11/17/22, 5:08 PM Milestone Two Guidelines and Rubric - ACC-201-R2129 Financial Accounting 22EW2
https://learn.snhu.edu/d2l/le/content/1188155/viewContent/21410120/View 1/3
Milestone Two Guidelines and Rubric
Overview
In Milestone One, you completed the first part of your course project to demonstrate your ability to accurately record financial data.
In Milestone Two, you will use your trial balance results from Milestone One to create financial statements. These financial
statements will be part of the Summary Report that you will present to your employer in Module Seven.
Scenario
You were recently hired as an entry-level bookkeeper for a service business that recently opened. This is the first month in opera�on
for the business and your first task is to record business transac�ons for their first month using the source documents and
transac�on data the owner will provide to you. Because this is a small business that does not use computerized accoun�ng, you will
apply the accoun�ng cycle in Excel to record transac�ons and generate financial repor�ng results for the owner.
Direc�ons
Report Financial Results: Use the account balances from the Trial Balance generated through the recording process in Milestone
One to prepare the income statement, statement of owner’s equity, and balance sheet for the company. Then close temporary
account balances using closing entries in the final step. Be sure to revisit any feedback received from Milestone One and make
necessary correc�ons to ensure that statements are completed with accurate balance informa�on. (You may refer to the blank
Company Accoun�ng Workbook Template if necessary, but keep in mind that your work for this milestone should be added to the
work that was completed in your workbook for the previous milestone. You should also implement any feedback that was given
during Milestone One.)
Specifically, you must address the following rubric criteria:
Income Statement: Prepare the income statement using the adjusted trial balance
Statement of Owner’s Equity: Prepare the statement of owner’s equity using the adjusted trial balance.
Balance Sheet Assets: Prepare the balance sheet asset entries using the adjusted trial balance.
Balance Sheet Liabili�es: Prepare the balance sheet liabili�es entries using the adjusted trial balance.
Closing Entries: Complete the “Closing Entries” tab of the company accoun�ng workbook by closing all temporary income
statement amounts to create closing entries.
Guidelines for Submission
Build on your work from Milestone One to complete the “Income Statement,” “Statement of Stockholder’s Equity,” “Balance Sheet,”
and “Closing Entries” tabs in your company accoun�ng workbook. This should be completed and submi�ed using Microso� Excel.
Please refer to the video walkthrough linked below if you need more assistance with your submission.
Suppor�ng Materials
The following resources support your work on the project:
Video: Milestone Two Walkthrough (13:28)
This video walkthrough is available if you need addi�onal assistance comple�ng this milestone. The video uses a sample data set for
illustra�ve purposes.
A video transcript is available: Transcript for ACC 201 Milestone Two Walkthrough
ACC-201-R2129 Financial Accounting 22EW2 LP
11/17/22, 5:08 PM Milestone Two Guidelines and Rubric - ACC-201-R2129 Financial Accounting 22EW2
https://learn.snhu.edu/d2l/le/content/1188155/viewContent/21410120/View 2/3
Milestone Two Rubric
