ACCOUNTING PRINCIPLES

ASSIGNMENT - 02

MBA (Weekend) Fall-2010

_____________________________________________________________________
___
Submitted by: Muhammad Bux Shaikh

1
E2.14

SANFORD DELIVERY SERVICE

TRIAL BALANCE
A/c Receivable 7,642  
Cash 20,567  
Delivery Equipment 49,360  
Gas & Oli Expense 758  
Insurance Expense 523  
Prepaid Insurance 1,968  
Repair Expense 961  
Dividend 700  
Salaries Expense 4,428  
A/C Payable   8,396
Notes Payable   18,450
Service Revenue   10,610
Share Capital   40,000
Retained Earnings   4,636
Salaries Payable   815
  86,907 86,907

2
P2-1A
FRONTIER PARK
GENERAL JOURNAL

Date Description Dr. Cr.

April 1 Cash 40,000
Share Capital Order 40,000
(Share holders invested cash)
April 4 Land 30,000
Cash 30,000
(Purchase land for cash)
April 8 Advertising Expense 1,800
A/c Payable 1,800
(Arranged advertisement on account)
April 11 Salaries Expense 1,500
Cash 1,500
(Paid salaries to Employees)
April 13 Prepaid Insurance 1,500
Cash 1,500
(Paid One year insurance premium)
April 17 Dividend Expense 1,000
Cash 1,000
(Paid Dividends)
April 20 Cash 5,700
Admission Fees Revenue 5,700
(Received admission fees in cash)
April 25 Cash 2,500
Unearned Admission fees Revenue 2,500
(Sold admission coupon in advance)
April 30 Cash 8,900
Admission Fees Revenue 8,900
(Received Admission fees Revenue )
April 30 A/c Payable 900
Cash 900
(Paid Cash against account Payable)

3
P2-2A
(a)
JANE KENT
GENERAL JOURNAL

Date Description Dr. Cr.

May 01 Cash 25,000
Share Capital – ordinary 25,000
(Share holders invested cash)
May 02 No entry
May 03 Office Supplies 2,500
Account payable 2,500
(Purchased office supplies on credit)
May 07 Rent expense 900
Cash 900
(Paid rent for the month)
May 11 Account receivable 2,10
Service Revenue 2,100
(Earned service revenue on account)
May 12 Cash 3,500
Unearned Service Revenue 3,500
(Received Revenue in advance)
May 17 Cash 1,200
Service Revenue 1,200
(Earned Service revenue)
May 31 Salaries Expense 2,000
Cash 2,000
(Paid salary to the receptionist)
May 31 Account Payable 1,000
Cash 1,000
(Paid cash to creditors)

4
(b)

JANE KENT – LEDGERS

CASH
Posting
Date Description Dr. Cr. Balance
Ref.
May 01 – – 25,000 – 25,000
May 07 – – – 900 24,100
May 12 – – 3,500 – 27,600
May 17 – – 1,200 – 28,800
May 31 – – – 2,000 26,800
May 31 – – – 1,000 25,800

SHARE CAPITAL – ORDINARY

Posting
Date Description Dr. Cr. Balance
Ref.
May 01 – – 25,000 – 25,000

OFFICE SUPPLIES
Posting
Date Description Dr. Cr. Balance
Ref.
May 03 – – 2,500 – 2,500

ACCOUNT PAYABLE
Posting
Date Description Dr. Cr. Balance
Ref.
May 03 – – – 2,500 2,500
May 31 – – 1,000 – 1,500

RENT EXPENSE
Posting
Date Description Dr. Cr. Balance
Ref.
May 07 – – 900 – 900

5
 ACCOUNT RECEIVABLE
Posting
Date Description Dr. Cr. Balance
Ref.
May 11 – – 2,100 – 2,100

SERVICE REVENUE
Posting
Date Description Dr. Cr. Balance
Ref.
May 11 – – – 2,100 2,100
May 17 – – 1,200 – 3,300

UNEARNED SERVICE REVENUE

Posting
Date Description Dr. Cr. Balance
Ref.
May 12 – – – 3,500 3,500

SALARIES EXPENSE
Posting
Date Description Dr. Cr. Balance
Ref.
May 31 – – 2,000 – 2,000

(c)
JANE KENT, ACCOUNTANTS
TRIAL BALANCE
MAY 31, 2011
Cash 25,800
Office Supplies 2,500
Rent Expense 900
Account Receivable 2,100
Salaries Expense 2,000
Share Capital 25,000
Accounts Payable 1,500
3,300
3,500
33,300 33,300

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P2-3A
(a)

