Assignment
Best Bicycles Inc.
Accounting Cycle Case
Instructions
The objective of this accounting cycle case is to prepare and post December journal entries to Best Bicycle, Inc.'s general ledger, and prepare a trial balance, balance sheet, and income statement as of December 31, 2015. Then you are to prepare and post the closing entries and prepare a post-closing trial balance.
You will note this Excel worksheet has various tabs at the bottom to the page. Each tab represents a separate worksheet. To access each worksheet, click on the desired tab.
To start this project, go to the transactions tab and prepare journal entries to record each of these transactions. Re-record each journal entry on the journal entry tab. Hint: read all of the transactions before you begin, so you can determine whether the company uses a periodic inventory system or a perpetual inventory system.
Next, post the journal entries to the general ledger located on the general ledger tab.
After all entries have been posted to the general ledger, prepare a trial balance on the trial balance tab. Be sure the trial balance is in balance, that the total debits equal the total credits. Do not proceed to the next step until the trial balance balances. Hint: If it doesn't balance, you probably have entered something on the wrong side, or the debits didn't equal the credits in one or more general journal entries.
Prepare a balance sheet and income statement from the trial balance using the balance sheet and income statement tabs, Remember that you will need to include the net income or loss from your income statement in the retained earnings balance on the balance sheet for it to balance.
Next prepare and post closing entries to the general ledger.
The final step is to prepare a post closing trial balance. This should be done on the post closing trial balance tab. This trial balance should also be balanced. Once you have done this and see that it balances, you have completed the project. Congratulations.
Attachment:- Accounting-Cycles-Case-Study.rar