Final Project
Final Project: One Month of Books: Ruth's Clean Start Cleaning
Keep one month of books for a sample business and finish with a profit and loss statement and a bank reconciliation. Ruth runs a small home and office cleaning service. (Ruth is a composite example.) Her business account starts May 1 with $1,000.00. Everything can be completed on paper ledgers. May transactions: May 2 payment from client Martin $150.00; May 3 cleaning supplies $68.25; May 6 payment from Oak Street Office $320.00; May 9 fuel $45.00; May 10 flyer printing $38.50 (check #201); May 14 payment from client Hughes $150.00; May 15 owner draw $200.00; May 17 business insurance payment $55.00; May 20 payment from Oak Street Office $320.00; May 22 cleaning supplies $41.80 (check #202); May 24 fuel $38.00; May 27 business phone $40.00; May 30 payment from client Rivera $175.00 (deposited May 31). Also on May 31, Ruth sent Invoice #57 to Oak Street Office for $320.00, due June 15. Her May bank statement ends with $1,449.25, shows a $6.00 service fee, and does not yet show check #202 or the Rivera deposit.
Requirements
- A chart of accounts for Ruth's business (at least ten accounts)
- A cash book for May with account numbers and a running balance for every line
- Category totals and a proof of the ending balance
- An A/R log showing Invoice #57
- A bank reconciliation with both sides matching, and the entry added for anything you were missing
- A cash-basis profit and loss statement for May
- A short note on how Invoice #57 would be treated on an accrual basis
- A one-page reflection on what you learned and how you will keep honest books in your own business
Timeline
- Module 5: receive the project packet; set up the chart of accounts and cash book
- Module 6: complete the cash book and draft the P&L
- Module 7: complete the reconciliation and peer check
- Module 8: submit the full Month of Books
Grading Rubrics
Grading Rubrics
Every rubric uses the same four levels. Your instructor will mark the level that best matches your work for each row and add a short comment.
Module Assignment Rubric
| Criterion | Excellent (4) | Proficient (3) | Developing (2) | Beginning (1) |
|---|---|---|---|---|
| Completeness | Every required part is done | Most required parts are done | About half the parts are done | Little of the assignment is done |
| Accuracy & Skill | Skills applied correctly with no significant errors | Minor errors that do not affect the result | Several errors that affect the result | Major errors throughout |
| Professional Quality | Neat, clear, and ready for an employer to see | Clear with small issues | Hard to follow in places | Unclear or disorganized |
| Effort & Growth | Went beyond the minimum or clearly improved | Solid, consistent effort | Minimal effort | Little evidence of effort |
Total possible: 16 points.
Reflection Journal Rubric
Journals are graded on effort and reflection, never on spelling, grammar, or the details of a personal story.
| Criterion | Excellent (4) | Proficient (3) | Developing (2) | Beginning (1) |
|---|---|---|---|---|
| Completion | Responds fully to every part of the prompt | Responds to most of the prompt | Responds to part of the prompt | Entry missing or one line |
| Connection to Lesson | Clearly applies the week's skill or idea | Mentions the lesson | Vague link to the lesson | No link to the lesson |
| Faith Reflection | Thoughtfully engages the Scripture or faith theme | Engages the faith theme | Brief mention of faith theme | Does not address the faith theme |
| Personal Application | Names a specific next step or change | Names a general next step | Next step is unclear | No next step |
Total possible: 16 points.
Participation Rubric
Scored at the end of each module. Average the eight scores for the Attendance & Participation grade.
| Criterion | Excellent (4) | Proficient (3) | Developing (2) | Beginning (1) |
|---|---|---|---|---|
| Attendance & Punctuality | Present and on time for the full session | Present; late or left early once | Missed part of the session more than once | Absent without make-up work |
| Preparation | Completed assignment and brought workbook every time | Usually prepared | Sometimes prepared | Rarely prepared |
| Engagement | Contributes thoughtfully and draws others in | Contributes regularly | Contributes when asked | Seldom contributes, even when invited |
| Respect & Covenant | Models the classroom covenant for others | Follows the covenant consistently | Needs occasional reminders | Needs frequent reminders |
Total possible: 16 points.
