INTRODUCTION

Jay Stevens is a student at Northern University. He has worked part time assisting a landscaper since his

junior year in high school. At the end of Jay's freshmen year of college, his employer, Mr$.$ Lawrence,

decided to retire. After several conversations with Mr$.$ Lawrence, Jay decided to try and start his own

lawn care business. Following the advice of his former boss, Jay decided to simplify his business in

several ways.

Jay will concentrate on small residential jobs. He will only bid on jobs he can do himself, eliminating the

need for employees and the accompanying taxes and reporting requirements. In order to avoid having to

invest in expensive equipment, Jay will only accept jobs that require a lawn mower, small garden tools, or

equipment that he can rent at a reasonable price.

Jay realizes that his real future is in his college education, not lawn care or landscaping. Mr$.$ Lawrence

reminded him that it is better to be successful in a small niche than a failure in a big one. As such, he

realizes he will have to remain disciplined and turn down jobs that are beyond his abilities and resources.

Mr$.$ Lawrence suggested that Jay have his customers select and purchase any plants and materials required

at local garden centers. Jay's business will be too small to receive any price discounts from wholesale

nurseries. Naturally, Jay will assist customers in selecting plants.

Jay Stevens and Northern University are fictional. However, Jay's fictional business is a somewhat typical

composite of the types of businesses that students have started while in college.

This practice set is a narrative practice set. Each transaction is described to you, instead of being provided

by source documents. The set is designed to give you the simplest possible introduction to the accounting

cycle. Therefore, many real world issues have been omitted. Examples include taxes $($state$,$ local, and

federal$),$ special licenses, and bonding. You may want to discuss these issues with your instructor.

However, this practice set does contain all of the major types of transactions, adjustments, and closing

entries. It provides a first introduction to the process of recording, classifying, summarizing, and reporting accounting information.

nstructions

Familiarize yourself with the contents of this company before you begin.

Prepare the entries using the list of transactions. Put them in the general journal.

Post the journal entries from the general journal to the general ledger.

Prepare a trial balance using the general ledger totals.

Make the adjusting journal entries in the general journal.

Post the adjustments to the general ledger.

Prepare the financial statements.

Make the appropriate closing entries in the general journal.

Post the closing entries to the general ledger.

Prepare a post$-$closing trial balance.