Assignment 02

ACCOUNTING PRINCIPLES

ASSIGNMENT - 02

MBA (Weekend) Fall-2010________________________________________________________________________Submitted by: Muhammad Bux Shaikh

1

E2.14

SANFORD DELIVERY SERVICETRIAL BALANCE

A/c Receivable 7,642 Cash 20,567 Delivery Equipment 49,360 Gas & Oli Expense 758 Insurance Expense 523 Prepaid Insurance 1,968 Repair Expense 961 Dividend 700 Salaries Expense 4,428 A/C Payable 8,396Notes Payable 18,450Service Revenue 10,610Share Capital 40,000Retained Earnings 4,636Salaries Payable 815 86,907 86,907

2

P2-1A

FRONTIER PARK GENERAL JOURNAL

Date Description Dr. Cr.

April 1 CashShare Capital Order

(Share holders invested cash)

40,00040,000

April 4 LandCash

(Purchase land for cash)

30,00030,000

April 8 Advertising ExpenseA/c Payable

(Arranged advertisement on account)

1,8001,800

April 11 Salaries ExpenseCash

(Paid salaries to Employees)

1,5001,500

April 13 Prepaid InsuranceCash

(Paid One year insurance premium)

1,5001,500

April 17 Dividend ExpenseCash

(Paid Dividends)

1,0001,000

April 20 Cash Admission Fees Revenue(Received admission fees in cash)

5,7005,700

April 25 Cash Unearned Admission fees Revenue

(Sold admission coupon in advance)

2,5002,500

April 30 CashAdmission Fees Revenue

(Received Admission fees Revenue )

8,9008,900

April 30 A/c PayableCash

(Paid Cash against account Payable)

900900

3

P2-2A

(a)JANE KENT

GENERAL JOURNAL


May 01 Cash Share Capital – ordinary(Share holders invested cash)

25,00025,000

May 02 No entryMay 03 Office Supplies

Account payable (Purchased office supplies on credit)

2,5002,500

May 07 Rent expense Cash(Paid rent for the month)

900900

May 11 Account receivable Service Revenue(Earned service revenue on account)

2,102,100

May 12 Cash Unearned Service Revenue(Received Revenue in advance)

3,5003,500

May 17 Cash Service Revenue(Earned Service revenue)

1,2001,200

May 31 Salaries Expense Cash(Paid salary to the receptionist)

2,0002,000

May 31 Account Payable Cash(Paid cash to creditors)

1,0001,000

4

(b)

JANE KENT – LEDGERS

CASH

Date Description Posting Ref. Dr. Cr. Balance

May 01 – – 25,000 – 25,000May 07 – – – 900 24,100May 12 – – 3,500 – 27,600May 17 – – 1,200 – 28,800May 31 – – – 2,000 26,800 May 31 – – – 1,000 25,800

SHARE CAPITAL – ORDINARY


May 01 – – 25,000 – 25,000

OFFICE SUPPLIES


May 03 – – 2,500 – 2,500

ACCOUNT PAYABLE


May 03 – – – 2,500 2,500May 31 – – 1,000 – 1,500

RENT EXPENSE


May 07 – – 900 – 900

5

ACCOUNT RECEIVABLE


May 11 – – 2,100 – 2,100

SERVICE REVENUE


May 11 – – – 2,100 2,100May 17 – – 1,200 – 3,300

UNEARNED SERVICE REVENUE


May 12 – – – 3,500 3,500

SALARIES EXPENSE


May 31 – – 2,000 – 2,000

(c)JANE KENT, ACCOUNTANTS

TRIAL BALANCEMAY 31, 2011

CashOffice SuppliesRent ExpenseAccount ReceivableSalaries ExpenseShare Capital

25,800 2,500

9002,1002,000

25,000 Accounts Payable 1,500

3,3003,500

33,300 33,300

6

P2-3A(a)

CASH


Dec 31 – – – – 8,000Jan 01 – – – 1,000 7,000Jan 03 – – – 2,000 5,000Jan 04 – – 14,000 – 19,000Jan 05 – – – 15,000 15,000Jan 07 – – 6,000 – 21,000Jan 08 – – – 3,000 18,000Jan 09 – – – 3,000 15,000

