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Introduction In the practice set you will have the opportunity to maintain a set of accounting records for a typical local town government encompassing the first two months of its fiscal year. At the end of the second month we will make the adjusting and closing entries as if it were the end of the fiscal year. We will also prepare the appropriate financial statements. The town maintains its accounting records on the modified accrual basis of accounting. This means that all material items of revenues earned or expenditures incurred are'accrued in order to prepare the financial statements. The accounting system used by the town is prescribed by the State Comptroller and consists of the following records: General Journal > Cash Disbursements Journal > Cash Receipts Journal General Ledger Subsidiary Expenditure Ledger Subsidiary Revenue Ledger Also included in the practice set is a chart of accounts and a schedule of exhibits to assist in recording the appropriate transactions. Balances from the previous year have been brought forward in the General Ledger. E Prepare Interim Financial Statement-Expenditures/Expenses (Form at the end of Packet GENERAL JOURNAL Page Nos Date 20XX Account and Explanation Ref. Debit Credit 8 M-10-2010 00:01P FRONT ORICE LLC 9:41 TO: 50 P. Practice Set GENERAL JOURNAL Page No 2 Date 20XX Account and Explanation Ref. Debit Credit Introduction In the practice set you will have the opportunity to maintain a set of accounting records for a typical local town government encompassing the first two months of its fiscal year. At the end of the second month we will make the adjusting and closing entries as if it were the end of the fiscal year. We will also prepare the appropriate financial statements. The town maintains its accounting records on the modified accrual basis of accounting. This means that all material items of revenues earned or expenditures incurred are'accrued in order to prepare the financial statements. The accounting system used by the town is prescribed by the State Comptroller and consists of the following records: General Journal > Cash Disbursements Journal > Cash Receipts Journal General Ledger Subsidiary Expenditure Ledger Subsidiary Revenue Ledger Also included in the practice set is a chart of accounts and a schedule of exhibits to assist in recording the appropriate transactions. Balances from the previous year have been brought forward in the General Ledger. E Prepare Interim Financial Statement-Expenditures/Expenses (Form at the end of Packet GENERAL JOURNAL Page Nos Date 20XX Account and Explanation Ref. Debit Credit 8 M-10-2010 00:01P FRONT ORICE LLC 9:41 TO: 50 P. Practice Set GENERAL JOURNAL Page No 2 Date 20XX Account and Explanation Ref. Debit Credit