Accounting 1 Accounting Cycle Exercise McFudge amp; Associates Instructions Overview The Accounting Cycle Exercise is a roleplay exercise. You are...
Number 1-6 on Instructions in Order.
Including Post closing trial balance
Accounting 1Accounting Cycle ExerciseMcFudge & AssociatesInstructions Overview The Accounting Cycle Exercise is a role—play exercise. You are playing the role of accountantfor a small business, McFudgc & Associates, started by an entrepreneur, Waldo FrancisMcFudge, in December 2016. Instructions: (follows a typical accounting cycle) 1. Record the December transactions in the journal (page 2 in work sheet file), post them tothe ledger (pages 5-7) and calculate the account balances. Finally, prepare a trial balanceas ofDecetnber 31“ on the Work Sheet (page 8). For instructions on using a proper formof ledger, read “The Proper Ledger”, which is in the Accounting Cycle Exercise folder. 2. Complete the Work Sheet:a. Record the adjusting entries.b. Prepare an adjusted trial balance. 3. Prepare financial statements in the following order: (pages 9-11) at. Income Statementb. Owner’s Equity Statementc. Balance Sheet 4. Record the adjusting entries in the journal (page 3) and post same to the ledger. Updatethe account balances. 5. Record the closing entries in the journal (page 4) and post same to the ledger. Update theaccount balances. 6. Prepare a post-closing trial balance (page 12). Please note the following: 1. All of the work sheets you need to complete this assignment are in an Excel file called"McFudge, Working Papers." The mine work sheets are designed to fit the requiredwork, no more or less. If you find yourself adding lines, you are probably doingsomething wrong, unnecessary, or you are misusing the forms. 2. Joumalize and post each of the December entries simultaneously. After you post, makesure you update the balances in the affected accounts. You will reduce the chance oferrors if you do it this way. 3. When you joumalize, skip a line between each entry. Do not write an explanation aftereach transaction. 4. Use the Chart of Accounts (page 1) to make sure you identify the right accounts in which to record the entries.
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