Accounting Project – ACCT 1010 Name: __________________________ Purpose: The purpose of this assignment is to help you learn how the accounting cycle works in all businesses. The accounting cycle is the process of assembling accounting information for use by decision makers for businesses in every accounting period. If you understand how the accounting cycle works, you will be more effective in making decisions to advance any business you manage or own. If you master the accounting cycle as presented in this project now, the remainder of accounting principles will be much easier to master. Skills: This assignment will help you practice the following skills that are important for your success in school and work: Analyze business transactions.Record transactions in a journal and post entries to a ledger.Prepare a trial balance.Prepare adjusting entries.Prepare an adjusted trial balance.Prepare basic financial statements from an adjusted trial balance.Prepare closing entries.Prepare a post-closing trial balance.Knowledge: This assignment will also help you: Identify, record, and communicate any organization’s business activities.Interpret financial statements.Become an effective business decision maker.Task: To complete this assignment, follow these steps: The Accounting Cycle Project is to be completed by hand using hard copy working papers. (Print the project to begin) The purpose of this requirement is that students generally have a greater comprehension of the complete accounting cycle by processing the steps by hand. Preparation: Complete the required steps for the project preparing your work in pencil using the hard copy working papers included in this packet. Your work should be neat and legible. You may omit explanations when recording journal entries. Refer to page 141 in your textbook for an example of how to format the financial statements. Submitting Your Project: Submit the hand-prepared project by Due Date: November 5, 2024. Grade Impact & Academic Integrity: This homework project will be worth 5% of your overall course grade. Submitting work copied from another source is a violation of the Academic Dishonesty Policy and will result in a grade of -0- for the project. Video Help and Practice: There are six Connect videos available to you to review how to complete the following requirements. They are not required or graded as part of the project but will remind you how to complete the requirements of the project listed below. Requirements: Journalize the December transactions for Business Solutions. You may omit explanations for the journal entries. Skip a line between each journal entry – see the journal entries in textbook chapter 2 as a formatting example (complete on page 4).Continue with the ending November balances that are already in the ledger. Post the December transactions to the appropriate accounts in the modified ledger and update balances (complete on pages 6 – 8).Prepare a trial balance to prove the equality of debits and credits prior to continuing with this project. Omit any accounts that have a zero balance (complete on page 9). Check figure: $106,884. Consult your instructor if your trial balance does not balance before proceeding with the project.Journalize the adjusting entries to reflect items a through f above (complete on page 5).Post the adjusting entries to the appropriate accounts in the ledger (complete on pages 6 – 8).Prepare an adjusted trial balance as of December 31, 202X (complete on page 10). Check figure: $109,034. Consult your instructor if your adjusted trial balance does not balance before proceeding with the project.Prepare the three basic financial statements in good form. See page 141 of your accounting text for a good example of financial statement formatting. a. Prepare an income statement for the three months ended December 31, 202X (complete on page 11).b. Prepare a statement of owner's equity for the three months ended December 31, 202X (complete on page 11). The 73,000 balance in the capital account was an investment on October 3.c. Prepare a balance sheet as of December 31, 202X (complete on page 12).Journalize and post the necessary closing entries for Parker Consulting (complete on page 5 – 8).Prepare a post-closing trial balance as of December 31, 202X (complete on page 13).Project Data: Sam Parker owns and operates a consulting firm called Business Solutions. The business began operating in October 202X. Transactions for October and November 202X have been recorded and posted. Business Solutions had the following transactions in December 202X. Dec 2 Paid $1,025 cash to Hillside Mall for Business Solutions's share of mall advertising costs.Dec 3 Paid $500 cash for minor repairs to the company's computer.Dec 4 Received $3,950 cash from Alex’s Engineering Company for the receivable from November.Dec 10 Paid cash to Lyn Addie for six days of work at the rate of $125 per day.Dec 14 Notified by Alex’s Engineering Company that Business Solutions's bid of $7,000 on a proposed project has been accepted. Alex’s paid a $1,500 cash advance to Business Solutions.Dec 15 Purchased $1,100 of computer supplies on credit from Harris Office Products.Dec 20 Completed a project for Liu Corporation and received $5,625 cash.Dec 28 Received $3,000 cash from Gomez Company on its receivable.Dec 29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per mile).Dec 31 S. Parker withdrew $1,500 cash from the company for personal use.The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company’s first three months of operations: a. The December 31 inventory count of computer supplies shows $580 still available. b. Three months have expired since the 12-month insurance premium was paid in advance. c. As of December 31, Lyn Addie has not been paid for four days of work at $125 per day. d. