Acc for Busi Assignment

7/30/2019 Acc for Busi Assignment

1/12

Accounting ForBusinessClass BAP 12 C

Group Assignment @ 2Lecturer:Nisha Dookie

STUDENTS

Name : Pramodh K Sherla ID : 1156600

Name : Vijay Kumar V Patel ID : 1212381


2/12

Preparing a worksheet and the financial statements.

Required

1.)Enter the account data in trail balance columns of work sheet and complete the work sheet.Key each adjusting entry by the letter corresponding to the data given. List all the accounts,

including those with zero balances. Leave a blank line under Service Revenue.

ADJUSTING & CLOSINGPROCESS

Unadjusted

Trial Balance Adjustments Adjusted TrialBalance

Account title Dr Cr Dr Cr Dr Cr

Cash at bank 29 000 29 000

Accounts receivable 44 000 4 000 48 000

Supplies 6 000 4 000 2 000

Computers 22 000 22 000

Accumulated deprecation 12000

5 000 17 000

Accounts payable 16000

16 000

Salary payable 1 000 1 000

Unearned service

revenue

2 000 2 000

Bill payable, Non-current 40000

40 000

Tom Fritz, capital 41000

41 000

Tom Fritz, drawings 54 000 54 000

Service revenue 95000

4 0002 000

101000

Salary expense 36 000 1 000 37 000

Supplies expense 4 000 4 000

Depreciation expense 5 000 5 000

Interest expense 5 000 5 000

Advertising expense 10 000 10 000

TOTAL 206000

206000

16000

16000

216000

216000

2.)Prepare the income statement, the statement of changes in owners equity and the classifiedbalance sheet in account form.

Investors Brokerage

Income Statement

For the month ended 31 December 20x1

Revenue

Service revenue 101 000

Expenses

Salary expense 37 000

Supplies expense 4 000

Depreciation expense 5 000Interest expense 5 000

Advertising expense 10 000


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Total expenses 61 000

Net Profit 40 000

Investors BrokerageStatement of Changes in Equity

For the month ended 31 December 20x1

Tom Fritz, Capital, 1 December 20x1 41 000

Add: Net Profit 40 000

81 000

Less: Drawings (54 000)

Tom Fritz, Capital, 31 December 20x1 27 000

Investors Brokerage

Balance Sheet

As at 31 December 20x1

Assets Liabilities

Cash at bank 29 000 Accounts payable 16 000

Accounts receivable 48 000 Salary payable 1 000

Supplies 2 000 Bill payable, Non- 40 000Computers 22 Total liabilites 57 000

Less: Accumulated 17 5 000

Owners Equity

Tom Fritz, capital 27 000

Total assets 84 000 Total liabilities and 84 000

3.)Did Investors Brokerage have a good or a bad year during 20x1? Give the reason for your

answer.

- Investors Brokerage have a good year during 20x1 because the income statement has beenshown that after deduct expenses from service revenue,

The Investors Brokerage still got profit which is $ 40 000.


4/12

QUESTION P6-2

Purchase Cost of sale Inventory on hand

Qty Unit TotalCost

Qty Unit TotalCost

Qty Unit TotalCost

Stock 50 30 1500 50 30 1500

Purchase

1

60 35 2100 50 30 1500

60 35 2100

Sales 1 100 60 6000 50 30 1500 10 35 350

50 35 1750 100 60 6000

Purchase2

90 40 3600 10 35 350

100 60 6000

90 40 3600

Sales 2 70 70 4900 10 35 350 40 60 2400

60 60 360 90 40 3600


5/12

Average Cost

Purchases Cost of sales Inventory on hand Journal Entries Dr Cr

QTY UnitCost

Totalcost

QTY Unit Cost Total cost QTY Unit Cost Totalcost

inventory 2100

Stock 50 30 1500 Ac Payable 2100

purchase 1 60 35 2100 110 32-73 3600 AcReceivable

6000

SalesRevenue

6000

Sales 1 100 32.73 3273 10 32.73 327.3

Cost OfSales

3273

Inventory 3273

Purchases 2 90 40 3600 100 39.27 3927.3

Inventory 3600

Ac Payable 3600

sales 2 70 39.27 2748.9 30 39.27 1178.1

AcReceivable

4900

SalesRevenue

4900

Total 150 5700 170 6021.9 30 39.27 1178.1

Cost OfSales

2748.9

Inventory 2748.9

(P7-3)

Accounting concepts and principles

a) Accounting period conceptb) Profit recognition principlec) Profit recognition principled) Comparabilitye) Cost principlef) Relevanceg) Entityh) Matching principlei) Going concern principle

j) Matching principle


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(P7-4)

Accounting concepts and principles

a) Entityb) Going concern principlec) Matching principle

d) Profit recognition principlee) Cost principlef) Matching principleg) Reliabilityh) Cost principlei) Comparability

j) Relevance

P10 -2

a.

