ACC212 Full Course Latest 2018 September

ACCT212 Financial Accounting

WEEK 1 CHECKPOINT

Question 1

(TCO 1) Accounting

measures business activities.

processes data into reports and communicates the data to decision makers.

is often called the language of business.

All of the above

Question 2

(TCO 1) Decision makers who use accounting include

the SEC.

investors.

managers.

All of the above

Question 3

(TCO 1) The Financial Accounting Standards Board is responsible for establishing

the code of professional conduct for accountants.

the Securities and Exchange Commission.

generally accepted accounting principles.

international accounting financial standards.

Question 4

(TCO 1) The accounting assumption that states that the business, rather than its owners, is the reporting unit is the

entity assumption.

going concern assumption.

stable-monetary-unit assumption.

historical cost assumption.

Question 5

(TCO 1) The accounting equation can be stated as

Assets + Stockholders' Equity = Liabilities.

Assets - Liabilities = Stockholders' Equity.

Assets = Liabilities - Stockholders' Equity.

Assets - Stockholders' Equity + Liabilities = Zero.

Question 6

(TCO 1) The owners' equity of any business is its

revenues minus expenses.

assets minus liabilities.

assets plus liabilities.

paid-in capital plus assets.

Question 7

(TCO 1) Net income is computed as

revenues - expenses - dividends.

revenues + expenses.

revenues - expenses.

revenues - expenses + dividends.

Question 8

(TCO 1) Which of the following would appear on the balance sheet?

Assets and operating cash flows

Dividends and liabilities

Assets and liabilities

Owners' equity and revenues

Question 9

(TCO 1) Which statement(s) summarizes the revenues, gains, expenses, and losses of an entity?

Balance sheet

Statement of cash flows and income statement

Statement of retained earnings and statement of operations

Income statement

Question 10

(TCO 1) What is the proper order for the categories of the statement of cash flows?

Financing activities, investing activities, and operating activities

Operating activities, investing activities, and financing activities

Operating activities, financing activities, and investing activities

Investing activities, financing activities, and operating activities

ACCT212 Financial Accounting

WEEK 2 CHECKPOINT

Question 1

(TCO 2) The debt created by a business when it makes a purchase on account is a(n)

revenue.

prepaid expense.

account receivable.

account payable.

Question 2

(TCO 2) A company performed services for a customer for cash. This transaction increased assets and

decreased equity.

increased liabilities.

increased expenses.

increased revenues.

Question 3

(TCO 2) When a company borrows cash from the bank

total assets remain the same.

liabilities are increased.

retained earnings is decreased.

total liabilities remain the same.

Question 4

(TCO 2) Which of the following is a true statement regarding T-accounts?

The transaction needs to be analyzed to determine which accounts are affected before entering amounts in the T-accounts.

If a company pays cash, an amount would be entered on the left side of the T-account.

T-accounts are only used to record complex transactions.

To debit an asset, an amount is entered on the left side of the T-account and to debit a liability an amount is entered on the right side of the T-account.

Question 5

(TCO 2) An important rule of debits and credits is

credits increase a liability account.

debits decrease an asset account

revenues are increased by a debit.

expenses are increased by a credit.

Question 6

(TCO 2) Accounting transactions are initially recorded in the

T-account.

ledger.

journal.

financial statements.

Question 7

(TCO 3) Under accrual accounting, revenue is recorded

when the cash is collected, regardless of when the services are performed.

when the services are performed, regardless of when the cash is received.

either when the cash is received or the sale is made.

only if the cash is received at the same time the services are performed.

Question 8

(TCO 3) The event that triggers revenue recognition for the sale of goods is the

date a contract is signed.

date cash is received.

transfer of control of the goods to the purchaser.

completion of the services.

Question 9

(TCO 3) The balance sheet reports

assets, liabilities and stockholders' equity.

the changes in retained earnings.

assets, liabilities, revenues and expenses.

revenues and expenses.

Question 10

(TCO 3) Closing entries

are made at the beginning of each accounting period.

prepare the accounts for the next period's transaction.

cannot be done using a computer.

are the same as adjusting entries.

