Accounting For Business

Class BAP 12 C

Group Assignment @ 2
Lecturer:

Nisha Dookie

STUDENTS Name : Pramodh K Sherla ID : 1156600

Name : Vijay Kumar V Patel ID : 1212381

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 & CLOSING PROCESS Account title Cash at bank Accounts receivable Supplies Computers Accumulated deprecation Accounts payable Salary payable Unearned service revenue Bill payable, Non-current Tom Fritz, capital Tom Fritz, drawings Service revenue Salary expense Supplies expense Depreciation expense Interest expense Advertising expense TOTAL 54 000 95 000 36 000 1 000 4 000 5 000 4 000 2 000 37 4 5 5 10 16 000 000 000 000 000 000 216 000 216 000 Unadjusted Trial Balance Dr 29 000 44 000 6 000 22 000 Cr Adjustments Dr 4 000 4 000 12 000 16 000 2 000 40 000 41 000 54 000 101 000 2 000 40 000 41 000 5 000 Cr Adjusted Trial Balance Dr Cr 29 000 48 000 2 000 22 000 17 000 16 000 1 000 1 000

5 000 10 000 206 000 206 000 16 000

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

Investors Brokerage Income Statement For the month ended 31 December 20x1 Revenue Service revenue Expenses Salary expense Supplies expense Depreciation expense Interest expense Advertising expense 37 000 4 000 5 000 5 000 10 000 101 000

Total expenses Net Profit

61 000 40 000

Investors Brokerage Investors Brokerage Statement of Changes in Equity For the month ended 31 December 20x1 Tom Fritz, Capital, 1 December 20x1 Add: Net Profit Less: Drawings Tom Fritz, Capital, 31 December 20x1 41 000 40 000 81 000 (54 000) 27 000

Investors Brokerage Balance Sheet As at 31 December 20x1 Assets Cash at bank Accounts receivable Supplies Computers Less: Accumulated Depreciation 22 000 17 000 29 000 48 000 2 000 5 000 Owners Equity Tom Fritz, capital Total assets 84 000 Total liabilities and owners equity 27 000 84 000 Liabilities Accounts payable Salary payable Bill payable, Noncurrent Total liabilites 16 000 1 000 40 000 57 000

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 been shown that after deduct expenses from service revenue, The Investors Brokerage still got profit which is $ 40 000.

QUESTION P6-2

Purchase Qty Stock Purchase 1 50 60 Unit 30 35 Total Cost 1500 2100

Cost of sale Qty Unit Total Cost

Inventory on hand Qty 50 50 60 Unit 30 30 35 35 60 Total Cost 1500 1500 2100 350 6000

Sales 1

100

60

6000

50 50

30 35

1500 1750

10 100

Purchase 2

90

40

3600

10 100 90

35 60 40 60 40

350 6000 3600 2400 3600

Sales 2

70

70

4900

10 60

35 60

350 360

40 90

Average Cost

Purchases QTY Stock Unit Cost Total cost

Cost of sales QTY Unit Cost Total cost

Inventory on hand QTY 50 Unit Cost 30 Total cost 1500

Journal Entries

Dr

Cr

inventory Ac Payable Ac Receivable Sales Revenue

2100 2100 6000 6000

purchase 1

60

35

2100

110

32-73

3600

Sales 1

100

32.73

3273

10

32.73

327.3

Cost Of Sales Inventory

Purchases 2 90 40 3600 100 39.27 3927.3

3273 3273 3600 3600 4900 4900

Inventory Ac Payable
sales 2 70 39.27 2748.9 30 39.27 1178.1

Ac Receivable Sales Revenue

Total 150 5700 170 6021.9 30 39.27 1178.1

Cost Of Sales Inventory

2748.9 2748.9

(P7-3) Accounting concepts and principles a) b) c) d) e) f) g) h) i) j) Accounting period concept Profit recognition principle Profit recognition principle Comparability Cost principle Relevance Entity Matching principle Going concern principle Matching principle

(P7-4) Accounting concepts and principles a) b) c) d) e) f) g) h) i) j) Entity Going concern principle Matching principle Profit recognition principle Cost principle Matching principle Reliability Cost principle Comparability Relevance

