For this review assignment to work properly you must have 'CALCULATION OPTIONS' set to 'MANUAL'

To set 'CALCULATION OPTIONS':1) under 'FORMULAS' tab2) in 'CALCULATION' section click 'CALCULATION OPTIONS' 3) select 'MANUAL'

For a new set of questions: 1) under 'FORMULAS' tab2) in 'CALCULATION' section click 'CALCULATE NOW'

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ANSWERS ARE ON LAST THREE SHEETS FOR REFERENCE

Complete the following transactions that are on the "Transactions" tab. I recommend printing the Blank Financial Statemnts and Blank T Accounts and do them by hand. You are also provided with a set of Financial Statements and T Accounts which have the solutions on them. After completeing the transactions on your own, check the solution. Remember, once you recalculate as described above, a new set of numbers are generated which changes the solution. Before you begin, it would be a good idea to also print the transactions and the solutions so you have something to compare your answer to. Once you are satisfied with your answer, you can recalculate and obtain a new set of numbers. Then try it again. Do this as many times as you like. Good Luck!

For this review assignment to work properly you must have 'CALCULATION OPTIONS' set to 'MANUAL'

2) in 'CALCULATION' section click 'CALCULATION OPTIONS'

2) in 'CALCULATION' section click 'CALCULATE NOW'

ANSWERS ARE ON LAST THREE SHEETS FOR REFERENCE

Complete the following transactions that are on the "Transactions" tab. I recommend printing the Blank Financial Statemnts and Blank T Accounts and do them by hand. You are also provided with a set of Financial Statements and T Accounts which have the solutions on them. After completeing the transactions on your own, check the solution. Remember, once you recalculate as described above, a new set of numbers are generated which changes the solution. Before you begin, it would be a good idea to also print the transactions and the solutions so you have something to compare your answer to. Once you are satisfied with your answer, you can recalculate and obtain a new set of numbers. Then try it again. Do this as many times as you like. Good Luck!

Opening Balances:Cash 28,000 Accounts Receivable 3,500 Prepaid Insurance - Property, Plant & Equipment 134,700 Accounts Payable 11,700 Bank Loan 2,400 Unearned Revenue - Owner's Equity 152,100

Transactions:

1 Performed Services for Cash 4,600

2 Provided services - billed on account 3,900

3 Prepay insurance for the year 2,900

4 Customer paid previous months accounts receivable 1,750

5 Deposit money form customers who have paid in advance 4,000

6 Record telephone expense paid with credit card 200

7 Purchase Property Plant & Equipment on account 41,800

8 Recognize unearned revenue as earned 4,000

9 Recognize prepaid insurance for the month 242

10 Record depreciation expense for the month 2,245

11 Borrowed money from the Bank 20,400

12 Owner Invested Money into the business 7,200

13 Owner withdrew funds for personal use 4,400

14 Accrue for interest on bank loan due next month 1,000

15 Paid Salaries for the month by cheque 3,000

16 Took a client out for a meal and paid cash 100

Do not use a Contra Account

Income StatementRevenue

Expenses

Telephone Expense Insurance Expense Salary expense Interest Expense Entertainment Expense Maintenance Meals Expense Depreciation

Total Expenses Net Profit (Loss)

Balance SheetAssetsCurrent Assets

Cash Accounts Receivable Prepaid Insurance Property, Plant & Equipment

Total Assets

LiabilitiesAccounts Payable Interest Payable Unearned Revenue Bank Loan

Total Liabilities

Owner's EquityOpening Add: Capital Add: Profit (Loss) Less: Drawings Closing Owner's Equity

Total Liabilities + Owner's Equity

BALANCE SHEET

ASSETS

Increase (DR) Decrease (CR)Cash

Opening Balance

Sub-Total TOTAL:

Increase (DR) Decrease (CR)Accounts Receivable

Opening Balance

Sub-Total TOTAL:

Increase (DR) Decrease (CR)Prepaid Insurance

Opening Balance

Sub-Total TOTAL:

Increase (DR) Decrease (CR)Property, Plant & Equipment

Opening Balance

Sub-Total TOTAL:

Do this Check: A = L + OETotal Assets

Total Libilities Owners' Equity

OWNER'S EQUITYOpening Owner's Equity ADD: Capital ADD: NET PROFIT ( LOSS) LESS: Owners' Drawings Ending Owners' Equity

BALANCE SHEET

LIABILITIES

Decrease (DR) Increase (CR)Accounts Payable

Opening balance

Sub-Total TOTAL:

Decrease (DR) Increase (CR)Bank Loan

Opening balance

$ - Sub-Total TOTAL:

Decrease (DR) Increase (CR)Unearned Revenue

Opening balance

Sub-Total TOTAL:

OWNER'S EQUITY

Decrease (DR) Increase (CR)Capital

Opening balance

Sub-Total TOTAL:

Increase (DR) Decrease (CR)Drawings

Opening Balance

Sub-Total TOTAL:

Decrease (DR) Increase (CR)Interest Payable

Opening balance

Sub-Total TOTAL:

INCOME STATEMENT

Decrease (DR)Service Revenue

Increase (DR) Decrease (CR) Increase (DR)Telephone Expense Insurance Expense

Sub-Total $ - Sub-TotalTOTAL: TOTAL:

Increase (DR) Decrease (CR) Increase (DR)Salary expense Interest Expense

Sub-Total $ - Sub-TotalTOTAL: TOTAL:

Increase (DR) Decrease (CR) Entertainment Expense

Increase (DR)Maintenance

Sub-Total $ - $ - TOTAL: $ -

Sub-TotalTOTAL:

Increase (DR) Decrease (CR) Increase (DR)Meals Expense Depreciation

Sub-Total Sub-TotalTOTAL: TOTAL:

