Accounting at the North Pole
Santa has been too busy to keep up on his journalizing this month. He asked Mrs. Clause to help, but she didn't take accounting and doesn't have a clue. Of course, he could ask an elf or two to help him out, but they are needed more in the Workshop getting everything ready for the "big night".
According to Santa's "List", you are down to receive a few lumps of coal. (Remember last weekend?!!) You've made a deal with Santa. You'll journalize the transactions for the month of December, if Santa will replace the lumps of coal with gifts instead. Much to the elf’s protest, Santa agrees. Listed below is a General Ledger chart of accounts as well as Accounts Receivable and Payable accounts with current balances.

FYI: Expenses not directly related to the toy production at Santa's Workshop are usually considered
miscellaneous expenses. Name ledger accounts appropriately, even if they don’t appear here that way.
Santa's Workshop Chart of Accounts
Assets	Revenue
110 Cash	410 Sales
120 Petty Cash
130 Accounts Receivable
140 Supplies	Expenses
150 Prepaid Insurance	510 Advertising Expense
       Liabilities	520 Credit Card Fee Expense
200Accounts Payable	530 Insurance Expense	
 	540 Miscellaneous Expense       	
           	550 Rent Expense         	
                   	560 Repair Expense 	
210 Sales Tax Payable              	570 Supplies Expense
       Owners Equity	580 Utilities Expense
310 Santa Claus, Capital              
320 Santa Claus, Drawing
330 Income Summary
Balances, 12/1/XX
       Assets
Cash			 10397.46
Petty Cash 	  		   400.00
Supplies   	   		   180.00
Santa, Capital 	 		 10323.69
     Accounts Payable
Accounts Payable			   653.77
Instructions:
A.   Create an account in the General Ledger for each account above. You may or may not use all the accounts during this one month.
B.   Enter the balance (using the techniques you learned in class) if there is one, in each ledger account.
C.  Journalize the following transactions for December of the current year on page 12 of a journal. Use the number as the day of the month. {Don’t forget to post the entries from the journal that need to be posted individually into the appropriate ledgers (cash receipts go in cash receipts journal, etc!).} Remember your posting references! Prove and rule the journal.
      Date       Transactions
1	Santa invested $2,000.00 of his own money into his workshop. M40
2	Santa needed $300.43 of repairs to his sleigh. C23
3	Santa bought supplies on account from Supplies.com for $156.63. P27
4	Santa paid his water bill for $85.68. C24
5	Paid on account to Toys 'R Us for $326.95. C25
6	Santa bought insurance for his sleigh for $207.62. C26
7	Santa took out $500.00 for personal use. M41
8   	Reimbursed the Petty Cash Fund for $327.77; Supplies 103.52; Advertising Expense, 127.36; Credit Card Fee Expense, $50.22; Miscellaneous Expense, $46.67. C27
9   	Santa paid his rent for $1,000.00. C28
10  	Santa made a mistake in November and recorded $217.86 to Repair Expense instead of Miscellaneous Expense. Create an entry to correct that error. M42
11  	Santa sold some of last year's left over toys while appearing at the mall in St. Joseph, MO. Recorded cash and credit card sales for $2,000.93. T18
12  	Santa bought a new suit (miscellaneous expense) for $3,056.71 with cash. C31
24  	Santa bought new lights for his sled (miscellaneous expense) at the Christmas Supplies Store for $50.56 on account. P28
24  	Santa paid for gas (utilities expense) for his sleigh for $26.86 for cash. C32 (Santa's sleigh is a R8 powered sleigh (R=reindeer as opposed to V8), however, you never know when he might need a little extra power to make all his deliveries in time. The gasoline is just in case...)

D.  Post the entries from the appropriate general journal columns into the appropriate general ledgers. Remember your posting references and to calculate your running balances!
E. ESSAY QUESTION: Take a quick glance at Santa’s income and expenses. Does he have net income or a net loss? What are your thoughts about this? Why do you feel the result was what it was? What recommendations would you have for Santa?

F.  Place the accounting work on Santa's drop box or bin on the desk (make certain your name is on it) and hurry to bed. You don't want to still be awake when Santa comes to deliver your gift!