Accounting game

Discussion in 'Exams and Studying' started by Alex32, Dec 6, 2017.

  1. Alex32


    Dec 6, 2017
    Likes Received:
    Hey, i just got bored and come up with a "game" of how good you know the basics of accounting.

    Starting business.

    You are running a business at least for 6 months. It can be service or merchandising firm. After performing some business operations you need to prepare financial statements. All operations should be recorded according to accounting process steps.The financial performance should be close to realistic scenario.

    Here are some limitations and requirements that you have to deal with:

    1. Capital structure: Your business must be financed by own or investor’s capital at least for 2/3. The rest of capital of your business must be financed with a long-term debt at 12% annual interest rate.

    2. You have to engage at least 3 examples of long-term assets. Depreciations must be calculated. Use straight-line method (Cost/estimated useful life)

    3. Several transactions must be about cost of goods sold.

    4. Use sales terms and discounts.

    The accounts you have to definitely involve:

    · Prepaid expenses

    · Accounts receivable

    · Accounts payable

    · Unearned revenue

    · Equipment

    · Inventory

    · Supplies

    · Cash

    · Wages expense

    · Rent expense

    · Utility expense

    · Freight expenses

    · Selling or administrative expenses

    5. Necessary adjustments should be done.

    6. Tax size 12%.

    7. Interest must be calculated.

    8. Prepare Comprehensive Income statement for defined period (separate months, quarter or semi-annual)

    9. Statement of Retained Earnings for defined period (separate months, quarter or semi-annual)

    10. Classified Balance Sheet for defined period (separate months, quarter or semi-annual)
    Last edited: Dec 6, 2017
    Alex32, Dec 6, 2017
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