Essays on Accounting Assignment

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Question 1Journal EntriesJournalDATEACCOUNTS AND EXPLANATIONSPOST. REF. DEBITCREDITJan 2Purchase A/C1000 Accounts payable1000Jan 4 Cash A/C2200 Accouts receivable 2200Jan 5 Furniture A/C2600 Cash A/C2600Jan 9Electicity bill A/C270 Cash A/C270Jan 12Accounts receivable A/C1000 Cash A/C1000Jan 14Cash A/C2000 Sales service A/C2000Jan 28 Prepaid rent A/C1500 Cash A/C1500Jan 29Drawing A/C1000 Cash A/C1000Jan 30Cash A/C4000 Outstanding service A/C4000Jan 31Oustanding expences A/C2500 Cash A/C2500B. NarrationsJournalDATEACCOUNTS AND EXPLANATIONSPOST. REF. DEBITCREDITMay 2 Land 5000 Capital5000(Being land purchased for capital use. )May 4Cash 1000 A/Cs receivable1000(Being cash received from sundry debtors)May 5 Drawings2600 Cash 2600(Being cash withdrawn for personal use)May 9 Insurance expenses 570 Insurance prepaid570(Being insurance treated as expense out of prepaid insurance) May 12Prepaid rent500 Cash at bank 500(Being rent paid in advance by cheque)May 13Cash 10,000 Loan payable10,000(Being cash received from loan provided to some one. ) May 14Cash 400 Unearned service revenue 400(Being cash received on account from unearned revenue)May 16 land2000000 Capital2000000(Being land purchase for capital use)May 24 A/Cs payable 550 Cash550(Being sundrys crditor paid by cash)May 31Depreciation expense1200 Accumulated depreciation on furniture 1200(Being depreciation charged on furniture and credited to accumulated depreciation A/C)Question 2Adjusting EntriesJournalDATEACCOUNTS AND EXPLANATIONSPOST. REF. DEBITCREDIT31 octAccount receivable1200 Service revenue1200(Being accrued service revenue on 30 June)31 octSupplies 2000 Cash2000(being supplies on hand)31 oct Insurance expense 3500 Prepaid insurance 3500(Being Prepaid Insurance expired durin the period)31 oct Unearned Service revenue 4000 Service revenue 4000(Of the unearned revenue, has been deemed earned)200031 octSalary expense2000 Salary payable (Being Accrued salary expense is for two days)Changes in income statement, equity and balance sheet Work Sheet ACCOUNT TITLE  TRIAL BALANCEDEBIT  ADJUSTMENTSCREDIT  ADJUSTED TRIAL BALANCEDEBIT INCOME STATEMENT CREDIT BALANCE SHEET  DEBIT Cash at bank16000   2000 14000    14000  Accounts receivable76000120077200  77200  Supplies640020008400  8400  Prepaid insurance600035002500  2500  Land148000148000  148000  Accounts payable2400024000   24000 Unearned Revenue600040002000 2000   Salary payable020002000 2000   Mark power, capital212000212000   212000  Mark Power, Drawings 8800   8800    8800   Service Revenue 56000  5200  61200  61200    Salary Expense 28800 2000  30800  30800     Rent Expense 8000   8000  8000     Insurance Expense  3500   3500 3500    Net Profit/ Loss2290022900Total    301200 301200 65200 65200 258900 258900 Closing EntriesJournalDATEACCOUNTS AND EXPLANATIONSPOST. REF. DEBITCREDITSalary Expense30800 Income Statement30800(Being salary expense transferred to income statement)Rent Expense8000 Income Statement8000(Being rent expense transferred to income statement)Insurance Expense3500 Income Statement3500(Being insurance expense transferred to income statement)Income Statement61200 Service Revenue61200(Being service revenue transferred to income statement)Income Statement2000 Unearned revenue2000(Being unearned revenue transferred to income statement)Income Statement2000 Salary Payable2000(Being salary payable transferred to income statement)Question 3Adjustment made Work Sheet ACCOUNT TITLE  TRIAL BALANCEDEBIT  ADJUSTMENTSCREDIT  ADJUSTED TRIAL BALANCEDEBITAccounts receivable105600 2200 107800 Supplies5000  18003200 Prepaid insurance10600  28007800 accumulated depreciation 50300 9900 60200Salary payable    1800  1800 Unearned service revenue  135001400  12100 Service Revenue 215900  3600  219500 Salary expense110600 1800  112400  Insurance Expense  2800  2800   Supplies Expense  1800  1800   Depreciation Expense  9900  9900         Adjusting EntriesJournalDATEACCOUNTS AND EXPLANATIONSPOST. REF. DEBITCREDITAccount receivable2200 Service revenue2200(Being accrued service revenue on 30 June)Supplies Expense1800 Supplies 1800(being supplies on hand)Insurance expense 2800 Prepaid insurance 2800(Being Prepaid Insurance expired durin the period)Unearned Service revenue 1400 Service Revenue 1400(Of the unearned revenue, has been deemed earned)Salary expense1800 Salary payable 1800(Being Accrued salary expense is for two days)Depreciation expenses9900 Accumulated Depreciation9900(Being depreciation charged and credited to accumulated depreciation account)Effect on figuresEntryEffect on net profitEffect on total assetsEffect on total liabilitiesEffect on owners equityAccrued service revenueDecreaseDecreaseIncreaseDecreaseSupplies in handIncreaseDecreaseDecreaseIncreasePrepaid insuranceIncreaseIncreaseDecreaseIncreaseUnearned revenueDecreaseDecreaseIncreaseDecreasesalary expenseIncreaseIncreaseDecreaseIncreasedepreciation expenseIncreaseIncreaseDecreaseIncrease

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