Accounting Ps - Odd Falls Trading Company A Practice...

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ACC 2301 OddFalls Information 1 Odd Falls Trading Company A Practice Problem for ACC 2301 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 INTRODUCTION 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. COMPANY OPERATIONS The Odd Falls Trading Company, a sole proprietorship owned by Max Gator, began operations at the beginning of the month in SmallTown, Texas. Odd Falls sells items such as small office machines, office supplies, magazines, make-up, hair products, etc. and is located in a new shopping mall. Odd Falls sells on account to some customers and on a cash basis to other customers. Odd Falls 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 statements. 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 Falls has asked you to prepare the unadjusted trial balance, the adjusted trial balance, and the post-closing trial balance. Odd Falls Trading Company specifies these accounting method choices: 2 -- special journals or subsidiary ledger accounts are not yet needed; 7 -- take a full month of depreciation for assets purchased in the first half of the month; 8 -- take a half-month of depreciation for assets purchased in the second half of the month. REQUIREMENTS As the accountant for Odd Falls Trading Company, you must 1 -- Record the transactions for the month in the general journal. 2 -- Post the general journal entries to the general ledger accounts and also provide the proper referencing and running totals. 3 -- Prepare the trial balance, based on the ledger balances, before adjusting entries are made. 4 -- Prepare the worksheet.
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Accounting Ps - Odd Falls Trading Company A Practice...

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