Practice Set

Directions: You, as the main accountant for Indiana Jones, Inc., are responsible for recording all the transactions during the year, as well as the adjusting entries at the end of the year. You are also responsible for preparing the financial statements for Indiana Jones, Inc. You must prepare a Multi$-$Step Income Statement, a Statement of Stockholders' Equity, and a Classified Balance Sheet $($don$\text{'}$t worry about the Statement of Cash Flows $-$ someone else prepares this$)$ for fiscal year $2005,$ which ends on December $31,2005.$ You will use the Excel workbook set up for this problem. Included in the workbook are the beginning account balances at January $1,2005,$ the Transaction Worksheet, the Cost of Goods Sold worksheet, the ending account balances at December $31,2005,$ the Post$-$Closing account balances at December $31,2005$ and a worksheet to create financial statements. You must record all the transactions and adjusting entries in the Transactions Worksheet. Increase or decrease the accounts for each transaction. I have added a column on the far right to ensure that each transaction balances in the accounting equation $($if it balances, you will see a zero in the column to the far right. If it doesn't balance you will see a number$).$ Note that the total balance for each account is indicated on the bottom of the Transaction Worksheet $($before and after closing entries$)$ and is linked to the ending account balances at December $31,2005($regular and post$-$closing$).$ Make sure the closing entries are posted to area at the bottom of the general ledger worksheet $($clearly marked "Closing Entries" and highlighted in grey$).$ Once you have recorded all transactions, adjustments, and closing entries, the year$-$end account balances should automatically fill in$.$ Use them to produce the financial statements. Note: Round all amounts to the nearest $$1.$