I need everything to be done. General journal- financial statements.
I looked up at Odd Springs Trading practice set. Its the same but different numbers, but It was not completed. And some of them has mistakes. Please helpShow entire document
I looked up at Odd Springs Trading practice set. Its the same but different numbers, but It was not completed. And some of them has mistakes. Please help
ACC 2301 Even Springs Practice Set Information p 1 of 7 Even Springs 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 Even Springs Trading Company, a sole proprietorship owned by Max Gator, began operations at the beginning of the month in SmallTown, Texas. Even Springs sells items such as small office machines, office supplies, magazines, make-up, hair products, etc. and is located in a new shopping mall. Even Springs sells on account to some customers and on a cash basis to other customers. Even 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 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, Even Springs has asked you to prepare the unadjusted trial balance, the adjusted trial balance, and the post-closing trial balance. Even Springs Trading Company, continued Even Springs 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 Even Springs 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. 5 -- Prepare any necessary adjusting journal entries to the general ledger accounts. 6 -- Post the adjusting journal entries to the general ledger accounts. 7 -- Prepare the adjusted trial balance, based on the ledger balances. 8 -- Prepare the closing journal entries as of the month end. 9 -- Post the closing journal entries to the general ledger accounts. 10 -- Prepare the post-closing trail balance, based on the ledger balances. 11 -- Prepare the financial statements, including the Statement of Owner's Equity Even Springs Trading Company, continued CHART OF ACCOUNTS Account 101 Cash 105 Accounts Receivable 106 Allowance for Doubtful Accounts 108 Inventory 110 Office Supplies 120 Prepaid Rent 123 Prepaid Insurance 125 Store Fixtures 126 Accum. Depr.-Store Fixtures 130 Office Equipment 131 Accum. Depr.-Office Equipment 200 Accounts Payable 205 Salaries Payable 210 Interest Payable 215 Notes Payable 300 Capital 305 Withdrawals 400 Sales Revenue 402 Sales Returns and Allowances 404 Sales Discounts 501 Cost of Merchandise Sold 510 Salaries Expense 512 Freight-Out 514 Depreciation Expense 516 Rent Expense 518 Bad Debts Expense 520 Utilities Expense 525 Supplies Expense 530 Insurance Expense 535 Interest Expense 540 Bank Charges Expense 1 -- use the gross method to record all purchases and all sales; 3 -- do not make any provision for income taxes since this is the first month of operations; 4 -- use the perpetual inventory method ; Hint: Determine the cost per unit for each inventory purchase. 5 -- record inventory cost valuation on a FIFO basis ; 6 -- use the accounts receivable method for computing bad debt expense; Multiple-step Income Statement classified Balance Sheet Number Account NOTE: All accounts are specified. Do not create any new accounts. NOTE: List each account, in numerical order , in the general ledger. NOTE: Each account listed on any trial balance or the worksheet should be listed in numerical order.
ACC 2301 Even Springs Practice Set Transactions p 2 of 7 Even Springs Trading Company Transactions 1 Max Gator contributes the following as start-up capital for Even Springs Trading Company: Cash $35,000.00 Equipment (to be depreciated on the straight-line basis) $50,000.00 The equipment is estimated to last the following number of years 5 The estimated salvage value at the end of the estimated life will be $5,000.00 1 Max hires a clerk to help with stocking of inventory and sales. Max will pay the clerk a monthly salary of $2,800.00 Max has instituted a payroll process of paying employees on the first and fifteenth of each month. 1 Even Springs borrows cash from the Small Town Bank in the amount of. $30,000.00 The loan is for one year at the following interest rate of 4% 3 Even Springs finds rental space in the newest mall in town. Even Springs pays M & M Realty the following rent for this month and the next four as well) $8,000.00 Total months of the lease 5 5 Even Springs pays cash to Office Depot for office supplies in the amount of $900.00 7 Even Springs orders inventory on credit from Texas Novelties with payment terms of 2/10, n/30. The order was for the following number of items 500 The order cost for each item was $20.00 The total order on account from Texas Novelties was $10,000.00 9 After inspecting the inventory, Even Springs returns the following number of items due to defects in quality 60 Therefore, the total amount of inventory returned to Texas Novelties was $1,200.00 Even Springs will not expect a refund for any freight charges paid by Even Springs related to this return of inventory 14 After proper consideration of the discount terms, Even Springs pays for the inventory purchased on account 15 Even Springs makes a sale on account to Valley High School (terms 2/10, n/30, FOB destination) The sale was for the following number of items 400 The sale price for each item was $30.00 The total sale on account to Valley High School was for $12,000.00 15 Even Springs paid Cajun Shipping to ship the goods to Valley High. Even Springs will not collect this from Valley. The amount paid to Cajun for the shipping cost was $110.00 Even Springs Trading Company, Transactions Continued 15 Even Springs paid the clerk hired back on the first of the month. Nothing was withheld from the clerk's salary payment. 16 Even Springs prepays American Republic Insurance Co. for an insurance policy lasting this number of months 6 The amount paid to American for the liability and casualty coverage policy was $3,600.00 16 Even Springs buys Even Springs fixtures from Office Depot in the amount of $18,000.00 Even Springs made a cash down payment of $4,000.00 The remaining balance placed on account with Office Depot was $14,000.00 The equipment is estimated to last the following number of years 6 The estimated salvage value at the end of the estimated life will be $1,000.00 Even Springs fixtures will be depreciated on the double-declining-balance basis 16 Max Gator withdraws the following amount of cash from the company account $3,500.00 18 Even Springs receives payment (after discount as appropriate) on the A/R with Valley High 20 Even Springs orders inventory on credit from Small Town Supply Company with payment terms of n/30. The order was for the following number of items 500 The order cost for each item was $22.00 The total order on account from Small Town Supply Company was $11,000.00 21 When the inventory arrives, Even Springs pays Small Town Shipping Company directly for the freight bill of $225.00 22 Even Springs makes a sale to the Nearby Shrine. The sale was for the following number of items 400 The sale price for each item was $33.00 Therefore, the total sale to the Nearby Shrine was for $13,200.00 Cash received from Nearby Shrine at the time of the sale was $9,200.00 The remaining balance placed on account (terms 2/10, n/30) with Nearby Shrine was $4,000.00 23 Nearby Shrine returned this number of items for full refund; it did not have enough room to Even Springs the item 30 26 $310.00 31 Even Springs received its current month's bank statement, which it was able to reconcile after identifying the following: Service charge by the bank in the amount of $50.00 Fee for new accounts in the amount of $10.00 Even Springs Trading Company, Transactions Continued 31 Additional information, possibly related to adjustments, as of the end of month includes: Office supplies on hand $100.00 Physical count of inventory on hand of 170 Max Gator estimates the following percentage of accounts receivable will be uncollectible 2% *** Remember that there may be other necessary adjustments in addition to those indicated above Date [of an unspecified month] Even Springs received a utility bill from Small Town Lighting and Power (due 7th of next month) in the amount of
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