06155200: graded project instructions & worksheets 1 lesson 1:

PROJECT GOAL
The goal of this graded project is to create the following
financial statements for J & L Accounting, Inc.:
Balance sheet
-Income statement
Statement of retained earnings
Post-closing trial balance
The financial statements must be created in one Microsoft Word document . Alternatively, an Excel workbook may be used . The Word or Excel file will be uploaded for grading.
INSTRUCTIONS
At the end of the project, you’llbe given instructions for creating and uploading the financial
statements in a Word or Excel file for grading.

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Graded Project Instructions
Note: The formatting of financial statements is important.
They follow Generally Accepted Accounting Principles (GAAP),which creates a uniformity of financial statements for analyzing.This allows for an easier comparison, as all businessesfollow GAAP. Therefore, the financial statements should becreated exactly the same way shown or referenced in the textbook.
Failure to do so will result in a loss of points.
The project references “debits equaling credits.” This is a fundamentalprinciple of accounting that can’t be violated and ifso is not acceptable under any circumstance. Debits notequaling credits allows for “cooking of the books,” which ispresenting false information. It also allows for embezzlement,
which is theft by management or employees. If debits don’tequal credits, the cause may be a lack of understanding ofaccounting principles, such as those presented in the textbookand assigned homework problems, or a lack of focus and concentration when making journal entries, posting to
ledger accounts, or completing math. Remember—instructorsare available to help you with material you may be struggling with. Mistakes of the lack-of-focus variety are best corrected
by going back over the work until the error is found. The accounting equation must balance on the balance sheet.
This is another fundamental principle of accounting that can’t be violated and if so is completely unacceptable. When the equation doesn’t balance and the numbers are “fudged,” this is easily detectable by someone who knows accounting. If your debits equal your credits and you understand which general ledger accounts belong on which financial statements, then the accounting equation should balance. It’s really all about understanding the concepts and applying that understanding.
The following financial statements are provided from the prior
accounting period for J & L Accounting, Inc.:
a) Post-closing trial balance
b) Balance sheet
c) Income statement
d) Statement of retained earnings
2
Graded Project 3
J & L Accounting, Inc.
Post-Closing Trial Balance
December 31, 2012
BALANCE
ACCOUNT TITLE DEBIT CREDIT
Cash, Business Checking 20,500.00
Accounts Receivable
Prepaid Rent
Vehicles 48,000.00
Accumulated Depreciation, Vehicles 12,000.00
Equipment 3,600.00
Accumulated Depreciation, Equipment 600.00
Accounts Payable
Common Stock 38,000.00
Retained Earnings 21,500.00
Dividends
Service Revenue
Advertising Expense
Rent Expense
Office Supplies Expense
Telephone Expense
Utilities Expense
Depreciation Expense
TOTALS 72,100.00 72,100.00
J & L Accounting, Inc.
Balance Sheet
As of December 31, 2012
ASSETS
Cash, Business Checking 20,500.00
Accounts Receivable 0.00
Prepaid Rent 0.00
Vehicles 48,000.00
Less: Accumulated Depreciation, Vehicles 12,000.00 36,000.00
Equipment 3,600.00
Less: Accumulated Depreciation, Equipment 600.00 3,000.00
TOTAL ASSETS 59,500.00
LIABILITIES
Accounts Payable 0.00
TOTAL LIABILITIES 0.00
STOCKHOLDERS’ EQUITY
Common Stock 38,000.00
Retained Earnings 21,500.00
TOTAL STOCKHOLDERS’ EQUITY 59,500.00
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY 59,500.00
Business, 4 Accounting, and You
Graded Project 5
J & L Accounting, Inc.
Income Statement
For the Month Ending December 31, 2012
REVENUES
Service Revenue 10,275.00
EXPENSES
Advertising Expense 2,300.00
Rent Expense 1,000.00
Office Supplies Expense 300.00
Telephone Expense 750.00
Utilities Expense 3,200.00
Depreciation Expense 1,100.00
TOTAL EXPENSES 8,650.00
NET INCOME 1,625.00
J & L Accounting, Inc.
Statement of Retained Earnings
For the Month Ending December 31, 2012
Retained Earnings, December 1, 2012 19,875.00
Add: Net Income 1,625.00
Subtotal 21,500.00
Less: Dividends 0.00
Retained Earnings, December 31, 2012 21,500.00

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