Criteria Exemplary (100%) Proficient (85%) Needs Improvement
(55%) Not Evident (0%) Value
Income Statement Prepares the income statement using the adjusted trial balance with no errors
Prepares the income statement using the adjusted trial balance with minimal errors
Prepares the income statement using the adjusted trial balance with significant errors
Does not a�empt criterion
20
Financial Statements: Statement of
Owner’s Equity
Prepares the statement of owner’s equity using the adjusted trial balance with no errors
Prepares the statement of owner’s equity using the adjusted trial balance with minimal errors
Prepares the statement of owner’s equity using the adjusted trial balance with significant errors
Does not a�empt criterion
20
Financial Statements:
Balance Sheet Assets
Prepares the balance sheet assets using the adjusted trial balance with no errors
Prepares the balance sheet assets using the adjusted trial balance with minimal errors
Prepares the balance sheet assets using the adjusted trial balance with significant errors
Does not a�empt criterion
20
Balance Sheet Liabili�es
Prepares the balance sheet liabili�es using the adjusted trial balance with no errors
Prepares the balance sheet liabili�es using the adjusted trial balance with minimal errors
Prepares the balance sheet liabili�es using the adjusted trial balance with significant errors
Does not a�empt criterion
20
Closing Entries Completes closing entries by closing all temporary income statement amounts to create closing entries with no errors
Completes closing entries by closing all temporary income statement amounts to create closing entries with minimal errors
Completes closing entries by closing all temporary income statement amounts to create closing entries, but there are significant errors
Does not a�empt criterion
20
Total: 100%
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. | |
Mar 1. | Cash | 125,000.00 | Be sure to use your chart of accounts (the first page of this workbook). | ||
Notes Payable | 125,000.00 | Each account you will record to is already listed and organized by classification of the account. | |||
(To record amount borrowed) | |||||
Mar 1. | License Expense | 250.00 | |||
Cash | 250.00 | ||||
(To record license expense paid) | |||||
Mar 2. | Rent Expense | 950.00 | |||
Cash | 950.00 | ||||
(To record rent expense incurred) | |||||
Mar 5. | Office Furniture | 2,750.00 | |||
Cash | 15,000.00 | ||||
Owner's Capital | 17,750.00 | ||||
(To record furniture & Cash Contributed) | |||||
Mar 6. | Cash | 650.00 | |||
Service Revenue | 650.00 | ||||
(To record service revenue earned) | |||||
Mar 8. | Advertising Expense | 500.00 | |||
Accounts Payable | 500.00 | ||||
(To record advertising expense incurred) | |||||
Mar 10. | Accounts Receivable | 1,725.00 | |||
Service Revenue | 1,725.00 | ||||
(To record service revenue earned on account) | |||||
Mar 15. | Insurance | 750.00 | |||
Cash | 750.00 | ||||
(To record insurance expense incurred) | |||||
Mar 20. | Utilities Expense | 135.00 | |||
Accounts Payable | 135.00 | ||||
(To record utilities expense incurred) | |||||
Mar 22. | Owner's Withdrawal | 500.00 | |||
Cash | 500.00 | ||||
(To record amount withdrawn for personal use) | |||||
Mar 25. | Office Supplies | 215.00 | |||
Cash | 215.00 | ||||
(To record supplies purchsed) | |||||
Mar 25. | Cash | 350.00 | |||
Service Revenue | 350.00 | ||||
(To record service revenue earned) | |||||
Mar 30. | Accounts Payable | 500.00 | |||
