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This document provides an accounting assignment to record transactions, prepare adjusting entries, and solve a problem. The transactions include investing capital, purchasing land and buildings, buying and selling tools, collecting and making payments. Adjusting entries are needed for prepaid rent, supplies inventory, equipment depreciation, accrued interest, unbilled services, and unpaid salaries. Income taxes expense and payments also require adjustment. The assignment must be completed and submitted by the given deadline following the specified formatting and submission instructions.

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Yarka Buuqa Neceb Muuse
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27 views

PDF Document

This document provides an accounting assignment to record transactions, prepare adjusting entries, and solve a problem. The transactions include investing capital, purchasing land and buildings, buying and selling tools, collecting and making payments. Adjusting entries are needed for prepaid rent, supplies inventory, equipment depreciation, accrued interest, unbilled services, and unpaid salaries. Income taxes expense and payments also require adjustment. The assignment must be completed and submitted by the given deadline following the specified formatting and submission instructions.

Uploaded by

Yarka Buuqa Neceb Muuse
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ADMAS UNIVERSITY

Accounting for Managers


Assignment-I (20 Points)
I. Record the following transactions in the general journal.
Jan. 20,2022: Owners invested $80,000 in exchange for capital stock.
Jan. 21, 2022: Purchased the land for 52,000
Jan.22,2022: Purchased building from Co. M for 36,000; 6000 cash made down
payment and issued a 90-day, non-interest-bearing note payable for the
remaining 30,000.
Jan. 23, 2022: Purchased tools and equipment on account from Snappy tools.
The purchase price was $13,800, due in 60 days.
Jan 24, 2022: The company sold the excess tools on account to co. AC at a
price of 1,800. the tools were sold at a price equal to their cost.
Jan 26, 2022: The company received 600 in partial collection of the account
receivable from company AC.
Jan. 27, 2022: The company made 6,800 partial payment of its accounts
payable to Snappy tools.
Jan. 31, 2022: Revenue of 2,200 is earned, all of which was received in cash.
Jan.31,2022: Paid employees wages in January, $1,200.
Jan.31, 2022: Paid for utilities used in January, $200
Feb. 1,2022: Paid 360 cash news advertising for February.
Feb. 1,2022: Purchased radio advertising for February at a cost of 470, payable
within 30 days.
Feb.4,2022: Purchased various shop supplies; cost 1,400, due in 30 days.
Feb.15,2022: Collected 4980 cash from repairs made to vehicles.
Feb. 28,2022: Billed Co. H, 5400 for maintenance and repair services provided
in Feb. The agreements with co. H calls for payment to be received by March
10.
Feb. 28,2022: Paid employees wages earned in Feb, 4900.

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Feb. 28,2022: Recorded 1,600 utility bill for Feb. The entire amount is due
March 15.
Feb. 28,2022: The co. declares and pays dividend of 40 cents per share to the
owners of its 8000 shares of capital stock – a total of 3,200.

II. Using the following information, prepare necessary adjusting entries


at the end of the period (December 31).

1. On December 1, the company signed a new rental agreement and


paid three months’ rent in advance at a rate of 2100 per month.
This advance payment was debited to the prepaid office rent
account.

2. An estimate of supplies on hand was made December 31; the


estimated cost of the unused supplies was 450. the amount of supplies
presented in the adjusted trial balance was 600.

3. The useful life of the equipment has been estimated at five years
from date of acquisition. (Assume that the historical cost is 36,000
with no selvage value at the end of the useful life)

4. Accrued interest on notes payable to amounted 100 at year end.


(set up accounts for interest expense and interest payable).

5. Consulting services valued at 2850 were rendered during


December to clients who had made payment in advance.

6. At December 31, consulting services valued at 11,000 had been


rendered to clients but not yet billed. No advance payment had been
received from these clients

7. Salaries earned by employees but not paid as of December 31


amounted to 1700.

8. Income taxes expense for the year estimated at 56000. of this


amount, 51000 had been recognized as expense in prior months, and

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39,000 had been paid to tax authorities. The company plans to pay the
17,000 remainder of its income tax liability on January 15.

III. Workout the following problem.

General instructions:
1. To record any journal entries, use the General journal format.
2. Write your solutions on A4 size papers with your own handwriting.
3. Once you complete writing solutions take a picture and create a file giving file
name as your full name.
4. Submit your assignment-I on or before 10-04-2022.
5. Attach your assignments to [email protected] writing subject as your
full name and at end AS-I
6. If it is found same writings and understood as copied from others will lead to
low score.
7. Keep hard copies of assignments with you to submit after Ramadan.
8. No permission is given for the late submission.

Good Luck
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