prepare a balance sheet as of December 31, 2016.
  8. Journalize and post the necessary closing entries for Jamison Consulting.
  9. 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          
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           

 

 

GENERAL JOURNAL PAGE 3
DATE ACCOUNT POST REF DEBIT CREDIT
 2016   Adjusting Entries (17 points)      
 Dec          
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
    Closing Entries (10 points)      
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           

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
             
             
             
             
             
             
             
             

 

                               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
             
             
             
 

                         Computer Supplies

 

Acct. No. 126

Date        Explanation PR Debit Credit Balance
Oct. 9   J1 2,545   2,545
             
             

 

                       Prepaid Insurance Acct. No. 128
Date        Explanation PR Debit Credit Balance
Oct. 1   J1 2,220   2,220
             
             
Ledger (Continued)

 

                        Prepaid Rent

 

 

Acct. No. 131

Date        Explanation PR Debit Credit Balance
Oct. 2   J1 3,300   3,300
             
             
                      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
             
             

 

                         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
             
             
 

                              Accounts Payable

Acct. No. 201
Date        Explanation PR Debit Credit Balance
Oct. 9   J1   2,545 2,545
Nov. 5   J1 2,545   0
             
             
                                Wages Payable Acct. No. 210
Date        Explanation PR Debit Credit Balance
             
             
   
                          Unearned Consulting Revenue Acct. No. 236
Date        Explanation PR Debit Credit Balance
             
             

 

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
             
             
             
                                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
             
             
             
             
                        Depreciation Expense—Office Equipment Acct. No. 612
Date        Explanation PR Debit Credit Balance
             
             
             
                   Depreciation Expense—Computer Equipment Acct. No. 613
Date        Explanation PR Debit Credit Balance
             
             
             
                                Wages Expense Acct. No. 623
Date        Explanation PR Debit Credit Balance
Oct. 31   J1 875   875
             
             
             

 

 

Ledger (Continued)

 

                                   Insurance Expense Acct. No. 637
Date        Explanation PR Debit Credit Balance
             
             

 

                                   Rent Expense Acct. No. 640
Date        Explanation PR Debit Credit Balance
             
             
 

                                 Computer Supplies Expense

 

Acct. No. 652

Date        Explanation PR Debit Credit Balance
             
             
             
                                  Advertising Expense Acct. No. 655
Date        Explanation PR Debit Credit Balance
             
             
             
             
                                Mileage Expense Acct. No. 676
Date        Explanation PR Debit Credit Balance
Nov. 2   J1 320   320
             
             
             
                             Repairs Expense—Computer Acct. No. 684
Date        Explanation PR Debit Credit Balance
             
             
             
   
                             Income Summary Acct. No. 901
Date        Explanation PR Debit Credit Balance
             
             
             

 Working Paper for Requirement 3

3 points

Jamison Consulting
Trial Balance
December 31, 2016
    DEBIT CREDIT
   
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       

Working Paper for Requirement 6

3 points

Jamison Consulting
Adjusted Trial Balance
December 31, 2016
    DEBIT CREDIT
   
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       

 

 

Working Papers for Requirements 7, 8 & 9

 

  Jamison Consulting
  Income Statement (10 points)
  For Three Months Ended December 31, 2016
         
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         

 

 

 

  Jamison Consulting
  Statement of Owner’s Equity (5 points)
  For Three Months Ended December 31, 2016
         
 
 
 
 
 
 
 

 

 

 

Working Papers for Requirements 6, 7 & 8 (continued)

 

 

  Jamison Consulting
  Balance Sheet (10 points)
  December 31, 2016
         
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         
         
         
         
         
         
 
 
 
 
 
         

 

 

 

 

 

Working Papers for Requirement 10

 

Jamison Consulting
Post-Closing Trial Balance
December 31, 2016
    DEBIT CREDIT