Accounting Practice Set -
This case is designed to reinforce certain technical accounting skills that are a prerequisite to a solid understanding of the generally accepted accounting principles that underlie preparation of general purpose financial statements.
You are tasked with the preparation of a set of 2015financial statements for BRONX BOMBERS, INC. a company that purchases merchandise inventory for resale.
You will be required to prepare journal entries (utilizing a general journal along with a set of special journals), the posting of those entries to both general and subsidiary ledger accounts, and preparation of month-end adjustments, an adjusted trial balance, financial statements, and closing entries in order to ready the general ledger for 2015 activity. BRONX BOMBERS, INC.
Bronx Bombers, Inc. is a calendar-year firm that has been in business in the USA for the past ten years. Your job is to maintain the accounting records of Bronx Bombers, Inc. for the month of December, prepare the annual financial statements (income statement, balance sheet, and statement of cash flows-using the direct method) as of December 31, 2015, and then close the nominal accounts to prepare the accounting records for 2015 entries.
BRONX BOMBERS, INC. utilizes the following five journals:
- Sales journal - this journal is exclusively used to record all credit sales
- Purchases journal - this journal is exclusively used to record all purchases of inventory items on credit
- Cash Receipts journal - this journal is exclusively used to record all transactions that involve a receipt of cash
- Cash Disbursements journal - this journal is exclusively used to record all transactions that involve a cash payment
- General journal - this journal is used to record all transactions that are not recorded in one of the special journals above
Case Requirements: Please prepare the following for turn-in:
1. Five journals (SJ, PJ, CRJ, CDJ, and the GJ) with December transactions, year-end adjustments, and closing entries recorded appropriately,
2. The two subsidiary ledgers (A/R and A/P) and the General Ledger with December postings and year-end balances,
3. An adjusted trial balance as of December 31, 2015
4. An Income Statement for the year ended December 31, 2015,
5. A Balance Sheet as of December 31, 2015, and
6. A Statement of Cash Flows (Direct Method) for the year ended December 31, 2015, with required supplementary disclosures.
Attachment:- Assignment.rar