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JanesSkateboardTemplateV6parttwo1.xlsx

Instructions

Course Project Overview
The Course Project consists of 12 Requirements for you to complete. Part 1 of the Course Project is due at the end of Week 2 and Part 2 at the end of Week 4 and Part 3 is due at the end of week 7. 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 ten (12) assignments in the workbook you will need to complete.• A list of July transactions• A Chart of Accounts reference sheet• A Grading Rubric to help explain what is expected.
Scenario
You’ve just secured a new client in your accounting practice, Jane's Skate Boards Inc., a brand new small business specializing in selling skate boards. The owner, Jane Jones, is good at selling but she needs your help with accounting. You have decided to use the perpetual inventory method to account for inventory and Cost of Goods Sold.
Requirements
ACCT 105: 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 &5 - Adjusting Entries
5 Post Adjusting Entries to the General Ledger 4 &5 -Adjusting Entries ( Use worksheet #2)
6 Prepare an Adjusted Trial Balance 6- Adjusted TB
7 Prepare the Financial Statements 7 - Financial Statements
8 Prepare the Closing Entries 8&9 - Closing Entries ( use worksheet #2)
9 Post Closing Entries to the General Ledger 8&9- General Ledger
10 Prepare the Post Closing Trial Balance 10 - Post Closing Trial Balance
11 Prepare ratio analysis 11 -Ratio Analysis
12 Prepare Break-Even Analysis 12 - Break Even
Guidelines
Use the template, guidance in your textbook, and examples in the weekly lectures to complete this project. Should you have any questions contact your professor.
Milestone 1 is due in Week 2 - This includes project requirements 1-3.
Milestone 2 is due in Week 4 - This includes project requirements 4-10.
Milestone 3 is due in Week 7- This includes project requirements 11-12.

Chart of Accounts

Account Name Number Account Type Increase with Decrease with
Cash 111 Asset Debit Credit
Store Supplies 117 Asset Debit Credit
Prepaid Insurance 119 Asset Debit Credit
Merchandise Inventory 130 Asset Debit Credit
Store Fixtures 144 Asset Debit Credit
Accumulated Depreciation -Fixtures 145 Contra Asset Credit Debit
Accounts Payable 212 Liability Credit Debit
Income Tax Payable 213 Liability Credit Debit
Common Stock 311 Owners Equity Credit Debit
Retained Earnings 312 Owners Equity Credit Debit
Dividends 313 Contra Owners Equity Debit Credit
Sales Revenue 411 Revenue Credit Debit
Cost of Good Sold 505 Expense Debit Credit
Store Rent Expense 511 Expense Debit Credit
Telephone Expense 517 Expense Debit Credit
Depreciation Expense 520 Expense Debit Credit
Electric Expense 522 Expense Debit Credit
Insurance Expense 525 Expense Debit Credit
Supplies Expense 530 Expense Debit Credit
Income Tax Expense 535 Expense Debit Credit

Transaction

During its first month of operation, Jane's Skateboards completed the following transactions.
Record these transactions in the Journal entries page
Journal entry # Date of transaction July Transactions
JE01 July 1 Begin business by making a $100,000 deposit into the companies bank account
in exchange for 10,000 shares of common stock -Par value $10
JE02 July 2 Paid $16,000 for Shelves for the Store
JE03 July 3 Paid $6,000 for the premium on a 1-year Insurance policy
JE04 July 5 Paid $3,000 for the July store rent
JE05 July 6 Purchased on Credit - 1000 skateboards costing $25 each from Acme MFG Note: This is different from the videos you watched
JE06 July 8 Purchased on Credit - Store supplies costing $600 from Mikes Supply
JE07 July 10 Paid $200 for for July telephone bill
JE08 July 11 Sold 24 skateboards for $50 each to a customer who paid cash
JE09 July 18 Paid $300 for 1/2 of the Store Supplies purchased on July 8
JE10 July 20 Sold 140 skateboards for $50 each to a customer who paid cash
JE11 July 25 Sold 100 skateboards for $50 each to a customer who paid cash
JE12 July 26 Paid $500 for for July electric bill
JE13 July 30 Paid $1,500 for divident declared on July 30

