PRINCIPLES OF ACCOUNTING I

ASSIGNMENT # 4
[Type text] Page 1


QUESTION # 1
Tahir Mirza began consultancy services on January 1, 2010. The trial balance his business at March 31,
2010 is as follows:
Trial Balance
Account titles Dr. Cr.
Cash $40,000
Accounts Receivable 19,770

Supplies 3,775
Prepaid Insurance 8,500
Equipment 105,000
Notes Payable $35,100
Accounts Payable 43,325
Tahir Mirza, Capital 70,100
Tahir Mirza, Drawing 2,100
Service Revenue 47,770
Salaries Expense 7,700
Travel Expense 4,550
Rent Expense 4,200
Miscellaneous Expense 700

$196,295 $196,295

Other data:
1. Supplies on hand total $1,330
2. Depreciation per quarter is $3,500
3. Interest accrued on 6-month note payable, issued January 1, $1,050
4. Insurance expires at the monthly rate of $700
5. Services provided but unbilled at March 31 total $1,855

Instructions
a) Journalize the adjusting entries.
b) Journalize the closing entries.
c) Prepare an income statement and owners equity statement for the quarter and a classified
balance sheet at March 31.Tahir Mirza did not make any additional investments in the business
during the quarter ended March 31, 2010.





PRINCIPLES OF ACCOUNTING I
ASSIGNMENT # 4
[Type text] Page 2

QUESTION # 2
Selected data from trial balance of Abu Talib & Co. is presented below:


Account titles
Trial Balance

Adjusted Trial
Balance
Dr. Cr. Dr. Cr.
Accounts Receivable

84,400
- ? -
Supplies ? -

5,700
-
Prepaid Insurance

36,100
- ? -
Accumulated Depreciation - 37,500 -

52,500
Interest Payable - - -

4,500
Service Revenue -

204,400
-

212,350
Supplies Expense - -

10,150
-
Depreciation Expense - -

15,000
-
Interest Expense - - ? -
Insurance Expense - -

9,000
-


Instructions
a) Fill in the missing amounts.
b) Prepare the adjusting entries that were made.