Reference no: EM132961138

The term project is a manual accounting assignment is the one-month accounting cycle for a privately owned merchandising business, Bridgeport Wholesaling Ltd.

The business is starting its new fiscal year, as of January 1, 2021. The fiscal year-end for Bridgeport Wholesaling Ltd. was December 31, 2020, so all the company's temporary accounts (e.g., sales, expenses, dividends) are empty. The account balances, as of that date, for all general ledger accounts are provided.

Your assignment is to set up and maintain the books of the business for the month of January 2021, following the standard steps of the accounting cycle.

Problem 1: Record journal entries in the general journal.

Problem 2: Post these transactions to T-accounts (general ledger accounts).

Problem 3: Prepare an unadjusted trial balance.

Problem 4: Record the necessary adjusting entries.

Problem 5: Prepare the month-end financial statements for company (e.g. Income Statement, statement of retained earnings, and Balance Sheet).

• As Bridgeport Wholesaling Ltd. will be only one month into its new fiscal year, there is no need to close the temporary accounts at the end of January.