CASH
Posting
Date Description Dr. Cr. Balance
Ref.
Dec 31 – – – – 8,000
Jan 01 – – – 1,000 7,000
Jan 03 – – – 2,000 5,000
Jan 04 – – 14,000 – 19,000
Jan 05 – – – 15,000 15,000
Jan 07 – – 6,000 – 21,000
Jan 08 – – – 3,000 18,000
Jan 09 – – – 3,000 15,000

ACCOUNT RECEIVABLE
Posting
Date Description Dr. Cr. Balance
Ref.
Dec 31 – – – – 15,000
Jan 07 – – 9,000 – 24,000

PARTS INVENTORY
Posting
Date Description Dr. Cr. Balance
Ref.
Dec 31 – – – – 13,000
Jan 02 – – 4,000 – 17,000
Jan 06 – – 4,000 13,000

PREPAID RENT
Posting
Date Description Dr. Cr. Balance
Ref.
Dec 31 – – – – 3,000

REPAIR PARTS EXPENSE

Posting
Date Description Dr. Cr. Balance
Ref.
Jan 07 – – 4,000 – 4,000

SHOP EQUIPMENT
Posting
Date Description Dr. Cr. Balance
Ref.
Dec 31 – – – – 21,000

ACCOUNT PAYABLE
Date Description Posting Dr. Cr. Balance

7
 Ref.
Dec 31 – – – – 19,000
Jan 02 – – – 4,000 23,000
Jan 05 – – 15,000 – 8,000

SHARE CAPITAL
Posting
Date Description Dr. Cr. Balance
Ref.
Dec 31 – – – – 30,000

RETAINED EARNINGS
Posting
Date Description Dr. Cr. Balance
Ref.
Dec 31 – – – – 11,000
Jan 09 – – 3,000 – 8,000

MISC. EXPENSE
Posting
Date Description Dr. Cr. Balance
Ref.
Jan 03 – – 2,000 – 2,000

REPAIR SERVICE REVENUE

Posting
Date Description Dr. Cr. Balance
Ref.
Jan 07 – – – 6,000 6,000
Jan 07 – – – 9,000 15,000

WAGES EXPENSE
Posting
Date Description Dr. Cr. Balance
Ref.
Jan 08 – – 3,000 – 3,000

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P2-4A
STERLING COMPANY
TRIAL BALANCE (CORRECT)
MAY 31, 2011

Cash 5,965
Account receivable 2,360
Prepaid Insurance 800
Equipment 7,480
Salaries Expense 4,400
Advertising Expense 1,505
Property Tax Expense 900
Dividends 1,000
Office Supplies 520
Account Payable 4,710
Property Tax Expense 560
Share Capital 12,700
Service Revenue 6,960

24,930 24,930

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P2-5A
LAKE THEATRE
GENERAL HOURNAL
Date Description Dr. Cr.
April 02 Film Rental Expense 800
Cash 800
(Paid Film rental)
April 03 No entry
April 09 Cash 2,800
Admission Revenue 2,800
(Earned Admission Revenue)
April 10 Mortgage Payable 2,000
Account Payable 1,000
Cash 3,000
(Paid for Mortgage on Account payable)
April 11 No Entry
April 12 Advance Expense 500
Cash 500
(Paid Advance Expense)
April 20 Equipment (Film) 1,000
Account Payable 1,000
(Earned Film on Account)
April 25 Cash 5,200
Admission Revenue 5,200
(Earn Admission Revenue)
April 29 Salaries Expense 2,000
Cash 2,000
(Paid salaries)

CASH – 101
Posting
Date Description Dr. Cr. Balance
Ref.
Mar 31 – – – – 6,000
April 02 – – – 800 5,200
April 09 – – 2,800 – 8,000
April 10 – – – 3,000 5,000
April 12 – – – 500 4,500
April25 – – 5,200 – 9,700
April29 – – – 2,000 7,700

LAND – 140
Posting
Date Description Dr. Cr. Balance
Ref.
Mar 31 – – – – 10,000

BUILDINGS – 145

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 Posting
Date Description Dr. Cr. Balance
Ref.
Mar 31 – – – – 8,000

Posting
Date Description Dr. Cr. Balance
Ref.
Mar 31 – – – – 6,000
April 20 – – – 1,000 7,000

SALARIES EXPENSE
Posting
Date Description Dr. Cr. Balance
Ref.
April 29 – – 2,000 – 2,000

ACCOUNTS PAYABLE – 201

Posting
Date Description Dr. Cr. Balance
Ref.
Mar 31 – – – – 2,000
April 10 – – 1,000 – 1,000
April 20 – – – 1,000 2,000

