Here is a finished ACC 201 Module 7 final project: adjusting entries with their basis, an adjusted trial balance, an income statement, an equity statement and a classified balance sheet, and a summary report interpreting margin, liquidity and debt with recommendations. Searches like "acc 201 module 7 assignment", "acc201 module 7 final project summary report" and "acc 201 module 7 example" land here.
The ACC 201 Module 7 example, in full
Final Project: Adjustments, Financial Statements and a Summary Report for a Composite Mobile Detailing Company's First Month
[Student Name]
Southern New Hampshire University
ACC 201: Financial Accounting
Module Seven Final Project
[Instructor Name]
[Date]
The organization, setting and figures below are a composite written as a model document. No real employer, client, colleague or patient is described.
Final Project: Adjustments, Financial Statements and a Summary Report for a Composite Mobile Detailing Company's First Month
Adjusting Entries at April 30, 2025
Milestone One ended with an unadjusted trial balance for Harborline Mobile Detailing, LLC, a composite detailing business, totaling 82,000 dollars on each side and a list of accounts that did not yet reflect all of April's activity. Table 1 records the seven adjusting entries needed at April 30 and the basis for each (Weygandt et al., 2021).
Table 1
Adjusting Entries, Harborline Mobile Detailing, April 30, 2025
| No. | Debit | Credit | Amount | Basis |
|---|---|---|---|---|
| 1 | Insurance Expense | Prepaid Insurance | $200 | One of 12 months of the $2,400 policy expired |
| 2 | Supplies Expense | Supplies | $1,230 | Count shows $620 on hand of $1,850 purchased |
| 3 | Depreciation Expense | Accumulated Depreciation | $700 | Van ($42,000 less $6,000 salvage over 60 months) $600; equipment ($6,800 less $800 salvage over 60 months) $100 |
| 4 | Interest Expense | Interest Payable | $170 | $34,000 note at 6% for one month |
| 5 | Wages Expense | Wages Payable | $1,300 | Assistant's second-half wages, paid May 1 |
| 6 | Unearned Revenue | Service Revenue | $600 | Customers used $600 of prepaid package washes |
| 7 | Accounts Receivable | Service Revenue | $900 | Fleet work performed April 28 to 30, unbilled |
Note. Composite figures. Salvage values and useful lives are the owner's documented estimates.
Adjusted Trial Balance
After posting the adjustments, debits total 85,070 dollars and credits total 85,070 dollars. The adjusted debit balances are Cash 22,570; Accounts Receivable 2,400; Prepaid Insurance 2,200; Supplies 620; Vehicle 42,000; Equipment 6,800; Owner's Drawings 1,500; Wages Expense 3,900; Fuel Expense 780; Insurance Expense 200; Supplies Expense 1,230; Depreciation Expense 700; and Interest Expense 170. The adjusted credit balances are Accumulated Depreciation 700; Accounts Payable 3,400; Unearned Revenue 900; Interest Payable 170; Wages Payable 1,300; Owner's Capital 30,000; Service Revenue 14,600; and Notes Payable 34,000. The totals rose by 3,070 dollars from the unadjusted trial balance, the sum of the entries that created new balances rather than reclassifying existing ones.
How the Adjustments Changed the Picture
Before adjustment, April's records showed revenue of 13,100 dollars and expenses of 3,380 dollars, which would have suggested net income of 9,720 dollars. The adjustments reduced that figure by 2,100 dollars. They added 3,600 dollars of expenses that had been incurred but not recorded, the largest being the assistant's unpaid wages of 1,300 dollars and supplies used of 1,230 dollars, and they added 1,500 dollars of revenue that had been earned but not recorded, from package washes performed and unbilled fleet work. The net effect is a lower, and more accurate, profit figure. On the balance sheet, the adjustments moved amounts out of prepaid insurance, supplies and unearned revenue, recognized accumulated depreciation, and added three liabilities that the owner will pay in May. An owner who made spending decisions on the unadjusted figure would have believed the business was about 28 percent more profitable than it was, which is the practical reason adjustments matter even for a one-van business.
Income Statement, April 2025
Service revenue was 14,600 dollars. Expenses were wages of 3,900 dollars, supplies of 1,230 dollars, fuel of 780 dollars, depreciation of 700 dollars, insurance of 200 dollars and interest of 170 dollars, a total of 6,980 dollars. Net income for April was 7,620 dollars.
Statement of Owner's Equity, April 2025
Owner's capital began at zero. The owner invested 30,000 dollars, net income added 7,620 dollars and withdrawals reduced capital by 1,500 dollars, leaving owner's capital of 36,120 dollars at April 30.
Balance Sheet at April 30, 2025
The classified balance sheet is summarized in Table 2.
