ACC 2301 Odd Springs Practice Set
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Odd Springs Trading Company
A Practice Problem
University of Houston - Downtown
Profits on the sale of this practice set will be deposited in the
Accounting Excellence Fund to benefit accounting and business students
This short practice problem gives you, the student, an opportunity to practice the accounting
concepts and skills acquired in an introductory financial accounting course.
The objective of the
practice problem is to have you complete a comprehensive example of the accounting cycle.
You will evaluate transactions, use the general journal to record events, adjust the accounts,
close the temporary accounts, maintain an ongoing general ledger, prepare a worksheet and
prepare financial statements.
In following the instructions for the Practice Problem, keep in mind that an accountant prepares accounting
records in a neat fashion and in proper format.
If you prepare this practice set by hand, using a pencil for the
accounting work gives you a better opportunity to maintain neat records.
The Odd Springs Trading Company, a sole proprietorship owned by Max Gator, began operations
at the beginning of the month in SmallTown, Texas.
Odd Springs sells items such as small office
machines, office supplies, magazines, make-up, hair products, etc. and is located in a new
Odd Springs sells on account to some customers and on a cash basis to other
Odd Springs has retained you to install the company’s manual accounting system, to implement
the system, to maintain the company’s accounting records, and to produce monthly financial
The accounting system for accounting records and financial statements includes
the general journal, general ledger accounts, the worksheet, the Multiple-Step Income
Statement, the Statement of Owner’s Equity, and the classified Balance Sheet.
Additionally, Odd Springs has asked you to prepare the unadjusted trial balance, the
adjusted trial balance, and the post-closing trial balance.
Odd Springs Trading Company, continued