This practice case has been designed to give introductory-level business students practical experience in the application of accounting concepts.
This practice case will provide students with an overview of the complete accounting cycle of a merchandising company located in British Columbia.
Initial transactions are analyzed, journalized in the general journal and recorded in the general ledger, adjusting entries are required under the accrual concept of recording accounting information which is in accordance with accounting standards for private enterprises (ASPE) and International accounting standards (IFRS) in Canada. Financial Statements are prepared and some comments on the solvency and profitability of the company are requested.
This exercise can be completed with the assistance of a computer software package OR manually using a spreadsheet software program.