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Unformatted text preview: 1 University, Inc. Financial Accounting Practice Set Instructions December 31, 2006 1 2 3 4 Post the journal entries to the general ledger. Use the ledger located on pages 8 through 13. 5 6 7 8 9 10 After completing the practice set, enter your answers on the summary sheet on page 20. This practice set covers the accounting cycle found in Chapters 1 through 4 of your textbook. You will be journalizing and posting University, Inc.'s December 2006 transactions, journalizing and posting adjusting journal entries, preparing financial statements for 2006 and journalizing and posting closing entries. Every student will have a different set of data to use to complete this practice set. To begin, you will need to access your individual set of data. This is available on an Excel spreadsheet in Blackboard. Go into Blackboard and click on the Assignments tab. Click on the Practice Set Transactions link and an Excel spreadsheet will open. Enter your Peoplesoft student identification number in the box. The spreadsheet will fill in the amounts that you will need to record transactions in this practice set. Print out the spreadsheet. Prepare the journal entries for the transactions listed on your Excel printout. Use the format suggested in the textbook and the forms on page 5 through 7. Prepare an unadjusted trial balance on page 14. Transfer the balance out of each general ledger account onto the trial balance form to prove that debits still equal credits after all postings have been done. If your trial balance does not balance, use the procedures discussed in class to help you find your error. You are now ready to prepare adjusting journal entries. Use the information on page 4 to prepare adjusting entries. Use the journal entries pages that you were previously using for the December transactions. Post these adjusting entries to the general ledger in the same manner as previously done and prepare an adjusted trial balance on page 15. You are now ready to prepare the financial statements of University, Inc. as of December 31, 2006. Using the information in the adjusted trial balance and the forms on pages 16 through 18, complete an income statement, a statement of retained earnings, and a classified balance sheet. Closing the books is the final step of your practice set. Prepare the closing entries and record them on your journal entries pages that you have been previously using. There should be enough space to record all entries necessary. Post these entries to your general ledger. Prepare a post-closing trial balance using the form on page 19. 2 University, Inc. Chart of Accounts Account Name Account # Assets Cash in Bank 1010 Accounts Receivable 1030 Prepaid Insurance 1050 Supplies 1060 Office Equipment 1510 Accumulated Depreciation - Office Equipment 1515 Land 1520 Building 1530 Accumulated Depreciation - Building 1535 Liabilities Accounts Payable 2010 Wages & Salaries Payable 2020 Unearned Revenue 2030 Interest Payable 2040 Income Taxes Payable 2050 Dividends Payable...
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- Fall '08
- Financial Accounting