Can you solve this problem please? So I can have an example to make another practice set.

Odd Springs Trading Company A Practice Problem for ACC 2301 University of Houston - Downtown Profits on the sale of this practice set will be deposited in the Accounting Excellence Fund to benefit accounting and business students INTRODUCTION This short practice problem gives you, the student, an opportunity to practice the accounting concepts and skills acquired in an introductory financial accounting course. The objective of the practice problem is to have you complete a comprehensive example of the accounting cycle. You will evaluate transactions, use the general journal to record events, adjust the accounts, close the temporary accounts, maintain an ongoing general ledger, prepare a worksheet and prepare financial statements. In following the instructions for the Practice Problem, keep in mind that an accountant prepares accounting records in a neat fashion and in proper format. If you prepare this practice set by hand, using a pencil for the accounting work gives you a better opportunity to maintain neat records. COMPANY OPERATIONS The Odd Springs Trading Company, a sole proprietorship owned by Max Gator, began operations at the beginning of the month in SmallTown, Texas. Odd Springs sells items such as small office machines, office supplies, magazines, make-up, hair products, etc. and is located in a new shopping mall. Odd Springs sells on account to some customers and on a cash basis to other customers. Odd Springs has retained you to install the company's manual accounting system, to implement the system, to maintain the company's accounting records, and to produce monthly financial statements. The accounting system for accounting records and financial statements includes the general journal, general ledger accounts, the worksheet, the Multiple-Step Income Statement, the Statement of Owner's Equity, and the classified Balance Sheet. Additionally, Odd Springs has asked you to prepare the unadjusted trial balance, the adjusted trial balance, and the post-closing trial balance. Odd Springs Trading Company, continued Odd Springs Trading Company specifies these accounting method choices: 1 -- use the gross method to record all purchases and all sales; 2 -- special journals or subsidiary ledger accounts are not yet needed; 3 -- do not make any provision for income taxes since this is the first month of operations; 4 -- use the perpetual inventory method; Hint: Determine the cost per unit for each inventory purchase. 5 -- record inventory cost valuation on a FIFO basis; 6 -- use the accounts receivable method for computing bad debt expense; 7 -- take a full month of depreciation for assets purchased in the first half of the month; 8 -- take a half-month of depreciation for assets purchased in the second half of the month. REQUIREMENTS As the accountant for Odd Springs Trading Company, you must 1 -- Record the transactions for the month in the general journal. 2 -- Post the general journal entries to the general ledger accounts and also provide the proper referencing and running totals. 3 -- Prepare the trial balance, based on the ledger balances, before adjusting entries are made. 4 -- Prepare the worksheet. 5 -- Prepare any necessary adjusting journal entries to the general ledger accounts. 6 -- Post the adjusting journal entries to the general ledger accounts. 7 -- Prepare the adjusted trial balance, based on the ledger balances. 8 -- Prepare the closing journal entries as of the month end. 9 -- Post the closing journal entries to the general ledger accounts. 10 -- Prepare the post-closing trail balance, based on the ledger balances. 11 -- Prepare the financial statements, including the Multiple-step Income Statement Statement of Owner's Equity Classified Balance Sheet Odd Springs Trading Company, continued CHART OF ACCOUNTS Account Number Account 101 105 106 108 110 120 123 125 126 130 131 200 205 210 215 300 305 400 402 404 501 510 512 514 516 518 520 525 530 535 540 Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Office Supplies Prepaid Rent Prepaid Insurance Store Fixtures Accum. Depr.-Store Fixtures Office Equipment Accum. Depr.