Accounting 1 Project

Ledger (Continued)

Insurance Expense

Acct. No. 637

Explanation

Credit

Balance

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.

Paul Koulakov

Business Technologies Department

Nashville State Community College

120 White Bridge Road

Nashville, TN 37209

Due Date:

See syllabus

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:

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

Required:

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.
Post the December transactions to the appropriate accounts in the ledger.
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.
Journalize the adjusting entries to reflect items a through f above.
Post the adjusting entries to the appropriate accounts in the ledger.
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.
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.
Journalize and post the necessary closing entries for Jamison Consulting.
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

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

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