MARTGAGE PAYABLE – 275

Posting
Date Description Dr. Cr. Balance
Ref.
Mar 31 – – – – 8,000
April 10 – – 2,000 – 6,000

SHARE CAPITAL – ORDINARY – 311

Posting
Date Description Dr. Cr. Balance
Ref.
Mar 31 – – – – 20,000

FILM RENTAL EXPENSE

Posting
Date Description Dr. Cr. Balance
Ref.
April 02 – – 800 – 800

ADMISSION REVENUE
Posting
Date Description Dr. Cr. Balance
Ref.
April 09 – – – 2,800 2,800

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 April 25 – – – 5,200 8,000

ADVERTISING EXPENSE
Posting
Date Description Dr. Cr. Balance
Ref.
April 12 – – 500 – 500

LAKE THEATRE
TRIAL BALANCE
APRIL 30
Cash 7,700
Land 10,000
Buildings 8,000
Equipments 7,000
Salaries Expense 2,000
Film Rental Expense 800
Advertising Expense 500
Accounts Payable 2,000
Mortgage Payable 6,000
Share Capital – Ordinary 20,000
Admission Revenue 8,000

36,000 36,000

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P2-1B
HYZER DISC GOLF COURSE
GENERAL HOURNAL
Date Description Dr. Cr.
Mar 01 Cash 20,000
Share Capital - Ordinary 20,000
(Invested Cash in Business)
Mar 03 Land 12,000
Building (used) 2,000
Equipment 1,000
Cash 15,000
(Purchased Land, Building, Equipment)
Mar 05 Advertising Expense 700
Cash 700
(Paid for Advertisement)
Mar 06 Prepaid Insurance 600
Cash 600
(Paid for Insurance in Advance)
Mar 10 Equipments 1,050
Account Payable 1,050
(Purchased equipments on Account)
Mar 18 Cash 340
Fees revenue 340
(Earned Fees Revenue)
Mar 19 Cash 1,000
Unearned fees revenue 1,000
(Sold coupons in advance)
Mar 25 Dividends 800
Cash 800
(Paid cash dividends)
Mar 30 Salaries Expense 250
Cash 250
(Paid salaries)
Mar 30 Account payable 1,050
Cash 1,050
(Paid off to Creditors)
Mar 31 Cash 2,000
Fees Revenue 2,000
(Earned Fees Revenue)

13
P2-2B
MARIA JUAREZ DENTISTS
GENERAL JOURNAL
Date Description Dr. Cr.
April 01 Cash 40,000
Share Capital - Ordinary 40,000
(Invested Cash in Business)
April 01 No Entry
April 02 Rent Expense 1,000
Cash 1,000
(Paid Rent)
April 03 Supplies 4,000
Account payable 4,000
(Purchase supplies on account)
April 10 Account receivable 5,100
Service Revenue 5,100

April 11 Cash 1,000

Unearned service Revenue 1,000

April 20 Cash 2,100

Service revenue 2,100

April30 Salaries Expense 24,00

Cash 24,00

April 30 Account Payable 1,600

Cash 1,600

CASH – 101
Posting
Date Description Dr. Cr. Balance
Ref.
April 01 – – 40,000 – 40,000
April 02 – – – 1,000 39,000
April 11 – – 1,000 – 40,000
April 20 – – 2,100 – 42,100
April 30 – – – 2,400 37,700
April 30 – – – 1,600 38,100

ACCOUNT RECEIVABLE – 112

Posting
Date Description Dr. Cr. Balance
Ref.
April 10 – – 5,100 – 5,100

SUPPLIES – 126
Posting
Date Description Dr. Cr. Balance
Ref.

14
April 03 – – 4,000 – 4,000

ACCOUNT PAYABLE – 201

Posting
Date Description Dr. Cr. Balance
Ref.
April 03 – – – 4,000 4,000
April 30 – – 1,600 – 2,400

UNEARNED REVENUE – 209

Posting
Date Description Dr. Cr. Balance
Ref.
April 11 – – – 1,000 1,000

SHARE CAPITAL – 311

Posting
Date Description Dr. Cr. Balance
Ref.
April 01 – – – 40,000 40,000

SERVICE REVENUE – 400

Posting
Date Description Dr. Cr. Balance
Ref.
April 10 – – – 5,100 5,100
April 20 – – – 2,100 2,100

SALARIES EXPENSE – 726

Posting
Date Description Dr. Cr. Balance
Ref.
April 30 – – 2,400 – 2,400

RENT EXPENSE – 729

Posting
Date Description Dr. Cr. Balance
Ref.
April 02 – – 1,000 – 1,000

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 MARIA JAUREZ DENTISTS
TRIAL BALANCE
APRIL 30, 2011
Cash 38,100
Account receivable 5,100
Supplies 4,000
Salaries Expense 2,400
Rent Expense 1,000
Account payable 2,400
Share capital ordinary 40,000
Unearned revenue 1,000
Service revenue 7,200

