Acc 101 Week 5 Accounting Answers
ACCT 101 PRACTICE QUESTIONS by Adekoya Ayodele
OBJECTIVE
The objective of this project is to enable student to record transactions into the accounting cycle.
The second objective is to enable them record adjustments and post them to the General Ledger
The third Objective is to enable them prepare accurate Income Statements and Balance Sheets.
INSTRUCTIONS: Each group is required to
1. Journalize the transactions
2. Post the transactions from journal to ledgers.
3. Prepare a trial balance
4. Journalize the adjusting entries and post them to the General Ledger
5. Prepare post adjustments trial balance
6. Prepare a worksheet and complete it. (Using Microsofts Excel)
7. Prepare financial statements – Balance …show more content…
Sheet and Income Statement
QUESTION
Ameen Ali Muhammad started his own security services company, AM Services, in January 2009. Listed below is the opening trial balance as at the beginning of January 2009 AAM Security Services Limited
Opening Trial Balance as at January 1, 2009 $ $ Cash 5, 500 Bank 60,500 Account receivable 25,000 Land 50,000 Prepaid Insurance 24,000 Supplies 10,000 Equipment 25,000 Accumulated Depreciation (Equipment) 10, 000 Account Payable 15, 000 Unearned revenue 35, 000 Capital 40, 000 Total 200,000 200,000
During 2007 the following transactions were completed:-
January 1 Paid $10,000 for account payable
January 1 Purchased a Patrol Van worth $150,000; paid $50,000 by cheque and sign a note payable for the remainder (note payable is for 2 years with 10% interest rate)
February 2 Purchase $10,000 worth of supplies for cash
February 18 Owner invested additional $50,000 cash in the business.
February 16 Sent invoice to Metro Transport Limited $120, 000 for Security services.
March 1 Incurred advertising expenses worth $6, 000. March 3 Collected $15,000 from customers on account.
March 11 Completed security services for Urban Tourism Limited worth $120,000; received cheque of $60,000 and the remainder on account.
March 31 Received $15,000 as advance payment for service to be rendered to Star Shops.
April 13 Incurred utility expenses of $6,000 for the month of January – June 2009.
May 1 purchased a photocopy machine worth $20,000; paid cash of $5,000 and the remainder on account.
May 27 Paid for utility expenses incurred on April 13.
June18 Received Cheque from Estate Developers for security services worth $150,000.
July 2 Paid for advertising expenses incurred on March 1
August 19 received $30,000 cheque from Urban Tourism Limited for services on March 11.
September 21 Paid for the photocopy machine purchase on May 15.
October 23 received a $50,000 cheque as advance payment for security services. November 25 Paid for maintenance expenses of $15,000
December 15 received $60,000 from Metro Transport for services performed on February 16.
December 27 Incurred utility expenses of $6,500 for July – December 2009.
.
December 30 Owner withdraw $5,000 for personal use
Project 1: Required:
1. Journalize the transactions in the appropriate general journal.
2. Enter the opening balances in the ledger accounts and post the general journal to the affected general ledger
account.
3. Prepare a trial balance as at December 31.
To be submitted on after two weeks
Adjustments:
On December 31 the following transactions and adjustments were brought to your notice
1. Wages of $15,000 has been accrued.
2. Interest on the note payable is accrued for Patrol van
3. Depreciation on equipment is $1,500.
4. Depreciation on a patrol is calculated using straight line method based on 5 years useful life with no salvage value.
5. Depreciation on a photocopy machine is calculated using double declining balance based on 4 years useful life with no salvage value.
6. Supplies remaining at the end of the year are $1,500.
7. $10,000 of the cash advance received from King Company has been earned.
8. The two –year prepaid Insurance was purchased on July 1, 2009.
Project 2: Required:
4. Journalize the adjusting entries at year end and post them to the General ledger
5. Prepare the post adjustments trial balance for the year
6. Enter the information on the worksheet and complete the worksheet.
7. Prepare income statement, statement of owner’s equity statement and balance sheet. To be submitted after four weeks
OBJECTIVE
The objective of this project is to enable student to record transactions into the accounting cycle.