Particular Dr cr

Account receivable

Sales revenue

560000

560000

Cash

Account receivable

601000

601000

Allowance for bad debt

Allowance receivable

8000

8000

Bad debt expenses


11200

11200

Cash account

Account receivable60100

balance c/d 601000

Account receivable

Dr

Sales revenue560000

Balance b/d 41000

cash 601000


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Sales revenue

Dr Cr

Balance b./d560000

account receivable 560000

b.


account

drcr


8000

Balance b/d 3200

bad debt expenses 11200


Dr Cr

Balance b/d

8000

allowance for bad debt

8000

Bad debt expenses

Dr Cr

Allowance for bad debt11200

balance c/d 11200


8/12

E11.7

Data item amountCost of equipment $15000Useful life 4 yrs

Fry jobs 3000 (on the basis of performance)Residual value $3000

Part 1 straight line depreciation

Straight line depreciation = Cost Residual value/Useful life in years=(15000-3000)/4=$3000 per yr

Depreciation for year

Years Asset

Cost

Deprec rate

x

Deprec

amt =

Deprec exp Acc

Deprec

Carrying

amt

1 15000 1/4*12/12 12000 3000 3000 12000

2 15000 1/4*12/12 12000 3000 6000 9000

3 15000 1/4*12/12 12000 3000 9000 6000

4 15000 1/4*12/12 12000 3000 12000 3000

Part 2 Units of production depreciation

Units of production Depreciation = Cost Residual Value/Useful life (in units)=(15000-

3000)/3000=$4 per unit


Year AssetCost

Deprecrate x

Deprec amt=

Deprec exp AccDeprec

Carryingamt

1 15000 4 300 1200 1200 13800

2 4 900 3600 4800 10200

3 4 1200 4800 9600 5400


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4 4 600 2400 12000 3000

Part 3 Reducing balance method

Reducing balance depreciation = Carrying amount X Depreciation Rate=0.669


Year Asset

Cost

Reducing

balancerate x

Deprec amt

=

Deprec exp Acc

Deprec

Carrying

amt

1 15000 0.669 15000 10035 10035 4965

2 4965 0.669 4965 3321.585 13356.585

1643.415

3

4

Comparison

Year St line Units of activity Reducing balance

1 3000 1200

2 3000 3600

3 3000 4800

4 3000 2400

P11.1

Furniture LAN

D

LAND

IMPROVEMEN

TS

BUILDING

(a) Purchase price of two hectares of land 85000

(b) Real estate agents commission 3400

(c) Landscaping (additional soil and earthmoving) 8100


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(d) Fence around the boundary of the property 9900

(e) Legal fees 5900

(f) Business name e signs at front of the property 9700

(g) Building permit for the building 500

(h) Architects fees for the design of the building 22500

(i) Labour cost to construct the building 16900

J Materials used to construct the building 215000

k Interest cost on construction loan for thebuilding

9000

L Landscaping 6400

M Parking area and concrete footpaths 29700

N Lights for the parking area and the footpaths 10300

O Salary of construction supervisor 40000

p Furniture for the building 117800

Q Transportations and installation of furniture 2200

A . Total 120000 142400 115100 456000

B.depreciation for 8months

120000/8*8/12=

$10000

115100/20*8/12=

$3836.67

456000/40*8/12=

$7600

11.2

DATE

1 jan

DR/CR

Dr

Dr

Cr

Cr

DETAILS

Accumulated Depreciation

Equipment

Cash Received Trade in

Equipment

D4

$

90,000

$ 60,000

Cr

$ 130,000

$ 20,000


11/12

1-July

*****

31 Oct

30 Dec

31 Dec

*****

*****

Dr

Cr

Dr

Cr

Note

Dr

Dr

Dr

Cr

Cr

Dr

Dr

Cr

Dr

Cr

Dr

Cr

Note

Dr

Cr

Note

Gain On Sale

Equipment-New

Cash Paid

Depreciation Expense

Building


Depreciating 182 days of 365

Days

Accumulated depreciation-

Building

Cash received

Trade Debtor

Sold Building @Cost

Gain On Sale

Land

Building

Cash Paid

Land Revalued

Gain On Market value

movement

Depreciation Expense

equipment


equipment

Depreciation for full year

Depreciation expense

building

Accumulated depreciation-

Building

Depreciating 62 days of 365

days

$176,00

0

$

6,232.88

$

256,233

$

100,000

200,000

$

100,000

$

200,000

$ 5000

$16,500,0

0

$ 636.99

$ 176,000

$6232.88

$ 550,000

$ 6,233

$ 300,000

$ 5000

$ 16,500,00

$636.99


12/12

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Acc for Busi Assignment