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    Assignment For 2nd Yr Eco. Students

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    Man Sancho

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    Assignment For 2nd Yr Eco. Students

    Uploaded by

    Man Sancho
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    Assignment for 2nd Yr Eco. Students (1)

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    5 views3 pages

    Assignment For 2nd Yr Eco. Students

    Uploaded by

    Man Sancho

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Salale University

    College of Business and Economics

    Department of Accounting and Finance

    Fundamentals of Accounting -I Group Assignment for 2nd Year Economics students

    Total mark: 20

    1. On July 4th, Harper Co. journalized and posted$150 cash collection on account from a
    customer as a debit to Cash $150 and a credit to Service Revenue $150 (see below). The
    company discovered the error on July 31, when the customer paid the remaining balance in
    full.
    Instruction: correct the error by using only one entry.
    2. On November 1, 2022, the account balances of Almaz Equipment Repair were as follows.
    No. Debits No. Credits
    101 Cash birr2,400 154 Accumulated Depreciation—Equipment birr 2,000
    112 Accounts Receivable 4,250 201 Accounts Payable 2,600
    126 Supplies 1,800 209 Unearned Service Revenue 1,200
    153 Equipment 12,000 212 Salaries and Wages Payable 700
    301 Owner’s Capital 13,950
    Birr 20,450 Birr 20,450
    During November, the following summary transactions were completed.
    a) Nov. 8 Paid birr 1,700 for salaries due employees, of which birr 700 is for October
    salaries.
    b) 10 Received birr 3,420 cash from customers on account.
    c) 12 Received birr 3,100 cash for services performed in November.
    d) 15 Purchased equipment on account birr 2,000.
    e) 17 Purchased supplies on account birr 700.
    f) 20 Paid creditors on account birr 2,700.
    g) 22 Paid November rent birr 400.
    h) 25 Paid salaries birr 1,700.
    i) 27 Performed services on account and billed customers for services provided birr 1,900.
    j) 29 Received birr 600 from customers for future service.
    Additional information:
    1. Supplies on hand birr 1,400.
    2. Accrued salaries payable birr 350.
    3. Depreciation for the month is birr 200.
    4. Unearned service revenue of birr 1,250 is earned.
    Required:
    (a) Enter the November 1 balances in the ledger accounts.
    (b) Journalize each transaction in a two-column journal.
    (c) Post the journal to a ledger of four-column accounts, Extend the balances to the
    appropriate balance columns after each transaction is posted. Use the following additional
    accounts: No. 407 Service Revenue, No. 515 Depreciation Expense, No. 531 Supplies
    Expense, No. 526 Salaries and Wages Expense, and No. 529 Rent Expense.
    (d) Prepare a trial balance at November 30.
    (e) Prepare an adjusted trial balance.
    (f) Prepare an income statement and an owner’s equity statement for November and a
    balance sheet at Nov 30.
    3. The cash account for ABC Co. on June 30, 2022, indicated a balance of Br 4,526.25. The
    bank statement indicated a balance of Br 9,293.11 on June 30, 2022. Comparing the bank
    statement, the canceled checks, and the accompanying memos with the records revealed the
    following reconciling items:
    A. The bank had collected for ABC Co Br 1,030 on a note left for collection. The face of the
    note was Br 1,000.
    B. A deposit of Br 1,852.21, representing receipts of June 30, had been made too late to
    appear on the bank statement.
    C. Checks outstanding totaled Br 5,265.27.
    D. A check drawn for Br 139 had been incorrectly charged by the bank as Br 157.
    E. A check for Br 370 returned with the statement had been recorded in the company’s
    records as Br 730. The check was for the payment of an obligation to Lion Company for
    the purchase of office supplies on account.
    F. Bank service charges for June amounted to Br 18.20.
    Required:-a) Prepare bank reconciliation for June.
    b) Journalize the entries that should be made by ABC Co.
    4. Based on the following data determine due date, interest & maturity value

    Date of note Face Term of Interest Due date Interest Maturity


    amount note rate value
    April 5 5,000 60 days 9%
    May 20 8,000 90 days 11%
    June 30 10,000 75 days 12%
    August 9 3,000 120 days 10%
    October 11 7,500 60 days 12%

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