2023 Accounting Cycle Project Solid Footing 8e 2015 2016 School Year Project is Activated First Name Last | Assignments Online

Accounting Cycle Project – Solid Footing 8e 2015-2016 School Year
Project is Activated

First Name:
Last Name:ID Code: 

ONLINE

Before you begin working, save your activated project
by following the directions in the SAVING YOUR PROJECT box >>
Instructions:
You will be recording the July 2015 transactions for Lenny’s Lawn Service, Inc. After recording
the July transactions you will be preparing a Pre-Closing Trial Balance, Income Statement,
Statement of Stockholders’ Equity, Balance Sheet, and Post-Closing Trial Balance.

As you work on your project, be sure to save your file often.
You are given the following:

_ July 2015 transactions and Additional Information — Trans tab
_ Chart of Accounts with Account Numbers and Account Names — Chart Accts tab
_ General Journal pages — Journal tab
_ Lenny’s General Ledger — GL Assets, GL Liab-Equity, GL Rev-Exp tabs
_ Forms for the July 31, 2015 Pre-Closing Trial Balance, Income Statement,
Statement of Stockholders’ Equity, Balance Sheet, and Post-Closing Trial Balance
Trial Bal, IS & SEquity, BalSht, and Post Close TB tabs
To Complete Your Project do the following:

_ Print the July Transactions (click the Trans tab and then click the Printer Icon).
Use YOUR Transaction sheets — do not use another student’s sheets

_ Print the Chart of Accounts (click the Chart Accts tab and then click the Printer Icon).

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SAVING YOUR PROJECT — Immediately after Activation
Save your project in a file that uses your name as the file name. The file name should be in the
form: LastNameFirstName-ACP.xls For example, Mary Smith would save her project with the
file name SmithMary-ACP.xls

Windows Excel 2013, Excel 2010, and Excel 2003, follow these directions:
– Click File
– Click Save As
– Excel 2013 only: Click Solid Footing 8e 2015-16 under Current Folder
– In File name: enter LastNameFirstName-ACP.xls
– Click Save

Windows Excel 2007, follow these directions:
– Click the Office Button in the upper left corner of your screen
– Point to Save As
– Click Excel 97-2003 Workbook
– In File name: enter LastNameFirstName-ACP.xls
– Click Save
Any time you save your project, if Excel 2007 asks you: Do you want to increase the security of
this document by converting to an Office Open XML format? Always click No

Mac Excel 2011, follow these directions:
– Click File
– Click Save As
– In Save As: enter LastNameFirstName-ACP.xls
– Format should be Excel 97-2004 Workbook (xls)
– Click Save
– Always Click Continue to the message X "This workbook contains features that will not …."

_ Record the July transactions in the General Journal. Click the Journal tab and record
your entries directly into the General Journal. Look at the July 1 Notes Payable
transaction, which has already been entered, for an example of how to make your entries.
Do not put the "X" in the Posted column at this time. Use the printed Chart of Accounts
as a reference source for the Account Numbers and Account Names that are available
in Lenny’s accounting system.

_ To make posting from the General Journal to the General Ledger easier, it is recommended that
you print the General Journal — click the Journal tab and then click the Printer Icon.

Steps 1 and 2
in the Accounting Cycle
Step 1
For each business transaction
that occurs during the accounting
period, determine the effect of the
transaction on the General Ledger
accounts.

_ Post the entries from the printed General Journal to the General Ledger accounts. Click the
GL Assets, GL Liab-Equity, and GL Rev-Exp tabs to find the accounts to be posted.
Record your postings directly into the General Ledger. As you post an amount to an account
be sure to enter the General Journal Page # into the Journal Page # column. See
the first posting to the Cash account for an example. After you post an amount to a
General Ledger account, then hand write an "X" in the Posted column of the printed
General Journal. This will help you keep track of which entries you have posted.

_ Enter the "X"s, which you hand wrote on your General Journal pages, into the
General Journal. Click the Journal tab and enter the "X"s in the Posted column.

Step 2
Make an entry in the General
Journal for each transaction and
post the entry to the General
Ledger accounts.

