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 2013 financial statements for Wolfpack Corp., 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 2014 activity. 

Wolfpack Corp. is a calendar-year firm that has been in business in Raleigh, NC for the past ten years.  Your job is to maintain the accounting records of Wolfpack 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, 2013, and then close the nominal accounts to prepare the accounting records for 2014 entries.

Wolfpack 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 (items for resale) 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

Wolfpack also maintains both a general ledger and two subsidiary ledgers:

• A/R Subsidiary ledger - this ledger contains the specific balances owed to Wolfpack by individual customers
• A/P Subsidiary ledger - this ledger contains the specific balances owed by Wolfpack to individual suppliers of merchandise inventory

Case Requirements:

Please prepare the following for turn-in-arranged in this order please):

Due in class on October 8:

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, 2013.

4. An Income Statement for the year ended December 31, 2013,

5. A Balance Sheet as of December 31, 2013, and

6. A Statement of Cash Flows (Direct Method) for the year ended December 31, 2013, with required supplementary disclosures.

Attachment:- Assignment File.rar