ACCOUNT RECEIVABLE


Dec 31 – – – – 15,000Jan 07 – – 9,000 – 24,000

PARTS INVENTORY


Dec 31 – – – – 13,000Jan 02 – – 4,000 – 17,000Jan 06 – – 4,000 13,000

PREPAID RENT


Dec 31 – – – – 3,000

REPAIR PARTS EXPENSE


Jan 07 – – 4,000 – 4,000

SHOP EQUIPMENT


Dec 31 – – – – 21,000

ACCOUNT PAYABLEDate Description Posting Dr. Cr. Balance

7

Ref.Dec 31 – – – – 19,000Jan 02 – – – 4,000 23,000Jan 05 – – 15,000 – 8,000

SHARE CAPITAL


Dec 31 – – – – 30,000

RETAINED EARNINGS


Dec 31 – – – – 11,000Jan 09 – – 3,000 – 8,000

MISC. EXPENSE


Jan 03 – – 2,000 – 2,000

REPAIR SERVICE REVENUE


Jan 07 – – – 6,000 6,000Jan 07 – – – 9,000 15,000

WAGES EXPENSE


Jan 08 – – 3,000 – 3,000

8

P2-4A

STERLING COMPANYTRIAL BALANCE (CORRECT)

MAY 31, 2011

CashAccount receivablePrepaid InsuranceEquipmentSalaries ExpenseAdvertising ExpenseProperty Tax ExpenseDividendsOffice SuppliesAccount PayableProperty Tax ExpenseShare CapitalService Revenue

5,9652,360

8007,4804,4001,505

9001,000

5204,710

56012,700

6,960

24,930 24,930

9

P2-5ALAKE THEATRE

GENERAL HOURNALDate Description Dr. Cr.

April 02 Film Rental Expense Cash(Paid Film rental)

800800

April 03 No entryApril 09 Cash

Admission Revenue (Earned Admission Revenue)

2,8002,800

April 10 Mortgage PayableAccount Payable Cash (Paid for Mortgage on Account payable)

2,0001,000

3,000

April 11 No EntryApril 12 Advance Expense

Cash(Paid Advance Expense)

500500

April 20 Equipment (Film) Account Payable(Earned Film on Account)

1,0001,000

April 25 Cash Admission Revenue(Earn Admission Revenue)

5,2005,200

April 29 Salaries Expense Cash(Paid salaries)

2,0002,000

CASH – 101


Mar 31 – – – – 6,000April 02 – – – 800 5,200April 09 – – 2,800 – 8,000April 10 – – – 3,000 5,000April 12 – – – 500 4,500April25 – – 5,200 – 9,700April29 – – – 2,000 7,700

LAND – 140


Mar 31 – – – – 10,000

BUILDINGS – 145

10


Mar 31 – – – – 8,000


Mar 31 – – – – 6,000April 20 – – – 1,000 7,000

SALARIES EXPENSE


April 29 – – 2,000 – 2,000

ACCOUNTS PAYABLE – 201


Mar 31 – – – – 2,000April 10 – – 1,000 – 1,000April 20 – – – 1,000 2,000

MARTGAGE PAYABLE – 275


Mar 31 – – – – 8,000April 10 – – 2,000 – 6,000

SHARE CAPITAL – ORDINARY – 311


Mar 31 – – – – 20,000

FILM RENTAL EXPENSE


April 02 – – 800 – 800

ADMISSION REVENUE


April 09 – – – 2,800 2,800April 25 – – – 5,200 8,000

11

ADVERTISING EXPENSE


April 12 – – 500 – 500

LAKE THEATRETRIAL BALANCE

APRIL 30CashLandBuildingsEquipmentsSalaries ExpenseFilm Rental ExpenseAdvertising ExpenseAccounts PayableMortgage PayableShare Capital – OrdinaryAdmission Revenue

7,70010,000

8,0007,0002,000

800500

2,0006,000

20,0008,000

36,000 36,000

12

P2-1B

HYZER DISC GOLF COURSEGENERAL HOURNAL


Mar 01 Cash Share Capital - Ordinary(Invested Cash in Business)

20,00020,000

Mar 03 Land Building (used)Equipment Cash(Purchased Land, Building, Equipment)

12,0002,0001,000

15,000

Mar 05 Advertising Expense Cash (Paid for Advertisement)

700700

Mar 06 Prepaid Insurance Cash(Paid for Insurance in Advance)

600600

Mar 10 Equipments Account Payable(Purchased equipments on Account)

1,0501,050

Mar 18 Cash Fees revenue(Earned Fees Revenue)

340340

Mar 19 Cash Unearned fees revenue(Sold coupons in advance)

1,0001,000

Mar 25 Dividends Cash(Paid cash dividends)

800800

Mar 30 Salaries Expense Cash(Paid salaries)

250250

Mar 30 Account payable Cash(Paid off to Creditors)

