MGM Practice Set Institute of Business Administration ACCOUNTING 102
MOSES’S GROUND MAINTENANCE, INC.
PRACTICE SET
(For the Months June, July, August, & September)
In the spring of 2016, Amos Moses decided to open a lawn care business. He called it Moses’s
Ground Maintenance, Inc. Not only would he provide lawn care services, but he would also sell
certain products that would assi
...[Show More]
MGM Practice Set Institute of Business Administration ACCOUNTING 102
MOSES’S GROUND MAINTENANCE, INC.
PRACTICE SET
(For the Months June, July, August, & September)
In the spring of 2016, Amos Moses decided to open a lawn care business. He called it Moses’s
Ground Maintenance, Inc. Not only would he provide lawn care services, but he would also sell
certain products that would assist his customers in maintaining a beautiful lawn, ultimately
making them the envy of their neighbors.
Amos has decided to organize his business as a corporation. Although, a sole proprietorship
would be easier to set up, Amos wanted to eliminate any personal liability he might be subject to if
he were to organize as a sole-proprietorship. He realizes that it is more complicated to organize
his business as a corporation and that he might pay more in taxes, but he feels it’s worth the extra
cost.
Amos has hired you to be his accountant and has decided not to purchase an accounting software
package at this time. Therefore, you will be required to record all transactions manually.
You will need to set up a manual accounting system. Therefore, you will have to create/use a
general journal, a general ledger, and subsidiary ledgers. You will be responsible for journalizing
all transactions and posting them to the appropriate ledger accounts. Additionally, you will be
required to prepare a trial balance for each month, adjusting entries, an adjusted trial balance at
year-end. At year-end you will also have to prepare a set of financial statements for the company.
This will include, in proper format, an Income Statement, Statement of Retained Earnings, Balance
Sheet, and a Statement of Cash Flows. You will also be required to record and post the closing
transactions and prepare a post-closing trial balance. Moses’s Ground Maintenance, Inc. fiscal year
ends September 30. In June of 2016, Amos begins operations.
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