# ABC Company

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```					Advanced Accounting                                                              Spring 2007

Unit: Accounting Cycle

Lesson: ABC, Company

Objective:

The student will be able to apply accounting principles and concepts including an
understanding of the fundamental accounting equation; classify items as assets, liabilities,
and equity and prepare a balance sheet.

ESLR’s:
 2 A, E
 3 A, C

 2.1 Accounting Procedures and Financial Analysis (CL): Students will understand
basic principles and procedures of accounting and finance. They will demonstrate
competency by preparing and maintaining accounting records and interpreting
financial information.

Requirements:

1. The student will decide on a name and business acivity for a company they will account
for.(It’s entirely up to you. Examples: Clothing store, Music Store, Movie Theatre etc.)

2. The student will brainstorm and compile a chart of accounts that meets your businesses
needs and classify them as Asset, Liabilty or Owner Equity. (What does your business
need? Example: Clothing Stores need Clothes Racks, these are assets.) Minimum Five
Asset Accounts, Four Liability Accounts, and One Owners Equity Account – Note you
may need more accounts.

3. The student will then create an MS Excel spreadsheet that will allow them to
record a series of generic transactions. (Use the Format shown on the back;
Make sure to utilize mathematical formulas for balance totals.)

4. The student will then verify account balances and produce a month-end Balance Sheet in
MS excel. (Use the Format shown on the back; Make sure to utilize mathematical
formulas for balance totals.)

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Transactions
1    Owner Invested cash                               \$ 15,000.00
2    Paid cash for rent                                \$ 1,300.00
3    Received cash from sales                          \$ 2,500.00
4    Paid cash for equipment repairs                   \$ 750.00
5    Paid cash for charitable contribution             \$     40.00
6    Received cash from sales                          \$ 4,500.00
7    Sold goods or services on account to customer 1   \$ 5,000.00
8    Received cash from customer 1                     \$ 2,500.00
9    Paid cash to owner for personal use               \$ 2,000.00
10   Bought Asset 1 on account from vendor 1           \$ 1,500.00
11   Received cash from sales                          \$ 400.00
12   Paid cash to vendor 1                             \$ 900.00
13   Sold goods or services on account to customer 2   \$ 4,500.00
14   Bought Asset 2 on account from vendor 2           \$ 700.00
15   Sold goods or services on account to customer 3   \$ 1,200.00
16   Paid cash to vendor 2                             \$ 700.00
17   Received cash from customer 2                     \$ 2,800.00
18   Bought Asset 3 on account from vendor 3           \$ 400.00
19   Sold goods or services on account to customer 4   \$ 1,600.00
20   Paid cash to vendor 3                             \$ 350.00
21   Received cash from customer 3                     \$ 1,200.00
22   Bought Asset 4 on account from vendor 4           \$ 250.00
23   Received cash from customer 4                     \$ 1,250.00
24   Paid cash to vendor 4                             \$ 250.00

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