Assignment 02
Transcript of Assignment 02
ACCOUNTING PRINCIPLES
ASSIGNMENT - 02
MBA (Weekend) Fall-2010________________________________________________________________________Submitted by: Muhammad Bux Shaikh
1
E2.14
SANFORD DELIVERY SERVICETRIAL BALANCE
A/c Receivable 7,642 Cash 20,567 Delivery Equipment 49,360 Gas & Oli Expense 758 Insurance Expense 523 Prepaid Insurance 1,968 Repair Expense 961 Dividend 700 Salaries Expense 4,428 A/C Payable 8,396Notes Payable 18,450Service Revenue 10,610Share Capital 40,000Retained Earnings 4,636Salaries Payable 815 86,907 86,907
2
P2-1A
FRONTIER PARK GENERAL JOURNAL
Date Description Dr. Cr.
April 1 CashShare Capital Order
(Share holders invested cash)
40,00040,000
April 4 LandCash
(Purchase land for cash)
30,00030,000
April 8 Advertising ExpenseA/c Payable
(Arranged advertisement on account)
1,8001,800
April 11 Salaries ExpenseCash
(Paid salaries to Employees)
1,5001,500
April 13 Prepaid InsuranceCash
(Paid One year insurance premium)
1,5001,500
April 17 Dividend ExpenseCash
(Paid Dividends)
1,0001,000
April 20 Cash Admission Fees Revenue(Received admission fees in cash)
5,7005,700
April 25 Cash Unearned Admission fees Revenue
(Sold admission coupon in advance)
2,5002,500
April 30 CashAdmission Fees Revenue
(Received Admission fees Revenue )
8,9008,900
April 30 A/c PayableCash
(Paid Cash against account Payable)
900900
3
P2-2A
(a)JANE KENT
GENERAL JOURNAL
Date Description Dr. Cr.
May 01 Cash Share Capital – ordinary(Share holders invested cash)
25,00025,000
May 02 No entryMay 03 Office Supplies
Account payable (Purchased office supplies on credit)
2,5002,500
May 07 Rent expense Cash(Paid rent for the month)
900900
May 11 Account receivable Service Revenue(Earned service revenue on account)
2,102,100
May 12 Cash Unearned Service Revenue(Received Revenue in advance)
3,5003,500
May 17 Cash Service Revenue(Earned Service revenue)
1,2001,200
May 31 Salaries Expense Cash(Paid salary to the receptionist)
2,0002,000
May 31 Account Payable Cash(Paid cash to creditors)
1,0001,000
4
(b)
JANE KENT – LEDGERS
CASH
Date Description Posting Ref. Dr. Cr. Balance
May 01 – – 25,000 – 25,000May 07 – – – 900 24,100May 12 – – 3,500 – 27,600May 17 – – 1,200 – 28,800May 31 – – – 2,000 26,800 May 31 – – – 1,000 25,800
SHARE CAPITAL – ORDINARY
Date Description Posting Ref. Dr. Cr. Balance
May 01 – – 25,000 – 25,000
OFFICE SUPPLIES
Date Description Posting Ref. Dr. Cr. Balance
May 03 – – 2,500 – 2,500
ACCOUNT PAYABLE
Date Description Posting Ref. Dr. Cr. Balance
May 03 – – – 2,500 2,500May 31 – – 1,000 – 1,500
RENT EXPENSE
Date Description Posting Ref. Dr. Cr. Balance
May 07 – – 900 – 900
5
ACCOUNT RECEIVABLE
Date Description Posting Ref. Dr. Cr. Balance
May 11 – – 2,100 – 2,100
SERVICE REVENUE
Date Description Posting Ref. Dr. Cr. Balance
May 11 – – – 2,100 2,100May 17 – – 1,200 – 3,300
UNEARNED SERVICE REVENUE
Date Description Posting Ref. Dr. Cr. Balance
May 12 – – – 3,500 3,500
SALARIES EXPENSE
Date Description Posting Ref. Dr. Cr. Balance
May 31 – – 2,000 – 2,000
(c)JANE KENT, ACCOUNTANTS
TRIAL BALANCEMAY 31, 2011
CashOffice SuppliesRent ExpenseAccount ReceivableSalaries ExpenseShare Capital
25,800 2,500
9002,1002,000
25,000 Accounts Payable 1,500
3,3003,500
33,300 33,300
6
P2-3A(a)
CASH
Date Description Posting Ref. Dr. Cr. Balance
Dec 31 – – – – 8,000Jan 01 – – – 1,000 7,000Jan 03 – – – 2,000 5,000Jan 04 – – 14,000 – 19,000Jan 05 – – – 15,000 15,000Jan 07 – – 6,000 – 21,000Jan 08 – – – 3,000 18,000Jan 09 – – – 3,000 15,000
ACCOUNT RECEIVABLE
Date Description Posting Ref. Dr. Cr. Balance
