The objective of this part is to afford students the opportunity to use accounting software so you appreciate the extent to which technology has completely transformed accounting. While the need for judgment and decisions will never disappear, the bookkeeping aspects of accounting have been largely automated. The term project requirements just scratch the surface in terms of showing the capabilities of accounting software. We hope you will take the time to view all the tutorials and do some clicking around to try out even more features.
STEP 1: Acquire access to any commercial accounting software package that you dont have to purchase.
STEP 2: Use your software to create a set of books for a fictional company that includes your name and student number with the fiscal year end of December 31st of the current year. Many products have 'wizards' or tutorials to lead you through this process.
STEP 3: Post the following transactions using the 'general journal entry' option rather than specialized journal option. Hint: If you being prompted to enter customer or supplier name and address information, you are not using the 'general journal entry' option, and are doing more than is required in this assignment.
1. The owner contributes to the company the last 5 digits of your student number in cash. Example: if your student number is 1234567, the cash contributed by the owner must be $34,567.00
2. A purchase in cash of goods for resale for an amount equal to the last 4 digits of your student number (perpetual inventory method is used).
3. A cash sale for an amount equal to the last 5 digits of your student number.
4. Prepay utilities for an amount equal to half of the last 3 digits of your student number.
5. Advanced payment made in cash to a supplier for a future delivery of goods equal to the last 4 digits of your student number.
6. At the end of the period noticed that half of the goods for resale (inventory) purchased have been used.
7. Used a bank loan to buy a forklift machine for an amount equal to the last 6 digits of your student number.
8. Declared dividends for an amount equal to the last two digits of your student number.
9. At the beginning of the month made a payment to the landlord for the rent of 2 months (this month and the last month of the rent agreement) equal to the last 4 digits of your student number.
10. Depreciation of non-current asset for an amount equal to one tenth of the acquisition cost.
STEP 4: Prepare and print the Income Statement and Balance Sheet for the period and also your general journal showing your journal entries.
STEP 5: Submit the document as a PDF document.