Journal Entries

Date Description Post Ref. Debit Credit Post Ref. Account Name Acct #
1 7/1/22 Cash 111 100,000 JE01 Cash 111
Common Stock 311 100,000 JE01 Store Supplies 117
2 7/2/22 Store fixtures 144 16,000 JE02 Prepaid Insurance 119
Cash 111 16,000 JE02 Merchandise Inventory 130
3 7/3/22 Prepaid Insurance 119 6,000 JE03 Store Fixtures 144
Cash 111 6,000 JE03 Accumulated Depreciation -Fixtures 145
4 7/5/22 Store Rent Expense 511 3,000 JE04 Accounts Payable 212
Cash 111 3,000 JE04 Income Tax Payable 213
5 7/6/22 Merchandise Inventory 130 25,000 JE05 Common Stock 311
Accounts Payable 212 25,000 JE05 Retained Earnings 312
6 7/8/22 Store Supplies 117 600 JE06 Dividends 313
Accounts Payable 212 600 JE06 Sales Revenue 411
7 7/10/22 Telephone Expense 517 200 JE07 Cost of Good Sold 505
Cash 111 200 JE07 Store Rent Expense 511
8 7/11/22 Cash 111 1200 JE08 Telephone Expense 517
Sales Revenue 411 1200 JE08 Depreciation Expense 520
7/11/22 Cost of Good Sold 505 600 JE08 Electric Expense 522
Merchandise Inventory 130 600 JE08 Insurance Expense 525
9 7/18/22 Accounts Payable 212 300 JE09 Supplies Expense 530
Cash 111 300 JE09 Income Tax Expense 535
10 7/20/22 Cash 111 7000 JE10
Sales Revenue 411 7000 JE10
7/20/22 Cost of Good Sold 505 3500 JE10
Merchandise Inventory 130 3500 JE10
11 7/25/22 Cash 111 5000 JE11
Sales Revenue 411 5000 JE11
7/25/22 Cost of Good Sold 505 2500 JE11
Merchandise Inventory 130 2500 JE11
12 7/26/22 Electric Expense 522 500 JE12
Cash 111 500 JE12
13 7/30/22 Dividends 313 1500 JE13
Cash 111 1500 JE13