Cash | 500.00 | ||||
(To record payment made on account) | |||||
Mar 30. | Cash | 1,725.00 | |||
Accounts Receivable | 1,725.00 | ||||
(To record amount received on account) | |||||
Mar 31. | Salaries Expense | 275.00 | |||
Salaries Payable | 275.00 | ||||
(To record salaries expense incurred) | |||||
Mar 31. | Accounts Receivable | 3,500.00 | |||
Service Revenue | 3,500.00 | ||||
(To record service revenue earned on account) | |||||
Mar 31. | Depreciation | 46.00 | |||
Accumulated Depreciation - Office Furniture | 46.00 | ||||
(To record depreciation expense incurred) | |||||
Total | 154,821.00 | 154,821.00 | 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 | ||||||||||||||||||
$ 125,000.00 | $ 250.00 | $ 125,000.00 | $ 17,750.00 | $ 650.00 | Mar 6. | Mar 2. | $ 950.00 | |||||||||||||||
$ 15,000.00 | $ 950.00 | $ 1,725.00 | Mar 25. | |||||||||||||||||||
$ 650.00 | $ 750.00 | $ 350.00 | Mar 25. | |||||||||||||||||||
$ 350.00 | $ 500.00 | $ 3,500.00 | Mar 31. | |||||||||||||||||||
$ 1,725.00 | $ 215.00 | |||||||||||||||||||||
$ 500.00 | ||||||||||||||||||||||
$ 142,725.00 | $ 3,165.00 | $ - 0 | $ 125,000.00 | $ - 0 | $ 17,750.00 | $ - 0 | $ 6,225.00 | $ 950.00 | $ - 0 | |||||||||||||
End Bal | $ 139,560.00 | End Bal | $ 125,000.00 | End Bal | $ 17,750.00 | End Bal | $ 6,225.00 | $ 950.00 | ||||||||||||||
Accounts Rec. | Accounts Payable | Owner Draws | Business License Expense | |||||||||||||||||||
Mar 10. | $ 1,725.00 | $ 1,725.00 | Mar 30. | Mar 30. | $ 500.00 | $ 500.00 | Mar 8. | Mar 22. | $ 500.00 | Mar 1. | $ 250.00 | |||||||||||
Mar 31. | $ 3,500.00 | $ 135.00 | Mar 20. | |||||||||||||||||||
$ 5,225.00 | $ 1,725.00 | $ 500.00 | $ 635.00 | $ 500.00 | $ - 0 | $ 250.00 | $ - 0 | |||||||||||||||
End Bal. | $ 3,500.00 | $ 135.00 | End Bal | $ 500.00 | $ 250.00 | |||||||||||||||||
Prepaid Rent | Wages Payable | Insurance Expense | ||||||||||||||||||||
Mar 2. | $ 950.00 | $ 275.00 | Posting to the ledger/t accounts | Mar 15. | $ 750.00 | |||||||||||||||||
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. | ||||||||||||||||||||||
If you have posted all entries and your trial balance is not in balance (total debits = total credits), | ||||||||||||||||||||||
$ 950.00 | $ - 0 | $ - 0 | $ 275.00 | this means that there is an error. | $ 750.00 | $ - 0 | ||||||||||||||||
End Bal | $ 950.00 | End bal | $ 275.00 | $ 750.00 | ||||||||||||||||||
Office Furniture | Repairs & Maint. | |||||||||||||||||||||
Mar 5. | $ 2,750.00 | |||||||||||||||||||||
$ 2,750.00 | $ - 0 | $ - 0 | $ - 0 | |||||||||||||||||||
End Bal | $ 2,750.00 | $ - 0 | ||||||||||||||||||||
Office Supplies | Advertising Expense | |||||||||||||||||||||
Mar 25. | $ 215.00 | $ 500.00 | ||||||||||||||||||||
$ 215.00 | $ - 0 | $ 500.00 | $ - 0 | |||||||||||||||||||
End bal | $ 215.00 | $ 500.00 | ||||||||||||||||||||
Accumulated Depreciation | Wages Expense | |||||||||||||||||||||
$ 46.00 | Mar 31. | $ 275.00 | ||||||||||||||||||||
$ - 0 | $ 46.00 | $ 275.00 | $ - 0 | |||||||||||||||||||
End Bal | $ (46.00) | $ 275.00 | ||||||||||||||||||||
Utilities Expense | ||||||||||||||||||||||
$ 135.00 | ||||||||||||||||||||||
$ 135.00 | $ - 0 | |||||||||||||||||||||
$ 135.00 | ||||||||||||||||||||||
Depreciation Expense | ||||||||||||||||||||||
$ 46.00 | ||||||||||||||||||||||
$ 46.00 | $ - 0 | |||||||||||||||||||||
$ 46.00 |
Trial Balance
Trial Balance | ||||
As of 03/31/20XX | ||||
Unadjusted trial balance | ||||
