For this review assignment to work properly you must

'CALCULATION OPTIONS' set to 'MANUAL'

To set 'CALCULATION OPTIONS':

1) under 'FORMULAS' tab

2) in 'CALCULATION' section click 'CALCULATION OPTION
3) select 'MANUAL'

For a new set of questions:

1) under 'FORMULAS' tab
2) in 'CALCULATION' section click 'CALCULATE NOW'
top right icon

ANSWERS ARE ON LAST THREE SHEETS FOR REFEREN

Complete the following transactions that are on the "Transactions" tab. I recommend print
Blank Financial Statemnts and Blank T Accounts and do them by hand. You are also provid
a set of Financial Statements and T Accounts which have the solutions on them. After com
the transactions on your own, check the solution. Remember, once you recalculate as desc
above, a new set of numbers are generated which changes the solution. Before you begin,
would be a good idea to also print the transactions and the solutions so you have somethi
compare your answer to. Once you are satisfied with your answer, you can recalculate and
new set of numbers. Then try it again. Do this as many times as you like. Good Luck!

you must have

'MANUAL'

ATION OPTIONS'

ATE NOW'

R REFERENCE

recommend printing the

u are also provided with
them. After completeing
calculate as described
Before you begin, it
ou have something to
n recalculate and obtain a
Good Luck!

Opening Balances:
Cash
Accounts Receivable
Prepaid Insurance
Property, Plant & Equipment
Accounts Payable
Bank Loan
Unearned Revenue
Owner's Equity

28,000
3,500
134,700
11,700
2,400
152,100

Transactions:
1

Performed Services for Cash

4,600

Provided services - billed on account

3,900

Prepay insurance for the year

2,900

Customer paid previous months accounts receivable

1,750

Deposit money form customers who have paid in advance

4,000

Record telephone expense paid with credit card

Purchase Property Plant & Equipment on account

Recognize unearned revenue as earned

Recognize prepaid insurance for the month

242

10

Record depreciation expense for the month

2,245

11

Borrowed money from the Bank

12

Owner Invested Money into the business

7,200

13

Owner withdrew funds for personal use

4,400

14

Accrue for interest on bank loan due next month

1,000

15

Paid Salaries for the month by cheque

3,000

16

Took a client out for a meal and paid cash

200
41,800
4,000

20,400

100

Do not use a Contra Account

Income Statement
Revenue
Expenses
Telephone Expense
Insurance Expense
Salary expense
Interest Expense
Entertainment Expense
Maintenance
Meals Expense
Depreciation
Total Expenses
Net Profit (Loss)

Balance Sheet
Assets
Current Assets
Cash
Accounts Receivable
Prepaid Insurance
Property, Plant & Equipment
Total Assets
Liabilities
Accounts Payable
Interest Payable
Unearned Revenue
Bank Loan
Total Liabilities
Owner's Equity
Opening
Add: Capital
Add: Profit (Loss)
Less: Drawings
Closing Owner's Equity
Total Liabilities + Owner's Equity

BALANCE SHEET
ASSETS
Increase (DR)

Decrease (CR)
Cash

Opening Balance

Sub-Total
TOTAL:

Increase (DR)
Decrease (CR)
Accounts Receivable
Opening Balance

Sub-Total
TOTAL:

Increase (DR)
Decrease (CR)
Prepaid Insurance
Opening Balance

Sub-Total
TOTAL:

Increase (DR)
Decrease (CR)
Property, Plant & Equipment
Opening Balance

Sub-Total
TOTAL:

Do this Check: A = L + OE
Total Assets
Total Libilities
Owners' Equity

OWNER'S EQUITY
Opening Owner's Equity
ADD: Capital
ADD: NET PROFIT ( LOSS)
LESS: Owners' Drawings
Ending Owners' Equity

BALANCE SHEET
LIABILITIES
Decrease (DR)

Increase (CR)
Accounts Payable
Opening balance

Sub-Total
TOTAL:

Decrease (DR)

Increase (CR)
Bank Loan
Opening balance

Decrease (DR)

Sub-Total
TOTAL:

Increase (CR)
Unearned Revenue
Opening balance

Sub-Total
TOTAL:

OWNER'S EQUITY
Decrease (DR)

Increase (CR)
Capital

Opening balance

Sub-Total
TOTAL:

Increase (DR)

Decrease (CR)
Drawings

Opening Balance

Sub-Total
TOTAL:

Decrease (DR)

Increase (CR)
Interest Payable
Opening balance

Sub-Total
TOTAL:

INCOME STATEMENT

Decrease (D

Increase (DR)
Decrease (CR)
Telephone Expense

Sub-Total
TOTAL:

Increase (DR

Increase (DR)
Decrease (CR)
Salary expense

Sub-Total
TOTAL:

Increase (DR)
Decrease (CR)
Entertainment Expense

Sub-Total
TOTAL:

Increase (DR

Sub-Total
TOTAL:

Increase (DR

Sub-Total
TOTAL:

$
$

Sub-Total
TOTAL:

Increase (DR)
Decrease (CR)
Meals Expense

Sub-Total
TOTAL:

Increase (DR

Sub-Total
TOTAL:

ATEMENT

Decrease (DR)