The second objective is to enable them record adjustments and post them to the General Ledger
The third Objective is to enable them prepare accurate Income Statements and Balance Sheets.
INSTRUCTIONS: Each group is required to
1. Journalize the transactions
2. Post the transactions from journal to ledgers.
3. Prepare a trial balance
4. Journalize the adjusting entries and post them to the General Ledger
5. Prepare post adjustments trial balance
6. Prepare a worksheet and complete it. (Using Microsofts Excel)
7. Prepare financial statements – Balance …show more content…
Sheet and Income Statement
QUESTION
Ameen Ali Muhammad started his own security services company, AM Services, in January 2009. Listed below is the opening trial balance as at the beginning of January 2009 AAM Security Services Limited
Opening Trial Balance as at January 1, 2009 $ $ Cash 5, 500 Bank 60,500 Account receivable 25,000 Land 50,000 Prepaid Insurance 24,000 Supplies 10,000 Equipment 25,000 Accumulated Depreciation (Equipment) 10, 000 Account Payable 15, 000 Unearned revenue 35, 000 Capital 40, 000 Total 200,000 200,000
During 2007 the following transactions were completed:-
January 1 Paid $10,000 for account payable
January 1 Purchased a Patrol Van worth $150,000; paid $50,000 by cheque and sign a note payable for the remainder (note payable is for 2 years with 10% interest rate)
February 2 Purchase $10,000 worth of supplies for cash
February 18 Owner invested additional $50,000 cash in the business.
February 16 Sent invoice to Metro Transport Limited $120, 000 for Security services.
March 1 Incurred advertising expenses worth $6, 000. March 3 Collected $15,000 from customers on account.
March 11 Completed security services for Urban Tourism Limited worth $120,000; received cheque of $60,000 and the remainder on account.
March 31 Received $15,000 as advance payment for service to be rendered to Star Shops.
April 13 Incurred utility expenses of $6,000 for the month of January – June 2009.
May 1 purchased a photocopy machine worth $20,000; paid cash of $5,000 and the remainder on account.
May 27 Paid for utility expenses incurred on April 13.
June18 Received Cheque from Estate Developers for security services worth $150,000.
July 2 Paid for advertising expenses incurred on March 1
August 19 received $30,000 cheque from Urban Tourism Limited for services on March 11.
September 21 Paid for the photocopy machine purchase on May 15.
October 23 received a $50,000 cheque as advance payment for security services. November 25 Paid for maintenance expenses of $15,000
December 15 received $60,000 from Metro Transport for services performed on February 16.
December 27 Incurred utility expenses of $6,500 for July – December 2009.
.
December 30 Owner withdraw $5,000 for personal use
Project 1: Required:
1. Journalize the transactions in the appropriate general journal.
2. Enter the opening balances in the ledger accounts and post the general journal to the affected general ledger
account.
3. Prepare a trial balance as at December 31.
To be submitted on after two weeks
Adjustments:
On December 31 the following transactions and adjustments were brought to your notice
1. Wages of $15,000 has been accrued.
2. Interest on the note payable is accrued for Patrol van
3. Depreciation on equipment is $1,500.
4. Depreciation on a patrol is calculated using straight line method based on 5 years useful life with no salvage value.
5. Depreciation on a photocopy machine is calculated using double declining balance based on 4 years useful life with no salvage value.
6. Supplies remaining at the end of the year are $1,500.
7. $10,000 of the cash advance received from King Company has been earned.
8. The two –year prepaid Insurance was purchased on July 1, 2009.
Project 2: Required:
4. Journalize the adjusting entries at year end and post them to the General ledger
5. Prepare the post adjustments trial balance for the year
6. Enter the information on the worksheet and complete the worksheet.
7. Prepare income statement, statement of owner’s equity statement and balance sheet. To be submitted after four weeks