Accounting Assignment The Accounting Cycle Project consists of 10 Requirements for you to complete. All of the information you need to complete the Course

Accounting Assignment The Accounting Cycle Project consists of 10 Requirements for you to complete. All of the information you need to complete the Course

Click here to Order a Custom answer to this Question from our writers. It’s fast and plagiarism-free.

 

The Accounting Cycle Project consists of 10 Requirements for you to complete. All of the information you need to complete the Course Project is located in the attached Excel Workbook.  

• There are eight worksheets in the workbook you will need to complete.

• A list of January 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:

Moonlight Bay Inn is incorporated on January 2, 2017, by its three owners, each of whom contributes $20,000 in cash in exchange for shares of stock in the business. In addition to the sale of stock, the following transactions are entered into during the month of January: (See January Transactions Tab)

Menu

ACCU 602: Assignment #1 Accounting Cycle Project
Requirement Requirement Description Worksheet
Part A
1 Prepare the Journal Entries in the General Journal Journal Entries
2 Post Journal Entries to the General Ledger General Ledger
3 Prepare a Trial Balance Trial Balance
Part B
4 Prepare the Adjusting Entries Adjusting Entries
5 Post Adjusting Entries to the General Ledger General Ledger
6 Prepare an Adjusted Trial Balance Adjusted TB
7 Prepare the Financial Statements Financial Statements
8 Prepare the Closing Entries Closing Entries
9 Post Closing Entries to the General Ledger General Ledger
10 Prepare the Post Closing Trial Balance Post Closing TB

Click on the worksheet link to complete the corresponding Requirement or the Project Instructions button below for an overview.

Project Instructions

/xl/drawings/drawing1.xml#’Project%20Instructions’!A1

Project Instructions

Course Project #1 Overview
The Accounting Cycle Project consists of 10 Requirements for you to complete. The Accounting Cycle Project is due at the end of Week 4. 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 January 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
Moonlight Bay Inn is incorporated on January 2, 2017, by its three owners, each of whom contributes $20,000 in cash in exchange for shares of stock in the business. In addition to the sale of stock, the following transactions are entered into during the month of January: (See January Transactions Tab)
Requirements
Guidelines
Use the embedded assistance in the template and guidance in your textbook. Should you have any questions contact your professor.

Before You Begin:
· Review Chapters 3 and 4 (including appendices)
· Print the Chart of Accounts and January Transactions worksheets for your reference. You will need to refer to both throughout the project.
· Review the Grading Criteria.
· SAVE your work frequently in this workbook.

January Transactions

During its first month of operation, Moonlight Bay Inn completed the following transactions.
January Transactions
Date Transaction Description
Jan. 2 Began business by each of the three owners contributing $20,000 in cash each in exchange for shares of stock in the business.
Jan. 2 A Victorian inn is purchased for $50,000 in cash. An appraisal performed on this date indicates that the land is worth $15,000, and the remaining balance of the purchase price is attributable to the house. The owners estimate that the house will have an estimated useful life of 25 years and an estimated salvage value of $5,000.
Jan. 3 A two-year, 12%, $30,000 promissory note was signed at Second State Bank. Interest and principal will be repaid on the maturity date of January 3, 2019.
Jan. 4 New furniture for the inn is purchased at a cost of $15,000 in cash. The furniture has an estimated useful life of ten years and no salvage value.
Jan. 5 A 24-month property insurance policy is purchased for $6,000 in cash.
Jan. 6 An advertisement for the inn is placed in the local newspaper. Moonlight Bay pays $450 cash for the ad, which will run in the paper throughout January.
Jan. 7 Cleaning supplies are purchased on account for $950. The bill is payable within 30 days.
Jan. 15 Wages of $4,230 for the first half of the month are paid in cash.
Jan. 16 A guest mails the business $980 in cash as a deposit for a room to be rented for two weeks. The guest plans to stay at the inn during the last week of January and the first week of February.
Jan. 31 Cash receipts from rentals of rooms for the month amount to $8,300.
Jan. 31 Cash receipts from operation of the restaurant for the month amount to $6,600.
Jan. 31 Each stockholder is paid $200 in cash dividends.