50,600 50,600

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P2-3B
SLOW HAND SERVICES
GENERAL JOURNAL
Date Description Dr. Cr.
May 01 Cash 50,000
Share Capital - Ordinary 50,000

May 01 No Entry
May 01 Prepaid rent 24,000
Cash 24,000

May 01 Furniture & equipment 30,000

Cash 10,000
Account payable 20,000

May 01 Prepaid insurance 1,800

Cash 1,800

May 01 Office Supplies 500

Cash 500

May 01 Office Supplies 1,500

Cash 1,500

May 01 Cash 8,000

Account payable 12,000
Service Revenue 20,000
May 01 Account payable 400
Cash 400

May 01 Cash 3,000

Account receivable 3,000

May 01 Utility Expense 200

Utility payable 200
May 01 Salaries Expense 5,600
Cash 5,600

17
 CASH
Posting
Date Description Dr. Cr. Balance
Ref.
May 01 – – 50,000 – 50,000
May 01 – – – 24,000 26,000
May 01 – – – 10,000 16,000
May 01 – – – 1,800 14,200
May 01 – – – 500 13,700
May 01 – – 8,000 – 21,700
May 01 – – – 400 21,300
May 01 – – 3,000 – 24,300
May 01 – – – 5,600 18,700

SHARE CAPITAL – ORDINARY

Posting
Date Description Dr. Cr. Balance
Ref.
May 01 – – – 50,000 50,000

PERPAID RENT
Posting
Date Description Dr. Cr. Balance
Ref.
May 01 – – 24,000 – 50,000

FURNITURE & EQUIPMENT

Posting
Date Description Dr. Cr. Balance
Ref.
May 01 – – 30,000 – 30,000

ACCOUNT PAYABLE
Posting
Date Description Dr. Cr. Balance
Ref.
May 01 – – – 20,000 20,000
May 01 – – – 1,500 21,500
May 01 – – 400 – 21,100

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 PREPAID INSURANCE
Posting
Date Description Dr. Cr. Balance
Ref.
May 01 – – 1,800 – 1,800

OFIFCE SUPPLIES
Posting
Date Description Dr. Cr. Balance
Ref.
May 01 – – 500 – 500
May 01 – – 1,500 – 2,000

ACCOUNT RECEIVABLE
Posting
Date Description Dr. Cr. Balance
Ref.
May 01 – – 12,000 – 12,000
May 01 – – – 30,000 9,000

SERVICE REVENUE
Posting
Date Description Dr. Cr. Balance
Ref.
May 01 – – – 20,000 20,000

UTILITY EXPENSE
Posting
Date Description Dr. Cr. Balance
Ref.
May 01 – – 200 – 200

SALARIES EXPENSE
Posting
Date Description Dr. Cr. Balance
Ref.
May 01 – – 5,600 – 5,600

UTILITIES PAYABLE
Posting
Date Description Dr. Cr. Balance
Ref.
May 01 – – – 200 200

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 SLOWHAND SERVICES
TRIAL BALANCE
MAY 31, 2011
Cash 18,700
Prepaid rent 24,000
Furniture & Equipment 30,000
Prepaid insurance 1,800
Office supplies 2,000
Account receivable 9,000
Utility expense 200
Salaries expense 5,600
Share capital 50,000
Account payable 21,100
Service revenue 20,000
Utilities payable 200

91,300 91,300

P2-4B
SYED MOIZ CO.

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 CORRECTED TRIAL BALANCE
JUNE 30, 2011
Cash 3,700
Account receivable 2,371
Supplies 580
Equipment 3,220
Account payable 3,000
Unearned revenue 1,100
Share capital-ordinary 8,000
Dividends 1,400
Service revenue 3,281
Salaries expense 3,300
Office expense 810

15,381 15,381

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P2-5B
(a)
JOSIE THEATRE – GENERAL LEDGER
101-CASH
Posting
Date Description Dr. Cr. Balance
Ref.
Mar 01 – √ – – 9,000
Mar 02 – – – 1,500 7,500
Mar 10 – – – 4,100 3,400
Mar 12 – – – 450 2,950
Mar 20 – – 5,000 – 7,950
Mar 20 – – – 2,000 5,950
Mar 31 – – – 2,500 3,450
Mar 31 – – 450 – 3,900
Mar 31 – – 9,000 – 12,900

