Fluent Essays

The Course Project consists of 12 Requirements for you to complete. The Course Project is due at the end of Module 9. See the Due Dates section for more information. All of the information you need to complete the Course Project is located in an Excel® Workbook. Be sure to read all the sheets in the workbook. This workbook includes: • 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 You will continue to use the same workbook for all 3 milestones. You do not need to download a new copy for Milestones 2 or 3. When you submit Milestone 3, all sheets in your workbook will be complete. Menu ACCT210: Course Project Requirement Requirement Description Worksheet Name 1 Prepare the Journal Entries in the General Journal 1 - Journal Entries 2 Post Journal Entries to the General Ledger 2 - General Ledger 3 Prepare a Trial Balance 3 - Trial Balance 4 Prepare the Adjusting Entries 4 - Adjusting Entries 5 Post Adjusting Entries to the General Ledger 2 - General Ledger 6 Prepare an Adjusted Trial Balance 5 - Adjusted TB 7 Prepare the Financial Statements 6 - Financial Statements 8 Prepare the Closing Entries 7 - Closing Entries 9 Post Closing Entries to the General Ledger 2 - General Ledger 10 Prepare the Post Closing Trial Balance 8 - Post Closing Trial Balance 11 Compute Ratios 11-Ratios 12 Interpret the Ratios 12-Interpretation of Ratios Project Instructions Course Project Overview The Course Project consists of 12 Requirements for you to complete. The Course Project is due at the end of Week 9. See the Modules section 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, Howard's Flight Radio Management Corporation (HFRM), a brand new small business specializing in flight management systems (FMS). The owner, Howard Allan, is a former Air Force pilot and retired Colonel, but definitely not an accountant. Your job is to help Howard put his affairs in order. Luckily Howard has only been in operation for a month and things have not gotten too out of hand yet! Howard 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 HFRM. Requirements Guidelines Use the embedded assistance in the template, guidance in your textbook, and examples in the weekly assignments to complete this project. Should you have any questions contact your professor. Milestone 1 is due in Week 3 - This includes project requirements 1-3. Milestone 2 is due in Week 6 - This includes project requirements 4-7. Milestone 3 is due in Week 9 - This includes project requirements 8-12. Before You Begin:  Review the Week 2 Lecture prior to starting work on this project.  Print the Chart of Accounts and March 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. March Transactions During its first month of operation, HFRM 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 rent expense, $1,900. March 3 Purchased repair equipment from Fred 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 Gary Company on credit, $650. March 10 Paid telephone bill for March, $340. March 11 Cash flight management system (FMS) repair revenue for the first third of March, $1,650. March 18 Made payment to Gary Company, $400. March 20 Cash FMS repair revenue for the second third of March, $2,450. March 31 Cash FMS 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. 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 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 FMS 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 1 - Journal Entries 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. General Journal Date Account Number from Chart of Accounts tab Account Title from Chart of Accounts tab Debit Credit Harris, Nicole: Debits = $38,090 Harris, Nicole: Credits = $38,090 Journal Entries Once you've completed this requirement print your General Journal to complete Requirement #2 on the General Ledger worksheet. 2 - General Ledger REQUIREMENT #2: Post the March journal entries to the following T-Accounts and compute ending balances. DeVry: The balance of the Cash account after posting journal entries for Part A should be $18,060 . Elizabeth Rolison: Adjusting entries in blue type 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. 3 - Trial Balance REQUIREMENT #3: Prepare a trial balance for March in the space below. Howard's Flight Radio Management Corporation Trial Balance March 31 Account Account Balance Number Title Debit Credit 0 User: Debit Balance = $30,400 0 User: Credit Balance = $30,400 Journal Entries Only enter accounts that have a balance. 4 & 5 Adjusting Entries 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. General Journal Date Account Number from Chart of Accounts tab Account Title from Chart of Accounts tab Debit Credit 0 Bruce: Balance $406.00 0 Bruce: Balance $406.00 Journal Entries 6 - Adjusted TB REQUIREMENT #6: Prepare an Adjusted Trial Balance in the space below. Howard's Flight Radio Management Corporation Adjusted Trial Balance March 31 Account Account Balance Number Title Debit Credit 0 User: Debit Balance = $30,585 0 User: Credit Balance = $30,585 Journal Entries Only enter accounts that have a balance. 