Accounting Self Study Guide for Staff of Micro Finance …

Short Description
Accounting Case Study. OBJECTIVES The purpose of this session is to provide a practical exercise … Accounting Study Guide. Case Study. BLUE SKIES CITYFUND …

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Content
Accounting - Self Study Guide for Staff of Micro Finance Institutions
PRACTICAL EXERCISE
Accounting Case Study
OBJECTIVES The purpose of this session is to provide a practical exercise to consolidate most of the information presented in this manual. In the following case study, you are asked to play the role of a loan fund manager and develop a presentation regarding the financial position of the loan fund. A series of transactions are provided which you must enter into the accounting system to create interim financial statements.
You will confirm your understanding of the accounting process including recording each transaction and creating financial statements.
Instructions
Read through the following case study information and create a General Journal, General Ledger, Trial Balance, Income Statement and Balance Sheets for a six-month period.
Answers are provided at the end.
Calmeadow 1Accounting Study Guide Case Study
BLUE SKIES CITYFUND
Blue Skies Credit Inc. is a micro-lending organization which has been operating several Loan Funds for over eight years. In 1992, they started a Loan Fund called Blue Skies CityFund.
In August, 1995, a new manager was hired. She was responsible for the overall management of the Fund. One week after the new manager arrived, she was asked to prepare a presentation to the Board of Directors of Blue Skies Credit highlighting CityFund’s financial results over the past six months. Specifically, she was asked to prepare:
?Balance Sheet as at June 30, 1995
?Income Statement for the 6 month period ended June 30, 1995
By examining the existing records at CityFund, she discovered that a Balance Sheet was prepared as at CityFund’s fiscal year-end of December 31, 1994. She also discovered, to her dismay, that proper accounting records had not been kept over the past six months and that she would need to create a General Journal and Trial Balance in order to develop the statements that she needed. By examining the bank statements and other records on hand, she was able to make a list of the…