ACCT 2301
JW’s Lock & Key
Background
JW’s Lock & Key is owned and operated by Jake Walters and is located in Odessa, TX. Jake is a locksmith
and provides locksmith services and has a store that sells everything from keys to safes. You have just
been hired as the accountant as of December 1, 2020.
Required
1. The general ledger contains the current balances for all accounts as of November 30, 2020. The
subsidiary ledgers for A/R and A/P also contain the current balances as of November 30, 2020. Review
the information in these accounts before beginning the project.
2. Journalize the December transactions in the general journal. Descriptions are not required.
3. Post daily to the Accounts Receivable Subsidiary Ledger and the Accounts Payable Subsidiary Ledger.
Place a checkmark in the Post Reference column of the General Ledger next to the GL account number;
i.e. 201/ . The checkmark denotes that you have posted to the Subsidiary Ledger account. On
December 31, post to the General Ledger.
4. Prepare an Unadjusted Trial Balance, using the worksheet. Complete the worksheet using the
following adjustment information for December:
a. Office supplies on hand on December 31 are $1,058.
b. A physical count of inventory showed an ending inventory cost of $44,500.
c. Recorded depreciation on equipment for the month, $4,200.
d. Insurance expired during December is $300.
e.
f.
g.
Earned $1,500 worth of the unearned service revenue.
Sales refunds estimated for the year $10,000
Cost of estimated returns for the year $2,000
5. Journalize and post the adjusting entries.
6. Prepare JW’s Lock & Key’s financial statements for the year ended December 31, 2020.
Note: Jake Walter’s Capital at January 1, 2020 was $262,643.
7. Journalize and post the closing entries.
8. Prepare a Post-Closing Trial Balance.
Note: This is a group project and you may work in groups up to 4 members. In the Accounting Project
Module you will find group signup sheets. Once a group is full, please join the next available group.
Every group member needs to turn in a completed set of project documents to his or her own drop box.
Since the project results should be the same for each group member in a respective group, I will grade
the groups’ project once and up load the grading sheet to the individual drop box for each member.
The project needs to be scanned if you are using the pdf documents and turned in through Blackboard.
Comprehensive Project Grading Sheet
Name ____________________________________
Participation Grade
Group members 1. ________________________ __________
2. ________________________ __________
3. ________________________ __________
4. ________________________ __________
5. ________________________ __________
Assemble the items as listed below. Points will be given based on accuracy and completeness.
1. Financial Statements 40 Points
2. Post-Closing Trial Balance 10 Points
3. Worksheet 10 Points
4. General Journal 50 Points
5. General Ledger & Subsidiary Ledgers 40 Points
6. Participation 10 Points
Check Figures:
Unadjusted Trial Balance: $907,503
Cash Account Balance $161,398
Net Income (Loss): $203,356
Accounting 2301
Comprehensive Project
Name: ______________________________
Date: ______________________________
JW’s Lock & Key had the following transactions in December:
Dec.
1 Paid December’s rent, check # 6287, $2,800.
2 Paid annual premiums on property and casualty insurance policies, check # 6288, $3,600.
3 Performed locksmith services on new house, sent invoice # 601 to the homeowner, Sam
Mason, $2,000.
4 Issued Invoice # 602 to Hastings who purchased a new safe on account, $3,800 Cost of
Merchandise Sold was $1,250.
5 Purchased office supplies, check # 6289, $620.
6 Purchased inventory from Key Supplies Co., $5,500. terms 1/10, n/30
7 Paid UPS $216 cash for delivery of the inventory purchased on December 6.
7 Jake deposited an additional $5,000 cash in the business.
8 Returned damaged inventory to Key Supplies Co., $500
8 Received $2,500 cash, an advance payment for locksmith services.
9 Unlocked a safe for a customer and received $1,000 cash.
9 Bought a new computer (equipment) from Office Depot on account, $1,967.
10 Sold 2 safes and received cash, $2,200. Cost of Merchandise Sold was $800.
11 Purchased 5 safes to restock inventory on account from Brinks Co, $4,187 terms, 2/5,
n/45.
12 Customer returned one of the safes purchased on December 10, refunded the customer
$1,000 cash. Cost of Merchandise Sold was $475.
13 Paid Verizon for wireless telephone services, $482, check # 6290.
14 Paid Key Supplies Co for the purchase on December 6, less return and discount, check #
6291.
14 Received cash on account, $1,500, From Nathan Dean. Dean did not pay his November
invoice #590 within the credit terms 2/10. The discount was forfeited.
15 Recorded cash sales for the store from the 1st to the 15th, $13,908. Cost of
Merchandise Sold was $4,783.
