Term Project Part 1 Instructions Data File
Instructions:
Follow the steps below to complete part 1 of your project.
Step 1: Complete the following in the “General Journal” tab at the bottom of the Janie’s Cupcakes,
Inc. Student Workbook).
The following events occur in July 2014:
• July 1 – You take $10,000 from your personal savings account and buy common stock in Janie’s
Cupcakes, Inc..
• July 1 – Paid $4000 on a lease for bakery space. The lease is for 1 year, and requires first and last
month’s rent up front. Lease period is effective July 1st 2016 through June 30th, 2017.
• July 1 – You have baking equipment, including an oven and mixer, which you have been using
for your home-based business for one year and will now start using in the bakery. The current
book value of the equipment is $8,000, and you transfer the equipment into the business in
exchange for additional common stock. The equipment has a 5-year useful life, and an original
cost of $10,000.
• July 2 – Your parents lend the company $10,000 cash, in exchange for a ten-year, 3% note
payable. Interest is payable quarterly, and the principal is due at maturity.
• July 4 -Purchased $5000 in baking supplies from vendor, on account
• July 10 – Paid $325 to the City Licensing office for a business license.
• July 14 – Went to Costco and paid $750 for Miscellaneous Supplies, such as paper products,
office supplies, etc.
• July 15 – Hire counter staff at $12 per hour. Pay periods are the 1st through the 15th and 16th
through the end of the month with paydays being 7-days after the end of each pay period.
• July 30- Received utility bill for July in amount of $185. Payment is due on August 25th
• July 31- Accrue 40 hours of wages earned by your employee for period of July 16th through 31st.
.
• Total July bakery sales were $6,500. Of this amount, $1500 was on account for a local
restaurant.
Step 2:
Complete the following transactions in the August section of the General Journal tab in your
workbook
• August 1-Pay rent on bakery space $2000
• August 1 – Buy a 12-month insurance policy for $600. Payment in full was required at the
policy’s inception. Policy effective dates August 1, 2016 through July 31st, 2017
• August 3 – Paid $250 for a website and social media advertising.
• August 7 – paid employee for period ending 7/31
• August 8 – Receive payments from local restaurant towards accounts receivable in amount of
$1000.
• August 15- Purchase additional baking supplies in amount of $4000 from vendor, on account.
• August 15 – Accrue wages earned for employee from period of 1st through 15th of August.
Employee worked 50 hours this pay period.
• August 20- paid $7500 toward baking supplies vendor payable
• August 22- paid employee for period ending 8/15
• August 25 – paid July utility bill
• August 31- received utility bill for August in amount of $235. Payment is due on September 25th.
• August 31- Accrue wages earned for employee for period of August 16th through August 31st .
Employee worked 48 hours this pay period.
• August bakery sales total $12,500. Of this, half was on accounts.
Step 3:
Complete the following transactions in the September area of the General Journal tab in your
workbook.
• September 1- paid rent
• September 3 – Purchased 25 T-shirts with Jane’s Cupcakes logo for resale. Each shirt was $9.00.
Since you are just starting out with selling this type of merchandise, you decide to use the
periodic method to track your inventory, and the FIFO method for Inventory measurement. In
addition to recording the Journal entry for this purchase transaction, you should also begin to
complete the Purchases chart and COGS computation in Step 4.
• September 5 – Receive $4000 from customers on Account
• September 7 -paid employee for period ending 8/31
• September 11-purchase baking supplies in amount of $ 7,000 from vendor on account.
• September 13- Paid on supplies vendor account in amount of $5000 • September 15- Accrue 52 hours of employee wages for period of September 1st through
September 15th
• September 20-Purchase 25 more T-shirts for resale to customers. Each shirt cost $9.80
wholesale price. Remember to adjust your purchases record in Step 4.
• September 22 – Pay employees
• September 25 – pay August utility bill
• September 30-Accrue 58 hours of employee wages for period of September 16th through
September 30th
• Total September bakery sales $17,500. $7,000 of these sales on accounts receivable.
Additionally, you determine that you sold 35 T-shirts for $15 each. All 25 T-shirts from the Sept
3rd purchase were sold, and an additional 10 T-shirts from the Sept 20th purchase were sold. The
remaining shirts have a dollar value of $147.
• September 30 – Record the adjustment to inventory to determine the Cost of Goods Sold of sold
T-shirts and make the accompanying Journal entry.
• September 30 – Paid Dividends of $5000
Step 4: Post Inventory-related entries to the FIFO Inventory record.
Transfer the Inventory purchases, sales and ending balances to the Inventory Record worksheet.