7 - Financial Statements Requirement #7: Prepare the financial statements for Howard's Flight Radio Management 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. Howard's Flight Radio Management Corporation Howard's Flight Radio Management Corporation Howard's Flight Radio Management Corporation Income Statement Statement of Retained Earnings Balance Sheet For the Month Ending March 31 For the Month Ending March 31 March 31 Revenues: Retained Earnings, March 1 Assets: FMS Repair Revenue Add: Net Income Cash Total Revenue Subtotal Prepaid Insurance Less: Dividends Repair Supplies Expenses: Retained Earnings, March 31 User: Retained Earnings = $1,025 Repair Equipment Store Rent Expense Less: Accum. Depr. Telephone Expense Total Assets Insurance Expense Repair Supplies Exp. Liabilities and Stockholders' Equity Depreciation Exp. Liabilities: Income Taxes Expense Accounts Payable Electric Expense Income Taxes Payable Total Expenses Total Liabilities Net Income Stockholders' Equity: Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities & Stockholders' Equity User: $26,140 User: $26,140 User: Net Income = $2,025 8 & 9- - Closing Entries 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. General Journal Date Account Number from Chart of Accounts tab Account Title from Chart of Accounts tab Debit Credit 0 Bruce: Debit $9,675 0 Bruce: Credit $9,675 Journal Entries 10 - Post Closing Trial Balance Requirement #10: Prepare a post-closing trial balance as of March 31 in the space below. Howard's Flight Radio Management Corporation Post-Closing Trial Balance March 31 Account Account Balance Number Title Debit Credit - 0 User: Debits = $26,260 - 0 User: Credits = $26,260 Journal Entries 11- Ratios Requirement #11: Ratios Using the data from Income Statement and Balance Sheet prepared by you in step 7 compute the following ratios. Current Ratio Leverage Ratio Asset Turnover Ratio Net Profit Margin Ratios Rate of Return on Total Assets 12- Interpretaion of Ratio Grading Rubric Project 1 Grading Rubric - Students Criteria Excellent Good Poor Very Poor Unacceptable Points Available Milestone 1 Step 1 —Journal Entries (20 points) Journal entries use accurate accounts and amounts; and debits and credits are used correctly. Journal entries mostly use accurate accounts and amounts; and debits and credits are used correctly. Journal entries have some errors in use of accounts and amounts; and debits and credits are only somewhat used correctly. Journal entries have some errors in use of accounts and amounts; and debits and credits are not used correctly. The submission does not meet this requirement. Little-to-no work was completed. Step 1 Grading Scale 20-18 17-15 14-12 11-9 8-0 20 Milestone 1 Steps 2 and 3 —Posted an Unadjusted Trial Balance. (13 points) Posting is correct leading to an accurate trial balance. Posting is mostly correct leading to a mostly correct trial balance. Posting has several errors leading to a trial balance with several errors. Posting is done poorly or not at all, leading to inaccurate or no trial balance. The submission does not meet this requirement. Little-to-no work was completed. Step 2 & 3 Grading Scale 13-11 10-8 7-5 4-2 1-0 13 Milestone 1 Total 33 Milestone 2 Step 4 —Adjusting Journal Entries (8 points) Journal entries use accurate accounts and amounts; and debits and credits are used correctly. Journal entries mostly use accurate accounts and amounts; and debits and credits are used correctly. Journal entries have some errors in use of accounts and amounts; and debits and credits are only somewhat used correctly. Journal entries have some errors in use of accounts and amounts; and debits and credits are not used correctly. The submission does not meet this requirement. Little-to-no work was completed. Step 4 Grading Scale 8-7 6-5 4-3 2-1 0 8 Milestone 2 Steps 5 and 6 —Posted and Adjusted Trial Balance. (10 points) Posting is correct leading to an accurate trial balance. Posting is mostly correct leading to a mostly correct trial balance. Posting has several errors leading to a trial balance with several errors. Posting is done poorly or not at all, leading to inaccurate or no trial balance. The submission does not meet this requirement. Little-to-no work was completed. Step 5 & 6 Grading Scale 10-9 8-7 6-5 4-3 2-0 10 Milestone 2 Step 7 —Financial Statements (15 points) All four financial statements are prepared accurately and in an appropriate format. Three of four financial statements are prepared accurately and mostly in an appropriate format, one statement has some errors. Two of four financial statements are prepared accurately and mostly in an appropriate format, two statements have some errors. One or fewer of four financial statements are prepared accurately and mostly in an appropriate format, three or all statements have some errors. The submission does not meet this requirement. Little-to-no work was completed. Step 7 Grading Scale 15-13 12-10 9-7 6-4 3-0 15 Milestone 2 Total 33 Milestone 3 Step 8 —Closing Journal Entries (7 points) Journal entries use accurate accounts and amounts; and debits and credits are used correctly. Journal entries mostly use accurate accounts and amounts; and debits and credits are used correctly. Journal entries have some errors in use of accounts and amounts; and debits and credits are only somewhat used correctly. Journal entries have some errors in use of accounts and amounts; and debits and credits are not used correctly. The submission does not meet this requirement. Little-to-no work was completed. Step 8 Grading Scale 7-6 5-4 3-2 1 0 7 Milestone 3 Steps 9 and 10 —Posted a Post-closingTrial Balance. (10 points) Posting is correct leading to an accurate trial balance. Posting is mostly correct leading to a mostly correct trial balance. Posting has several errors leading to a trial balance with several errors. Posting is done poorly or not at all, leading to inaccurate or no trial balance. The submission does not meet this requirement. Little-to-no work was completed. Step 9 & 10 Grading Scale 10-9 8-7 6-5 4-3 2-0 10 Milestone 3 Steps 11 and 12 —Ratios and Interpretation. (17 points) Ratios are calculated correctly. Math process is present. Interpretation of ratios are accurate. Ratios are calculated mostly correctly. Math process is present. Interpretation of ratios are mostly accurate. Ratios calculations have some errors. Math process is present. Interpretation of ratios is flawed. Ratios calculations have various errors. Math process is present. Interpretation of ratios is severely flawed. The submission does not meet this requirement. Little-to-no work was completed. No math process is present. Step 11 & 12 Grading Scale 17-15 14-12 11-9 8-6 5-0 17 Milestone 3 Total 34