Final Project Rubric: One Month of Books
| Criterion | Excellent (4) | Proficient (3) | Developing (2) | Beginning (1) |
|---|---|---|---|---|
| Completeness | All eight items included | Six or seven items | Four or five items | Three or fewer |
| Cash Book Accuracy | Every entry and running balance correct | One or two minor errors | Several errors that affect the balance | Many errors or missing entries |
| Classification | Every item in the correct account; draws kept off the P&L | One or two misclassified items | Several misclassified items | Little evidence of categorizing |
| Reconciliation & P&L | Both sides match and P&L totals are correct | Minor errors in one statement | Errors in both statements | Missing or incorrect throughout |
| Integrity & Reflection | Corrections are visible and honest; specific reflection | Clear reflection | Brief reflection | Missing |
Total possible: 20 points.
Quick Guide
Bookkeeping Quick Guide
Keep this guide with your important papers after release.
Starter Chart of Accounts
| Item | Details |
|---|---|
| 1000s Assets | Cash, accounts receivable, equipment |
| 2000s Liabilities | Accounts payable, loans |
| 3000s Equity | Owner contributions, owner draws, retained profit |
| 4000s Income | Sales, other income |
| 5000s Cost of Goods Sold | Materials and packaging that go into products |
| 6000s Operating Expenses | Fees, advertising, phone, fuel, bank fees, insurance |
Cash Book Columns
- ☐ Date
- ☐ Description
- ☐ Account number
- ☐ Money In
- ☐ Money Out
- ☐ Balance = previous balance + money in − money out
Not Income, Not Expense
- ☐ Owner contribution: equity, not income
- ☐ Owner draw: equity, not an expense
- ☐ Loan received: a liability, not income
- ☐ Loan principal repaid: reduces the liability, not an expense
- ☐ Equipment purchase: an asset
Bank Reconciliation Steps
- ☐ Bank side: statement balance + deposits in transit − outstanding checks
- ☐ Book side: cash book balance − bank fees + interest ± corrections
- ☐ Both sides must match
- ☐ Record any fees, interest, or corrections in the cash book
- ☐ Never force a match; find the difference or ask for help
Key Formulas
| Item | Details |
|---|---|
| Gross profit | Sales − cost of goods sold |
| Net profit | Gross profit − operating expenses |
| Balance sheet | Assets = Liabilities + Equity |
| Price | Materials + labor + overhead + profit |
| Break-even units | Fixed costs ÷ (price − variable cost per unit) |
| Spreadsheet balance | =F2+D3-E3 (copy down) |
Monthly Bookkeeping Checklist
- ☐ Record every sale and expense weekly
- ☐ File and label all receipts by month
- ☐ Update the A/R log and follow up on late invoices
- ☐ Pay bills by their due dates
- ☐ Reconcile the bank account
- ☐ Prepare the P&L and review it
- ☐ Move money into tax savings
Tax Reminders
- ☐ Business profit is generally taxable; self-employment tax generally applies
- ☐ Estimated tax payments may be needed during the year
- ☐ Keep receipts and records; ask a professional how long
- ☐ Check local rules for licenses and sales tax
- ☐ Get help from a tax professional or a VITA site if you qualify
My Business Numbers
My business: ______________________________
My weekly bookkeeping day and time: ______________________________
My break-even: ______ sales per month My tax savings plan: ______________________________
Being confident of this very thing, that he which hath begun a good work in you will perform it until the day of Jesus Christ.— Philippians 1:6 (KJV)
Final Exam
- 1.
Proverbs 27:23 tells us to:
- 2.
Money the owner takes out for personal use is:
- 3.
Under cash-basis bookkeeping, an expense is recorded when:
- 4.
Equipment the business owns is:
- 5.
Which is a cost of goods sold for a candle maker?
- 6.
Balance $400.00, sale $150.00, supplies $62.75. New balance:
- 7.
The honest way to fix a cash book mistake is to:
- 8.
An invoice has 5 items at $8.00 and a $12.00 delivery fee. The total is:
- 9.
Accounts payable is:
- 10.
A deposit recorded in your book but not yet on the bank statement is:
- 11.
Statement $900.00, deposit in transit $100.00, outstanding checks $250.00. Adjusted bank balance:
- 12.
Sales $2,000.00, cost of goods sold $800.00, operating expenses $500.00. Net profit:
- 13.
Assets $5,000.00 and liabilities $1,800.00. Equity:
- 14.
Price $30.00, variable cost $12.00, fixed costs $360.00. Break-even:
- 15.
A business loan received is income on the profit and loss statement.
- 16.
Self-employed people may need to make quarterly estimated tax payments.
- 17.
If the books do not match the bank, it is fine to add an entry to force them to match.
- 18.
A business can show a profit and still run short of cash.
- 19.
List the steps of a bank reconciliation.
- 20.
Explain how Proverbs 11:1 applies to bookkeeping.