General Ledger

Account: Cash - 111 JE Number Account Name Acct #
Balance JE#1 Cash 111
Date Description Post Ref. Debit Credit Debit Credit JE#2 Store Supplies 117
7/1/22 To cash JE#1 100,000 100,000 JE#3 Prepaid Insurance 119
7/2/22 From cash JE#1 16,000 84,000 JE#4 Merchandise Inventory 130
7/3/22 From cash JE#1 6,000 78,000 JE#5 Store Fixtures 144
7/5/22 From cash JE#1 3,000 75,000 JE#6 Accumulated Depreciation -Fixtures 145
7/10/22 From cash JE#1 200 74,800 JE#7 Accounts Payable 212
7/11/22 To cash JE#1 1,200 76,000 JE#8 Income Tax Payable 213
7/18/22 From cash JE#1 300 75,700 JE#9 Common Stock 311
7/20/22 To cash JE#1 7,000 82,700 JE#10 Retained Earnings 312
7/25/22 To cash JE#1 5,000 87,700 JE#11 Dividends 313
7/26/22 From cash JE#1 500 87,200 JE#12 Sales Revenue 411
7/30/22 From cash JE#1 1,500 85,700 JE#12 Cost of Good Sold 505
JE#13 Store Rent Expense 511
AE#1 Telephone Expense 517
AE#2 Depreciation Expense 520
Store Supplies - 117 AE#3 Electric Expense 522
Balance AE#4 Insurance Expense 525
Date Description Post Ref. Debit Credit Debit Credit CE#1 Supplies Expense 530
7/8/22 To store supplies JE#2 600 600 CE#2 Income Tax Expense 535
7/31/22 From store supplies JE#2 350 250 CE#3
CE#4
Prepaid Insurance - 119
Balance
Date Description Post Ref. Debit Credit Debit Credit
7/3/22 To prepaid insurance JE#3 6,000 6,000
7/31/22 By prepaid insurance JE#3 500 5,500
Merchandise Inventory - 130
Balance
Date Description Post Ref. Debit Credit Debit Credit
7/6/22 To Merchandise inventory JE#4 25,000 25,000
7/11/22 From merchandise inventory JE#4 600 24,400
7/20/22 From merchandise inventory JE#4 3,500 20,900
7/25/22 From merchandise inventory JE#4 2,500 18,400
Store Fixtures - 144
Balance
Date Description Post Ref. Debit Credit Debit Credit
7/2/22 To store fixtures JE#5 16,000 16,000
Accumulated Depreciation -Fixtures -145
Balance
Date Description Post Ref. Debit Credit Debit Credit
7/31/22 To accumulated depreciation fixtures JE#6 160 160
Accounts Payable - 212
Balance
Date Description Post Ref. Debit Credit Debit Credit
7/6/22 By accounts payable JE#7 25,000 25,000
7/8/22 By accounts payable JE#7 600 25,600
7/18/22 To accounts payable JE#7 300 25,300
Income Tax Payable - 213
Balance
Date Description Post Ref. Debit Credit Debit Credit
7/31/22 By income tax payable JE#7 295 295
Common Stock - 311
Balance
Date Description Post Ref. Debit Credit Debit Credit
7/1/22 By common stock JE#9 100,000 100,000
Retained Earnings - 312
Balance
Date Description Post Ref. Debit Credit Debit Credit
Dividends - 313
Balance
Date Description Post Ref. Debit Credit Debit Credit
7/30/22 To dividends JE#11 1,500 1,500
Sales Revenue - 411
Balance
Date Description Post Ref. Debit Credit Debit Credit
7/11/22 To sales revenue JE#12 1,200 1,200
7/20/22 To sales revenue JE#12 7,000 8,200
7/25/22 To sales revenue JE#12 5,000 13,200
Cost of Good Sold - 505
Balance
Date Description Post Ref. Debit Credit Debit Credit
7/11/22 To cogs JE#12 600 600
7/20/22 To cogs JE#12 3,500 4,100
7/25/22 To cogs JE#12 2,500 6,600
Store Rent Expense - 511
Balance
Date Description Post Ref. Debit Credit Debit Credit
7/5/22 To store rent expense JE#13 3,000 3,000
Telephone Expense - 517
Balance
Date Description Post Ref. Debit Credit Debit Credit
7/10/22 To telephone expense AE#1 200 200
Depreciation Expense - 520
Balance
Date Description Post Ref. Debit Credit Debit Credit
7/31/22 To depreciation expense AE#2 160 160
Electrict Expense - 522
Balance
Date Description Post Ref. Debit Credit Debit Credit
7/26/22 To electric expense AE#3 500 500
Insurance Expense - 525
Balance
Date Description Post Ref. Debit Credit Debit Credit
7/31/22 To insurance expense AE#4 500 500
Supplies Expense - 530
Balance
Date Description Post Ref. Debit Credit Debit Credit
7/31/22 To supplies expense CE#1 350 350
Income Tax Expense - 535
Balance
Date Description Post Ref. Debit Credit Debit Credit
7/31/22 To income tax expense CE#2 295 295