-Office Equipment Accounts Payable Salaries Payable Interest Payable Notes Payable Capital Withdrawals Sales Revenue Sales Returns and Allowances Sales Discounts Cost of Merchandise Sold Salaries Expense Freight-Out Depreciation Expense Rent Expense Bad Debts Expense Utilities Expense Supplies Expense Insurance Expense Interest Expense Bank Charges Expense NOTE: All accounts are specified. Do not create any new accounts. NOTE: List each account, in numerical order, in the general ledger. NOTE: Each account listed on any trial balance or the worksheet should be listed in numerical order. ACC 2301 Odd Springs Practice Set Information p 1 of 7 Odd Springs Trading Company Transactions Day 1 Max Gator contributes the following as start-up capital for Odd Springs Trading Company Cash Equipment (to be depreciated on the straight-line basis) The equipment is estimated to last the following number of years The estimated salvage value at the end of the estimated life will be $60,000.00 $20,000.00 6 $2,000.00 1 Max hires a store clerk to help with stocking of inventory and sales. Max will pay the clerk a monthly salary of $3,600.00 Max has instituted a payroll process of paying employees on the first and fifteenth of each month. 1 Odd Springs borrows cash from the Small Town Bank in the amount of The loan is for one year at the following interest rate of 3 Odd Springs finds rental space in the newest mall in town. Odd Springs pays M & M Realty the following rent for this month and the next four as well) Total months of initial lease 5 Odd Springs pays cash to Office Depot for office supplies in the amount of 7 Odd Springs orders inventory on credit from Texas Novelties with payment terms of 2/10, n/30. The order was for the following number of items The order cost for each item was The total order on account from Texas Novelties was $9,000.00 4% $12,000.00 5 $1,400.00 700 $40.00 $28,000.00 9 After inspecting the inventory, Odd Springs returns the following number of items due to defects in quality 40 Therefore, the total amount of inventory returned to Texas Novelties was $1,600.00 Odd Springs will not expect a refund for any freight charges paid by Odd Springs related to this return of inventory 14 After proper consideration of the discount terms, Odd Springs pays for the inventory purchased on account Odd Springs Trading Company, Transactions continued 15 15 Odd Springs makes a sale on account to Valley High School (terms 2/10, n/30, FOB destination) The sale was for the following number of items 600 The sale price for each item was $50.00 The total sale on account to Valley High School was for $30,000.00 Odd Springs paid Cajun Shipping to ship the goods to Valley High. Odd Springs will not collect this from Valley. The amount paid to Cajun for the shipping cost was $300.00 15 Odd Springs paid the clerk hired back on the first of the month. Nothing was withheld from the clerk's salary payment. 16 Odd Springs prepays American Republic Insurance Co. for an insurance policy lasting this number of months The amount paid to American for the liability and casualty coverage policy was 16 Odd Springs buys store fixtures from Office Depot in the amount of Odd Springs made a cash down payment of The remaining balance placed on account with Office Depot was The equipment is estimated to last the following number of years The estimated salvage value at the end of the estimated life will be Odd Springs fixtures will be depreciated on the double-declining-balance basis $22,000.00 $2,000.00 $20,000.00 5 $3,000.00 16 Max Gator withdraws the following amount of cash from the company account $4,000.00 18 Odd Springs receives payment (after discount as appropriate) on the A/R with Valley High 20 Odd Springs orders inventory on credit from Small Town Supply Company with payment terms of n/30. The order was for the following number of items The order cost for each item was The total order on account from Small Town Supply Company was 21 When the inventory arrives, Odd Springs pays Small Town Shipping Company directly for the freight bill of 6 $4,800.00 600 $42.00 $25,200.00 $400.00 Odd Springs Trading Company, Transactions continued 22 Odd Springs makes a sale to the Nearby Shrine. The sale was for the following number of items The sale price for each item was Therefore, the total sale to the Nearby Shrine was for Cash received from Nearby Shrine at the time of the sale was The remaining balance placed on account (terms 2/10, n/30) with Nearby Shrine was 550 $50.00 $27,500.00 $17,500.00 $10,000.00 23 Nearby Shrine returned this number of items for full refund; it did not have enough room to store the items. 26 Odd Springs received a utility bill from Small Town Lighting and Power (due 7th of next month) in the amount of 31 Odd Springs received its current month's bank statement, which it was able to reconcile after identifying the following: Service charge by the bank in the amount of $80.00 Fee for new accounts in the amount of $20.00 31 Additional information as of the end of month includes: Office supplies on hand Physical count of inventory on hand of Max Gator estimates the following percentage of accounts receivable will be uncollectible *** 60 $700.00 $200.00 170 2% Remember that there may be other necessary adjustments in addition to those indicated above ACC 2301 Odd Springs Practice Set Transactions p 2 of 7 Odd Springs Trading Company General Journal Day Account Titles and Explanations Day Account Titles and Explanations Date Account Titles and Explanations Date Account Titles and Explanations Date Account Titles and Explanations Ref. Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Odd Springs Trading Company General Journal Ref. Odd Springs Trading Company General Journal Ref. Odd Springs Trading Company General Journal Ref. Odd Springs Trading Company General Journal ACC 2301 Odd Springs Practice Set Ref. General Journal p 3 of 7 Odd Springs Trading Company General Ledger A ccount: CASH Day Explanation Ref. Debit Credit Acct. No: 101 Balance Account: A/R Day Explanation Ref. Debit Credit Acct. No: 105 Balance Account: A DA Day Explanation Ref. Debit Credit Acct. No: 106 Balance Account: Inventory Day Explanation Ref. Debit Credit Acct. No: 108 Balance Account: Office Supplies Day Explanation Ref. Debit Credit Acct. No: 110 Balance Odd Springs Trading Company General Ledger Odd Springs Trading Company General Ledger Account: P repaid Rent Day Explanation Ref. Debit Credit Acct. No: 120 Balance Account: P repaid Insurance Day Explanation Ref. Debit Credit Acct. No: 123 Balance Account: S tore Fixtures Day Explanation Ref. Debit Credit Acct. No: 125 Balance Odd Springs Trading Company General Ledger Account: A /D - Store Fixtures Day Explanation 3 1 AJE Ref. J3 Debit Acct. No: 126 Balance Account: Office Equipment Day Explanation Ref. Debit Credit Acct. No: 130 Balance Account: A /D - Office Equipment Day Explanation Ref. Debit Credit Acct. No: 131 Balance Credit - - Odd Springs Trading Company General Ledger Account: A /P Day Explanation Ref. Debit Credit Acct. No: 200 Balance Account: S alaries/P Day Explanation Ref. Debit Credit Acct. No: 205 Balance Account: Interest/P Day Explanation Ref. Debit Credit Acct. No: 210 Balance Odd Springs Trading Company General Ledger Account: N/P Day Explanation Ref. Debit Credit Acct. No: 215 Balance Account: C apital Day Explanation Ref. Debit Credit Acct. No: 300 Balance Account Withdrawals Day Explanation Ref. Debit Credit Acct. No: 305 Balance Odd Springs Trading Company General Ledger Account:Sales Revenue Day Explanation Ref. Debit Credit Acct. No:400 Balance Account: S ales Returns & Allowances Day Explanation Ref. Debit Credit Acct. No: 402 Balance Account: S ales Discounts Day Explanation Debit Credit Acct. No: 404 Balance Ref. Odd Springs Trading Company General Ledger Account: C ost of Merchandise Sold Day Explanation Ref. Debit Credit Acct. No: 501 Balance Account: S alaries Expense Day Explanation Ref. Debit Credit Acct. No: 510 Balance Account: F reight-Out Day Explanation Ref. Debit Credit Acct. No: 512 Balance Odd Springs Trading Company General Ledger Account: Depreciation Expense Day Explanation Ref. Debit Credit Acct. No: 514 Balance Account: R ent Expense Day Explanation Ref. Debit Credit Acct. No: 516 Balance Account: B ad Debts Expense Day Explanation Ref. Debit Credit Acct. No: 518 Balance Odd Springs Trading Company General Ledger Account: Utilities Expense Day Explanation Ref. Debit Credit Acct. No: 520 Balance Account: S upplies Expense Day Explanation Ref. Debit Credit Acct. No: 525 Balance Account: Insurance Expense Day Explanation Ref. Debit Credit Acct. No: 530 Balance Odd Springs Trading Company General Ledger Account: Interest Expense Day Explanation Ref. Debit Credit Acct. No: 535 Balance Account: B ank Charges Expense Day Explanation Ref. Debit Credit Acct. No: 540 Balance Account: Income Summary Day Explanation Ref. Debit Credit Acct. No: 999 Balance ACC 2301 Odd Springs Practice Set General Ledger p 4 of 7 Odd Springs Trading Company Trial Balance End of Month One Acct. No. Account Titles Debits Credits Odd Springs Trading Company Adjusted Trial Balance End of Month One Acct. No. Account Titles Debits Credits Odd Springs Trading Company Post Closing Trial Balance End of Month One Acct. No. Account Titles ACC 2301 Odd Springs Practice Set Debits Credits Trial Balances p 5 of 7 Odd Springs Trading Company Acc. # Account Titles ACC 2301 Odd Springs Practice Set Trial Balance Debits Credits Worksheet End of Month One Adjustments Debits Credits Adjusted Trial Balance Debits Credits Income Statement Debits Credits Balance Sheet Debits Credits Worksheet p 6 of 7 Odd Springs Trading Company INCOME STATEMENT For the month ending on the 31st Odd Springs Trading Company STATEMENT of CAPITAL [or OWNER'S EQUITY] For the month ending on the 31st ACC 2301 Odd Springs Practice Set Odd Springs Trading Company BALANCE SHEET 31st of Month One Financial Statements p 7 of 7