140-LAND
Posting
Date Description Dr. Cr. Balance
Ref.
Mar 01 – √ – – 24,000

145-BUILDINGS
Posting
Date Description Dr. Cr. Balance
Ref.
Mar 01 – √ – – 10,000

157-EQUIPMENTS
Posting
Date Description Dr. Cr. Balance
Ref.
Mar 01 – √ – – 10,000

201-ACCOUNT PAYABLE
Posting
Date Description Dr. Cr. Balance
Ref.
Mar 01 – √ – – 7,000
Mar 02 – – – 2,000 9,000
Mar 10 – – 4,100 – 4,900

311-SHARE CAPITAL - ORDINARY

Posting
Date Description Dr. Cr. Balance
Ref.
Mar 01 – √ – – 46,000

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 602-FILM RENTAL EXPENSE
Posting
Date Description Dr. Cr. Balance
Ref.
Mar 02 – √ 3,500 – 3,500
Mar 20 – – 2,000 – 5,500

405-ADMISSION REVENUE
Posting
Date Description Dr. Cr. Balance
Ref.
Mar 09 – √ – 4,000 4,000
Mar 20 – – – 5,000 9,000

406-CONCESSION REVENUE
Posting
Date Description Dr. Cr. Balance
Ref.
Mar 31 – – – 9,000 18,000

610-ADVERTISEMENT EXPENSE
Posting
Date Description Dr. Cr. Balance
Ref.
Mar 12 – – 450 – 450

726-SALARIES EXPENSE
Posting
Date Description Dr. Cr. Balance
Ref.
Mar 31 – – 2,500 – 2,500

112-ACCOUNTS RECEIVABLE
Posting
Date Description Dr. Cr. Balance
Ref.
Mar 31 – – 450 – 450

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(b)

JOSIE THEATRE
GENERAL JOURNAL
Date Description Dr. Cr.
Mar 02 Rental Fees 3,500
Cash 1,500
Account payable 2,000

Mar 09 Cash 4,000

Admission revenue 4,000

Mar 10 Account payable 4,100

Cash 4,100

Mar 11 No entry
Mar 12 Advance expense 450
Cash 450

Mar 20 Cash 5,000

Admission revenue 5,000

Mar 20 Rental Fees 2,000

Cash 2,000

Mar 31 Salaries Expense 2,500

Cash 2,500

Mar 31 Cash 450

Account receivable 450
Commission revenue 900

Mar 31 Cash 9,000

Admission revenue 9,000

(c)

Posted in the ledgers

24
 (d)
JOSIE THEATRE
TRIAL BALANCE
MARCH 31, 2011
Cash 12,900
Land 24,000
Buildings 10,000
Equipments 10,000
Account payable 4,900
Share capital – ordinary 46,000
Rental expense 5,500
Advertising expense 450
Admission revenue 1,000
Salaries expense 2,500
Account receivable 450
Concession revenue 9,000

65,800 68,900

E-4.2
SECURITY SERVICE COMPANY

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 Income Statement Balance Sheet
Adjusting
Net Owner’s
Entry Revenue Expense Assets Liabilities
Income Equity
a N.E I D D N.E D
b N.E I D N.E I D
c I N.E I I N.E I
d N.E I D N.E I D
e N.E I D D N.E D
f I N.E I N.E D I

E-4.3
THE OUTLAWS

Date Description Dr. Cr.

Aug 31 Rent Expense 300,000
Prepaid Rent 300,000
Aug 31 Unearned Ticket revenue 320,000
Ticket revenue 320,000

26
E-4.4

(a)

DALE & CLARKS LAWYERS

Date Description Dr. Cr.

Dec 31 Salaries Expense 17,800
Salaries Payable 17,800
Dec 31 Account receivable 18,900
Legal fees earned 18,900

(b)
SALARIES EXPENSE FOR JANUARY

Date Description Dr. Cr.

Jan 15 Salaries Expense 17,500
Cash 17,500

(c)
THE REVENUE EARNED IN JANUARY

Date Description Dr. Cr.

Jan 29 Cash 60,900
Legal fees earned 60,900

E-4.13
Date Description Dr. Cr.

27
Jan 31 Commission receivable 850
Commission earned 850
(To record commission earned)
Jan 31 Office supplies expense 360
Office supplies 360
(To record office supplies consume during the
month)
Jan 31 Depreciation expense (equipment) 110
Accumulated depreciation (equipment) 110
(To record depreciation expense on equipment)
Jan 31 Salaries expense 550
Salaries payable 550
(To record account salaries)
Jan 31 Unearned commission 210
Commission earned 210
(To record commission earned in the month)

28