Assignment Chapter 3
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Assignment 3 Mr. Rafiq opened a brokerage firm along with his partners Mr. Rashid, which deals with the share of the companies on January 1, 2008, with a name VISION BUILDERS, which provides share brokerage related services to his clients. The following transactions were completed during the month of January, 2008. Jan 1 Vision Builders invested 1200,000 cash with a signing contract of 50% ownership for each party. Jan 1 Hired two employees to work in the office, one is a secretary who will deal with outside client and another one is share analyst with a payment of 10000 and 25000 taka respectively. Jan 1 Signed a two years rental contract with the landlord; paid 180000 taka cash in advance for the period of first year. Jan 1 Purchased office furniture costing 90000 taka. A cash payment of one third of the total amount was in cash and rest of the amount is due to the creditor Jan 1 Purchased a high configuration computer with Tk. 45,000 from his friend’s computer center paying 20,000 down payment and rest of the amount will be paid next month after getting money from his client. Jan 1 They hired a cleaner on daily payment basis of 150 taka. He works for three alternative days in a week. The payment is done in every two weeks interval on Sunday. The Friday and Saturday is the holiday. Jan 1 Purchased Maruti Suzuki car for the company with 350,000 taka, with down payment of 20% of the principal amount and took the rest of the amount from bank with an interest rate of 12% and intended to be paid with 36 equal installments. The installment per month is 9300 taka. Jan 5 Purchased computer related supplies for 2000 taka with cash Jan 9 Total revenue earned from his clients were 30000 taka- 10000 taka was cash and rest of the amount was on account Jan 13 Paid the wage of the cleaner which was due. Jan 15 Received 10000 taka which was due as an accounts receivable Jan 15 Purchased basic office supplies for 3000 taka on 90 days notes payable with an annual interest rate of 12%. Jan 20 Entered into a two years insurance policy with 1800 taka cash which is effective from the date of purchase.
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accounting, Kieso
Transcript of Assignment Chapter 3
Sample questions for Chapter 1
Assignment 3Mr. Rafiq opened a brokerage firm along with his partners Mr. Rashid, which deals with the share of the companies on January 1, 2008, with a name VISION BUILDERS, which provides share brokerage related services to his clients. The following transactions were completed during the month of January, 2008.Jan 1Vision Builders invested 1200,000 cash with a signing contract of 50% ownership for each party.
Jan 1Hired two employees to work in the office, one is a secretary who will deal with outside client and another one is share analyst with a payment of 10000 and 25000 taka respectively.
Jan 1Signed a two years rental contract with the landlord; paid 180000 taka cash in advance for the period of first year.
Jan 1Purchased office furniture costing 90000 taka. A cash payment of one third of the total amount was in cash and rest of the amount is due to the creditor
Jan 1Purchased a high configuration computer with Tk. 45,000 from his friends computer center paying 20,000 down payment and rest of the amount will be paid next month after getting money from his client.
Jan 1They hired a cleaner on daily payment basis of 150 taka. He works for three alternative days in a week. The payment is done in every two weeks interval on Sunday. The Friday and Saturday is the holiday.
Jan 1Purchased Maruti Suzuki car for the company with 350,000 taka, with down payment of 20% of the principal amount and took the rest of the amount from bank with an interest rate of 12% and intended to be paid with 36 equal installments. The installment per month is 9300 taka.
Jan 5Purchased computer related supplies for 2000 taka with cash
Jan 9Total revenue earned from his clients were 30000 taka- 10000 taka was cash and rest of the amount was on account
Jan 13Paid the wage of the cleaner which was due.
Jan 15Received 10000 taka which was due as an accounts receivable
Jan 15Purchased basic office supplies for 3000 taka on 90 days notes payable with an annual interest rate of 12%.
Jan 20Entered into a two years insurance policy with 1800 taka cash which is effective from the date of purchase.
Jan 24Made a contract with a the client with a assurance giving designing support to the customer in two stage basis and took 45000 taka in advance.
Jan 25Received utility bill in the amount of taka 4000, to be paid next month
Jan 27Paid the wage of the cleaner which was due.
Jan 31Paid monthly salary of share analyst.
Adjustments in January 31
a.Rent is adjusted for the month of January from prepaid rent account
b.The expected life of office furniture is five years with a salvage value of 12000.
c.The expert analysis reveals that the expected life of personal computer is four years with a consideration of salvage value of 4000 while replacing to the new one.
d.January 31 is Thursday and payment of the wage is due for that.
e.Principal amount of mortgage payable is adjusted for the month of January due to the payment of cash of first installment. Interest expense on mortgage is also adjusted there by.
f.Interest expense on notes payable is calculated for the rest of the month.
g.Monthly adjustment of prepaid insurance is done considering the daily basis calculation.
i.One stage of the unearned services is earned.
j.An analysis revealed that 1500 taka of computer supplies is still on hand
k.Office supplies of 750 taka are used in January.
l.Secretarys salary is due for January and promised to pay in the first week of February.
Instructions:
I. Prepare journal entries to record each of the events listed considering II. Post the journal entries to three column accounts or T account III. Prepare the income statement and balance sheet for January, 2008.
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