INDIVIDUAL ASSIGNEMENT.docx

May 12, 2019 | Author: gemechu | Category: Debits And Credits, Expense, Money, Business Economics, Earnings
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Rift Valley University Bole special campus Post graduate program Accounting and nance for managers Individual assignment

tMrX began an aut 1.On Dec embe r1s or epai rshop,MrX Qual i t yAut omo mot i ve.Thef ol l owi ng i nf o r ma ma t i o na bo utDe c e mb mb e r ’ st r ans a c t i o ns ,ac c o unt s ,a nda dj us t me ntda t ai sa v ai l a bl e . Transact i ons Dec .1Mr MrX  cont ri but ed$50, 000casht ot heb u s i n e s si si ne x c hang ef o rc a pi t al . 1 Pur c has ed$ d$10, 800ofequi pme mentpayingc gcash. 1 Pai d$4, 500f o ra9mont hi ns ur a nc epo l i c ys t ar t i ngonDec embe r1. 9 Pai d$18, 000c asht ht opurchasel el a ndt obeusedi di no . p e r a t i o ns 10 Pur c hase do f f i c es uppl i e sonaccount ,$3, 000. 19 Bor r o wed$ d$28, f ro mt hebankf orbusi nessuse .MrX  si gnedano t ep ay abl et ot he 000  banki nt hename meoft h eb u s i n e s s . 22 Pai d$800f 0f o ra dv e r t i s i nge xpe ns e s . 26 Pai d$1, 000o 0ona c c o u n t . 28 Thebusi nessr ec ei veda dabi l lf o rut i l i t i e st obepai di nJanuar y, $280. 31 Reve nuesear neddur i ngt hemo mont hi nc l uded$ d$17, 500c 0casha hand$ d$2, 700ona na c c o u n t . 31 Pai de mpl mp o y e e s 's a l a r i e s$3 , 60 0a ndbui l di ngr e nt$ 70 0.Rec or dasac ompounde n t r y . 31 Thebusi nessr ec ei ved$ d$1, 4 40f o raut os c r e e ni ngs e r v i c e st obeper f or mednextmont h.

000. 31 MrXwi t hdre wc ashof$3,  Ac c ount s ; ; ;c Cas h  A ;c c ount sRe c e i v ab l e; Of f i c eSuppl s Pr epai dI e  A c umul at ed i e nsuranc Equi pme me nt ; Land  A ;c c ount sPayabl e; Ut i l i t i e sPayabl e ;I nt e r e s tPay abl e ; Depr ec i at i onEqui pme ment Unear nedRe venue ;Not esPayabl e ;MrX,Capi t al ;MrX,Wi t hdrawal s; Ser vi c eRevenue ;Sal ar i e s ; Expe nse ;RentExpense ;Ut i l i t i esExpense  A ; dver t i s i ngExpens e Suppl i e sExpense ;Insurance eEqui pme ment . Expense ;I nt er estExpense ;andD dDe pr e c i at i o nExpens

 Adj us t mentDat a

 A.Of f i c eSuppl i e sus eddur i ngt hemont h,$600. B.Deprec i at i onf ort hemont h,$180. C.Onemont hi nsur ancehase x p i r e d . D  A . c c r uedI nt er estExpense ,$75.

Requi r ement s :

1 . Pr e p ar et hej o ur na le nt r i e sandpostt ot heT. a c c o unt s 2. Pr e p ar ea nunadj us t e dt r i a lbalance. 3 .Pr epar et headj us t i nge nt r i e sa ndpo s tt ot heTs . a c c o unt 4.

Prepare an adjusted trial balance.

5.

Prepare the income statement, the statement of owner 's equity, and a classified balance formatting techniques including headings, dollar signs, and underlining.

6.

Prepare the closing entries and post to the T-accounts.

7.

Prepare a post-closing trial

sheet.

Use proper

balance.