T-Accounts

Date Acct # Account Name Account Name Acct #
111 Cash Cash 111
7/1/22 100,000 Store Supplies 117
7/2/22 16,000 Prepaid Insurance 119
7/3/22 6,000 Merchandise Inventory 130
7/5/22 3,000 Store Fixtures 144
7/10/22 200 Accumulated Depreciation -Fixtures 145
7/11/22 1200 Accounts Payable 212
7/18/22 300 Income Tax Payable 213
7/20/22 7,000 Common Stock 311
7/25/22 5,000 Retained Earnings 312
7/26/22 500 Dividends 313
7/30/22 1500 Sales Revenue 411
Cost of Good Sold 505
Store Rent Expense 511
Totals 113200 27500 Telephone Expense 517
Balance 85700 Depreciation Expense 520
117 Store Supplies Electric Expense 522
7/8/22 600 Insurance Expense 525
Supplies Expense 530
Income Tax Expense 535
Totals 600 0
Balance 600
119 Prepaid Insurance
7/3/22 6,000
Totals 6000 0
Balance 6000
130 Merchandise Inventory
7/6/22 25,000
7/11/22 600
7/20/22 3,500
7/25/22 2,500
Totals 25000 6600
Balance 18400
144 Store Fixtures
7/2/22 16,000
Totals 16000 0
Balance 16000
145 Accumulated Depreciation
Totals 0 0
Balance 0
212 Accounts Payable
7/6/22 25,000
7/8/22 600
7/18/22 300
Totals 300 25600
Balance 25300
213 Income Tax Payable
Totals 0 0
Balance 0
311 Common Stock
7/1/22 100,000
Totals 0 100000
Balance 100000
312 Retained Earnings
Totals 0 0
Balance 0
313 Dividends
7/30/22 1500
Totals 1500 0
Balance 1500
411 Sales Revenue
7/11/22 1,200
7/20/22 7,000
7/25/22 5,000
Totals 0 13200
Balance 13200
505 Cost of Goods Sold
7/11/22 600
7/20/22 3,500
7/25/22 2,500
Totals 6600 0
Balance 6600
511 Store Rent Expense
7/5/22 3,000
Totals 3000 0
Balance 3000
517 Telephone Expense
7/10/22 200
Totals 200 0
Balance 200
520 Depreciation Expense
Totals 0 0
Balance 0
522 Electric Expense
7/26/22 500
Totals 500 0
Balance 500
525 Insurance Expense
Totals 0 0
Balance 0
530 Supplies Expense
Totals 0 0
Balance 0
535 Income Tax Expense
Totals 0 0
Balance 0

Trial Balance

Janes Skateboard Account Name Acct #
Trial Balance Cash 111
For the Month Ended July 31, 2022 Store Supplies 117
Prepaid Insurance 119
Merchandise Inventory 130
Trial Balance Store Fixtures 144
Accumulated Depreciation -Fixtures 145
Account Name Debit Credit Accounts Payable 212
Income Tax Payable 213
Cash 111 85,700 Common Stock 311
Store Supplies 117 600 Retained Earnings 312
Prepaid Insurance 119 6,000 Dividends 313
Merchandise Inventory 130 18,400 Sales Revenue 411
Store Fixtures 144 16,000 Cost of Good Sold 505
Accumulated Depreciation -Fixtures 145 Store Rent Expense 511
Accounts Payable 212 25,300 Telephone Expense 517
Income Tax Payable 213 Depreciation Expense 520
Common Stock 311 100,000 Electric Expense 522
Retained Earnings 312 Insurance Expense 525
Dividends 313 1,500 Supplies Expense 530
Sales Revenue 411 13,200 Income Tax Expense 535
Cost of Good Sold 505 6,600
Store Rent Expense 511 3,000
Telephone Expense 517 200
Depreciation Expense 520
Electric Expense 522 500
Insurance Expense 525
Supplies Expense 530
Income Tax Expense 535
138,500 138,500

