Essays on Accounting Principles Assignment

The paper 'Accounting Principles' is a great example of a Finance and Accounting Assignment. Depositing the inherited cash of $40,000 will increase the cash at the bank by $40,000. The owner’ s equity will also increase by a similar amount. This will leave the accounting equation of Future Designs balanced. The receipt of cash of $1,400 from the services performed for a client will increase the cash at the bank hence the left-hand side of the equation will increase by $1,400 while the right hand of the accounting equation will not change (Fess and Warren, 2004).

This will leave the accounting equation of Future Designs unbalanced. Paying of the beginning balance of accounts payable will decrease the accounts payable to zero while the cash at the bank will reduce by $16,000. This will leave the accounting equation of Future Designs balanced. Requirement a) Omar IT Consultant Work Sheet Month Ended 30 June 2013 ACCOUNT TITLE TRIAL BALANCE ($) Dr. ADJUSTMENTS ($) Cr. ADJUSTED TRIAL BALANCE ($) Dr. INCOME STATEMENT ($) Cr. BALANCE SHEET ($) Dr. Cash at bank 3,800       3,800       3,800   Accounts receivable 15,560       15,560       15,560   Prepaid rent 1,290   1,050   2,340       1,050   Supplies 20,900     5,340 15,560       15,560   Equipment 15,350       15,350       15,350   Accumulated depreciation – equipment   12,800   370   13,170       13,170 Building 89,900       89,900       89,900   Accumulated depreciation – building   28,600   130   28,730       28,730 Accounts payable   4,240       4,240       4,240 Salary payable       460   460       460 Unearned service revenue   8,900 2,400     6,500       6,500 Omar, capital   71,920       71,920       71,920 Omar, Drawings 4,800       4,800       4,800   Service revenue   27,300   2,400   29,700   29,700     Salary expense 2,160   460   2,620   2,620       Rent expense     240   240   240       Depreciation expense - equipment     370 370     370       Depreciation expense - building     130 130     130       Supplies expense     5,430   5,430   5,430       Total 153,760 153,760     155,600 155,600         Net profit/loss                   21,500 Total                 146,020 146,020 Requirement b) General Journal Page 7 DATE ACCOUNTS AND EXPLANATIONS POST. REF. DEBIT CREDIT June 30 Unearned service revenue GL 2,400       Service revenue GL   2,400                 Rent expense GL 240       Prepaid rent GL   240                 Supplies expense GL 5,340       Supplies GL   5,340                 Depreciation on equipment GL 370       Accumulated Depreciation on equipment GL   370                 Depreciation on building GL 130       Accumulated Depreciation on building GL   130                 Salary expense GL 460       Salary payable GL   460 Requirement c) General Journal Page 7 DATE ACCOUNTS AND EXPLANATIONS POST. REF. DEBIT CREDIT June 30 Cash at bank GL 3,800       Bal c/d     3,800     Accounts receivable GL 15,560       Bal c/d     15,560     Prepaid rent GL 1,050       Profit & loss GL   1,050     Supplies GL 15,560       Balance c/d     15,560     Equipment GL 15,350       Accumulated depreciation – equipment GL   13,170     Balance c/d     2,180     Building GL 89,900       Accumulated depreciation – Building GL   28,730     Balance c/d     61,170     Accounts payable GL 4,240       Balance c/d     4,240     Salary expense GL 460       Salary payable GL   460     Profit and loss GL 6,500       Unearned service revenue GL   6,500     Omar, capital GL 71,920       Balance c/d     71,920     Omar, Drawings GL 4,800       Balance c/d     4,800     Profit and loss GL 29,700       Service revenue GL   29,700     Salary expense GL 2,620       Profit and loss GL   2,620     Rent expense GL 240       Profit and loss GL   240     Depreciation expense - equipment GL 370       Profit and loss GL   370     Depreciation expense - building GL 130       Profit and loss GL   130     Supplies expense GL 5,430       Profit and loss GL   5,430 Requirement d) Julia Roberts, CA Trial Balance As at 30 April 2013 ACCOUNT DEBIT CREDIT Omar IT Consultant Trial Balance As at 30 June 2013 ACCOUNT DEBIT CREDIT Cash at bank 3,800   Accounts receivable 15,560   Prepaid rent 2,340   Supplies 15,560   Equipment 15,350   Accumulated depreciation – equipment   13,170 Building 89,900   Accumulated depreciation – building   28,730 Accounts payable   4,240 Salary payable   460 Unearned service revenue   6,500 Omar, capital   71,920 Omar, Drawings 4,800   Service revenue   29,700 Salary expense 2,620   Rent expense 240   Depreciation expense - equipment     Depreciation expense - building     Supplies expense 5,430   Total 155,600 155,600  

References

Fess, E. and Warren, C., 2004. Accounting principles. Canada: Southwestern Company.

Horngren, C. T., & Harrison, W. T., 2009. Accounting (7th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.