Dec 31 – – – – 15,000Jan 07 – – 9,000 – 24,000
PARTS INVENTORY
Date Description Posting Ref. Dr. Cr. Balance
Dec 31 – – – – 13,000Jan 02 – – 4,000 – 17,000Jan 06 – – 4,000 13,000
PREPAID RENT
Date Description Posting Ref. Dr. Cr. Balance
Dec 31 – – – – 3,000
REPAIR PARTS EXPENSE
Date Description Posting Ref. Dr. Cr. Balance
Jan 07 – – 4,000 – 4,000
SHOP EQUIPMENT
Date Description Posting Ref. Dr. Cr. Balance
Dec 31 – – – – 21,000
ACCOUNT PAYABLEDate Description Posting Dr. Cr. Balance
7
Ref.Dec 31 – – – – 19,000Jan 02 – – – 4,000 23,000Jan 05 – – 15,000 – 8,000
SHARE CAPITAL
Date Description Posting Ref. Dr. Cr. Balance
Dec 31 – – – – 30,000
RETAINED EARNINGS
Date Description Posting Ref. Dr. Cr. Balance
Dec 31 – – – – 11,000Jan 09 – – 3,000 – 8,000
MISC. EXPENSE
Date Description Posting Ref. Dr. Cr. Balance
Jan 03 – – 2,000 – 2,000
REPAIR SERVICE REVENUE
Date Description Posting Ref. Dr. Cr. Balance
Jan 07 – – – 6,000 6,000Jan 07 – – – 9,000 15,000
WAGES EXPENSE
Date Description Posting Ref. Dr. Cr. Balance
Jan 08 – – 3,000 – 3,000
8
P2-4A
STERLING COMPANYTRIAL BALANCE (CORRECT)
MAY 31, 2011
CashAccount receivablePrepaid InsuranceEquipmentSalaries ExpenseAdvertising ExpenseProperty Tax ExpenseDividendsOffice SuppliesAccount PayableProperty Tax ExpenseShare CapitalService Revenue
5,9652,360
8007,4804,4001,505
9001,000
5204,710
56012,700
6,960
24,930 24,930
9
P2-5ALAKE THEATRE
GENERAL HOURNALDate Description Dr. Cr.
April 02 Film Rental Expense Cash(Paid Film rental)
800800
April 03 No entryApril 09 Cash
Admission Revenue (Earned Admission Revenue)
2,8002,800
April 10 Mortgage PayableAccount Payable Cash (Paid for Mortgage on Account payable)
2,0001,000
3,000
April 11 No EntryApril 12 Advance Expense
Cash(Paid Advance Expense)
500500
April 20 Equipment (Film) Account Payable(Earned Film on Account)
1,0001,000
April 25 Cash Admission Revenue(Earn Admission Revenue)
5,2005,200
April 29 Salaries Expense Cash(Paid salaries)
2,0002,000
CASH – 101
Date Description Posting Ref. Dr. Cr. Balance
Mar 31 – – – – 6,000April 02 – – – 800 5,200April 09 – – 2,800 – 8,000April 10 – – – 3,000 5,000April 12 – – – 500 4,500April25 – – 5,200 – 9,700April29 – – – 2,000 7,700
LAND – 140
Date Description Posting Ref. Dr. Cr. Balance
Mar 31 – – – – 10,000
BUILDINGS – 145
10
Date Description Posting Ref. Dr. Cr. Balance
Mar 31 – – – – 8,000
Date Description Posting Ref. Dr. Cr. Balance
Mar 31 – – – – 6,000April 20 – – – 1,000 7,000
SALARIES EXPENSE
Date Description Posting Ref. Dr. Cr. Balance
April 29 – – 2,000 – 2,000
ACCOUNTS PAYABLE – 201
Date Description Posting Ref. Dr. Cr. Balance
Mar 31 – – – – 2,000April 10 – – 1,000 – 1,000April 20 – – – 1,000 2,000
MARTGAGE PAYABLE – 275
Date Description Posting Ref. Dr. Cr. Balance
Mar 31 – – – – 8,000April 10 – – 2,000 – 6,000
SHARE CAPITAL – ORDINARY – 311
Date Description Posting Ref. Dr. Cr. Balance
Mar 31 – – – – 20,000
FILM RENTAL EXPENSE
Date Description Posting Ref. Dr. Cr. Balance
April 02 – – 800 – 800
ADMISSION REVENUE
Date Description Posting Ref. Dr. Cr. Balance
April 09 – – – 2,800 2,800April 25 – – – 5,200 8,000
11
ADVERTISING EXPENSE
Date Description Posting Ref. Dr. Cr. Balance
April 12 – – 500 – 500
LAKE THEATRETRIAL BALANCE
APRIL 30CashLandBuildingsEquipmentsSalaries ExpenseFilm Rental ExpenseAdvertising ExpenseAccounts PayableMortgage PayableShare Capital – OrdinaryAdmission Revenue
7,70010,000
8,0007,0002,000
800500
2,0006,000
20,0008,000
36,000 36,000
12
P2-1B
HYZER DISC GOLF COURSEGENERAL HOURNAL
Date Description Dr. Cr.