Adjusting Entries

Requirement #4: Prepare adjusting entries using the following information in the General Journal below. Show your calculations! 1) One month's insurance has expired. 2) The remaining inventory of store supplies is $250. 3) The estimated depreciation on store fixtures is $160. 4) The estimated income taxes are $295.
Requirement #5: Post the adjusting entries on July 31 below to the General Ledger accounts (Step 2) . Ajusting entries are referenced in the General Ledger as AE#1 ,2 etc.
Date Description Post Ref. Debit Credit Account Name Acct #
1 7/31/22 Insurance Expense 525 500 1 Cash 111
Prepaid Insurance 119 500 2 Store Supplies 117
2 7/31/22 Supplies Expense 530 350 3 Prepaid Insurance 119
Store Supplies 117 350 4 Merchandise Inventory 130
3 7/31/22 Depreciation Expense 520 160 5 Store Fixtures 144
Accumulated Depreciation -Fixtures 145 160 6 Accumulated Depreciation -Fixtures 145
4 7/31/22 Income Tax Expense 535 295 7 Accounts Payable 212
Income Tax Payable 213 295 8 Income Tax Payable 213
5 9 Common Stock 311
10 Retained Earnings 312
6 11 Dividends 313
12 Sales Revenue 411
7 13 Cost of Good Sold 505
14 Store Rent Expense 511
8 15 Telephone Expense 517
16 Depreciation Expense 520
9 17 Electric Expense 522
18 Insurance Expense 525
10 19 Supplies Expense 530
20 Income Tax Expense 535
11 21
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Adjusted Trial Balance

Janes Skateboard Account Name Acct #
Adjusted Trial Balance Cash 111
For the Month Ended July 31, 2022 Store Supplies 117
Prepaid Insurance 119
Merchandise Inventory 130
Trial Balance Store Fixtures 144
Accumulated Depreciation -Fixtures 145
Account Name Debit Credit Accounts Payable 212
Income Tax Payable 213
Cash 111 85,700 Common Stock 311
Store Supplies 117 250 Retained Earnings 312
Prepaid Insurance 119 5,500 Dividends 313
Merchandise Inventory 130 18,400 Sales Revenue 411
Store Fixtures 144 16,000 Cost of Good Sold 505
Accumulated Depreciation -Fixtures 145 160 Store Rent Expense 511
Accounts Payable 212 25,300 Telephone Expense 517
Income Tax Payable 213 295 Depreciation Expense 520
Common Stock 311 100,000 Electric Expense 522
Retained Earnings 312 Insurance Expense 525
Dividends 313 1,500 Supplies Expense 530
Sales Revenue 411 13,200 Income Tax Expense 535
Cost of Good Sold 505 6,600
Store Rent Expense 511 3,000
Telephone Expense 517 200
Depreciation Expense 520 160
Electric Expense 522 500
Insurance Expense 525 500
Supplies Expense 530 350
Income Tax Expense 535 295
138,955 138,955

Financial Statements

Requirement #7: Prepare the financial statements for Jane's Skateboard's as of July 31 in the space below. You will only be preparing the Income Statement, Statement of Retained Earnings, and the Balance Sheet. The Statement of Cash Flows is a required Financial Statement, but is not required for this project.
Jane's Skateboards Inc. Jane's Skateboards Inc. Jane's Skateboards Inc.
Income Statement Statement of Retained Earnings Balance Sheet
For the Month Ending July 31 For the Month Ending July 31 July 31
Revenues: Retained Earnings, July 1 - 0 Assets:
Sales Revenue $13,200 Add: Net Income 1,595 Cash $85,700
Total Revenue 13,200 Subtotal 1,595 Store supplies 250
Less: Dividends 1,500 Prepaid Insurance 5,500
Expenses: Retained Earnings, July 31 95 Merchandise Inventory 18,400
Cost of Goods Sold $6,600 Store fixtures 16,000
Store Rent Expense $3,000 Less: Accum. Dep - Fixtures. 160
Telephone Expense 200 Total Assets $125,690
Insurance Expense 500
Store Supplies Exp. 350 Liabilities and Stockholders' Equity
Depreciation Exp. 160 Liabilities:
Income Tax Expense 295 Accounts Payable 25,300
Electric Expense 500 Income Taxes Payable 295
Total Expenses 11,605 Total Liabilities 25,595
Net Income $1,595 Stockholders' Equity:
Common Stock 100,000
Retained Earnings 95
Total Stockholders' Equity 100,095
Total Liabilities & Stockholders' Equity $ 125,690

