JK Furniture Practice Set-Instructions

JK Furniture Practice Set-Instructions - JK FURNITURE, INC....

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JK FURNITURE, INC. PRACTICE SET GENERAL INFORMATION JK Furniture is a retail furniture store that does business as a corporation. The store carries known brand furniture and has prospered over the years. You have been hired as of May 1 to assist the business in maintaining a complete set of accounting records. The books closed on April 30 and financial statements were prepared at that time. See copies included in the file named “Financial Statements”. The business uses a manual accounting system with the following special journals: Sales, Purchases, Cash Receipts, Cash Payments and General. It also maintains the following ledgers: General, Accounts Receivable Subsidiary and Accounts Payable Subsidiary. You will record transaction daily from a narrative of business transactions found in the file names “Entries”. The company’s major accounting policies are explained below and should be followed when recording transactions. Merchandi s e Inventory: Th e c omp a n y u s e s th e p e rp et u a l i n vento r y method. Cost of goods sold is 70% o f sales. Sales: Sales of merchandise are made on credit and for cash. Credit terms are 2/10, n/30 for a l l credit sales. Cash sales reflect cash transactions and acceptance of the national credit card, Spendacard . Spendacard sales are considered cash sales because the charge s l ips are deposited along with cash, and the bank credits the company's checking account for the full amount . The bank subsequently charges the company's checking account for 4% of
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JK Furniture Practice Set-Instructions - JK FURNITURE, INC....

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