2.The following events apply to Braxton Personnel Advisory Services o!pany ". #n $an%ary "& 2''(& iss%ed co!!on stoc) for *5&''' cash. 2. Paid *"&+'' cash to rent office space for one year ,eginning on -e,r%ary "& 2''(. (. eceived a *2&4'' cash advance as a retainer for services to ,e provided. Services were to ,e provided evenly for one year ,eginning on /arch "& 2''(. 4. #n 0ece!,er "& 2''(& paid dividends of *2'' to the stoc)holders. Required

a. ecord the events in ledger T1acco%nts and prepare an %nad%sted trial ,alance.  ,. ecord necessary ad%sting entries in ledger T1acco%nts and prepare an ad%sted trial ,alance. c. 3se the ad%sted trial ,alance to prepare an inco!e state!ent& a state!ent of retained earnings& a ,alance sheet& and a state!ent of cash flows. d. ecord the closing entries in ledger T1acco%nts and prepare a post1closing trial ,alance.

3. Keeping the Accounting !uation in "alance. #. ). 3. ,.

$%ner invests &#'((( cash $"tains loan from "an* for &+'(((. Purchased supplies for &)'(((' paid cash. Received &3'((( cash from customer for 3 -o"s to "e performed in future. /ee for each -o" is &#'(((0 +. 1ividend of &+(( %as paid. 2. Performed a -o" for a fee of &((. 4ustomer paid in cash. . Performed -o" for customer for a fee of &5((. 4ustomer %ill pay ne6t month. 7. Paid employees %ages of &#'+((. 5. 4ompleted one -o" for customer in 8, a"ove. #(. 9upplies on hand at the end of the month are &7((.  

Assets : ash

Acco%nts Receiva "le

S%pplies

  ;ia"ilities <

 ote Paya"l  : e

9toc*holder !uity

Unearn ed

4ommon

/ees

Retained

9toc* =

arnin gs

even%e 6pen se0

4. ecord the following transactions in general o%rnal entry for!. ecord the event n%!,er in the date col%!n. ". ss%ed co!!on stoc) for *5&''' cash. 2. Borrowed *4&''' cash fro! a local ,an). (. P%rchased *5'' of s%pplies on acco%nt. 4. ecognied reven%e of *+&''' for services provided on acco%nt. 5. Paid *(&'' cash for salaries expense. 6. Paid *2&4'' cash in advance for a one1year lease to rent office space. 7. P%rchased *(&5'' of office f%rnit%re on acco%nt. +. eceived *"&+'' cash for services to ,e perfor!ed in the f%t%re. . ollected *(&''' cash fro! acco%nts receiva,le. "'. Paid *"&2'' cash for %tilities. "". Paid dividends of *"&''' cash to the stoc)holders. "2. nvested *2&''' cash in a certificate of deposit. "(. epaid *"&6'' of the ,an) loan descri,ed in 8vent o. 2. "4. P%rchased land for *2&7'' cash. "5. ecognied *4'' of accr%ed interest expense. "6. ecognied *"&2'' of depreciation expense. "7. o!pleted *"&+'' of services on contract descri,ed in 8vent o. +. "+. o%nted s%pplies on hand at the end of the acco%nting period. 0eter!ined that *4'' of s%pplies were %sed d%ring the acco%nting period. ". ecognied accr%ed salary expense of *2&(''. 2'. ecognied *"5' of accr%ed interest reven%e.

+. 9elected ledger accounts used "y American Advertising' Inc.' are listed along %ith identifying num"ers. /ollo%ing this list of account num"ers and titles is a series of transactions. /or each transaction' you are to indicate the proper accounts to "e de"ited and credited.

2. >alin ;a"oratory ad-usts and closes its accounts at the end of each month. ?he trial "alance at 9eptem"er 3(' )(#(' "efore ad-ustments is as follo%s@

 ?he follo%ing information relates to month end ad-ustments@ a0 $ce supplies on hand 9eptem"er 3( amounted to &+((. "0 ?he useful life of the medical e!uipment %as estimated to "e )( years %ith no residual value. c0 any patients pay in advance for ma-or medical procedures. /ees of &2'((( %ere earned during the month "y performing procedures on patients %ho had paid in advance. d0 9alaries earned "y employees during the month "ut not yet recorded amounted to &)'3((. e0 $n 9eptem"er # >est ;a"oratory had moved and paid ) monthCs rent in advance. f0 edical procedures performed during the month "ut not yet "illed or recorded amounted to &,'2((.

instruction Prepare the adjusting entries required at September 30.

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