Page 67-90

When you are finished with this simulation packet, you will be able to:

  • Journalize transactions completed for a month for a business
  • Post from a general journal to a general ledger
  • Reconcile a bank statement
  • Prove cash
  • Complete a work sheet for the end of a fiscal period
  • Prepare an income statement
  • Prepare a balance sheet
  • Journalize and post adjusting entries
  • Journalize and post closing entries
  • Prepare a post-closing trial balance

Simulation Overview

  • This simulation covers the transactions completed by Rico Sanchez, Disc Jockey, a service business organized as a proprietorship.  On September 1 of the current year, Rico Sanchez, Disc Jockey, begins business.  The owner, Rico Sanchez, performs as a disc jockey at clubs and private parties.  He also specializes in karaoke when requested.The activities included in the accounting cycle for Rico Sanchez, Disc Jockey, are listed below.  The company uses a general journal and a general ledger similar to those described for TechKnow in Cycle 1.

    The following activities are included in this simulation:

    • Journalizing transactions in a general journal.
    • Preparing bank statement reconciliation and recording a bank service charge.
    • Proving cash.
    • Posting from a general journal to a general ledger.
    • Preparing a trial balance on a work sheet.
    • Recording adjustments on a work sheet.
    • Completing a work sheet.
    • Preparing financial statements.
    • Journalizing and posting adjusting entries.
    • Journalizing and posting closing entries.
    • Preparing a post-closing trial balance.
    • Completing Think Like an Accountant Financial Analysis activity.

Rico Sanchez, DISC Jockey Manual Simulation

  1. Obtain all the necessary materials from your instructor to complete this packet.
  2. Read pages 1-2 in this instructional booklet to become familiar with the requirements of this packet.
  3. Use the instructional booklet to complete transactions 1-60 and end of fiscal period work.