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value. e. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value. f. Three of the four months’ prepaid rent have expired.  Homework Project 1 – Working Papers General Journal for Requirements 1, 4 & 8 GENERAL JOURNAL DATEACCOUNTPOST REFDEBITCREDIT202XDecember Transactions (20 points)Dec GENERAL JOURNAL DATEACCOUNTPOST REFDEBITCREDIT202XAdjusting Entries (17 points)DecGENERAL JOURNAL DATEACCOUNTPOST REFDEBITCREDIT202XAdjusting Entries (17 points)Dec Closing Entries (10 points) DATEACCOUNTPOST REFDEBITCREDIT Ledger for Requirements 2, 5, & 10 Note: Ledger includes the balance of each account as of November 30 for Business Solutions. Continue by posting all the December transactions. 101: Cash DateDebitCreditBalanceNov 3038,264 106: Accounts Receivable DateDebitCreditBalanceNov 3012,618 Ledger for Requirements 2, 5, & 10 Note: Ledger includes the balance of each account as of November 30 for Business Solutions. Continue by posting all the December transactions. 101: Cash DateDebitCreditBalanceNov 3038,264 106: Accounts Receivable DateDebitCreditBalanceNov 3012,618 126: Computer Supplies DateDebitCreditBalanceNov 302,545 128: Prepaid Insurance DateDebitCreditBalanceNov 302,220 131: Prepaid Rent DateDebitCreditBalanceNov 303,300 163: Office Equipment DateDebitCreditBalanceNov 308,000 164: Accumulated Depreciation - Office Equipment DateDebitCreditBalanceNov 30 167: Computer Equipment DateDebitCreditBalanceNov 3020,000 Ledger (Continued) 168: Accumulated Depreciation - Computer Equipment DateDebitCreditBalanceNov 30 201: Accounts Payable DateDebitCreditBalance 210: Wages Payable DateDebitCreditBalance 236: Unearned Computer Services Revenue DateDebitCreditBalance 301: S. Parker, Capital DateDebitCreditBalance 302: S. Parker, Withdrawals DateDebitCreditBalanceLedger (Continued) 168: Accumulated Depreciation - Computer Equipment DateDebitCreditBalance 201: Accounts Payable DateDebitCreditBalance 210: Wages Payable DateDebitCreditBalance 236: Unearned Computer Services Revenue DateDebitCreditBalance 301: S. Parker, Capital DateDebitCreditBalanceNov 3073,000 302: S. Parker, Withdrawals DateDebitCreditBalanceNov 305,600 403: Computer Service Revenue DateDebitCreditBalanceNov 3025,659 612: Depreciation Expense - Office Equipment DateDebitCreditBalance 613: Depreciation Expense - Computer Equipment DateDebitCreditBalance 623: Wages Expense DateDebitCreditBalanceNov 302,625 637: Insurance Expense DateDebitCreditBalance 640: Rent Expense DateDebitCreditBalance 652: Computer Supplies Expense DateDebitCreditBalance 655: Advertising Expense DateDebitCreditBalanceNov 301,728 676: Mileage Expenses DateDebitCreditBalanceNov 30704 684: Repairs Expense - Computer DateDebitCreditBalanceOct 17805 901: Income Summary DateDebitCreditBalanceWorking Paper for Requirement 3 3 points Business Solutions Trial Balance December 31, 202X DEBITCREDITWorking Paper for Requirement 3 3 points Business Solutions Trial Balance December 31, 202X DEBITCREDIT Working Paper for Requirement 6 3 points Business Solutions Adjusted Trial Balance December 31, 202X DEBITCREDIT Working Papers for Requirements 7, 8 & 9 Business Solutions Income Statement (10 points) For Three Months Ended December 31, 202X  Business Solutions Statement of Owner's Equity (5 points) For Three Months Ended December 31, 202X  Working Papers for Requirements 6, 7 & 8 (continued) Business Solutions Balance Sheet (10 points) December 31, 202X   Working Papers for Requirement 10 Business Solutions Post-Closing Trial Balance December 31, 202X DEBITCREDCriteria for Success: Grading Criteria: This project will be graded on a 100-point scale based on completeness, accuracy, and neatness as shown in the grading details below. Grading Details: ItemPointsRequirement 1 – Journalize Transactions20Requirement 2 – Post to Ledger10Requirement 3 – Trial Balance3Requirement 4 – Adjusting Entries17Requirement 5 – Post Adjusting Entries10Requirement 6 – Adjusted Trial Balance3Requirement 7 – Income Statement10Requirement 8 – Statement of Owner’s Equity5Requirement 9 – Balance Sheet10Requirement 10 – Post-Closing Trial Balance3Neatness & Completeness9Total Points: 100  Business Solutions – Chart of Accounts (You can separate this page from the project to use as reference for choosing account titles for journal entries) 101: Cash106: Accounts Receivable126: Computer Supplies128: Prepaid Insurance131: Prepaid Rent163: Office Equipment164: Accum Dep Office Equipment167: Computer Equipment168: Accum Dep Computer Equipment201: Accounts Payable210: Wages Payable236: Unearned Computer Services Revenue301: S. Parker, Capital302: S. Parker, Withdrawals403: Computer Service Revenue612: Dep. Expense – Office Equipment613: Dep. Expense – Computer Equipment623: Wages Expense637: Insurance Expense640: Rent Expense652: Computer Supplies Expense655: Advertising Expense676: Mileage Expense677: Miscellaneous Expenses684: Repairs Expense – Computer901: Income Summary