16 Received $1,900 from Hastings on account.
17 Paid Office Depot on account, $500, check # 6292.
18 Performed locksmith services on account for Larry Contractor, $700.
19 Paid electricity bill for December, check # 6293, $1,763.
19 Paid for Domino’s pizza delivery for the December office party, check #6294, $175
20 Jake withdrew $10,000 for a vacation.
25 Paid the water bill for December, check # 6295, $120.
25 Paid Brinks Co. on account, $2,500, check # 6296.
26 Paid part time employees their salary, $2,250.
27 Received cash on account from Larry Contractor, $700.
30
Recorded cash sales for the store from the 16th to the 30th, $8,735. Cost of
Merchandise Sold was $2,784
JW’s Lock & Key
2020 General Ledger
& Subsidiary Ledgers
General Journal PAGE 37
DATE Accounts & Explanations PR DEBIT CREDIT
General Journal PAGE 38
DATE Accounts & Explanations PR DEBIT CREDIT
General Journal PAGE 39
DATE Accounts & Explanations PR DEBIT CREDIT
General Journal PAGE 40
DATE Accounts & Explanations PR DEBIT CREDIT
General Journal PAGE 41
DATE Accounts & Explanations PR DEBIT CREDIT
ACCOUNT Cash ACCOUNT NO 101
2020
DATE ITEM POST
REF DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 154,931
ACCOUNT Accounts Receivable ACCOUNT NO 105
2020
DATE ITEM POST
REF DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 4,108
ACCOUNT Inventory ACCOUNT NO 110
2020
DATE ITEM POST
REF
DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 46,525
ACCOUNT Estimated Returns Inventory ACCOUNT NO 112
2020
DATE ITEM POST
REF DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 700
ACCOUNT Office Supplies ACCOUNT NO 115
2020
DATE ITEM POSTREF DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 1,235
ACCOUNT Prepaid Insurance ACCOUNT NO 117
2020
DATE ITEM POST
REF
DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 300
ACCOUNT Equipment ACCOUNT NO 120
2020
DATE ITEM POST
REF DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 265,000
ACCOUNT Accumulated Depreciation – Equipment ACCOUNT NO 121
2020
DATE ITEM POST
REF
DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 115,500
ACCOUNT Accounts Payable ACCOUNT NO 201
2020
DATE ITEM POST
REF DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 3,433
ACCOUNT Unearned Service Revenue ACCOUNT NO 205
2020
DATE ITEM POST
REF
DEBIT CREDIT
BALANCE
DEBIT CREDIT
Nov. 30 Bal. 500
ACCOUNT Refunds Payable ACCOUNT NO 203
2020
DATE ITEM POST
REF
DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 500
ACCOUNT Jake Walters, Capital ACCOUNT NO 301
2020
DATE ITEM POST
REF
DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 262,643
ACCOUNT Jake Walters, Withdrawal ACCOUNT NO 311
2020
DATE ITEM POST
REF DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 112,000
ACCOUNT Service Revenue ACCOUNT NO 401
2020
DATE ITEM POST
REF
DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 167,050
ACCOUNT Sales Revenue ACCOUNT NO 405
2020
DATE ITEM POST
REF
DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 312,900
ACCOUNT Sales Discounts Forfeited ACCOUNT NO 410
2020
DATE ITEM POST
REF
DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 2,450
ACCOUNT Cost of Merchandise Sold ACCOUNT NO 501
2020
DATE ITEM POST
REF
DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 145,687
ACCOUNT Advertising Expense ACCOUNT NO 502
2020
DATE ITEM POST
REF DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 9,250
ACCOUNT Depreciation Expense ACCOUNT NO 505
2020
DATE ITEM POST
REF DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 38,500
ACCOUNT Insurance Expense ACCOUNT NO 507
2020
DATE ITEM POST
REF DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 3,500
ACCOUNT Office Supplies Expense ACCOUNT NO 508
2020
DATE ITEM POST
REF DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 3,280
ACCOUNT Salary Expense ACCOUNT NO 509
2020
DATE ITEM POST
REF
DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 37,500
ACCOUNT Rent Expense ACCOUNT NO 511
2020
DATE ITEM POST
REF
DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 27,500
ACCOUNT Telephone Expense ACCOUNT NO 512
2020
DATE ITEM POST
REF
DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 4,770
ACCOUNT Utilities Expense ACCOUNT NO 513
2020
DATE ITEM POST
REF DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 6,725
ACCOUNT Miscellaneous Expense ACCOUNT NO 525
2020
DATE ITEM POST
REF DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 3,465
ACCOUNT Income Summary ACCOUNT NO 999
2020
DATE ITEM POST
REF
DEBIT CREDIT BALANCE
DEBIT CREDIT
Accounts Receivable Subsidiary Ledger
ACCOUNT: Nathan Dean
2020
DATE ITEM POST REF. DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 2,675
ACCOUNT: Jillian Roberts
2020
DATE ITEM POST REF. DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 1,433
ACCOUNT: Larry Contractor
2020
DATE ITEM POST REF. DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 0
ACCOUNT:
2020
DATE ITEM POST REF. DEBIT CREDIT BALANCE
DEBIT CREDIT
ACCOUNT:
2020
DATE ITEM POST REF. DEBIT CREDIT BALANCE
DEBIT CREDIT
Accounts Payable Subsidiary Ledger
ACCOUNT: Lowes
2020
DATE ITEM POST REF. DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 756
ACCOUNT: Lock Supply Co
2020
DATE ITEM POST REF. DEBIT CREDIT BALANCE
DEBIT CREDIT
Nov 30 Bal. 2,677
ACCOUNT:
2020
DATE ITEM POST REF. DEBIT CREDIT BALANCE
DEBIT CREDIT
ACCOUNT:
2020
DATE ITEM POST REF. DEBIT CREDIT BALANCE
DEBIT CREDIT
ACCOUNT:
2020
DATE ITEM POST REF. DEBIT CREDIT BALANCE
DEBIT CREDIT
JW’s Lock & Key
Income Statement
JW’s Lock & Key
Statement of Owner’s Equity
JW’s Lock & Key
Balance Sheet
JW’s Lock & Key
Post-Closing Trial Balance
Account Debit Credit
ANSWER
In this question we have to pass Journal Entries and based on those entries we have to prepare a Trial balance.