ACCT212 Financial Accounting

WEEK 3 CHECKPOINT

Question 1

(TCO 5) The three main components of the fraud triangle are

rationalization, opportunity, and greed.

opportunity, motive, and lack of ethics.

motive, opportunity, and rationalization.

None of the above

Question 2

(TCO 5) Fraud is the ultimate unethical act in business because

the perpetrators usually do so for their own short-term economic gain at the expense of others.

fraud is illegal.

fraud violates the rights of many for the temporary betterment of a few.

All of the above

Question 3

(TCO 5) The primary way that fraud is prevented and detected is through a proper system of

checks and balances.

management directives.

internal control.

internal and external audits.

Question 4

(TCO 5) The "tone at the top"

is a component of the control procedures.

starts with low level employees.

means that owners and top managers must behave honorably to set a good example for employees.

is set by the PCAOB.

Question 5

(TCO 5) The information system component of internal control

ensures that every system that processes accounting data should have the ability to capture transactions as they occur.

monitors controls.

offers hints of where fraud or errors could occur.

ensures that the IT department has adequate control procedures in place to ensure that no one can hack into the company's database.

Question 6

(TCO 5) Creating bogus websites for the purpose of stealing unauthorized data is a(n)

encryption device.

phishing expedition.

computer virus.

Trojan horse.

Question 7

(TCO 5) When preparing a bank reconciliation, which of the following items should be added to the book balance?

EFT receipts

Deposits in transit

Collection items

Both EFT receipts and collection items

Question 8

(TCO 5) When a company receives cash by mail

all incoming mail containing cash receipts should be opened by the accounting department.

the mailroom sends all customer checks to the internal audit department.

the remittance advice goes to the accounting department for preparation of the journal entries.

the bank deposit is prepared by the mail room.

Question 9

(TCO 5) Another name for short-term investments is

equity investments.

marketable securities.

market investments.

available-for-sale securities.

Question 10

(TCO 5) Which of the following is a true statement about sales?

Net revenue is gross revenue plus sales discounts less sales returns and allowances.

Sales discounts are offered to customers in order to speed up cash flow.

Sales returns and allowances increase a company's profit.

Retailers do not generally record sales returns and allowances in a separate account.

ACCT212 Financial Accounting

WEEK 4 CHECKPOINT

Question 1

(TCO 4) The cost of the inventory that the business has sold to customers is called

inventory.

cost of goods sold.

purchases.

gross profit.

Question 2

(TCO 4) The cost of inventory that is still on hand and has not been sold to customers is called

cost of goods sold, an expense that appears on the balance sheet.

inventory, a current asset that appears on the income statement.

inventory, a current asset that appears on the balance sheet.

purchases, an expense that appears on the income statement.

Question 3

(TCO 4) A small _____ would most likely use a perpetual inventory system.

automobile dealership

fabric store

restaurant

flower shop

Question 4

(TCO 4) The cost of inventory is the

purchase price.

sum of all the costs incurred to bring the inventory to its intended use.

sum of all the costs incurred to bring the inventory to its intended use, plus any discounts and allowances.

sum of all the costs incurred to bring the inventory to its intended use, less any discounts and allowances.

Question 5

(TCO 4) ABC Auto Sales sells new Lexus vehicles. ABC will most likely use the _____ method to cost its ending inventory.

first-in, first-out

last-in, first-out

specific-unit-cost

weighted-average

Question 6

(TCO 4) When inventory prices are increasing, the FIFO costing method will generally yield a cost of goods sold that is

higher than cost of goods sold under the LIFO method.

lower than cost of goods sold under the LIFO method.

equal to the gross profit under the LIFO method.

equal to cost of goods sold under the LIFO method.

Question 7

(TCO 4) When inventory prices are falling, the LIFO costing method will generally result in

a lower gross profit than under FIFO.

a higher gross profit than under FIFO.

a lower inventory value than under FIFO.

the same inventory value as FIFO.

Question 8

(TCO 4) The _____ principle states that the financial statements of a business must report enough information for outsiders to make knowledgeable decisions about the business.

consistency

historical cost

disclosure

conservatism

Question 9

(TCO 4) When applying the lower-of-cost-or-market rule, market value generally refers to

FIFO cost using the periodic method.

