You were recently hired as an entry-level bookkeeper for a service business that recently opened. This is the first month in operation for the business and your first task is to recor
Scenario
You were recently hired as an entry-level bookkeeper for a service business that recently opened. This is the first month in operation for the business and your first task is to record business transactions for their first month using the source documents and transaction data the owner will provide to you. Because this is a small business that does not use computerized accounting, you will apply the accounting cycle in Excel to record transactions and generate financial reporting results for the owner.
Milestone One Guidelines and Rubric
Focus
Overview
In previous modules, you examined the initial stages of the accounting cycle and practiced journalizing financial transactions. In Milestone One, you will complete the first part of your course project to demonstrate your ability to accurately record financial data, which will continue to be used to complete other parts of the project.
Scenario
You were recently hired as an entry-level bookkeeper for a service business that recently opened. This is the first month in operation for the business and your first task is to record business transactions for their first month using the source documents and transaction data the owner will provide to you. Because this is a small business that does not use computerized accounting, you will apply the accounting cycle in Excel to record transactions and generate financial reporting results for the owner.
Prompt
Record Financial Data: Use accepted accounting principles to accurately capture business transactions for the month in the Company Accounting Workbook Template using the data provided in the Accounting Data Appendix document.
Specifically, you must address the following rubric criteria:
· Accuracy: Prepare entries that are accurate in that they fully reflect the appropriate information.
· Completeness: Prepare entries that are complete for each month, including transferring posted entries to T accounts.
· Unadjusted Trial Balance: Prepare the unadjusted trial balance portion of the “Trial Balance” tab of the company accounting workbook, ensuring that the total debits and credits match.
Guidelines for Submission
Using the provided template, submit your company accounting workbook with the following portions completed: the General Journal tab, the Ledger Accounts tab, and the Trial Balance tab. This should be completed and submitted using the Microsoft Excel workbook template. Please note that the first tab of the workbook provides you with the chart of accounts. These are the accounts you will use in recording transactions for the month.
Supporting Materials
The following resources support your work on the project:
Video: Milestone One Walkthrough (14:40) This video walkthrough is available if you need additional assistance completing this milestone. The video uses a sample data set for illustrative purposes.
A video transcript is available: Transcript for ACC 201 Milestone One Walkthrough
Milestone One Rubric
|
Criteria |
Exemplary (100%) |
Proficient (85%) |
Needs Improvement (55%) |
Not Evident (0%) |
Value |
|
Accuracy |
Prepares accurate entries with no errors |
Prepares accurate entries with minimal errors |
Prepares entries that have significant inaccuracies |
Does not attempt criterion |
35 |
|
Completeness |
Prepares entries that are complete for each month, including transferring posted entries to T accounts, with no errors |
Prepares entries that are complete for each month, including transferring posted entries to T accounts, with minimal errors |
Prepares entries that are complete for each month, including transferring posted entries to T accounts, with significant errors |
Does not attempt criterion |
35 |
|
Unadjusted Trial Balance |
Prepares the unadjusted trial balance accurately, ensuring the total debits and credits match with no errors |
Prepares the unadjusted trial balance with minimal errors |
Prepares the unadjusted trial balance with significant errors |
Does not attempt criterion |
30 |
|
Total: |
100% |
2
,
Chart of Accounts
| This chart of accounts should help you identify the appropriate accounts to record to as you are analyzing and journaling transactions for this workbook. There is nothing to complete on this page; this is simply a resource for you. | |||||
| Asset Accounts | Liability Accounts | Equity Accounts | |||
| Acct # | Acct # | Acct # | |||
| Cash | 101 | Notes Payable | 201 | Owner's Capital | 301 |
| Accounts Receivable | 102 | Accounts Payable | 202 | Owner Draws | 302 |
| Prepaid Rent | 103 | Wages Payable | 203 | ||
| Office Furniture | 104 | ||||
| Office Supplies | 105 | ||||
| Accumulated Depreciation (contra asset) | 106 | ||||
| Revenue Accounts | |||||
| Acct # | |||||
| Service Revenue | 401 | ||||
| Expense Accounts | |||||
| Acct # | |||||
| Rent expense | 501 | ||||
| Business License Expense | 502 | ||||
| Insurance Expense | 503 | ||||
| Repairs and Maintenance | 504 | ||||
| Advertising Expense | 506 | ||||
| Wages Expense | 507 | ||||
| Utilities Expense | 508 | ||||
| Depreciation Expense | 509 | ||||
| Cash | |||||
| Baking Supplies | |||||
| Prepaid Rent | |||||
| Prepaid Insurance | |||||
| Baking Equipment | |||||
| Office Supplies | |||||
| Accounts Receivable | |||||
| Accumulated Depreciation | |||||
| Merchandise Inventory | |||||
| Notes Payable | |||||
| Accounts Payable | |||||
| Wages Payable | |||||
| Interest Payable | |||||
| Common Stock | |||||
| Dividends | |||||
| Bakery Sales | |||||
| Merchandise Sales | |||||
| Baking Supplies Expense | |||||
| Rent Expense | |||||
| Insurance Expense | |||||
| Misc. Expense | |||||
| Business License Expense | |||||
| Advertising Expense | |||||
| Wages Expense | |||||
| Telephone Expense | |||||
| Interest Expense | |||||
| Depreciation Expense | |||||
| Office Supplies Expense | |||||
| Cost of Goods Sold |
General Journal
| A Company | |||||
| General Journal Entries | Journal Entry Tips | ||||
| The debited account is recorded first, credited account recorded second. | |||||
| Debits and credits must always equal! | |||||
| Date | Accounts | Debit | Credit | There can be compound entries in which two accounts receive a debt to an equivalent credited amount to one account. | |
| Be sure to use your chart of accounts (the first page of this workbook). | |||||
| Each account you will record to is already listed and organized by classification of the account. | |||||
| Total | – 0 | – 0 | If Red, this means your debits and credits do not equal. Be sure to review for errors. |
Ledger Accounts
| Assets | Liabilities | Equity | Revenue | Expenses | ||||||||||||||||||
| Cash | Notes Payable | Owner's Capital | Service Revenue | Rent Expense | ||||||||||||||||||
| $ – 0 | $ – 0 | $ – 0 | $ – 0 | $ – 0 | $ – 0 | $ – 0 | $ – 0 | $ – 0 | $ – 0 | |||||||||||||
| $ – 0 | $ – 0 | $ – 0 | $ – 0 | $ – 0 | ||||||||||||||||||
| Accounts Rec. | Accounts Payable | Owner Draws | Business License Expense | |||||||||||||||||||
| $ – 0 | $ – 0 | $ – 0 | $ – 0 | $ – 0 | $ – 0 | $ – 0 | $ – 0 | |||||||||||||||
| $ – 0 | $ – 0 | $ – 0 | $ – 0 | |||||||||||||||||||
| Prepaid Rent | Wages Payable | Insurance Expense | ||||||||||||||||||||
| Posting to the ledger/t accounts | ||||||||||||||||||||||
| Don't overthink it! | ||||||||||||||||||||||
| You are just posting each debit and credit from the journal entries to the account you identified in the entry. | ||||||||||||||||||||||
| These accounts are set to calculate your balances for you. | ||||||||||||||||||||||
| Please be careful not to delete the running totals as those will calculate the ending balance. | ||||||||||||||||||||||
| The ending balance will transfer to the Trial Balance sheet. | ||||||||||||||||||||||