INCOME STATEMENT

Decrease (DR) Increase (CR)Service Revenue

Sub-Total TOTAL:

Increase (DR) Decrease (CR)Insurance Expense

Increase (DR) Decrease (CR)Interest Expense

Increase (DR) Decrease (CR)Maintenance

$ -

Increase (DR) Decrease (CR)Depreciation

INCOME STATEMENT

Decrease (DR)Service Revenue

Increase (DR) Decrease (CR) Increase (DR)Telephone Expense Insurance Expense

6 $ 200

Sub-Total $ 200 $ - Sub-TotalTOTAL: $ 200 TOTAL:

Increase (DR) Decrease (CR) Increase (DR)Salary expense Interest Expense

15 $ 3,000

Sub-Total $ 3,000 $ - Sub-TotalTOTAL: $ 3,000 TOTAL:

Increase (DR) Decrease (CR) Entertainment Expense

Increase (DR)Maintenance

Sub-Total $ - $ - TOTAL: $ -

Sub-TotalTOTAL:

Increase (DR) Decrease (CR) Increase (DR)Meals Expense Depreciation

16 $ 100

Sub-Total $ 100 $ - Sub-TotalTOTAL: $ 100 TOTAL:

INCOME STATEMENT

Decrease (DR) Increase (CR)Service Revenue

1 $ 4,600 2 $ 3,900 8 $ 4,000

$ - Sub-Total $ 12,500 TOTAL: $ 12,500

Increase (DR) Decrease (CR)Insurance Expense

9 $ 242

$ 242 $ - $ 242

Increase (DR) Decrease (CR)Interest Expense

14 $ 1,000

$ 1,000 $ - $ 1,000

Increase (DR) Decrease (CR)Maintenance

$ - $ - $ -

Increase (DR) Decrease (CR)Depreciation

10 $ 2,245

$ 2,245 $ - $ 2,245

BALANCE SHEET

ASSETS

Increase (DR) Decrease (CR)Cash

Opening Balance $ 28,000 1 $ 4,600 3 $ 2,900 4 $ 1,750 13 $ 4,400 5 $ 4,000 15 $ 3,000 11 $ 20,400 16 $ 100 12 $ 7,200

Sub-Total $ 65,950 $ 10,400 TOTAL: $ 55,550

Increase (DR) Decrease (CR)Accounts Receivable

Opening Balance $ 3,500 2 $ 3,900 4 $ 1,750

Sub-Total $ 7,400 $ 1,750 TOTAL: $ 5,650

Increase (DR) Decrease (CR)Prepaid Insurance

Opening Balance $ - 3 $ 2,900 9 $ 242

Sub-Total $ 2,900 $ 242 TOTAL: $ 2,658

Increase (DR) Decrease (CR)Property, Plant & Equipment

Opening Balance $ 134,700 7 $ 41,800 10 $ 2,245

Sub-Total $ 176,500 $ 2,245 TOTAL: $ 174,255

Do this Check: A = L + OETotal Assets $ 238,113

$ - Total Libilities $ 77,500 Owners' Equity $ 160,613

OWNER'S EQUITYOpening Owner's Equity $ 152,100 ADD: Capital $ 7,200 ADD: NET PROFIT ( LOSS) $ 5,713 LESS: Owners' Drawings $ 4,400 Ending Owners' Equity $ 160,613

BALANCE SHEET

LIABILITIES

Decrease (DR) Increase (CR)Accounts Payable

Opening balance $ 11,700 6 $ 200 7 $ 41,800

$ - Sub-Total $ 53,700 TOTAL: $ 53,700

Decrease (DR) Increase (CR)Bank Loan

Opening balance $ 2,400 11 $ 20,400

$ - Sub-Total $ 22,800 TOTAL: $ 22,800

Decrease (DR) Increase (CR)Unearned Revenue

Opening balance $ - 8 $ 4,000 5 $ 4,000

$ 4,000 Sub-Total $ 4,000 TOTAL: $ -

OWNER'S EQUITY

Decrease (DR) Increase (CR)Capital

Opening balance $ 152,100 12 $ 7,200

$ - Sub-Total $ 159,300 TOTAL: $ 159,300

Increase (DR) Decrease (CR)Drawings

Opening Balance 13 $ 4,400

Sub-Total $ 4,400 $ - TOTAL: $ 4,400

Decrease (DR) Increase (CR)Interest Payable

Opening balance $ - 14 $ 1,000

$ - Sub-Total $ 1,000 TOTAL: $ 1,000

Income StatementRevenue $ 12,500.00

Expenses

Telephone Expense $ 200 Insurance Expense $ 242 Salary expense $ 3,000 Interest Expense $ 1,000 Entertainment Expense $ - Maintenance $ - Meals Expense $ 100 Depreciation $ 2,245

Total Expenses $ 6,787 Net Profit (Loss) $ 5,713

Balance SheetAssetsCurrent Assets

Cash $ 55,550 Accounts Receivable $ 5,650 Prepaid Insurance $ 2,658 Property, Plant & Equipment $ 174,255

Total Assets $ 238,113

LiabilitiesAccounts Payable $ 53,700 Interest Payable $ 1,000 Unearned Revenue $ - Bank Loan $ 22,800

Total Liabilities $ 77,500.00

Owner's EquityOpening $ 152,100 Add: Capital $ 7,200 Add: Profit (Loss) $ 5,713 Less: Drawings $ (4,400)Closing Owner's Equity $ 160,613

Total Liabilities + Owner's Equity $ 238,113

InstructionsTransactionsBLANK FSBLANK T-Accnts BSBLANK T-Accnts IST-Accnts IS ANSWERST-Accnts BS ANSWERSFS ANSWERS