accounting practice set

You are tasked with the preparation of a set of 2015 financial statements for BRONX BOMBERS, INC. acompany that purchases merchandise inventory for resale.You will be required to prepare journal entries (utilizing a general journal along with a set of specialjournals), the posting of those entries to both general and subsidiary ledger accounts, and preparation ofmonth-end adjustments, an adjusted trial balance, financial statements, and closing entries in order to readythe general ledger for 2015 activity. BRONX BOMBERS, INC. uses the following chart of accounts:Account NumberAccount Title 100Cash 110Accounts Receivable 115Allowance for Doubtful Accounts (AFDA) 120Interest Receivable 130Inventory 135Supplies 140Prepaid Rent 145Prepaid Insurance 150Available for Sale Investments (non-current) 160Land 170Buildings 175Accumulated Depreciation – Buildings 180Equipment 185Accumulated Depreciation – Equipment 190Patents 210Accounts Payable 220Salaries Payable 225Utilities Payable 230Interest Payable 235Unearned Rent 240Income Taxes Payable 245Dividends Payable 250Notes Payable (non-current) 300Common Stock 310Additional Paid-In Capital 320Retained Earnings 325Dividends 330Accumulated Other Comprehensive Income 350Treasury Stock
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400 Sales Revenue
402Sales Returns & Allowances 404Sales Discounts 410Interest Revenue 420Rent Revenue 430Dividend Revenue 500Cost of Goods Sold 505Purchases 507Purchase Returns & Allowances 508Purchase Discounts 510Salaries Expense 515Bad Debt Expense 520Rent Expense 530Depreciation Expense – Buildings 535Depreciation Expense – Equipment 540Patent Amortization Expense 550Utilities Expense 555Supplies Expense 560Insurance Expense 570Interest Expense 590Income Tax Expense
Bronx Bombers, Inc. is a calendar-year firm that has been in business in the USA for the past ten years.Your job is to maintain the accounting records of Bronx Bombers, Inc. for the month of December,prepare theannual financial statements (income statement, balance sheet, and statement of cash flows—using the direct method) as of December 31, 2015, and then close the nominal accounts to prepare theaccounting records for 2015 entries.BRONX BOMBERS, INC. utilizes the following five journals:
?Sales journal – this journal isexclusively used to record all credit sales
?Purchases journal – this journal isexclusively used to record all purchases of inventory items
on credit
?Cash Receipts journal – this journal isexclusively used to record all transactions that involve areceipt of cash
?Cash Disbursements journal – this journal isexclusively used to record all transactions thatinvolve a cash payment
?General journal – this journal is used to record all transactions thatare not recorded in one of thespecial journals above