LIFO cost using the periodic method.

current sales price of the inventory.

current replacement cost of the inventory.

Question 10

(TCO 4) The inventory turnover ratio

is determined by dividing cost of goods sold by net sales.

shows how many times the company sold its average level of inventory.

should be high for a company that sells high-priced inventory items.

will be lower for companies that have many low-priced items in their inventory .

ACCT212 Financial Accounting

WEEK 5 CHECKPOINT

Question 1

(TCO 6) An asset with no physical form, but that has special rights to current and expected future benefits is a(n)

intangible asset.

natural resource.

plant asset.

fixed asset.

Question 2

(TCO 6) The process of allocating the cost of a plant asset to expense over the period in which the asset is used is called

amortization.

allocation.

depreciation.

disclosure.

Question 3

(TCO 6) All of the following are classified as natural resources and are depleted except for

land.

timber.

minerals.

oil.

Question 4

(TCO 6) An investor who owns 25% of the outstanding stock of another company should report the investment using the

market value method.

consolidated method.

equity method.

historical cost method.

Question 5

(TCO 6) All of the following are necessary to compute the future value of a single amount except the

interest rate.

number of periods.

principal.

maturity value.

Question 6

(TCO 6) All of the following are reported as current liabilities except

bonds payable.

sales tax payable.

accounts payable.

unearned revenues.

Question 7

(TCO 6) The current ratio is current assets

minus current liabilities.

divided by current liabilities.

plus current liabilities.

multiplied by current liabilities.

Question 8

(TCO 6) If bonds are issued at a discount, it means that the

market interest rate is higher than the stated interest rate.

market interest rate is lower than the stated interest rate.

financial strength of the issuer is weak.

bond is convertible.

Question 9

(TCO 6) Bonds which are backed only by the good faith of the borrower are referred to as

junk bonds.

unregistered bonds.

debenture bonds.

callable bonds.

Question 10

(TCO 6) The financing option that has the lowest risk to a company is financing by

retained earnings.

issuing stock.

issuing bonds payable.

issuing notes payable.

ACCT212 Financial Accounting

WEEK 6 CHECKPOINT

Question 1

(TCO 7) The authority structure of a corporation would show the

board of directors delegating to the stockholders.

president delegating to the board of directors.

chief financial officer delegating to the board of directors.

stockholders delegating to the board of directors.

Question 2

(TCO 7) The basic unit of ownership for a corporation is

dividends.

stock.

retained earnings.

capital.

Question 3

(TCO 7) When a company issues common stock greater than its par value, the excess should be credited to

retained earnings.

common stock.

paid-in capital in excess of par.

capital.

Question 4

(TCO 7) Reasons that a company would purchase treasury stock include all of the following except

management wants to avoid a takeover by an outside party.

it needs the stock for distribution to employees under stock purchase plans.

it wants to increase net assets by buying its stock low and reselling it at a higher price.

management wants to decrease earnings per share of common stock.

Question 5

(TCO 7) The date when a cash dividend becomes a legal obligation is on the

date of record.

declaration date.

last day of the corporate year.

payment date.

Question 6

(TCO 7) If stock is issued for an asset other than cash, the asset should be recorded on the books of the corporation at

fair market value.

cost.

par value of the stock.

zero.

Question 7

(TCO 1) The statement of cash flows

can be prepared instead of an income statement.

must be prepared daily.

summarizes the operating, financing, and investing activities of an entity.

is part of the income statement.

Question 8

(TCO 1) The best gauge of a company's ability to produce ample cash to continue as a going concern is net cash provided by

operating activities.

investing activities.

financing activities.

analytical activities.

Question 9

(TCO 1) Which of the three types of activities reported on the statement of cash flows is the most critical?

Investing activities

Operating activities

Financing activities

Investing and financing activities

Question 10

(TCO 1) Investing activities include

obtaining cash from creditors.

collecting cash on loans.

obtaining capital from owners.

repaying borrowed money.

