Financial Accounting "My Place, House of Decor" Practice Set

Acc121 Financial and Managerial Accounting

Practice Set: My Place, House of Décor (January to June)

This set is a service and merchandising business operated as a corporation. It includes narrative for six months of transactions, which are to be recorded in a general journal. The set can be solved manually or with the General Ledger software.

GENERAL INSTRUCTIONS FOR JANUARY

1) Journalize the transactions listed below and on the next page and post to the ledger accounts. Omit explanations.

2) Prepare an unadjusted trial balance.

3) Journalize the adjusting entries and post to the general ledger. Adjustment data are provided on the next page.

4) Prepare an adjusted trial balance.

5) Prepare a schedule of accounts receivable. List the balance of each customer account with a balance and total the balances. Compare the total to the balance of Accounts Receivable in the general ledger.

6) Prepare an income statement for the month ended January 31, 20--.

7) Prepare a retained earnings statement for the month ended January 31, 20--.

8) Prepare a balance sheet as of January 31, 20--. 9) Complete the analysis test for January on page 27.

GENERAL INSTRUCTIONS FOR FEBRUARY

1) Journalize the transactions listed below and on the next page and post to the ledger accounts. Omit explanations.

2) Prepare an unadjusted trial balance.

3) Journalize the adjusting entries and post to the general ledger. Adjustment data are provided on the next page.

4) Prepare an adjusted trial balance. 5) Prepare a schedule of accounts receivable.

6) Prepare an income statement for the two months ended February 28, 20--. If not completing the optional requirements below, use only the year-to-date amount column to complete your statement.

Optional: Prepare the statement for both the month of February and the year to date. Balances in the income and expense accounts currently reflect year-to-date activity. Complete the yearto-date income statement first. To calculate February figures, subtract January figures (from last month’s income statement) from the year-to-date figures. Optional: Include vertical analysis figures in the statement by calculating the percent of each line item to total revenue. Note: If working the set with General Ledger software, the generated statement will automatically include monthly and year-to-date figures and include percentages for vertical analysis.

7) Prepare a retained earnings statement for the two months ended February 28, 20--.

8) Prepare a balance sheet as of February 28, 20--.

9) Complete the analysis test for February on page 37.

GENERAL INSTRUCTIONS FOR MARCH

1) Journalize the transactions listed below and on the next page and post to the ledger accounts. Omit explanations.

2) Prepare an unadjusted trial balance.

3) Journalize the adjusting entries and post to the general ledger. Adjustment data are provided on the next page.

4) Prepare an adjusted trial balance.

5) Prepare a schedule of accounts receivable.

6) Prepare an income statement for the three months ended March 31, 20--. If not completing the optional requirements below, use only the year-to-date amount column to complete your statement.

Optional: Prepare the statement for both the month of March and the year to date. Balances in the income and expense accounts currently reflect year-to-date activity. Complete the year-todate income statement first. To calculate March figures, subtract year-to-date figures of February’s income statement from March’s year-to-date figures.

Optional: Include vertical analysis figures in the statement by calculating the percent of each line item to total revenue. Note: If working the set with General Ledger software, the generated statement will automatically include monthly and year-to-date figures and include percentages for vertical analysis.

7) Prepare a retained earnings statement for the three months ended March 31, 20--.

8) Prepare a balance sheet as of March 31, 20--.

9) Complete the analysis test for March on page 47. Optional (software users):

10) Closing entries and Post-Closing Trial Balance