AC298 Unit 3 December Transaction Recording Set Example

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Fifteen summarized December events at a composite tile and flooring store are journalized, posted and proved in this AC298 Unit 3 transaction recording set. Purdue Global AC 298, Associate's Capstone in Accounting, asks Associate of Applied Science in Accounting students to record the capstone month and reach an unadjusted trial balance that agrees. Kiln Road Tile & Flooring records cash and contractor sales with their cost entries, a tile import paid inside its 2 percent discount window, a contractor return, special-order deposits and deliveries, payroll, rent and other expenses, quarterly note interest, an owner withdrawal and a write-off. Cash is proved against the bank's activity at $6,510. The trial balance agrees at $896,800, and a closing section notes the low cash and the adjustments still to come.

CourseAC298 Associate's Capstone in Accounting
UnitUnit 3
Paper typeTransaction recording set
LengthAbout 620 words, 5 pages double-spaced
FormatAPA 7 student paper
SchoolPurdue University Global
ProgramAssociate of Applied Science in Accounting
UpdatedOctober 2026

Free sample paper for AC298 Unit 3

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Fifteen December Events, Proved as They Went: A Unit 3 Transaction Recording Set for a Tile and Flooring Store

[Student Name]

Purdue University Global

AC298: Associate's Capstone in Accounting

Unit 3 Transaction Recording Set

[Instructor Name]

[Date]

Kiln Road Tile & Flooring and every amount are composite; the textbook, control framework and revenue standard cited are real.

What this part is doingGiving the range of events and the agreeing total in the lead shows the set is complete and checked.
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Starting Point

The December 1 trial balance carries the first eleven months. Key opening balances: Cash $24,600; Accounts Receivable $38,400; Allowance for Doubtful Accounts $1,200; Merchandise Inventory $96,000; Accounts Payable $31,500; Interest Payable $300; Unearned Revenue, special-order deposits, $4,200; Note Payable $30,000; Teresa Vance, Capital $148,700. The store uses a perpetual inventory system (Franklin et al., 2019).

Journal, December

1. Cash sales for the month: Cash, debit $18,400; Sales, credit $18,400. Cost of Goods Sold, debit $11,000; Merchandise Inventory, credit $11,000.

2. Contractor sales on account: Accounts Receivable, debit $46,800; Sales, credit $46,800. Cost of Goods Sold, debit $28,100; Merchandise Inventory, credit $28,100.

3. Collections from contractors: Cash, debit $41,200; Accounts Receivable, credit $41,200.

4. Dec. 4, porcelain tile from an importer, terms 2/10, n/30: Merchandise Inventory, debit $38,000; Accounts Payable, credit $38,000.

5. Dec. 12, importer paid within the discount period: Accounts Payable, debit $38,000; Merchandise Inventory, credit $760; Cash, credit $37,240.

6. November supplier balances paid: Accounts Payable, debit $22,000; Cash, credit $22,000.

7. A contractor returned unopened boxes of tile: Sales Returns and Allowances, debit $1,300; Accounts Receivable, credit $1,300. Merchandise Inventory, debit $780; Cost of Goods Sold, credit $780.

8. Deposits received on special-order tile: Cash, debit $3,100; Unearned Revenue, credit $3,100.

9. Special orders delivered: Unearned Revenue, debit $5,600; Sales, credit $5,600. Cost of Goods Sold, debit $3,400; Merchandise Inventory, credit $3,400.

10. Wages for December 1 to 26: Wages Expense, debit $9,800; Cash, credit $9,800.

11. December rent: Rent Expense, debit $4,000; Cash, credit $4,000.

12. Utilities $980, holiday advertising $1,600 and truck fuel and repairs $720: the three expenses debited, Cash credited $3,300.

13. Dec. 31, quarterly interest on the note, October through December at $150 a month: Interest Payable, debit $300; Interest Expense, debit $150; Cash, credit $450.

14. Owner withdrawal: Teresa Vance, Withdrawals, debit $4,000; Cash, credit $4,000.

15. A contractor's account written off as uncollectible: Allowance for Doubtful Accounts, debit $900; Accounts Receivable, credit $900.

Entry 9 moves $5,600 from a liability to revenue only when the special-order tile is delivered, because the deposits were obligations to deliver goods, not sales, until the customer received them.

What this part is doingThe highlighted sentence explains the entry with the most judgment in the set, the one graders check against the revenue standard.
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Under the revenue standard, the store earns the sale at the moment the buyer takes control of the tile (Financial Accounting Standards Board, 2014).

Proving as It Went

After each entry, debits were checked against credits. After posting, the cash account was proved against the bank's December activity: $24,600 plus receipts of $62,700 less payments of $80,790 equals $6,510.

Unadjusted Trial Balance, December 31

Debits: Cash $6,510; Accounts Receivable $41,800; Merchandise Inventory $91,520; Prepaid Insurance $3,300; Store Supplies $1,400; Delivery Truck $42,000; Store Fixtures $28,000; Withdrawals $48,000; Sales Returns $8,700; Cost of Goods Sold $412,720; Wages $127,800; Rent $48,000; Utilities $10,880; Advertising $10,400; Insurance Expense $6,050; Truck Expense $7,920; Interest Expense $1,800. Total $896,800.