Pg. 2

_ Determine the required adjusting entries as of July 31, 2015. The information needed for
the adjusting entires is on the page titled "Additional Information". This is the second page
that printed when you printed the Trans tab. Click the Journal tab and record your
adjusting entries in the General Journal. Use the printed Chart of Accounts as a
reference source for the Account Numbers and Account Names that are available in
Lenny’s accounting system. Put your adjusting entries on Page # 4 of the General Journal.

_ Post the adjusting entries from the General Journal to the General Ledger accounts.
Click the GL Assets, GL Liab-Equity, and GL Rev-Exp tabs to find the accounts to be
posted. As you post an amount to an account be sure to enter the General Journal Page #
into the Journal Page # column. After you post an amount to a General Ledger account,
click back on the Journal tab and enter an "X" in the Posted column of the General Journal.

Step 3 in the Accounting Cycle
At the end of the accounting
period, before preparing the
financial statements, determine
if any of the General Ledger
account balances need to be
adjusted. Enter any required
adjusting entries into the General
Journal and post the adjusting
entries to the General Ledger
accounts.

_ Print Lenny’s General Ledger by: clicking the GL Assets tab and then clicking the Printer icon,
clicking the GL Liab-Equity tab and then clicking the Printer icon, and clicking the
GL Rev-Exp tab and then clicking the Printer icon.

_ Using the printed General Ledger, enter the ending account balances into the July 31, 2015
Pre-Closing Trial Balance. Click the Trial Bal tab and enter the amounts into the
Pre-Closing Trial Balance. Print the July 31, 2015 Pre-Closing Trial Balance by clicking
the Printer icon.

Step 4 in the Accounting Cycle
Prepare a Pre-Closing Trial
Balance to determine that the
accounts in the General Ledger
are in balance.

Step 5 in the Accounting Cycle

_ Using the printed July 31, 2015 Pre-Closing Trial Balance, prepare the July 2015
Income Statement. Click the IS & SEquity tab and enter the amounts into the Income
Statement.

Prepare an Income Statement
from the ending balances in the
General Ledger revenue and
expense accounts.
Step 6 in the Accounting Cycle

_ Using the printed General Ledger and the Net Income amount, prepare the July 2015
Statement of Stockholders’ Equity. Click the IS & SEquity tab and enter the
amounts into the Statement of Stockholders’ Equity.

Calculate the ending balance
of the Retained Earnings
account that is needed for the
preparation of the Balance
Sheet
Step 7 in the Accounting Cycle

_ Using the printed July 31, 2015 Pre-Closing Trial Balance and the Retained Earnings amount
from the Statement of Stockholders’ Equity, prepare the July 31, 2015 Balance Sheet.
Click the BalSht tab and enter the amounts into the Balance Sheet.

_ Prepare the closing entries. Click the Journal tab and enter the closing entries into the
General Journal. Place your closing entries on Page # 5 of the General Journal.

_ Post the closing entries from the General Journal to the General Ledger accounts.
Click the GL Liab-Equity, and GL Rev-Exp tabs to find the accounts to be posted.
As you post an amount to an account be sure to enter the General Journal Page # into
the Journal Page # column. After you post an amount to a General Ledger account,
click back on the Journal tab and enter an "X" in the Posted column of the General Journal.

Prepare the Balance Sheet
from the ending balances in the
General Ledger asset accounts,
liability accounts, Common
Stock account, and the
calculated ending balance for
the Retained Earnings account.
Step 8 in the Accounting Cycle

Prepare and enter the revenue
and expense closing entries
into the General Journal,
and post the closing entries
to the General Ledger
accounts.

Step 9 in the Accounting Cycle

_ Click the Post Close TB tab and prepare the July 31, 2015 Post-Closing Trial Balance.

Your project is complete!
Your instructor will provide you with directions on how to submit your project.

Prepare a Post-Closing Trial
Balance to determine that the
accounts in the General Ledger
are in balance and ready to
start a new Accounting Cycle.

Lenny’s Lawn Service, Inc. – Transactions – Additional Information
July 2015 Transactions
Date

ü

July 1

Description of the Transaction
Borrow $35,000.00 from 1st Bank by signing a 24 month note with a 4% annual interest rate.
(As an example of how to journalize and post a transaction — this transaction has already been entered
into the General Journal and posted to the General Ledger.)

July 1

Receive $64,900.00 cash from new investors, and issue $64,900.00 of Common Stock to them.

