The Course Project consists of 10 Requirements for you to complete. The Course Project is due at the end of Week 6. 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 October 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
You've just secured a new client in your accounting practice, the Rawls Repair Corporation (RRC), a brand new small business specializing in bicycle repair. The owner, Rob Rawls, is a terrific cyclist and bike repair specialist, but definitely not an accountant. Your job is to help Rob put his affairs in order. Luckily Rob has only been in operation for a month and things have not gotten too out of hand yet! Rob 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 the RRC.
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.
During its first month of operation, the Rawls Repair Corporation, which specializes in bicycle repairs, completed the following transactions.
Use the following account descriptions for journal entries.
REQUIREMENT #1: Prepare journal entries to record the October transactions in the General Journal below. Remember that Debits must equal Credits-All of your Journal Entries should balance.
REQUIREMENT #2: Post the October journal entries to the following T-Accounts and compute ending balances.
REQUIREMENT #3: Prepare a trial balance for October in the space below.
Requirement #4: Prepare adjusting entries using the following information in the General Journal below. Show your calculations!
a) One month's insurance has expired.
b) The remaining inventory of repair supplies is $194.
c) The estimated depreciation on repair equipment is $70.
d) The estimated income taxes are $40.
Requirement #5: Post the adjusting entries on October 31 below to the General Ledger T-accounts and compute adjusted balances. Just add to the balances that are already listed.
REQUIREMENT #6: Prepare an Adjusted Trial Balance in the space below.
Requirement #7: Prepare the financial statements for Rawls Repair Corporation as of October 31 in the space below.
You will only be preparing the Income Statement, Statement of Retained Earning, and the Balance Sheet.
The Statement of Cash Flows is a required Financial Statement, but is not required for this project.
Requirement #8: Prepare the closing entries at October 31 in the General Journal below. Hint:Use the balances for each account which appear on the Adjusted
Trial Balance for your closing entries.
Requirement #9: Post the closing entries to the T-Accounts on the General Ledger worksheet and compute ending balances. Just add to the adjusted balances already listed.
Requirement #10: Prepare a post-closing trial balance as of October 31