Mar 01 Cash Share Capital - Ordinary(Invested Cash in Business)
20,00020,000
Mar 03 Land Building (used)Equipment Cash(Purchased Land, Building, Equipment)
12,0002,0001,000
15,000
Mar 05 Advertising Expense Cash (Paid for Advertisement)
700700
Mar 06 Prepaid Insurance Cash(Paid for Insurance in Advance)
600600
Mar 10 Equipments Account Payable(Purchased equipments on Account)
1,0501,050
Mar 18 Cash Fees revenue(Earned Fees Revenue)
340340
Mar 19 Cash Unearned fees revenue(Sold coupons in advance)
1,0001,000
Mar 25 Dividends Cash(Paid cash dividends)
800800
Mar 30 Salaries Expense Cash(Paid salaries)
250250
Mar 30 Account payable Cash(Paid off to Creditors)
1,0501,050
Mar 31 Cash Fees Revenue(Earned Fees Revenue)
2,0002,000
13
P2-2BMARIA JUAREZ DENTISTSGENERAL JOURNAL
Date Description Dr. Cr.
April 01 Cash Share Capital - Ordinary(Invested Cash in Business)
40,00040,000
April 01 No EntryApril 02 Rent Expense
Cash (Paid Rent)
1,0001,000
April 03 Supplies Account payable(Purchase supplies on account)
4,0004,000
April 10 Account receivable Service Revenue
5,1005,100
April 11 Cash Unearned service Revenue
1,0001,000
April 20 Cash Service revenue
2,1002,100
April30 Salaries Expense Cash
24,0024,00
April 30 Account Payable Cash
1,6001,600
CASH – 101
Date Description Posting Ref. Dr. Cr. Balance
April 01 – – 40,000 – 40,000April 02 – – – 1,000 39,000April 11 – – 1,000 – 40,000April 20 – – 2,100 – 42,100April 30 – – – 2,400 37,700April 30 – – – 1,600 38,100
ACCOUNT RECEIVABLE – 112
Date Description Posting Ref. Dr. Cr. Balance
April 10 – – 5,100 – 5,100
SUPPLIES – 126
Date Description Posting Ref. Dr. Cr. Balance
14
April 03 – – 4,000 – 4,000
ACCOUNT PAYABLE – 201
Date Description Posting Ref. Dr. Cr. Balance
April 03 – – – 4,000 4,000April 30 – – 1,600 – 2,400
UNEARNED REVENUE – 209
Date Description Posting Ref. Dr. Cr. Balance
April 11 – – – 1,000 1,000
SHARE CAPITAL – 311
Date Description Posting Ref. Dr. Cr. Balance
April 01 – – – 40,000 40,000
SERVICE REVENUE – 400
Date Description Posting Ref. Dr. Cr. Balance
April 10 – – – 5,100 5,100April 20 – – – 2,100 2,100
SALARIES EXPENSE – 726
Date Description Posting Ref. Dr. Cr. Balance
April 30 – – 2,400 – 2,400
RENT EXPENSE – 729
Date Description Posting Ref. Dr. Cr. Balance
April 02 – – 1,000 – 1,000
15
MARIA JAUREZ DENTISTSTRIAL BALANCE
APRIL 30, 2011CashAccount receivableSuppliesSalaries ExpenseRent ExpenseAccount payableShare capital ordinaryUnearned revenueService revenue
38,1005,1004,0002,4001,000
2,40040,000
1,0007,200
50,600 50,600
16
P2-3B
SLOW HAND SERVICESGENERAL JOURNAL
Date Description Dr. Cr.