July 1

Purchase $84,600.00 of new mowing equipment, paying cash to the mower dealer.

July 1

Pay $500.00 cash for the July truck rental.

July 3

Invoice a new customer $1,485.00 for a completed mowing job — customer will pay in 10 days.

July 5

The Board of Directors declares a cash dividend. The total amount of the dividend is $27,000.00
The Date of Record is set as July 15. The Date of Payment is set as July 31.

July 7

Pay the employees $12,000.00 for work performed during the 1st week of July.

July 10 Complete a mowing job for a new customer — customer pays $950.00 cash for the job.
July 12 Collect $3,500.00 cash from the golf course for special rush mowing job completed on May 31.
July 14 Pay the employees $7,200.00 for work performed during the 2nd week of July.
July 15 Purchase $750.00 of supplies from the mower dealer. The supplies are consumed immediately.
Lenny’s will pay the mower dealer for the supplies in about 2 weeks.
July 15 Collect $1,485.00 on account. The cash that is received is from the new customer for the job
that was completed on July 3.
July 17 One of the original mowers purchased in January of 2014 broke down and is repaired by the mower
dealer. The cost of the Mower Repair job is $795.00. Lenny’s will pay the mower dealer in 30 days.
July 19 Purchase for cash $26,000.00 of supplies. These supplies will be consumed over the next 12 months.
July 20 Collect $30,000.00 from the property management company for work performed in June.
July 21 Pay the employees $6,850.00 for work performed during the 3rd week of July.
July 23 Receive a $43,000.00 advance payment from the university. The advance payment is for 6 months
of work which will be performed from August 1, 2015 to January 31, 2016.
July 25 Complete a special mowing job for the golf course. The total price for the mowing job is $12,700.00.
The golf course pays $6,000.00 cash on this date and will pay the remainder on August 25.
July 27 Complete a mowing job for a new customer — customer pays $425.00 cash for the job.
July 27 Pay $750.00 cash to the mower dealer for the supplies purchased on account on July 15.
July 28 Pay the employees $6,350.00 for work performed during the 4th week of July.
July 31 Invoice the property management company $38,000.00 for July mowing work. The property
management company will pay the invoice on the 20th of next month.
July 31 Pay the cash dividend which was declared on July 5.

Additional Information
Equipment:

The $48,000.00 beginning balance in the Equipment account relates to the mowing equipment
which was purchased on January 2, 2014. For information related to this mowing equipment
see Page 70 in the Solid Footing book. This equipment continues to be used and should be
depreciated for the month of July.
The following information relates to the new equipment which was purchased on July 1, 2015:
The new equipment was placed into service on July 1, 2015 and should be depreciated
for the month of July.
The estimated useful life of the new equipment is 5 years.
At the end of 5 years, the new equipment will have no future value and will be scrapped.
The new equipment will be depreciated using the straight-line method.

Supplies:

At the end of July there are $25,800.00 supplies on-hand.

Mowing Service
at the University: The monthly mowing service was provided to the university per the contract signed on April 1, 2015.
For information on the contract with the university and the related advance payment, see
Pages 95 and 98 in the Solid Footing book.
Wages Due
the Employees:

Bank Loan:

The last wage payment was made to the employees on July 28, 2015. The employees worked on
July 29, 30, and 31. For these three days of work the employees earned $3,650.00 of wages.
These three days of wages will be paid to the workers during the first week of August.
The interest on the loan from 1st Bank will be paid every three months. The first interest payment
to the bank will be made on September 30, 2015. Lenny’s calls the bank on July 31 and the
bank indicates that the interest on the loan for July is $235.00

Lenny’s Lawn Service, Inc. – Chart of Accounts
Account #
100
105
110
150
155
200
205
210
215
220
250
300
305
400
500
505
510
515
520
550

Account Name
Assets:
Cash
Accounts Receivable
Supplies
Equipment
Accumulated Depreciation
Liabilities:
Accounts Payable
Wages Payable
Interest Payable
Unearned Revenue
Dividends Payable
Note Payable
Equity:
Common Stock
Retained Earnings
Revenues:
Service Revenue
Expenses:
Supplies Expense
Mower Repair Expense
Wages Expense
Truck Rental Expense
Depreciation Expense
Interest Expense