Credits: Allowance $300; Accumulated Depreciation, Truck $14,000; Accumulated Depreciation, Fixtures $9,800; Accounts Payable $9,500; Unearned Revenue $1,700; Note Payable $30,000; Capital $148,700; Sales $682,800. Total $896,800.

What the Trial Balance Already Shows

Cash has fallen to $6,510 while receivables stand at $41,800, which previews the question the owner will ask later. Because the review control was applied entry by entry, the columns agreed on the first attempt (Committee of Sponsoring Organizations of the Treadway Commission, 2013). The balances are still unadjusted; insurance, supplies, depreciation, wages, shrinkage and the allowance are adjusted in Unit 4.

What this part is doingNoting what the balances already suggest and what remains unadjusted links this set to the next unit.
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References

Committee of Sponsoring Organizations of the Treadway Commission. (2013). Internal control: Integrated framework. https://www.coso.org

Financial Accounting Standards Board. (2014). Revenue from contracts with customers (Topic 606) (Accounting Standards Update No. 2014-09). https://www.fasb.org

Franklin, M., Graybeal, P., & Cooper, D. (2019). Principles of accounting, volume 1: Financial accounting. OpenStax. https://openstax.org/details/books/principles-financial-accounting

What the AC298 Unit 3 assignment asks for

The third AC298 unit gives the capstone business's month of transactions to record. Start from the opening trial balance and note the system the business uses, such as perpetual inventory. Journalize each event with the correct accounts, recording the cost of goods sold entry with each sale under a perpetual system. Watch for purchase discounts, returns, customer deposits that become revenue only on delivery, interest that clears an accrual, owner withdrawals and write-offs against the allowance. Post the entries, prove cash against bank activity, and prepare an unadjusted trial balance. Check debits against credits after each entry so the trial balance agrees the first time. Note anything the balances already suggest. Expect three pages. Where a rule such as revenue on delivery is explained, an APA 7 citation to the standard or textbook belongs beside it.

How this AC298 Unit 3 example is built

The sample lists the key December 1 balances and notes the perpetual system. Fifteen numbered entries follow, from cash sales of $18,400 to a $900 write-off, each with its accounts and amounts. The import is recorded at $38,000 and paid at $37,240 with the discount reducing inventory. The special-order deposits are recorded as unearned revenue, and the highlighted sentence explains why the $5,600 moves to sales only on delivery, citing the revenue standard. A section shows cash proved at $6,510 from receipts and payments. The unadjusted trial balance lists every account and agrees at $896,800. A final section points to the cash and receivables gap and the adjustments for Unit 4.

AC298 Unit 3 rubric: what earns full points

In AC298, graders take the December journal line by line, checking each account, amount and side, before they look at the trial balance. Perpetual inventory requires the cost entry with every sale and the return of cost on a restocked return. Purchase discounts must reduce inventory. Customer deposits must be liabilities until delivery. Interest that clears an accrual should debit the payable. Write-offs must use the allowance. A cash proof and an agreeing trial balance show control. Explanations or notes where judgment was needed earn credit. A clean layout and APA 7 citations for any standard complete the score for this stage of the capstone.

AC298 Unit 3 help: mistakes that cost points

The most frequent errors in the capstone month are missing the cost of goods sold entry on sales, recording the purchase discount as revenue, and crediting customer deposits to sales. Others record the full quarterly interest as December expense, ignoring the accrual already on the books. Write-offs are charged to bad debt expense. Owner withdrawals are recorded as wages. The trial balance is prepared without proving cash, so a single misposted receipt surfaces only as an unexplained difference at the end. If your capstone month is long and the trial balance will not agree, a writer can record the set from your section's data.

Get an AC298 Unit 3 example written to your instructions

Send the December transaction list or source documents your section released, the chart of accounts and the Unit 3 rubric. Within 24-48h a free first recording set comes back journalized, posted and trial-balanced on your data, in a workbook if that is how your section submits. Whichever period the problem covers, month or quarter, the entries follow it. The paper above is an original model document written by our desk, not a submitted student paper and not an official Purdue University Global document.

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AC298 Unit 3 questions, answered

Does the recording set need explanations for every entry?

In most sections, yes, and graders read them. A one-line explanation naming the source document and the event lets a reader confirm the entry without guessing. It also protects the later units, because an adjustment in the next stage often depends on knowing exactly what an original entry recorded, such as whether insurance was paid for six months or twelve.

My trial balance does not balance. Where do errors usually hide?

Divide the difference by two and look for an amount of that size posted to the wrong side. If the difference divides evenly by nine, suspect a transposition such as 540 entered as 450. A slide, where a decimal point moved, also produces a difference divisible by nine. The sample's control section shows these checks being run on its own totals.

Should I use special journals or only the general journal?

Follow the problem. Some sections supply sales, purchases, cash receipts and cash payments journals and expect them used, while others ask for general journal entries throughout. When the choice is open, the general journal is easier for a grader to follow in a short period. The sample matches whichever format your instructions name, with posting references in both directions either way.

Where can I find a free AC298 Unit 3 sample paper?

This page offers a complete AC298 Unit 3 transaction recording set for a tile and flooring store's December, with fifteen entries, a cash proof and an unadjusted trial balance at $896,800.

Why are special-order deposits a liability in the AC298 Unit 3 sample?

The store owes the customer the tile until it is delivered. The deposits sit in unearned revenue and move to sales only when the special orders are handed over.