1,0501,050

Mar 31 Cash Fees Revenue(Earned Fees Revenue)

2,0002,000

13

P2-2BMARIA JUAREZ DENTISTSGENERAL JOURNAL


April 01 Cash Share Capital - Ordinary(Invested Cash in Business)

40,00040,000

April 01 No EntryApril 02 Rent Expense

Cash (Paid Rent)

1,0001,000

April 03 Supplies Account payable(Purchase supplies on account)

4,0004,000

April 10 Account receivable Service Revenue

5,1005,100

April 11 Cash Unearned service Revenue

1,0001,000

April 20 Cash Service revenue

2,1002,100

April30 Salaries Expense Cash

24,0024,00

April 30 Account Payable Cash

1,6001,600

CASH – 101


April 01 – – 40,000 – 40,000April 02 – – – 1,000 39,000April 11 – – 1,000 – 40,000April 20 – – 2,100 – 42,100April 30 – – – 2,400 37,700April 30 – – – 1,600 38,100

ACCOUNT RECEIVABLE – 112


April 10 – – 5,100 – 5,100

SUPPLIES – 126


14

April 03 – – 4,000 – 4,000

ACCOUNT PAYABLE – 201


April 03 – – – 4,000 4,000April 30 – – 1,600 – 2,400

UNEARNED REVENUE – 209


April 11 – – – 1,000 1,000

SHARE CAPITAL – 311


April 01 – – – 40,000 40,000

SERVICE REVENUE – 400


April 10 – – – 5,100 5,100April 20 – – – 2,100 2,100

SALARIES EXPENSE – 726


April 30 – – 2,400 – 2,400

RENT EXPENSE – 729


April 02 – – 1,000 – 1,000

15

MARIA JAUREZ DENTISTSTRIAL BALANCE

APRIL 30, 2011CashAccount receivableSuppliesSalaries ExpenseRent ExpenseAccount payableShare capital ordinaryUnearned revenueService revenue

38,1005,1004,0002,4001,000

2,40040,000

1,0007,200

50,600 50,600

16

P2-3B

SLOW HAND SERVICESGENERAL JOURNAL


May 01 Cash Share Capital - Ordinary

50,00050,000

May 01 No EntryMay 01 Prepaid rent

Cash 24,000

24,000

May 01 Furniture & equipment Cash Account payable

30,00010,00020,000

May 01 Prepaid insurance Cash

1,8001,800

May 01 Office Supplies Cash

500500

May 01 Office Supplies Cash

1,5001,500

May 01 Cash Account payable Service Revenue

8,00012,000

20,000May 01 Account payable

Cash400

400

May 01 Cash Account receivable

3,0003,000

May 01 Utility Expense Utility payable

200200

May 01 Salaries Expense Cash

5,6005,600

17

CASH


May 01 – – 50,000 – 50,000May 01 – – – 24,000 26,000May 01 – – – 10,000 16,000May 01 – – – 1,800 14,200May 01 – – – 500 13,700May 01 – – 8,000 – 21,700May 01 – – – 400 21,300May 01 – – 3,000 – 24,300May 01 – – – 5,600 18,700

SHARE CAPITAL – ORDINARY


May 01 – – – 50,000 50,000

PERPAID RENT


May 01 – – 24,000 – 50,000

FURNITURE & EQUIPMENT


May 01 – – 30,000 – 30,000

ACCOUNT PAYABLE


May 01 – – – 20,000 20,000May 01 – – – 1,500 21,500May 01 – – 400 – 21,100

18

PREPAID INSURANCE


May 01 – – 1,800 – 1,800

OFIFCE SUPPLIES


May 01 – – 500 – 500May 01 – – 1,500 – 2,000

ACCOUNT RECEIVABLE


May 01 – – 12,000 – 12,000May 01 – – – 30,000 9,000

SERVICE REVENUE


May 01 – – – 20,000 20,000

UTILITY EXPENSE


May 01 – – 200 – 200

SALARIES EXPENSE


May 01 – – 5,600 – 5,600

UTILITIES PAYABLE


May 01 – – – 200 200

19

SLOWHAND SERVICESTRIAL BALANCEMAY 31, 2011

CashPrepaid rentFurniture & EquipmentPrepaid insuranceOffice suppliesAccount receivableUtility expenseSalaries expenseShare capitalAccount payableService revenueUtilities payable

18,70024,00030,000

1,8002,0009,000

2005,600

50,00021,10020,000

200

91,300 91,300

P2-4B

SYED MOIZ CO.

