Accounting and Finance Foundations

Unit 7

Accounting and Finance Foundations Unit 7: Financial Statements 620

Financial Statements

Project Requirements:

The controller of Newton Park has asked you to reconstruct the accounting system. You will need to

determine the account classification and normal balance for each account. You will also need to prepare

financial statements.

Part A

1. Determine if the account listed is an asset, liability, equity, income, or expense account and if the
   normal balance is a debit or credit. Balances listed are as of December 31, unless otherwise noted.


2. Determine the financial statement(s) the account should be reported on.


3. Determine the balance of the Cash account.

Part B (Microsoft Excel is recommended.)

1. Prepare the Newton Park balance sheet in the appropriate format.


2. Prepare the Newton Park income statement in the appropriate format.

Lesson 18.8

Student Assignment

Culminating Project A&B (cont’d)

Chapter 18