what the cost for penn foster graded project Exam 061689
06168900: Graded Project Instructions & Worksheets 1
Lesson 1: Business
Accounting and You
OVERVIEW
The focus of this project is for the student to keep a set of
books through an accounting period to perform the following
functions:
n Set up the books of accounting
n Analyze and record transactions
n Post the journal entries to general ledger accounts
n Generate an unadjusted trial balance
n Calculate, journalize, and post adjusting entries
n Generate an adjusted trial balance
n Generate financial statements
n Create and post closing entries
n Generate a post-closing trial balance
INSTRUCTIONS
Use the explanation below and the information in the
assumptions section to complete the steps in the requirements
for this accounting project.
XXXXX XXXXXson recently left his job at a local pool company
to open his own pool and spa maintenance
business. XXXXX XXXXXson took all of the money he and
his wife had in their personal savings account and
used it to open Aqua Elite, Inc., on May 1, 20XX.
Assume that the following transactions for the first three
months of operations for the Hanson’s Aqua Elite, Inc., are
true and accurate.
Assumptions
n Because Aqua Elite, Inc. is a new startup business, the
beginning balances in all the general ledger accounts are
zero to start.
n The length of the accounting periods are three months
using a fiscal calendar year. (A fiscal calendar is on a
yearly basis other than a calendar year—January 1st to
December 31st. For example, a fiscal calendar year can
be May 1, 2009, through April 30, 2010). Therefore,
posting to the general ledger, adjustments and closing
entries are made on a fiscal quarterly basis.
n Accounts Receivable and Accounts Payable subsidiary
ledgers aren’t being used. Any references to invoicing,
receipts, or payments “on account” assume changes to
the running balance in the Accounts Receivable and
Accounts Payable general ledger accounts.
n Payroll calculations aren’t necessary. Assume the salary
is the gross pay with no deductions taken. Therefore, the
net pay is the same as the gross pay, requiring a simplified
journal entry to record the expense.
n Use the information in the Chart of Accounts that’s provided
after the Requirements section below. Add general
ledger accounts if necessary.
n Print out and use the blank worksheets in this file as
needed. Work through the project by hand using copies
that has the four forms you’ll need to fill in and submit
to the school for grading at the end of the project.
This project is adapted and revised from your textbook’s Chapter 1,
pp. 47–48, Continuing Problem; Chapter 2, p. 104, Continuing Problem; and
Chapter 3, pp. 169–170, Continuing Problem.Note: Changes have been made
to the scenario. Use only the information provided here for this project.
2
of those sheets. Later, you’ll be directed to another PDF
Graded Project Instructions 3
Requirements
To begin, review the financial statements on pages 122 and
127 of your textbook (Exhibits 3-4 through 3-7). Then, following
the instructions below, complete the electronic forms
provided at the end of this file. Submission instructions are
given the end of this project.
1. Journalize the transactions. Omit explanations.
2. Post the transactions to the general ledger, creating new
ledger accounts as necessary. Calculate the new general
ledger account balances.
3. Prepare the unadjusted trial balance for Aqua Elite, Inc.,
at the end of July.
4. Journalize and post the adjusting entries for July based
on the following adjustment information:
a. Record the expired rent.
b. Supplies on hand, $350.
c. Depreciation: $400 equipment, $210 furniture, $650
vehicles.
d. Services performed but unbilled, $1,900.
e. Accrued salaries, $675.
f. Unearned service revenue earned as of July 31, $800.
5. Prepare an adjusted trial balance for Aqua Elite, Inc., at
the end of July.
6. Prepare the Income Statement, Statement of Retained
Earnings, and Balance Sheet for the three-month period
May through July 20XX.
7. Prepare, journalize, and post closing entries.
8. Prepare a Post-Closing Trial Balance for the end of the
period.
4 Graded Project Instructions
May
1 Mike invested $15,000 cash and a used truck worth $13,500 in the business in exchange
for company stock.
3 Paid $4,700 cash to purchase office equipment.
7 Purchased $860 of supplies on account.
12 Performed services for cash customers and received $850.
15 Paid salaries of $675 to the office receptionist.
16 Sold the company truck for $13,500.
18 Signed a note payable for $31,000 to purchase a new truck.
21 Performed $3,200 of services on account for a local hotel chain.
27 Paid $500 of the amount owed from the purchase of supplies on May 7.
30 Received $2,000 on account from credit customers.
31 Received the utility bill for the month of May, $480. The bill is not due until the 15th
of June.
31 Paid $1,000 dividends to the shareholder, XXXXX XXXXXson.
June
1 Paid receptionist’s salary, $675.
2 Paid cash to acquire land for a future office site, $15,000.
3 Moved into a new location for the business and paid the first month’s rent, $1,800.
4 Performed service for a customer and received cash, $1,700.
5 Received $500 on account.
8 Purchased $750 of supplies on account.
11 Billed customers for services performed, $3,800.
13 Sold an additional $10,000 of stock to XXXXX XXXXXson.
16 Paid receptionist’s salary, $675.
17 Received $1,350 cash for services performed.
18 Received $1,500 from customers on account.
19 Paid $325 to be listed in the yellow pages telephone directory.
21 Paid $1,000 on account.
22 Purchased office furniture on account, $3,300.
24 Paid miscellaneous expenses, $275.
26 Billed customers for services provided, $1,000.
28 Received $300 from customers on account.
30 Paid utility bill, $745.
30 Paid receptionist’s salary, $675.
30 Paid $1,800 of dividends.
July
1 Paid three months’ rent, $4,500.
4 Performed service for a customer and received cash, $2,100.
9 Received $3,600 from customers for services to be performed later.
12 Purchased $750 of supplies on account.
15 Billed customers for services performed, $2,800.
16 Paid receptionist’s salary, $675.
22 Received $3,100 on account.
25 Paid $2,800 on account.
28 Received $1,200 cash for services performed.
30 Paid $600 of dividends.
Graded Project Instructions 5
Aqua Elite, Inc.
Chart of Accounts
May 1, 20XX
ACCOUNTS
Cash
Aqua Elite, Inc.
Chart of Accounts
May 1, 20XX
ACCOUNTS
Cash
Accounts Receivable
Supplies
Prepaid Rent
Land
Office Furniture
Accumulated Depreciation, Office Furniture
Equipment
Accumulated Depreciation, Equipment
Vehicles
Accumulated Depreciation, Vehicles
Accounts Payable
Salaries Payable
Unearned Service Revenue
Common Stock
Dividends
Service Revenue
Notes Payable
Salary Expense
Rent Expense
Supplies Expense
Utilities Expense
Depreciation Expense, Office Furniture
Depreciation Expense, Equipment
Depreciation Expense, Vehicles
Advertising Expense
Miscellaneous Expense
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