20

CORRECTED TRIAL BALANCEJUNE 30, 2011

CashAccount receivableSuppliesEquipmentAccount payableUnearned revenueShare capital-ordinaryDividendsService revenueSalaries expenseOffice expense

3,7002,371

5803,220

1,400

3,300810

3,0001,1008,000

3,281

15,381 15,381

21

P2-5B

(a)JOSIE THEATRE – GENERAL LEDGER

101-CASH


Mar 01 – √ – – 9,000Mar 02 – – – 1,500 7,500Mar 10 – – – 4,100 3,400Mar 12 – – – 450 2,950Mar 20 – – 5,000 – 7,950Mar 20 – – – 2,000 5,950Mar 31 – – – 2,500 3,450Mar 31 – – 450 – 3,900Mar 31 – – 9,000 – 12,900

140-LAND


Mar 01 – √ – – 24,000

145-BUILDINGS


Mar 01 – √ – – 10,000

157-EQUIPMENTS


Mar 01 – √ – – 10,000

201-ACCOUNT PAYABLE


Mar 01 – √ – – 7,000Mar 02 – – – 2,000 9,000Mar 10 – – 4,100 – 4,900

311-SHARE CAPITAL - ORDINARY


Mar 01 – √ – – 46,000

22

602-FILM RENTAL EXPENSE


Mar 02 – √ 3,500 – 3,500Mar 20 – – 2,000 – 5,500

405-ADMISSION REVENUE


Mar 09 – √ – 4,000 4,000Mar 20 – – – 5,000 9,000

406-CONCESSION REVENUE


Mar 31 – – – 9,000 18,000

610-ADVERTISEMENT EXPENSE


Mar 12 – – 450 – 450

726-SALARIES EXPENSE


Mar 31 – – 2,500 – 2,500

112-ACCOUNTS RECEIVABLE


Mar 31 – – 450 – 450

23

(b)

JOSIE THEATREGENERAL JOURNAL


Mar 02 Rental Fees Cash Account payable

3,5001,5002,000

Mar 09 Cash Admission revenue

4,0004,000

Mar 10 Account payable Cash

4,1004,100

Mar 11 No entryMar 12 Advance expense

Cash450

450


5,0005,000

Mar 20 Rental Fees Cash

2,0002,000

Mar 31 Salaries Expense Cash

2,5002,500

Mar 31 CashAccount receivable Commission revenue

450450

900


9,0009,000

( c )

Posted in the ledgers

24

(d)JOSIE THEATRETRIAL BALANCE

MARCH 31, 2011CashLandBuildingsEquipmentsAccount payableShare capital – ordinaryRental expenseAdvertising expenseAdmission revenueSalaries expenseAccount receivableConcession revenue

12,90024,00010,00010,000

5,500450

2,500450

4,90046,000

1,000

9,000

65,800 68,900

E-4.2

SECURITY SERVICE COMPANY

25

Adjusting Entry

Income Statement Balance Sheet

Revenue Expense Net Income Assets Liabilities Owner’s

Equitya N.E I D D N.E Db N.E I D N.E I Dc I N.E I I N.E Id N.E I D N.E I De N.E I D D N.E Df I N.E I N.E D I

E-4.3

THE OUTLAWS

Date Description Dr. Cr.Aug 31 Rent Expense

Prepaid Rent300,000

300,000Aug 31 Unearned Ticket revenue

Ticket revenue320,000

320,000

26

E-4.4

(a)

DALE & CLARKS LAWYERS

Date Description Dr. Cr.Dec 31 Salaries Expense

Salaries Payable17,800

17,800Dec 31 Account receivable

Legal fees earned18,900

18,900

(b)SALARIES EXPENSE FOR JANUARY

Date Description Dr. Cr.Jan 15 Salaries Expense

Cash17,500

17,500

(c)THE REVENUE EARNED IN JANUARY

Date Description Dr. Cr.Jan 29 Cash

Legal fees earned60,900

60,900

E-4.13


27

Jan 31 Commission receivableCommission earned

(To record commission earned)

850850

Jan 31 Office supplies expenseOffice supplies

(To record office supplies consume during the month)

360360

Jan 31 Depreciation expense (equipment)Accumulated depreciation (equipment)

(To record depreciation expense on equipment)

110110

Jan 31 Salaries expenseSalaries payable

(To record account salaries)

550550

Jan 31 Unearned commissionCommission earned

(To record commission earned in the month)

210210

28

Assignment 02

Documents

description postin g

balanc e

account payable description

account cash admission

aa cash date

earnings postin description

advance cash service

entry cash admission