Remember that when using the FIFO method, the “oldest” items are sold first, removing the cost of
those items from inventory and transferring it to Cost of Goods Sold.

Term Project Part 2 Instructions Data File
Instructions:
Follow the steps below to complete part 2 of your project.
Step 5: Post entries to T-accounts.
Use the T-accounts page in your Excel workbook to post all journal entries to the appropriate ledger
account and calculate account balances as of September 30th
. Note that you do not have to post the
Inventory and COGS transactions to the T-accounts. You should use the Inventory record (Step 4) for
those transactions.
Step 6: Prepare the Unadjusted Trial Balance
Use the T-account balances completed in the previous step to prepare the unadjusted trial balance
portion of the Worksheet tab in your Excel workbook.
Step 7a: Make Adjusting Entries
On September 30, the following adjustments must be made:
a. Depreciation of baking equipment transferred to company on July 1st. Depreciation is
computed using the straight-line method. The equipment has a 5-year useful life, and an original
cost of $10,000.
b. Accrue interest for note payable. The annual interest on $10,000 loan from parents is 3%.
Interest is payable quarterly.
c. Record insurance used for the year. Assume a full month for August.
d. Actual baking supplies on-hand as of September 30th is $500.
e. Misc. supplies on-hand as of September 30th is $100.
Step 7b: Transfer Adjusting Entries to the Worksheet
Transfer your adjusting journal entries to the Adjustments columns of the Worksheet.
Step 8: Adjusted Trial Balance
Apply adjusting entries to the trial balance to create the adjusted trial balance. Adjusting entries from
Step 6 will apply to affected accounts in the unadjusted trial balance to arrive at the adjusted trial
balance.Term Project Part 2 Instructions Data File
Instructions:
Follow the steps below to complete part 2 of your project.
Step 5: Post entries to T-accounts.
Use the T-accounts page in your Excel workbook to post all journal entries to the appropriate ledger
account and calculate account balances as of September 30th
. Note that you do not have to post the
Inventory and COGS transactions to the T-accounts. You should use the Inventory record (Step 4) for
those transactions.
Step 6: Prepare the Unadjusted Trial Balance
Use the T-account balances completed in the previous step to prepare the unadjusted trial balance
portion of the Worksheet tab in your Excel workbook.
Step 7a: Make Adjusting Entries
On September 30, the following adjustments must be made:
a. Depreciation of baking equipment transferred to company on July 1st. Depreciation is
computed using the straight-line method. The equipment has a 5-year useful life, and an original
cost of $10,000.
b. Accrue interest for note payable. The annual interest on $10,000 loan from parents is 3%.
Interest is payable quarterly.
c. Record insurance used for the year. Assume a full month for August.
d. Actual baking supplies on-hand as of September 30th is $500.
e. Misc. supplies on-hand as of September 30th is $100.
Step 7b: Transfer Adjusting Entries to the Worksheet
Transfer your adjusting journal entries to the Adjustments columns of the Worksheet.
Step 8: Adjusted Trial Balance
Apply adjusting entries to the trial balance to create the adjusted trial balance. Adjusting entries from
Step 6 will apply to affected accounts in the unadjusted trial balance to arrive at the adjusted trial
balance.Term Project Part 2 Instructions Data File
Instructions:
Follow the steps below to complete part 2 of your project.
Step 5: Post entries to T-accounts.
Use the T-accounts page in your Excel workbook to post all journal entries to the appropriate ledger
account and calculate account balances as of September 30th
. Note that you do not have to post the
Inventory and COGS transactions to the T-accounts. You should use the Inventory record (Step 4) for
those transactions.
Step 6: Prepare the Unadjusted Trial Balance
Use the T-account balances completed in the previous step to prepare the unadjusted trial balance
portion of the Worksheet tab in your Excel workbook.
Step 7a: Make Adjusting Entries
On September 30, the following adjustments must be made:
a. Depreciation of baking equipment transferred to company on July 1st. Depreciation is
computed using the straight-line method. The equipment has a 5-year useful life, and an original
cost of $10,000.
b. Accrue interest for note payable. The annual interest on $10,000 loan from parents is 3%.
Interest is payable quarterly.
c. Record insurance used for the year. Assume a full month for August.
d. Actual baking supplies on-hand as of September 30th is $500.
e. Misc. supplies on-hand as of September 30th is $100.
Step 7b: Transfer Adjusting Entries to the Worksheet
Transfer your adjusting journal entries to the Adjustments columns of the Worksheet.
Step 8: Adjusted Trial Balance
Apply adjusting entries to the trial balance to create the adjusted trial balance. Adjusting entries from
Step 6 will apply to affected accounts in the unadjusted trial balance to arrive at the adjusted trial
balance.