ACCT212 Financial Accounting

Week 4 Midterm Exam

Question 1

(TCO 1) The Accounting Equation is used to develop the organization's financial reports. (1) Describe what assets value would be if Liabilities are $12,000 and Owners' Equity is $50,000 by showing the Accounting Equation (10 points), and (2) provide an example of two asset accounts that could contain the value. (10 points)

Question 2

(TCO 1) The financial statements present a company to the public in financial terms. (1) Which financial statement identifies where cash was generated and where it was spent during the year (10 points), and (2) identify the three major parts of this statement. (10 points)

Question 3

(TCO 1) The accounting profession follows a set of guidelines for measurement and disclosure of financial information called the Generally Accepted Accounting Principles (GAAP). (1) Explain what the Going-concern Assumption is (10 points) and (2) provide an example of its application. (10 points)

Question 4

(TCO 2) Transaction analysis results in the development of a journal entry. Supplies are purchased on account agreeing to pay $500 within 30 days. (1) Name the accounts impacted and how to use the format account name/debit or credit/dollar amount (10 points), and (2) explain how the Accounting Equation is impacted. (10 points)

Question 5

(TCO 3) Adjusting Entries are required at the end of the period to ensure that accrual accounting principles are applied. At the beginning of the month, $1,350 of office supplies were purchased. There was not a beginning balance and the one purchase was the only one for the month. At the end of the month, $500 of supplies remained. Develop the adjusting entry. (1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount (10 points), and (2) explain how the

Question 6

(TCO 5) E-commerce creates its own risks, and therefore special internal controls. (1) Identify and explain one pitfall and one security measure for an online business (10 points) and (2) provide examples of how your selected security measure will strengthen internal control. (15 points)

Question 7

(TCO 5) The bank account as a control device helps to protect cash. One of the requirements is to conduct periodic bank statement reconciliations. Using the following data, complete the bank statement reconciliation. (Use the format shown on page 251 of your textbook.) (25 points)

Prepare a bank reconciliation using B & B’s Restaurant Supply Inc.’s information for August 31.

• A NSF check from Johnny Jones for $3,164.

• Two deposits made on August 31 were not on the bank statement, totaling $2,897.

• The bank collected an EFT payment for Rent for $2,600.

• August 31 balance in Cash was $2,005.

• The owner had written check #1598 for $500 and recorded this check as $5,000.

• The balance on the bank statement as of August 31 was $5,316.

• Bank service charge of $28 was shown on the bank statement.

• Checks #1572, 1606, 1116, and 1242 for $419, $126, $650, and $1,105, respectively, were not shown on the bank statement, even though the company had sent the checks.

ACCT212 Financial Accounting

WEEK 8 Final Exam

TCO 3) Closing temporary accounts is necessary at the end of the accounting period. (1) Explain the closing process, include each set of entries required (15 points) and (2) provide an example of closing the Dividend account in the form of a journal entry. (10 points).

Question 2

(TCO 2) Explain how accounts are listed in the trial balance and the importance of the trial balance in preparing financial statements (10 points) and (2) Prepare a trial balance form the following accounts. List the accounts in the proper order.(10 points) Accrued liabilities $10 Revenue $190 Accounts receivable $40 Building $100 Rent expense $140 Wages payable $30 Stockholders’ equity $50

Question 3

(TCO 5) Internal Control Procedures are required to safeguard company assets and to ensure ethical operation of the business. (1) Explain how smart hiring practices can satisfy the purpose of internal control (15 points) and (2) provide an example of how this control could be implemented. (10 points)

Question 4

(TCO 4) A retailer needs to determine the cost of the shoes the company purchased in order to determine the inventory value to report on its balance sheet in a particular period. (1) Discuss the steps involved in determining the cost of shoes inventory as reported on the company’s balance sheet (15 points), and (2) use an example to show the impact of purchase discounts and allowances received by the company on the cost of shoes inventory (10 points).

Question 5

(TCO 1) The Balance Sheet is sometimes referred to as a snap-shot of the financial position of the business on a particular date. Name the three major components of the Balance Sheet (15 points) and provide an example of an account that would be found in each major component (10 points).

