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Modern University For Business and Science International School of Business Accounting Department

This document provides instructions for an accounting assignment. It lists transactions that occurred during the first month of operations for a travel agency. Students are asked to journalize the transactions into debit and credit format. It also provides a second question that asks students to record the effects of transactions that occurred throughout the month for a consulting firm into a tabular accounting equation format, prepare an income statement, and balance sheet. The assignment covers learning outcomes related to the basic accounting equation, journalizing transactions, and preparing financial statements.

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Rana Aboul Hosn
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42 views3 pages

Modern University For Business and Science International School of Business Accounting Department

This document provides instructions for an accounting assignment. It lists transactions that occurred during the first month of operations for a travel agency. Students are asked to journalize the transactions into debit and credit format. It also provides a second question that asks students to record the effects of transactions that occurred throughout the month for a consulting firm into a tabular accounting equation format, prepare an income statement, and balance sheet. The assignment covers learning outcomes related to the basic accounting equation, journalizing transactions, and preparing financial statements.

Uploaded by

Rana Aboul Hosn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

MODERN UNIVERSITY FOR BUSINESS AND SCIENCE

International School of Business


Accounting Department
Assignment I
Fall 2020-2021
ACC201 – Principles of Accounting I

Student’s Name: ________________________________________________________

Student ID #: ___________________________________________________________

Instructor’s Name: _______________________________________________________

Assignment weight: 25% of the course

Grading Scheme Learning Outcomes


Sections Weight Grade This exam will cover Learning Outcomes:
 LO1. State the basic accounting equation, and define
First Question
42% assets, liabilities, and owner’s equity.
 LO2. Analyze the effects of business transactions on the
Second Question
58% basic accounting equation.
 LO3. Understand what the four financial statements are
and how they are prepared.
 LO4. Define debits and credits and explain how they are
Final Grade used to record business transactions.
 LO5. Explain what a journal is and how it helps in the
recording process.
 LO6. Prepare a trial balance and explain its purposes.

Kindly, make sure that you read and understand the following points:
 Notes are NOT allowed.
 Your answers should be applied onto these sheets only.

Good Luck 

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I. Smith Johnson opened a travel agency and during the first month of operations completed the
following transactions:

June 1 Smith invested $75,000 cash in the business


June 5 Paid $2,500 for office supplies
June 7 Purchased office equipment for $8,000 on account
June 9 Paid $7,000 for one year insurance
June 16 Incurred electricity expenses of $500 that will be paid in the near future
June 20 Paid $2,000 for previously purchased office equipment
June 23 Withdrew $500 cash for personal use
June 26 Revenues earned during the month were $5,500 cash and $3,000 on account
June 29 Paid monthly rent of $1,200
June 30 Paid employees’ salaries of $2,500

Journalize the above listed transactions (42 pts.) (2 pts. each entry)

Date Account Titles Ref. Debit Credit


June 1 Investment $75,000
Cash $75,000
June 5 Office supplies $2,500
Cash $2,500
June 7 Office Account $8,000
Accounts payable $8,000
June 9 Prepaid insurance expense $7,000
Cash $7,000
June 16 Electricity expenses $500
Accrued expense $500
June 20 Accounts Payable $2,000
Cash $2,000
June 23 John Smith, Drawings $500
Cash $500
June 26 Cash $5,500
Accounts Receivable $3,000
Service revenue $8,500
June 29 Rent expense $1,200
Cash $1,200
June 30 Salaries expense $2,500
Cash $2,500

II. Adam Hanks started his own consulting firm, Adam consulting, on May 1, 2010. The following
transactions occurred during the month of May:

Page 2 of 3
May 1 Adam invested $8,500 cash in the business
May 3 Purchased $500 of supplies on account
May 5 Paid $50 to advertise in a newspaper
May 9 Received $1,000 cash for services provided
May 12 Withdrew $700 cash for personal use
May 15 Earned revenues of $2,750 cash and $2,500 on account
May 17 Paid $3,000 for employee salaries
May 23 Received $1,000 cash for services provided on account on May 15
May 26 Borrowed $5,000 from the bank on a note payable
May 28 Purchased office furniture for $2,400 cash
May 30 Paid $800 for office rent for the month

a) Show the effects of the transactions on the accounting equation using the following tabular
(42 pts.) (1.5 pt. each entry and 1 pt. for each total)
b) Prepare an income statement for the month of May (6 pts.)
c) Prepare a balance sheet at May 31, 2010 (10 pts.)

a) Adam Consulting

Assets = Liabilities + Owner’s Equity


Capital, Drawings, Revenues,
Date + + + = + +Expenses (Specify)

May1

12

15

17

23

26

28

30

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