Chart of Accounts

Use the following account descriptions for journal entries.
Chart of Accounts
Account Type Account Number Account Title Normal Balance
Assets
111 Cash Debit
117 Prepaid Insurance Debit
119 Cleaning Supplies Debit
144 Furniture Debit
145 Accum Dep -Furniture Credit
146 House Debit
147 Accum Dep -House Credit
148 Land Debit
Liabilities
212 Accounts Payable Credit
213 Notes Payable Credit
214 Wages Payable Credit
215 Utilities Payable Credit
216 Rent Received in Advance Credit
217 Interest Payable Credit
218 Income Tax Payable Credit
Stockholders Equity
311 Retained Earnings Credit
312 Capital Stock Credit
313 Dividends Debit
Revenue
411 Revenue – Rental of Rooms Credit
412 Revenue – Restaurant Credit
Expenses
511 Advertising Expense Debit
512 Wages Expense Debit
513 Insurance Expense Debit
514 Supplies Expense Debit
515 Utilities Expense Debit
516 Depreciation Expense Debit
517 Interest Expense Debit
518 Income Tax Expense Debit
Other
999 Income Summary Credit

Journal Entries

REQUIREMENT #1: Prepare journal entries to record the January transactions in the General Journal below. Remember that Debits must equal Credits—All of your Journal Entries should balance.(Omit explanations)
General Journal
Date Description (Account Name) Debit Credit Column1
– 0
Harris, Nicole: Debits = $183,110
– 0
Harris, Nicole: Credits = $183,110

Journal Entries

For Account Names use accounts as listed on the Chart of Accounts tab.

Once you’ve completed this requirement print your General Journal to complete Requirement #2 on the General Ledger worksheet.

General Ledger

REQUIREMENT #2: Post the January journal entries to the following T-Accounts and compute ending balances.
Cash (111)
DeVry: The balance of the Cash account after posting journal entries for Part A should be $29,600
Accounts Payable (212) Revenue – Rental of Rooms (411)
Notes Payable (213)
Revenue – Restaurant (412)
Wages Payable (214)
Advertising Expense (511)
Prepaid Insurance (117)
UtilitiesPayable (215)
Wages Expense (512)
Cleaning Supplies (119)
Rent Received in Advance (216)
Insurance Expense (513)
Furniture (144)
Interest Payable (217)
Accum. Depr.-Furniture (145) Supplies Expense (514)
Income Tax Payable (218)
House (146) Utilities Expense (515)
Retained Earnings (311)
Accum. Depr.-House (147)
DepreciationExpense (516)
Capital Stock (312)
Land (148)
Interest Expense (517)
Dividends (313)
Income Taxes Expense (518)
Income Summary (999)

This worksheet will be used to complete Requirements #2, #5 and #9. Instructions for #5 can be found on the Adjusting Entries Worksheet. Instructions for #9 can be found on the Closing Entries Worksheet.

Trial Balance

REQUIREMENT #3: Prepare a trial balance for Janurary in the space below.
Moonlight Bay Inn
Trial Balance
January 31
Account Account Balance
# Title Debit Credit
0
User: Debit Balance = $106,830

0
User: Credit Balance = $106,830

Journal Entries

Only enter accounts that have a balance.

List accounts in order of Account Number

Adjusting Entries

Requirement #4: Prepare adjusting entries using the following information in the General Journal below. Show your calculations!
a) Depreciation of the house
b) Depreciation of the furniture
c) Interest on the promissory note
d) Recognition of the expired portion of the insurance
e) Recognition of a portion of the guest’s deposit
f) Wages earned during the second half of January amount to $5,120 and will be paid on February 3.
g) Cleaning supplies on hand on January 31 amount to $230.
h) A gas and electric bill that is received from the city amounts to $740 and is payable by February 5.
i) Income taxes are to be accrued at a rate of 30% of income before taxes.
Requirement #5: Post the adjusting entries on Janurary 31 below to the General Ledger T-accounts and compute adjusted balances. Just add to the balances that are already listed. (Omit explanations)
General Journal
Date Description (Account Name) Debit Credit
0
Bruce: Balance $8,852
0
Bruce: Balance $8,852

Journal Entries

Click here to go to the General Ledger worksheet to complete Requirement #5.

