The objective of this practice set is to expose the student to a real-world simulation of maintaining a complete set of books for the accounting information system of a retail business organized as a proprietorship. The Heritage Home Furniture practice set introduces more complex transactions usually associated with larger businesses. The student will have ample opportunity to analyze and record a wide variety of business transactions generally covered in a financial accounting course. However, a major objective of this practice set is to involve the student in the end-of-the-period analytical work which requires a thorough understanding of the accrual basis of accounting and the skills of a trained accountant. The student will become familiar with:
Analyzing business transactions and recording them in appropriate accounting journals and records.
Business taxes such as employer payroll taxes and employee tax with-holdings.
Posting to the general ledger and accounts receivable and accounts payable subsidiary ledgers.
Preparing end-of-the-period adjustments, including a bank reconciliation, declining-balance depreciation, and a complete set of financial statements.
Closing the accounting records.