Journal Entries-
1) Payment of Rent for the month of December
Rent Expenses Debit 2000$
Bank Account Credit 2000$
(Being Rent expenses paid for the month of December)
2) Payment of annual insurance expenses
Insurance Expenses Debit 3600$
Bank Account Credit 3600$
(Being Insurance Expense Paid for the year)
3) Sent invoice for work done
Joe Martin Debit 2000$
Revenue Account Credit 2000$
(Being Revenue Booked for work done)
4a) Hastings Debit 3800$
Revenue Accounts Credit 3800$
(Being Revenue booked for product sold)
4b) Cost of goods sold Debit 1250$
Inventory Account Credit 1250$
(Being Cost of goods sold transferred from inventory)
5) Office Supplies Expenses Debit 417$
To Bank Account Credit 417$
(Being office supplies purchased)
6)Inventory Account Debit 5500$
Key Supplies Account Credit 5500$
(Being Inventory purchased on credit)
7)Bank Account Debit 5000$
Jake’s Capital Account Credit 5000$
(Being capital invested by Jake)
8) Key Supplies Account Debit 500$
To Inventory credit 500$
(Being damaged goods returned)
9)Bank Account Debit 2500$
Unearned Revenue 2500$
(Being advanced received from locksmith Services)
10a)Accounts Receivable Debit 2200$
Revenue Accounts Credit 2200$
(Being Revenue booked for product sold)
10b) Cost of goods sold Debit 800$
Inventory Account Credit 800$
(Being Cost of goods sold transferred from inventory)
11)Inventory Account Debit 4187$
Brinks Co Account Credit 4187$
(Being Inventory purchased on credit)
12a) Sales Return Debit 1000$
Bank Account Credit 1000$
(Being Sales Return of 1000$)
12b) Inventory Account Debit 475$
Cost of goods sold Credit 475$
(Being Cost of goods sold reversed on goods returned)
13)Telephone Charges Debit 482$
Bank Account Credit 482$
(Being telephone charges paid for the month of december)
14) Key Supplies Account Debit 5500
Bank Account Credit 5445
Discount earned on purchases 55
(Being amount paid to Key Supplies net of 10% discount, 5500*(100-10%) since paid before 10 days)
15a)Cash Account debit 13908$
Revenue Account Credit 13908$
(Being Cash Sales for the month of December)
15b) Cost of goods sold Debit 4783
Inventory Account Credit 4783
(Being Cost of goods sold recorded)
16) Bank Account Debit 1900$
Hastings Account Credit 1900$
(Being money received from customer)
17) Office Depot Expenses 500$
Office Depot payable 500$
(Being Office depot expenses booked)
18) Larry Contractor Debit 700$
Revenue Account Credit 700$
(Being Revenue booked from larry contractor)
19) Electricity Expenses Debit 1236$
Bank Account Credit 1236$
(Being Electricity paid for month of december)
20) Jake Capital Debit 10,000$
Bank Account Credit 10,000$
(Being jake withdrew capital from business)
21) Water Expenses Debit 110$
Bank Account Credit 110$
22) Brink Expenses 2500$
Brinks expenses Payable 2500$
23)Salary Expenses Debit 2250$
Bank Account Credit 2250$
24)Bank Account Debit 700$
Larry Contractor Credit 700$
25a)Cash Account debit 8735$
Revenue Account Credit 8735$
(Being Cash Sales for the month of December)
25b) Cost of goods sold Debit 2784$
Inventory Account Credit 2784$
(Being Cost of goods sold recorded)
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