Question 6

(TCO 6) BagODonuts Company bought a used delivery truck on January 1, 2010, for $19,200. The van was expected to remain in service 4 years (30,000 miles). BagODonuts’ accountant estimated that the truck’s residual value would be $2,400 at the end of its useful life. The truck traveled 8,000 miles the first year, 8,500 miles the second year, 5,500 miles the third year, and 8,000 miles in the fourth year.

1. Calculate depreciation expense for the truck for each year (2010-2013) using the:

a. Straight-line method.

b. Double-declining balance method.

c. Units of Production method.

(For units-of-production and double-declining balance, round to the nearest two decimals after each step of the calculation.)

2. Which method best tracks the wear and tear on the van?

3. Which method would BagODonuts prefer to use for income tax purposes? Explain in detail why BagODonuts prefers this method.

Question 7

(TCO 7) ABC Inc. was incorporated on 1/15/12. Their corporate charter authorized the following capital stock:

Preferred Stock: 7%, par value $100 per share, 100,000 shares.

Common Stock: $1 par value, 500,000 shares.

The following transactions occurred during the year:

1/19/12 – Issued 100,000 shares of common stock for $17 cash per share.

1/31/12 – Issued 3,000 shares of preferred stock for $115 cash per share.

11/1/12 – Repurchased 30,000 shares of common stock for $22 cash per share.

12/1/12 – Declared and paid a total dividend of $95,000.

Required:

1. Prepare the journal entry for each transaction listed above.

2. In your own words, explain the main differences between common and preferred stock.

Question 8

(TCO 5) Internal Control Procedures are in place to protect the assets of every business as mentioned in the textbook and our discussions. Of the seven internal control procedures, list five of these controls and describe how each procedure is implemented. (5 points each with 2 points for listing and 3 points for a description)

Question 9

(TCO 2) Below are the accounts of Super Pool Service, Inc. The accounts have normal balances on June 30, 2012. The accounts are listed in no particular order.

Account Balance

Common stock $5,100

Accounts payable $4,400

Service revenue $17,100

Land $28,800

Note payable $9,500

Cash $5,200

Dividends $6,100

Utilities expense $2,100

Accounts receivable $10,600

Delivery expense $700

Retained earnings $25,600

Salary expense $8,200

Prepare the company’s trial balance as of June 30, 2012, listing accounts in proper sequence, as illustrated in the chapter. For example, Accounts Receivable comes before Land. List the expense with the largest balance first, the expense with the next largest balance second, and so on.

Question 10

(TCO 4) Linda’s Lampshades started business on Jan. 1, 2001. They had the following inventory transactions:

Journals - Jan. 2001

Purchases

Supplier Date Received Quantity Unit Cost Amount

Donna 01/10/01 110 12.00 1320.00

Thomas 01/15/01 160 14.00 2240.00

Cindy 01/18/01 150 15.00 2250.00

Sales

Customer Date shipped Quantity Sel. Price Amount

Norilene 01/16/01 200 25.00 5000.00

1. Calculate the ending inventory, using the perpetual inventory method:

A. Using FIFO

B. Using LIFO

C. Using Average Cost

2. Prepare the following statement

Using

FIFO LIFO Average Cost

Sales

Cost of Sales

Gross Profit

ACCT212 Financial Accounting

Week 1 Discussion

DQ1 FINANCIAL STATEMENTS

Students are encouraged to use online collaboration tools to create a submission 2-4 minutes in length, explaining either an article on the financial statement discussion topic, or assignment work you have done in relation to the discussion topic. Discuss the financial statements of a company of your choice, what they mean in to the company and its shareholders, and how the financial statements relate to each other.

DQ2 COURSE PROJECT

In this graded discussion, we will be examining the operation of the Accounting Information System (AIS) with the use of problems and exercises from your textbook. The goal is to cover all of the requirements to ensure an opportunity for your successful completion of Course Project. Let's start with Exercise 1-17A. Read about CoffeeShop Doughnuts and select one of the four requirements to answer.

