Microsoft Word - Fall 2020 Maverick's Boards Practice Set.docx Practice Set Registration: # XXXXXXXXXX Student Name: Mario Arzaga Section: ACCT 2301 Instructor ________________________________...

Solve for all of the parts except for Part 1


Microsoft Word - Fall 2020 Maverick's Boards Practice Set.docx Practice Set Registration: # 197246-20188 Student Name: Mario Arzaga Section: ACCT 2301 Instructor ________________________________ Maverick’s Boards PracticeSet ACCT2301–PrinciplesofAccountingI Hettie Houghton Fall 2020 ii | P a g e TableofContents Practice Set Spring 2020 .......................................................................................................................... 1 Purpose ............................................................................................................................................... 1 The Business ........................................................................................................................................ 2 Background ...................................................................................................................................... 2 Numbering System ........................................................................................................................... 2 Chart of Accounts…………………………………………………………………………………………………………………………….3 Part One Instructions ........................................................................................................................... 4 Transactions .................................................................................................................................... 4 Part Two Instructions ........................................................................................................................... 7 Part Three Instructions………………………………………………………………………………………………………………………..7 Blackboard Instructions…………………………………………………………………………………………………………………7 Part Four Instructions…………………………………………………….………………………………………………………………….9 Part Five Instructions………………………………………………………………………………………………………………………..9 General Journal……………………………………………………………………………………………………………………………10 Template for T-Accounts……………………………………………………………………………………………………………….19 Bank Statement……………………………………………………………………………………………………………………………20 Template for Bank Reconciliation………………………………………………………………………………………………….21 1 | P a g e PracticeSetFall2020 PrinciplesofAccountingI–ACCT2301 UniversityofTexasatElPaso Purpose Completion of an accounting practice set is an important component in most accounting courses. Practice sets integrate the conceptual learning in the accounting text with a hands-on real-world scenario. “Maverick’s Boards” is designed to assist the student in practicing the recording process of transactions as well as the preparation of financial statements. Completion of the Practice Set is a mandatory requirement for the following accounting courses: ACCT 2301, and 2302. Textbook publishers provide numerous accounting practice sets that range in price from $50 to $80. The Theta Beta chapter of Beta Alpha Psi and the UTEP Accounting Society wanted to lower the cost of these practice sets to students. Therefore, Beta Alpha Psi and the Accounting Society, with supervision and approval of the Chair of the Accounting Department, the Faculty Advisor of these two organizations, and the faculty of the department, write a different practice set each semester. This process is strictly confidential and access to it is strictly restricted to the members involved in writing it, who are outstanding members who have met certain requisites established by the Faculty Advisor. The faculty donates time and talent to write and supervise the creation of the practice sets. Members of the organizations donate their time to sell these practice sets and profits are split between these two student groups and are used to support student activities that benefit not only their members, but also the entire College of Business, through professional meetings and professional development events. The price of the Practice Set is $10, a significant saving to the students. If you would like to know more about Beta Alpha Psi or the Accounting Society or would like to join, please visit the following links to ask for more information: https://minetracker.utep.edu/organization/bap https://minetracker.utep.edu/organization/accountingsociety All cases of academic dishonesty will be reported to the Office of Student Life. 2 | P a g e TheBusiness This practice set is designed in five parts. In the first part, the student will complete the journal entries for the month in a manual accounting system for Maverick’s Boards. In the second part, the student will record the adjusting journal entries. Here, the necessary adjusting month-end entries are entered. Part three consists of preparing the balances in a T-Account for each account. Part four consists of preparing a bank reconciliation. Additionally, journal entries related to the reconciliation are entered into the system. Lastly the trial balance, Income Statement, Statement of Stockholders’ Equity and Balance Sheet are prepared. Background Maverick’s Boards is a surf shop started in January of 2020 by Blaise Maverick. He has saved over $70,000 to invest in the business. He has had a meeting with his lawyer and his Certified Public Accountant (CPA) and they have determined that the business should be organized as a corporation. The CPA has agreed to help Mr. Maverick set up his accounting system. He provided to Mr. Maverick a chart of accounts. He will be using a Perpetual Inventory System. Chart of Accounts Numbering System 1xxxx Current Asset 15xxx Property, Plant & Equipment 17xxx Accumulated Depreciation 2xxxx Current Liabilities 27xxx Long-term Liabilities 39xxx Stockholders’ Equity 4xxxx Revenues 5xxxx Cost of Goods Sold 6xxxx Operating Expenses 3 | P a g e Below is the Chart of Accounts that will be used in the journal entries. Use the account numbers listed below. ChartofAccounts Current Assets 10000 Cash 11000 Accounts Receivable 12000 Inventory – Surfboards 12100 Inventory