P10 -2 a.
Particular Account receivable Sales revenue Cash Account receivable Allowance for bad debt Allowance receivable Bad debt expenses Allowance for bad debt 11200 11200 8000 8000 601000 601000 Dr 560000 560000 cr

Cash account Account receivable 60100 balance c/d 601000

Account receivable Dr Sales revenue 560000 Balance b/d 41000 cash 601000

Sales revenue Dr Balance b./d 560000 Cr account receivable 560000

b. Allowance for bad debt account dr Allowance receivable 8000 Balance b/d 3200 bad debt expenses 11200

cr

Allowance receivable Dr Balance b/d 8000 Cr allowance for bad debt 8000

Bad debt expenses Dr Allowance for bad debt 11200 Cr balance c/d 11200

E11.7 Data item Cost of equipment Useful life Fry jobs Residual value amount $15000 4 yrs 3000 (on the basis of performance) $3000 Part 1 straight line depreciation

Straight line depreciation = Cost Residual value/Useful life in years=(150003000)/4=$3000 per yr Depreciation for year Years 1 2 3 4 Asset Cost 15000 15000 15000 15000 Deprec rate x 1/4*12/12 1/4*12/12 1/4*12/12 1/4*12/12 Deprec amt = 12000 12000 12000 12000 Deprec exp 3000 3000 3000 3000 Acc Deprec 3000 6000 9000 12000 Carrying amt 12000 9000 6000 3000

Part 2 Units of production depreciation Units of production Depreciation = Cost Residual Value/Useful life (in units)=(150003000)/3000=$4 per unit Depreciation for year Year 1 2 3 Asset Cost 15000 Deprec rate x 4 4 4 Deprec amt = 300 900 1200 Deprec exp 1200 3600 4800 Acc Deprec 1200 4800 9600 Carrying amt 13800 10200 5400

600

2400

12000

3000

Part 3 Reducing balance method Reducing balance depreciation = Carrying amount X Depreciation Rate=0.669 Depreciation for year Year Asset Cost 15000 4965 Reducing balance rate x 0.669 0.669 Deprec amt = 15000 4965 Deprec exp Acc Deprec 10035 13356.58 5 Carrying amt 4965 1643.415

1 2 3 4

10035 3321.585

Comparison Year 1 2 3 4 St line 3000 3000 3000 3000 Units of activity 1200 3600 4800 2400 Reducing balance

P11.1 Furniture LAN D LAND IMPROVEMEN TS BUILDING

(a) (b) (c)

Purchase price of two hectares of land Real estate agents commission Landscaping (additional soil and earthmoving)

85000 3400 8100

(d) (e) (f) (g) (h) (i) J k L M N O p Q A . Total B. depreciati on for 8 months

Fence around the boundary of the property Legal fees Business name e signs at front of the property Building permit for the building Architects fees for the design of the building Labour cost to construct the building Materials used to construct the building Interest cost on construction loan for the building Landscaping Parking area and concrete footpaths Lights for the parking area and the footpaths Salary of construction supervisor Furniture for the building Transportations and installation of furniture 117800 2200 120000 120000/8*8/ 12= $10000 142400 29700 10300 5900

9900

9700 500 22500 16900 215000 9000 6400

40000

115100 115100/20*8/12 = $3836.67

456000 456000/40*8/1 2= $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 $ 130,000 $ 20,000 Cr

Dr Cr 1-July Dr Cr ***** Note Dr Dr Dr Cr Cr 31 Oct Dr Dr Cr 30 Dec Dr Cr 31 Dec Dr Cr ***** Note Dr Cr ***** Note

Gain On Sale Equipment-New Cash Paid Depreciation Expense Building Accumulated Depreciation Depreciating 182 days of 365 Days Accumulated depreciationBuilding Cash received Trade Debtor Sold Building @Cost Gain On Sale Land Building Cash Paid Land Revalued Gain On Market value movement Depreciation Expense equipment Accumulated Depreciation equipment Depreciation for full year Depreciation expense building Accumulated depreciationBuilding Depreciating 62 days of 365 days $ 636.99 $ 16,500,0 0 $ 100,000 $ 200,000 $ 5000 $ 256,233 $ 100,000 200,000 $ 300,000 $ 550,000 $ 6,233 $176,00 0 $ 176,000

$6232.88 $ 6,232.88

$ 16,500,00

$ 5000 $636.99