Closing Entries

Requirement #8: Prepare the closing entries at July 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 Accounts on the General Ledger ( Step 2) worksheet and compute ending balances. Closing entries are referenced in the General Ledger as CE#1 ,2 etc.
Date Description Post Ref. Debit Credit Account Name Acct #
1 7/31/22 Sales Revenue 411 13200 1 Cash 111
7/31/22 Cost of Good Sold 505 6600 2 Store Supplies 117
7/31/22 Store Rent Expense 511 3000 3 Prepaid Insurance 119
7/31/22 Telephone Expense 517 200 4 Merchandise Inventory 130
7/31/22 Insurance Expense 525 500 5 Store Fixtures 144
7/31/22 Electric Expense 522 500 6 Accumulated Depreciation -Fixtures 145
7/31/22 Supplies Expense 530 350 7 Accounts Payable 212
7/31/22 Depreciation Expense 520 160 8 Income Tax Payable 213
7/31/22 Income Tax Expense 535 295 9 Common Stock 311
7/31/22 Dividends 313 1500 10 Retained Earnings 312
7/31/22 Retained Earnings 312 95 11 Dividends 313
12 Sales Revenue 411
13 Cost of Good Sold 505
14 Store Rent Expense 511
15 Telephone Expense 517
16 Depreciation Expense 520
17 Electric Expense 522
18 Insurance Expense 525
19 Supplies Expense 530
20 Income Tax Expense 535
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Post closing Trial Balance

Janes Skateboard Account Name Acct #
Post Closing Trial Balance Cash 111
For the Month Ended July 31, 2022 Store Supplies 117
Prepaid Insurance 119
Merchandise Inventory 130
Trial Balance Store Fixtures 144
Accumulated Depreciation -Fixtures 145
Account Name Debit Credit Accounts Payable 212
Income Tax Payable 213
Cash 111 85,700 Common Stock 311
Store Supplies 117 250 Retained Earnings 312
Prepaid Insurance 119 5,500 Dividends 313
Merchandise Inventory 130 18,400 Sales Revenue 411
Store Fixtures 144 16,000 Cost of Good Sold 505
Accumulated Depreciation -Fixtures 145 160 Store Rent Expense 511
Accounts Payable 212 25,300 Telephone Expense 517
Income Tax Payable 213 295 Depreciation Expense 520
Common Stock 311 100,000 Electric Expense 522
Retained Earnings 312 95 Insurance Expense 525
Dividends 313 Supplies Expense 530
Sales Revenue 411 Income Tax Expense 535
Cost of Good Sold 505
Store Rent Expense 511
Telephone & Electric Expense 517
Depreciation Expense 520
Insurance Expense 525
Supplies Expense 530
Income Tax Expense 535
125,850 125,850

Ratio Analysis

Ratio Analysis Show Formula used Show Calculations Answer
Compute the following:
Current ratio
Debt to Total Assets
Gross profit percentage
Net Income by Net Sales
Earnings per Common Share
Dividend payout ratio

Break Even

Complete the income statement below then us it to compute Break-even analysis;
Jane's Skateboards Inc.
Income Statement
For the Month Ending July 31
Revenues:
Sales Revenue
Less: Variable Expenses
Contribution Margin
Less: Fixed expenses
Operating income
Break-even in sales dollars =
Break-even in units =

Grading Rubric

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