Account | Debit | Credit | Trial Balance | |
Cash | 139,560.00 | Balances from the t accounts will autofill your trial balance. | ||
Accounts Receivable | 3,500.00 | If total debits do not equal total credits in the trial balance, you know you have an error. | ||
Prepaid Rent | These are the balances that will be used to prepare the financial statements. | |||
Office Furniture | 2,750.00 | Be sure to implement feedback provided by your instructor for this Milestone One submission! | ||
Office Supplies | 215.00 | |||
Accumulated Depreciation | 46.00 | |||
Notes Payable | 125,000.00 | |||
Accounts Payable | 135.00 | |||
Wages Payable | 275.00 | |||
Owner's Capital | 17,750.00 | |||
Owner Draws | 500.00 | |||
Service Revenue | 6,225.00 | |||
Rent Expense | 950.00 | |||
Business License Expense | 250.00 | |||
Depreciation Expense | 46.00 | |||
Insurance Expense | 750.00 | |||
Repairs and Maintenance Expense | - 0 | |||
Advertising Expense | 500.00 | |||
Wages Expense | 275.00 | |||
Utilities Expense | 135.00 | |||
Retained Earnings | ||||
Total: | 149,431.00 | 149,431.00 | ||
Debits should equal credits | ||||
` |
Income Statement
A Company | |
Income Statement | |
For Month ending 3/31/20XX | |
Revenues | |
$ 6,225.00 | |
Total Revenues | $ 6,225.00 |
Operating Expenses: | |
Buwines License | $ 250.00 |
Advertising Exp | $ 500.00 |
Insurance Exp | $ 750.00 |
Maintenance Exp | $ 95.00 |
Total Operating Expenses: | 1,595.00 |
Net Income | 4,630.00 |
Statement of Stockholder Equity
Company Name | ||||
Statement of Owner's Equity | ||||
Period Ending 03/31/20XX | ||||
Beginning Capital on 3/01/20XX | $ - 0 | |||
Increases to capital | ||||
Net income/loss: | $ 4,630.00 | |||
Owner Contributions | $ 17,750.00 | |||
Subtotal: | $ 22,380.00 | |||
Decreases to capital | ||||
Owner Draws | 500 | |||
Ending Equity as of 03/31/20XX | $ 22,380.00 |
Balance Sheet
A Company | ||||||
Balance Sheet | ||||||
As of March 31, 20XX | ||||||
Assets | Liabilities and Owners' Equity | |||||
Current Assets: | Current Liabilities: | |||||
Cash | 138,515.00 | Accounts Payable | 410.00 | |||
Office Supplies | 215.00 | Total Current Liabilities | 410.00 | |||
Accounts Receivables | 3,500.00 | Long Term Liabilities: | ||||
125,000.00 | ||||||
Total Current Assets | 142,230.00 | Total Long Term Liabilities: | 125,000.00 | |||
Total Liabilities: | 125,410.00 | |||||
Owner's Equity | ||||||
Owner's Capital | 17,250.00 | |||||
Non-Current Assets: | Add Net Income | 2274 | ||||
Office Furniture | 2,750.00 | |||||
Less Depreciation | (45.88) | Total Equity | 19,524.00 | |||
Total Non Current/Fixed Assets | 2,704.17 | |||||
Total Assets: | 144,934.17 | Total Liabilities & Equity | 144,934.00 | <== Total Assets on the left should equal Liabilities + Owner's Equity on the right. | ||
Closing Entries
A Company | |||
Closing Entries | |||
Month ending 03/31/20XX | |||
Date | Accounts | Debit | Credit |
31-Mar | Revenues | 6,225.00 | |
Income Summary | 6,225.00 | ||
Close revenues | |||
31-Mar | Income Summary | 3,951.00 | |
Business License | 250.00 | ||
Advertising Exp | 500.00 | ||
Insurance Exp | 750.00 | ||
Maintenance Exop | 95.00 | ||
Wages Exp | 275.00 | ||
Dep. Exp | 45.83 | ||
Utility Exp | 135.00 | ||
Rent Exp | 1,900.00 | ||
Close Expenses | |||
31-Mar | Owner's Capital | 2,274.00 | |
Close Income Summary | 2,274.00 | ||
31-Mar | |||
Close Dividends | |||
22,544.00 | 2,355.83 | ||
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