Project 4
1. Project 4
1.8. Page 4
Training Room 2: Chart of Accounts
Time to Work
Click on Assignment 1 and answer the questions in the worksheet.
Next, complete Assignment 2. Open Chart of Accounts Template, and save it in your FIN1015 Course Folder.
Prepare a chart of accounts for Prather’s Pitch and Putt using a four-digit accounting system. Number the accounts consecutively within each classification (e.g., assets, liabilities, owner’s equity), allowing a few numbers in between.
Use the beginning balance sheet below as well as the following temporary accounts: Green Fees, Pro Shop Fees, Rent Expense, Maintenance Expense, Miscellaneous Expense, Income Summary, and don’t forget the Drawing Account—give it an appropriate name.
Portfolio Submission
Include a chart of accounts in your portfolio. Pick the best one to showcase your best work. Include the purpose of a chart of accounts in your portfolio as well as a description of what the different sections mean; for example, what is an asset?
Training Room 2 Summary
A chart of accounts is like a table of contents, which tells the reader where to find information. Assets always start with the number 1, liabilities with the number 2, owner’s equity with 3, revenue with 4, and expenses with 5. This makes it easy to find these accounts in the book called a ledger. Now you need to open these accounts in the ledger. Continue to Training Room 3, where Sakineh, the financial management trainer, will demonstrate how to start a ledger.