May 01 Cash Share Capital - Ordinary
50,00050,000
May 01 No EntryMay 01 Prepaid rent
Cash 24,000
24,000
May 01 Furniture & equipment Cash Account payable
30,00010,00020,000
May 01 Prepaid insurance Cash
1,8001,800
May 01 Office Supplies Cash
500500
May 01 Office Supplies Cash
1,5001,500
May 01 Cash Account payable Service Revenue
8,00012,000
20,000May 01 Account payable
Cash400
400
May 01 Cash Account receivable
3,0003,000
May 01 Utility Expense Utility payable
200200
May 01 Salaries Expense Cash
5,6005,600
17
CASH
Date Description Posting Ref. Dr. Cr. Balance
May 01 – – 50,000 – 50,000May 01 – – – 24,000 26,000May 01 – – – 10,000 16,000May 01 – – – 1,800 14,200May 01 – – – 500 13,700May 01 – – 8,000 – 21,700May 01 – – – 400 21,300May 01 – – 3,000 – 24,300May 01 – – – 5,600 18,700
SHARE CAPITAL – ORDINARY
Date Description Posting Ref. Dr. Cr. Balance
May 01 – – – 50,000 50,000
PERPAID RENT
Date Description Posting Ref. Dr. Cr. Balance
May 01 – – 24,000 – 50,000
FURNITURE & EQUIPMENT
Date Description Posting Ref. Dr. Cr. Balance
May 01 – – 30,000 – 30,000
ACCOUNT PAYABLE
Date Description Posting Ref. Dr. Cr. Balance
May 01 – – – 20,000 20,000May 01 – – – 1,500 21,500May 01 – – 400 – 21,100
18
PREPAID INSURANCE
Date Description Posting Ref. Dr. Cr. Balance
May 01 – – 1,800 – 1,800
OFIFCE SUPPLIES
Date Description Posting Ref. Dr. Cr. Balance
May 01 – – 500 – 500May 01 – – 1,500 – 2,000
ACCOUNT RECEIVABLE
Date Description Posting Ref. Dr. Cr. Balance
May 01 – – 12,000 – 12,000May 01 – – – 30,000 9,000
SERVICE REVENUE
Date Description Posting Ref. Dr. Cr. Balance
May 01 – – – 20,000 20,000
UTILITY EXPENSE
Date Description Posting Ref. Dr. Cr. Balance
May 01 – – 200 – 200
SALARIES EXPENSE
Date Description Posting Ref. Dr. Cr. Balance
May 01 – – 5,600 – 5,600
UTILITIES PAYABLE
Date Description Posting Ref. Dr. Cr. Balance
May 01 – – – 200 200
19
SLOWHAND SERVICESTRIAL BALANCEMAY 31, 2011
CashPrepaid rentFurniture & EquipmentPrepaid insuranceOffice suppliesAccount receivableUtility expenseSalaries expenseShare capitalAccount payableService revenueUtilities payable
18,70024,00030,000
1,8002,0009,000
2005,600
50,00021,10020,000
200
91,300 91,300
P2-4B
SYED MOIZ CO.
