Tartan Loungewear: An Introductory Transactional Accounting Exercise

Name: Tartan Loungewear: An Introductory Transactional Accounting Exercise
SKU: W36515_P

Ian Dunn, Martin Eidenberg

Product #:W36515_P

Supplier:Ivey

Discipline:Accounting

Setting:Canada, 2023

Details:Exercise (PDF) • 3 pages • 2024-02-09

Your Price:

$9.71

Language:

Format:

Purchase this material with a free Educator Account and enjoy more benefits:

Free Educator Copy
Free Teaching Notes
Build your coursepack
Discounted academic price

Trina Wolfson incorporated her business, Tartan Loungewear (Tartan), on June 1, 2022. The business sold trendy loungewear with tartan accents. After Tartan’s first year of operations, she and her friend, an accountant, were working together to record all accounting transactions and prepare financial statements for the year.

Learning Objectives

This accounting exercise is designed to be an introduction to simple transactions relating to asset, liability, equity, revenue, and expense accounts. After working through this exercise and the assignment questions, students will be able to do the following:

Apply understanding of basic transactional accounting principles and the accounting cycle.
Correctly record basic adjusting entries such as depreciation, cost of goods sold, prepayments, and accrued expenses.
Record closing entries and prepare a statement of earnings and a statement of financial position.