ACCT212 Financial Accounting

Week 2 Discussion

DQ1 ACCOUNTING SYSTEM

Students are encouraged to use online collaboration tools to create a submission 2-4 minutes in length, explaining research you have done on the different types of accrual entries and what they mean. Please provide an example that covers the type of entry represented, what it means and why it is being used.

DQ2 COURSE PROJECT

In this graded discussion, we will be examining the operation of the Accounting Information System (AIS) with the use of problems and exercises from your textbook. The goal is to cover all of the requirements to ensure an opportunity for your successful completion of the Course Project. As you complete the requirements of Week 2, you should review the Course Project Overview in Course Home, as you could start work on the Project. The template for the Course Project is located in the Files section.

Let's start with Exercise 2-16A. Select one of the nine financial transactions of the medical practice of Bob Morin, P.C. Develop a journal entry with date and explanation. Post it in this discussion and then conduct peer reviews of your classmates. The next requirement is to select one of the five questions (a-e) and post an answer. Do show your computations.

ACCT212 Financial Accounting

Week 3 Discussion

DQ1 COMPLIANCE AND THE SARBANES-OXLEY (SOX) ACT

In the context of the world of business, explain what we mean by the term "compliance." Relating to this, is anyone familiar with the Sarbanes-Oxley (SOX) legislation enacted by Congress in 2002? What was contained in this legislation and what prompted it? Can you provide a specific example of one of the major points of this legislation? Why was it enacted? Separately, does the term "compliance" apply to any other areas of business besides the SOX legislation?

DQ2 COURSE PROJECT

Go to Course Home and review the Course Project Overview. Then download the Course Project template from Files. In this graded discussion, we will be examining the operation of the Accounting Information System (AIS) with the use of problems and exercises from your textbook. The goal is to cover all of the requirements to ensure an opportunity for your successful completion of the Course Project.

Let's start with a review of the first three requirements of the Course Project. Explain why it is important to analyze each financial transaction of a business and to report it in the Accounting Information System. Suggestion: Revisit and review the Lessons in Weeks 1 and 2.

ACCT212 Financial Accounting

Week 4 Discussion

DQ1 INVENTORY MANAGEMENT

Students are encouraged to use online collaboration tools to create a submission 2-4 minutes in length, discussing the three primary methods of assessing ending inventory value, what each method represents and how the method chosen can affect cost of goods sold and gross margin.

In this post, you'll discuss the three primary methods of assessing ending inventory value, and what each method means to the business.

DQ2 COURSE PROJECT

Go to Course Home and review the Course Project Overview. Continue to use the Course Project template from the Files section. In this graded discussion, we will be examining the operation of the Accounting Information System (AIS) with the use of problems and exercises from your textbook. The goal is to cover all of the requirements to ensure an opportunity for your successful completion of the Course Project.

Let's start with Exercise 3-22A and practice developing journal entries to make adjustments. Select one of the six transactions and develop the adjusting journal entry. If you are using an example found in the textbook do mention the page number.

ACCT212 Financial Accounting

Week 5 Discussion

DQ1 NON-CURRENT ASSETS AND RELATED LIABILITIES

Students are encouraged to use online collaboration tools to create a submission 2-4 minutes in length, discussing your research into the relevance of the company's Fixed Assets (PP&E) to their core business, and how Fixed Assets (PP&E) help the company in its business.

In this post, you'll provide researched, APA sourced citations on how companies report their Fixed Assets (PP&E), and you'll discuss what this information means to the business.

DQ2 COURSE PROJECT

Go to Course Home and review the Course Project Overview. Continue to use the Course Project template from the Files section. In this graded discussion, we will be examining the operation of the Accounting Information System (AIS) with the use of problems and exercises from your textbook. The goal is to cover all of the requirements to ensure an opportunity for your successful completion of the Course Project.

Let's start with Exercise 3-30A. For the Anderson Production Company, select one adjusting and one closing entry requirement. Develop the journal entry for review by your peers. Make sure to reference any page numbers of examples you are using. Hint: Revisit the Week 2 Lecture.

ACCT212 Financial Accounting

Week 6 Discussion

DQ1 STOCKHOLDERS' EQUITY

Students are encouraged to use online collaboration tools to create a submission 2-4 minutes in length, discussing your research into your selected company's financial statement equity section, and explain why you believe that company has these various types of stock.

