When you are finished with this Reinforcement Activity 2-Part B, you will be able to:
- 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
An Accounting Cycle for a Corporation: Journalizing and Posting Transactions
- Reinforcement activities strengthen the learning of accounting concepts and procedures. Reinforcement Activity 2 reinforces learning from Part 2, Chapters 9 through 16. Activities cover a complete accounting cycle for a merchandising business organized as a corporation. Reinforcement Activity 2 is a single problem divided into two parts. Part A includes learning from Chapters 9 through 13. Part B includes learning from Chapters 14-16.
The accounting work of a single merchandising business for the last month of a yearly fiscal period is used in this reinforcement activity. The records kept and reports prepared, however, illustrate the application of accounting concepts for all merchandising businesses.
Medical Services Company (MSC)
Medical Services Company (MSC), a merchandising business, is organized as a corporation. The business sells a complete line of medical accessories, from crutches to lift chairs. MSC is located in a medical office plaza adjacent to the hospital and is open for business Monday through Saturday. A monthly rent is paid for the building. MSC accepts credit cards from customers.
Reinforcement Activity 2B
- Obtain a copy of the reinforcement working papers from your instructor.
- Complete the assignment according to the directions on page 508.