Table 2
Classified Balance Sheet, Harborline Mobile Detailing, April 30, 2025
| Assets | Amount | Liabilities and owner's equity | Amount |
|---|---|---|---|
| Cash | $22,570 | Accounts payable | $3,400 |
| Accounts receivable | $2,400 | Wages payable | $1,300 |
| Prepaid insurance | $2,200 | Unearned revenue | $900 |
| Supplies | $620 | Interest payable | $170 |
| Total current assets | $27,790 | Current portion of note payable | $6,011 |
| Vehicle and equipment, at cost | $48,800 | Total current liabilities | $11,781 |
| Less accumulated depreciation | ($700) | Note payable, long-term portion | $27,989 |
| Net property and equipment | $48,100 | Total liabilities | $39,770 |
| Owner's capital | $36,120 | ||
| Total assets | $75,890 | Total liabilities and owner's equity | $75,890 |
Note. Composite figures. The current portion of the note is the principal due in the next 12 months under a 60-month payment schedule of $657.32 per month.
Summary Report for the Owner
Harborline's first month was profitable. Net income of 7,620 dollars on revenue of 14,600 dollars is a profit margin of about 52 percent, which is high because the business's largest costs are the owner's own time, which is not an expense of a sole-member company, and equipment whose cost is spread over five years. The margin shows what the business earns before paying its owner, not what the owner would earn as an employee. If the owner valued her own 200 hours in April at a market wage, the margin would look very different, and she should keep that in mind before comparing Harborline with companies that pay managers salaries.
Liquidity is comfortable for now. Current assets of 27,790 dollars cover current liabilities of 11,781 dollars about 2.4 times, and most current assets are cash. The cash position is, however, the remainder of the owner's 30,000 dollar investment rather than a product of operations, and monthly obligations will soon include note payments of about 657 dollars, full payroll and insurance renewal.
Debt is significant for a new business. Liabilities of 39,770 dollars finance about 52 percent of assets, mainly through the van note. That is manageable while revenue holds, but a slow month in winter would test the business, because the note payment and insurance do not fall when demand does.
Three recommendations follow. First, set aside a cash reserve covering at least two months of the note payment, insurance and the assistant's wages, about 9,500 dollars, before any additional withdrawals. Second, bill fleet customers weekly rather than monthly, which would have converted the 900 dollars of unbilled work to receivables sooner and shortened collection time. Third, track package usage closely, because the 900 dollars of unearned revenue is a promise of future washes that must be delivered, and customers who prepay are often the most loyal ones (Financial Accounting Standards Board [FASB], 2014). With these steps, the owner can use each month's statements, not just the bank balance, to steer the business, and she should review them with her accountant each quarter until the business has a full year of history to compare against (Franklin et al., 2019).
References
Financial Accounting Standards Board. (2014). Revenue from contracts with customers (Topic 606) (Accounting Standards Update No. 2014-09). FASB.
Franklin, M., Graybeal, P., & Cooper, D. (2019). Principles of accounting, volume 1: Financial accounting. OpenStax. https://openstax.org/details/books/principles-financial-accounting
Weygandt, J. J., Kimmel, P. D., & Mitchell, J. E. (2021). Accounting principles (14th ed.). Wiley.
How this ACC 201 Module 7 example is structured
The final project follows the second half of the accounting cycle and then steps back to interpret it. Adjusting entries are presented in a table with the basis for each, because adjustments are where judgment enters. Next come the adjusted trial balance and the statements, each built from the one before it. The summary report is written for the owner, not the grader: it explains what the statements show, calculates three measures and ends with specific recommendations.
Get ACC 201 Module 7 written to your instructions
Send the ACC 201 final project guidelines, rubric and your workbook with Milestone One feedback. Adjusting entries, statements and a summary report built on your company's data come back within 24 to 48 hours; the first is free. The paper above is an original model document written by our desk, not a submitted student paper and not an official Southern New Hampshire University document.
ACC 201 Module 7 questions, answered
What does the ACC 201 final project require?
The final project usually completes a company's accounting cycle: recording adjusting entries, preparing an adjusted trial balance and the financial statements, and writing a summary report that analyzes the company's financial position and performance for its owner or managers.
Why are adjusting entries needed?
Many revenues and expenses build up over time without a transaction to trigger an entry, such as expiring insurance, used supplies, depreciation, accrued wages and interest, and services performed from prepaid amounts. Adjusting entries record them at period end so that revenue and expenses fall in the correct period.
What is a classified balance sheet?
A classified balance sheet groups assets and liabilities into current and long-term categories. Current items are expected to be converted to cash or paid within a year. The classification allows readers to calculate liquidity measures such as the current ratio.