Increase (CR)
Service Revenue

Sub-Total
TOTAL:

Increase (DR)

Decrease (CR)
Insurance Expense

Increase (DR)

Decrease (CR)
Interest Expense

Increase (DR)

Decrease (CR)
Maintenance

Increase (DR)

Decrease (CR)
Depreciation

INCOME STATEMENT

Decrease (D

Increase (DR)
Decrease (CR)
Telephone Expense
6

Sub-Total
TOTAL:

200

$
$

200
200

Increase (DR

Increase (DR)
Decrease (CR)
Salary expense
15

Sub-Total
TOTAL:

3,000

$
$

3,000
3,000

Increase (DR)
Decrease (CR)
Entertainment Expense

Sub-Total
TOTAL:

Increase (DR

Sub-Total
TOTAL:

Increase (DR

Sub-Total
TOTAL:

$
$

Sub-Total
TOTAL:

Increase (DR)
Decrease (CR)
Meals Expense
16

Sub-Total
TOTAL:

100

$
$

100
100

Increase (DR

Sub-Total
TOTAL:

ATEMENT

Decrease (DR)

Increase (DR)

Sub-Total
TOTAL:

$
$

4,600
3,900
4,000

12,500
12,500

Decrease (CR)
Insurance Expense

242

$
$

242
242

Increase (DR)

14

Increase (CR)
Service Revenue
1
$
2
$
8
$

Decrease (CR)
Interest Expense

1,000

$
$

1,000
1,000

Increase (DR)

Decrease (CR)
Maintenance

$
$

Increase (DR)

Decrease (CR)
Depreciation

10

2,245

$
$

2,245
2,245

BALANCE SHEET
ASSETS
Increase (DR)
Opening Balance

1
4
5
11
12
Sub-Total
TOTAL:

Decrease (CR)

$
$
$
$
$
$

Cash
28,000
4,600
1,750
4,000
20,400
7,200

$
$

65,950
55,550

3
13
15
16

$
$
$
$

2,900
4,400
3,000
100

10,400

Increase (DR)
Decrease (CR)
Accounts Receivable
$
3,500
Opening Balance
2
$
3,900
4
$
1,750

Sub-Total
TOTAL:

$
$

7,400
5,650

Increase (DR)
Decrease (CR)
Prepaid Insurance
$
Opening Balance
3
$
2,900
9
$

Sub-Total
TOTAL:

$
$

2,900
2,658

1,750

242

242

Increase (DR)
Decrease (CR)
Property, Plant & Equipment
$
134,700
Opening Balance
7
$
41,800
10
$
2,245

Sub-Total
TOTAL:

$
$

176,500
174,255

2,245

Do this Check: A = L + OE
Total Assets
Total Libilities
Owners' Equity

$ 238,113
$
77,500
$ 160,613

OWNER'S EQUITY
Opening Owner's Equity
ADD: Capital
ADD: NET PROFIT ( LOSS)
LESS: Owners' Drawings
Ending Owners' Equity

$ 152,100
$
7,200
$
5,713
$
4,400
$ 160,613

BALANCE SHEET
LIABILITIES
Decrease (DR)

Increase (CR)
Accounts Payable
$
Opening balance
6
$
7
$

Sub-Total
TOTAL:

Decrease (DR)

$
$

11,700
200
41,800

53,700
53,700

Increase (CR)
Bank Loan
$
$

2,400
20,400

$
$

22,800
22,800

Increase (CR)
Unearned Revenue
$
Opening balance
4,000
5
$

4,000

4,000 Sub-Total
TOTAL:

4,000
-

Opening balance

11

Decrease (DR)

Sub-Total
TOTAL:

$
$

OWNER'S EQUITY
Decrease (DR)

Increase (CR)
Capital

Opening balance

12

Sub-Total
TOTAL:

Increase (DR)

$
$

152,100
7,200

$
$

159,300
159,300

Decrease (CR)
Drawings

Opening Balance

13

Sub-Total
TOTAL:

4,400

$
$

4,400
4,400

Decrease (DR)

Increase (CR)
Interest Payable
Opening balance

14

Sub-Total
TOTAL:

$
$ 1,000

$ 1,000
$ 1,000

Income Statement
Revenue

12,500.00

$
$
$
$
$
$
$
$

200
242
3,000
1,000
100
2,245

$
$

6,787
5,713

Assets
Current Assets
Cash
Accounts Receivable
Prepaid Insurance
Property, Plant & Equipment
Total Assets

$
$
$
$
$

55,550
5,650
2,658
174,255
238,113

Liabilities
Accounts Payable
Interest Payable
Unearned Revenue
Bank Loan
Total Liabilities

$
$
$
$
$

53,700
1,000
22,800
77,500.00

Owner's Equity
Opening
Add: Capital
Add: Profit (Loss)
Less: Drawings
Closing Owner's Equity

$
$
$
$
$

Total Liabilities + Owner's Equity

Expenses
Telephone Expense
Insurance Expense
Salary expense
Interest Expense
Entertainment Expense
Maintenance
Meals Expense
Depreciation
Total Expenses
Net Profit (Loss)

Balance Sheet

152,100
7,200
5,713
(4,400)
160,613
238,113