20
CORRECTED TRIAL BALANCEJUNE 30, 2011
CashAccount receivableSuppliesEquipmentAccount payableUnearned revenueShare capital-ordinaryDividendsService revenueSalaries expenseOffice expense
3,7002,371
5803,220
1,400
3,300810
3,0001,1008,000
3,281
15,381 15,381
21
P2-5B
(a)JOSIE THEATRE – GENERAL LEDGER
101-CASH
Date Description Posting Ref. Dr. Cr. Balance
Mar 01 – √ – – 9,000Mar 02 – – – 1,500 7,500Mar 10 – – – 4,100 3,400Mar 12 – – – 450 2,950Mar 20 – – 5,000 – 7,950Mar 20 – – – 2,000 5,950Mar 31 – – – 2,500 3,450Mar 31 – – 450 – 3,900Mar 31 – – 9,000 – 12,900
140-LAND
Date Description Posting Ref. Dr. Cr. Balance
Mar 01 – √ – – 24,000
145-BUILDINGS
Date Description Posting Ref. Dr. Cr. Balance
Mar 01 – √ – – 10,000
157-EQUIPMENTS
Date Description Posting Ref. Dr. Cr. Balance
Mar 01 – √ – – 10,000
201-ACCOUNT PAYABLE
Date Description Posting Ref. Dr. Cr. Balance
Mar 01 – √ – – 7,000Mar 02 – – – 2,000 9,000Mar 10 – – 4,100 – 4,900
311-SHARE CAPITAL - ORDINARY
Date Description Posting Ref. Dr. Cr. Balance
Mar 01 – √ – – 46,000
22
602-FILM RENTAL EXPENSE
Date Description Posting Ref. Dr. Cr. Balance
Mar 02 – √ 3,500 – 3,500Mar 20 – – 2,000 – 5,500
405-ADMISSION REVENUE
Date Description Posting Ref. Dr. Cr. Balance
Mar 09 – √ – 4,000 4,000Mar 20 – – – 5,000 9,000
406-CONCESSION REVENUE
Date Description Posting Ref. Dr. Cr. Balance
Mar 31 – – – 9,000 18,000
610-ADVERTISEMENT EXPENSE
Date Description Posting Ref. Dr. Cr. Balance
Mar 12 – – 450 – 450
726-SALARIES EXPENSE
Date Description Posting Ref. Dr. Cr. Balance
Mar 31 – – 2,500 – 2,500
112-ACCOUNTS RECEIVABLE
Date Description Posting Ref. Dr. Cr. Balance
Mar 31 – – 450 – 450
23
(b)
JOSIE THEATREGENERAL JOURNAL
Date Description Dr. Cr.
Mar 02 Rental Fees Cash Account payable
3,5001,5002,000
Mar 09 Cash Admission revenue
4,0004,000
Mar 10 Account payable Cash
4,1004,100
Mar 11 No entryMar 12 Advance expense
Cash450
450
Mar 20 Cash Admission revenue
5,0005,000
Mar 20 Rental Fees Cash
2,0002,000
Mar 31 Salaries Expense Cash
2,5002,500
Mar 31 CashAccount receivable Commission revenue
450450
900
Mar 31 Cash Admission revenue
9,0009,000
( c )
Posted in the ledgers
24
(d)JOSIE THEATRETRIAL BALANCE
MARCH 31, 2011CashLandBuildingsEquipmentsAccount payableShare capital – ordinaryRental expenseAdvertising expenseAdmission revenueSalaries expenseAccount receivableConcession revenue
12,90024,00010,00010,000
5,500450
2,500450
4,90046,000
1,000
9,000
65,800 68,900
E-4.2
SECURITY SERVICE COMPANY
25
Adjusting Entry
Income Statement Balance Sheet
Revenue Expense Net Income Assets Liabilities Owner’s
Equitya N.E I D D N.E Db N.E I D N.E I Dc I N.E I I N.E Id N.E I D N.E I De N.E I D D N.E Df I N.E I N.E D I
E-4.3
THE OUTLAWS
Date Description Dr. Cr.Aug 31 Rent Expense
Prepaid Rent300,000
300,000Aug 31 Unearned Ticket revenue
Ticket revenue320,000
320,000
26
E-4.4
(a)
DALE & CLARKS LAWYERS
Date Description Dr. Cr.Dec 31 Salaries Expense
Salaries Payable17,800
17,800Dec 31 Account receivable
Legal fees earned18,900
18,900
(b)SALARIES EXPENSE FOR JANUARY
Date Description Dr. Cr.Jan 15 Salaries Expense
Cash17,500
17,500
(c)THE REVENUE EARNED IN JANUARY
Date Description Dr. Cr.Jan 29 Cash
Legal fees earned60,900
60,900
E-4.13
Date Description Dr. Cr.
27
Jan 31 Commission receivableCommission earned
(To record commission earned)
850850
Jan 31 Office supplies expenseOffice supplies
(To record office supplies consume during the month)
360360
Jan 31 Depreciation expense (equipment)Accumulated depreciation (equipment)
(To record depreciation expense on equipment)
110110
Jan 31 Salaries expenseSalaries payable
(To record account salaries)
550550
Jan 31 Unearned commissionCommission earned
(To record commission earned in the month)
210210
28