In this post, you'll research public companies financial statements and provide APA sourced citations on what companies have for their financial statement equity sections in terms of types of stock, i.e. does the company have only common stock and/or preferred stock and/or treasury stock.

DQ2 STATEMENT OF CASH FLOWS

Let's start with gaining an understanding of the Statement of Cash Flows. From Exercise 12-17A, select one of the journal entries and explain how the accounts in the journal entry impact the statement of cash flows.

ACCT212 Financial Accounting

Week 7 Discussion

DQ1 FINANCIAL STATEMENT ANALYSIS

Select any one public company that interests you, look up its stock symbol on the Internet, and enter this symbol into the Quote Lookup box under the Finance link at Yahoo. Using the data available, calculate the Current Ratio and Quick Ratio for this company. Is there a difference between these two measures for this specific organization? Why or why not? If there is a difference, explain what exactly is causing it.

DQ2 ANALYSIS EXERCISES

Let's start with Exercise 13-19A by preparing a common-size income statement for the McMahon Music Co. Do this in Excel. Do not post your spreadsheet in the discussion, but rather, place a screenshot of it. How did you format the cells? Any suggestions on where to obtain assistance with building the spreadsheet?

ACCT212 Financial Accounting

Week 6 Course Project

Course Project Overview

"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 March 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, Bethany's Bicycle Corporation (BBC), a brand new small business specializing in bicycle repair. The owner, Bethany Beck, is a terrific cyclist and bike repair specialist, but definitely not an accountant. Your job is to helpBethany put his affairs in order. Luckily Bethany has only been in operation for a month and things have not gotten too out of hand yet! Bethany has to submit his financial statements to her 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 BBC.

Requirements

REQUIREMENT #1: Prepare journal entries to record the March transactions in the General Journal below. Remember that Debits must equal Credits—All of your Journal Entries should balance.

REQUIREMENT #2: Post the March journal entries to the following T-Accounts and compute ending balances.

REQUIREMENT #3: Prepare a trial balance for March 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 $200.

c) The estimated depreciation on repair equipment is $120.

d) The estimated income taxes are $65. "

Requirement #5: Post the adjusting entries on March 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 Bethany's Bicycle Corporation as of March 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 March 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 March 31 in the space below.

During its first month of operation, the Bethany's Bicycle Corporation, which specializes in bicycle repairs, completed the following transactions.

March Transactions

Date Transaction Description

March 1 Began business by making a deposit in a company bank account of $20,000, in exchange for 2,000 shares of $10 par value common stock.

March 1 Paid the premium on a 1-year insurance policy, $2,400.

March 1 Paid the current month's store rent expense, $1,900.

March 3 Purchased repair equipment from Andrew Company, $5,800. Paid $1,000 down and the balance was placed on account. Payments will be $400.00 per month for 12 months. The first payment is due 4/1. Note: Use Accounts Payable for the Balance Due.

March 8 Purchased repair supplies from Jackson Company on credit, $650.

March 10 Paid telephone bill for March, $340.

March 11 Cash bicycle repair revenue for the first third of March, $1,650.

March 18 Made payment to Jackson Company, $400.

March 20 Cash bicycle repair revenue for the second third of March, $2,450.

March 31 Cash bicycle repair revenue for the last third of March, $1,250.

March 31 Paid the current month's electice bill, $250.

March 31 Declared and paid cash dividend of $1,000.

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 Repair Supplies Debit

144 Repair Equipment Debit

145 Accum Dep -Repair Equipment Credit

Liabilities

212 Accounts Payable Credit

213 Income Tax Payable Credit

Stockholders Equity

311 Common Stock Credit

312 Retained Earnings Credit

313 Dividends Debit

Revenue

411 Bicycle Repair Revenue Credit

Expenses

511 Store Rent Expense Debit

512 Telephone Expense Debit

513 Insurance Expense Debit

514 Repair Supplies Expense Debit

515 Dep Expense - Repair Equipment Debit

516 Income Tax Expense Debit

517 Electric Expense Debit