The Accounting Cycle



You are the accountant of B. Rogers Merchandising Company.  For assistant, use the following tools:

http://www.quickmba.com/accounting/fin/equation     -This website provides some examples of journal entries. 

http://www.quickmba.com/accounting/fin/cycle/      -This website shows the steps in the accounting cycle. 

http://www.cliffsnotes.com/WileyCDA/CliffsReviewTopic/The-Accounting-Equation.topicArticleId-21081,articleId-21003.html      -This website provides a list of accounting terms and the basic accounting equation. 

The Accounting Textbook:      Every student is given this book at the beginning of the year.  It has examples, terms, and practice exercises for the students.  It deeply explains the whole accounting cycle.


You should prepare (record) the following journal entries numbered 1-5, using excel.    Number the journal entries in the order that they occurred.  The Account numbers are found in the chart of accounts. 

                                       Chart of Accounts

                     Account                                     Account number

                        Cash                                                   100

                 Accounts Receivable                                  102

                      Equipment                                             104

                       Furniture                                              106

                Accounts Payable                                       200

               Stockholders' Equity                                    300


1.     On January 1, 2007, the owner of B. Rogers Merchandising Company  deposited $500,000 into the company’s bank account. 

2.     B. Rogers Merchandising Company sold $4,000 worth of equipment to Scana on account on March 24, 2007. 

3.     On July 14, 2007, B. Rogers Merchandising Company bought $5,000 worth of furniture from Farmers Furniture Store on account.

4.     On November 23, 2007 Scana paid B. Rogers Merchandising Company $4000 in cash for the equipment that they bought on March 24, 2007. 

5.       On December 28, 2007, B. Rogers Merchandising Company paid off the $5,000 worth of furniture that it bought from Farmers Furniture Store on July 14, 2007.


You should post the journal entries to a General Ledger using excel.   

Perform a trial balance.

Adjusting Entries and adjusting the trial balance are not needed because there are not any entries that required adjusting. 

Create the financial statements:  Income Statement, Statement of Retained Earnings, and the Balance Sheet. 

Create a post-closing trial balance. 


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