/xl/drawings/drawing7.xml#’General%20Ledger’!A1

Area to Show Work:

Adjusted TB

REQUIREMENT #6: Prepare an Adjusted Trial Balance in the space below.
Moonlight Bay Inn
Adjusted Trial Balance
January 31
Account Account Balance
# Title Debit Credit
0
User: Debit Balance = $114,222
0
User: Credit Balance = $114,222

Journal Entries

Only enter accounts that have a balance.

List accounts in order of Account Number

Financial Statements

Requirement #7: Prepare the financial statements for Moonlight Bay Inn as of January 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.
Moonlight Bay Inn Moonlight Bay Inn Moonlight Bay Inn
Income Statement Statement of Retained Earnings Balance Sheet
For the Month Ending January 31 For the Month Ending Janauary 31 January 31
(enter figures in column B and totals in column C) (enter figures in column I and totals in column J)
Revenues: Retained Earnings, January 1 Assets:
From rental of rooms Add: Net Income Current Assets:
From restaurant Subtotal 0 Cash
Total Revenue 0 Less: Dividends Cleaning Supplies
Retained Earnings, October 31 0
User: Retained Earnings = $1,748
Prepaid Insurance
Expenses: Total current assets – 0
Advertising Property, Plant, and Euip.:
Wages Land
Depreciation House, net of accum. Depr.
Interest Furniture, net of accum. Depr.
Insurance Total Property, Plant, and Euip.
Supplies Total Assets 0
User: $100,355
Utilities
Income Taxes Liabilities and Stockholders’ Equity
Total Expenses 0 Liabilities:
Current Liabilities:
Net Income 0
User: Net Income = $2,348
Accounts Payable
Interest Payable
Wages Payable
Income Taxes Payable
Rent received in advance
Utilities Payable
Total current liabilities – 0
Long-term Debt:
Notes Payable
Total Liabilities – 0
Stockholders’ Equity:
Capital Stock
Retained Earnings
Total Stockholders’ Equity – 0
Total Liabilities & Stockholders’ Equity 0
Charms: $100,355

User: Net Income = $2,348

User: $100,355

Charms: Enter as a negative number

Closing Entries

Requirement #8: Prepare the closing entries at January 31 in the General Journal below. Hint:Use the balances for each account which appear on the Adjusted
Trial Balance for your closing entries.(Omit explanations)
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.
General Journal
Date Description (Account Name) Debit Credit EXAMPLE
31-Jan
Charms: Close out all revenue accounts
31-Jan
Charms: Close out all expense accounts
31-Jan
Charms: Close out income summary account to retained earnings

Charms: Close out all revenue accounts
31-Jan
Charms: Close out Dividends to Retained Earnings
0
Bruce: Debit $31,380

Charms: Close out all expense accounts
0
Bruce: Credit $31,380

Journal Entries

Click here to go to the General Ledger worksheet to complete Requirement #9.

/xl/drawings/drawing9.xml#’General%20Ledger’!A1

For instructions on how to prepare closing entries, view this link:
Closing Entries

https://accountingexplained.com/financial/cycle/closing-entries

Post Closing Trial Balance

Place your order now for a similar assignment and have exceptional work written by one of our experts, guaranteeing you an A result.

Need an Essay Written?

This sample is available to anyone. If you want a unique paper order it from one of our professional writers.

Get help with your academic paper right away

Quality & Timely Delivery

Free Editing & Plagiarism Check

Security, Privacy & Confidentiality

Requirement #10: Prepare a post-closing trial balance as of January 31 in the space below.
Moonlight Bay Inn
Post-Closing Trial Balance
January 31
Account Account Balance
# Title Debit Credit
0
User: Credits = $100,580
0
User: Credits = $100,580