Term project - Details and template.docx - My Place House of Dcor CONTENTS Description of the Business 1 Operations 1 General Ledger 3 Accounts

Term project - Details and template.docx - My Place House...

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iii My Place, House of Décor C ONTENTS Description of the Business ......................................................................... 1 Operations .................................................................................................... 1 General Ledger ............................................................................................ 3 Accounts Receivable Ledger ............................................................................. 20 Accounts Payable Ledger .................................................................................. 23 General Instructions and Transactions for January ............................................ 25 January Analysis ................................................................................................ 27 General Instructions and Transactions for February .......................................... 35 February Analysis .............................................................................................. 37 General Instructions and Transactions for March .............................................. 45 March Analysis .................................................................................................. 47 General Instructions and Transactions for April ................................................ 55 April Analysis .................................................................................................... 57 General Instructions and Transactions for May ................................................. 67 May Analysis ..................................................................................................... 69 General Instructions and Transactions for June ................................................. 79 June Analysis ..................................................................................................... 82
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1 My Place, House of Décor D ESCRIPTION OF THE B USINESS Sophia LeBron’s vast experience in interior design provided her the opportunity to open a business of her own. She organized a corporation named My Place, House of Décor that offers decorating services to customers but subcontracts the manufacture of the merchandise needed. These subcontractors are to deal directly with the customers. After three months of successful operations, Sophia thought it would be an excellent idea to expand her business into the sale of antique furniture. She started buying merchandise inventory from a com- pany named Golden Antiques for resale to retail stores. Beginning on page 25, you are presented with the events that occurred in the business over a six- month period. Your responsibility is to record the transactions on a monthly basis, prepare adjusting entries, issue the interim financial statements, prepare closing entries, and finalize the accounting cycle with the preparation of the post-closing trial balance. If you are completing the My Place, House of Décor practice case using the General Ledger software, follow the separate set of instructions provided with the data file by clicking on the Info toolbar button while you have the data file open. O PERATIONS The chart of accounts on the inside front cover lists the accounts that should be used in the preparation of all journal entries. The business has cash sales and sales on account. The terms given on the credit sales depend on the credit history of the particular customer. Sales of merchandise are FOB shipping point . The salary assigned to My Place, House of Décor is recorded gross for the first four months, in order to follow the basic chapters of the accounting textbooks. However, the effect of payroll taxes is illustrated during the last two months in this practice case. The company is using the perpetual inventory system for its merchandise inventory and the spe- cific identification method to value it. All purchases of inventory are FOB destination . Events affecting various areas of the business have been selected for the purpose of showing you their treatment in the accounting records. This will give you a more practical view of how a com- pany’s books and records are kept in the business world.
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3 GENERAL LEDGER ACCOUNT Petty Cash ACCOUNT NO.
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  • Fall '15
  • Marklevitz
  • English, Balance Sheet, ........., Generally Accepted Accounting Principles

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