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Baldy's Barber Shop |
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Instructions |
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Basic Background |
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Baldy Jones after
working for others for 10 years decided to open his own |
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barber shop called
Baldy's Barber Shop. After meetings with Dave Marshall |
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from Bean Counter he
learned about the necessary licenses and what is necessary |
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to open and run a
successful business. He leased space for his shop and |
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December 1, xxxx
invested $15,000 of his personal
funds and began setting up |
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his business and
acquiring some needed services. |
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He planned on beginning
cutting hair about the middle of December. |
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Objective |
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To test your knowledge
of how to properly record business transactions. |
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To illustrate the
benefit of using accounting and bookkeeping software |
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After recording the
journal entries, the entries are automatically posted to the |
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General Journal, General
Ledger & Trial Balance Worksheet |
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and the formal financial statements are
automatically prepared. |
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Instructions |
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Your Job |
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Record the transactions
for December using General Journal Enties |
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At the bottom of the
spreadsheets you'll see three sheets for recording these entries. |
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Transactions-Journal Entries |
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Transactions-Journal Enties-2 |
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Transactions-Journal Enties-3 |
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Transaction Listing |
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Transaction |
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Number |
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GJ1 |
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Date |
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12/1/xxxx |
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Baldy invested $15,000
of his personal funds into the business. |
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Personal Check # 609 |
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Journal Entry |
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Input Data |
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Amount |
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Date |
12/1/xxxx |
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Debit Account |
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Reference |
GJ1 |
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Credit Account |
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Description |
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Description 2 |
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Enter the transaction
amount |
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Select the appropriate
Debit Account from the Pull-Down Menu (Click on the arrow) |
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Select the appropriate
Credit Account from the Pull-Down Menu (Click on the arrow) |
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Description: Enter a
brief description of the transaction |
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Description 2:Enter any
document reference here such as check numbers,receipt numbers, or invoice
numbers |
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Actual Journal Entry
Automatically Recorded |
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General Journal |
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Date |
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Details |
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Ref |
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Debit |
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Credit |
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12/1/xxxx |
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GJ1 |
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GJ1 |
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Checks To see if you correctly recorded the
transaction |
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Answer Check |
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Debit Account |
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Wrong-Cash In Bank |
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Credit Account |
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Wrong-Owners Equity |
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Amount |
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Wrong-15,000 |
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Description |
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Wrong |
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Sample Entry for
Transaction Number 1 |
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Transaction |
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Number |
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GJ1 |
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Date |
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12/1/xxxx |
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Baldy invested $15,000
of his personal funds into the business. |
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Personal Check # 609 |
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Journal Entry |
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Input Data |
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Amount |
15000.00 |
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Date |
12/1/xxxx |
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Debit Account |
Cash In Bank |
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Reference |
GJ1 |
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Credit Account |
Owners Equity |
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Description |
Owner
invested personal funds |
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Description 2 |
Check # 609 |
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General Journal |
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Date |
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Details |
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Debit |
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Credit |
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12/1/xxxx |
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Cash In Bank |
GJ1 |
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15,000.00 |
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Owners Equity |
GJ1 |
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15,000.00 |
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Owner invested personal funds |
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Check # 609 |
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Answer Check |
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Debit Account |
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Correct |
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Credit Account |
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Correct |
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Amount |
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Correct |
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Description |
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Correct |
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Navigation |
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Click on the arrow keys
at the bottom of the sheets to display other Spreadsheets |
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Click on the name of the
Spreadsheet to open that sheet |
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Instructions |
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Instructions for
Completing the Exercise |
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Transactions-Journal Entries |
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Used To Record
Transactions |
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Transactions-Journal Enties-2 |
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Used To Record
Transactions |
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Transactions-Journal Enties-3 |
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Used To Record
Transactions |
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General Journal |
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Displays The Complete
General Journal |
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General Ledger |
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Displays The General
Ledger |
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Financial Statements |
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Displays The Completed
Financial Statements |
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In the Transaction
Listing Pages you can click on the Reference Number to see the |
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transaction posted to
the Journal. Click On the Transaction Journal Entries Page |
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to return to the
Transaction Page. |
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In the General Journal
Page you can click on the GJ Reference Number to see the |
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transaction posted to
the General Ledger. Click On the General Journal Page |
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to return to the General
Journal. |
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In the General Ledger
Page you can click on the Ledger Account Name to see the |
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balance transferred to
the Financial Statement Worksheet. Click on thr Ledger Page |
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to return to the General
Ledger. |
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Use the “Slide
Bar” on the right side of the sheet to move Up and Down |
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Note: |
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Month End Adjusting
Entries were prepared for you. |
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