Accounting Question

i need help in solving the assignment

Assessment Instrument
Cover Sheet
Course Code: BACC 205
Course Title: Principles of financial
accounting
Semester: Spring
Academic year: 2023-2024
Assessment Instrument: Assignment 1
Date: 05-02-2024
Course Instructor: Dr. Mohamed Kolsi
College:
DBS
This instrument assesses the following Course Learning Outcomes (CLO):
Marks
CLO
s
Course Learning Outcomes (CLO)*
1
Discuss recording and communicating financial information
7
2
Construct financial statements based on the effects of business
transactions.
8
Questions
Total
*Linkages to Program Outcomes and Concentration Outcomes are provided in the
Syllabus.
Question
Grade
Q1
Q2
Total
Out of
7
8
15
Student’s Name: …………………………………………………………………………………….
Student’s ID No: ……………………………………………………………………………..
Instructions: This is an individual assignment. Two similar copies will be subject to
marks deductions
1
15
Question # 1: Total 7 marks (5 marks for a and 2 marks for b)
CLO#1
Your friend Ali, a new graduated in graphic design, has opened a new business
specialized on advertising and marketing. He requests you (as accounting
specialist) to keep date-to-date accounting transactions and events. The
following are transactions for Ali new business during the month of January
N:
1- Ali invested $80,000 cash in his business.
2- Purchase a new computer with specific graphic features of $4,000 and paid
cash.
3- Purchase of a small car to promote his business $ 15,000 on account.
4- Provide advertising services of $5000, received cash $2,000 and billed on
the customer account for the balance.
5- Payment of travel expenses of cash $1,000 for training purposes.
6- Payment of accounts payable of $750 cash for furniture’s purchased
previously to start the business.
7- Receipt of cash from customers for previous consulting and advising
services $1,100.
8- Paid 2 years insurance policy for his business with a total amount $ 4,000
cash.
9- Provide advertising services for cash $2,500 to one of his customers.
10-Due to unpredictable cash need, Ali withdraws $ 3,500 cash for his
personal use.
Instructions:
a- Prepare a tabular analysis for the previous transactions of Ali new business
for the month of January.
(5 marks: each line 0.5 mark)
b- Prepare the income statement for the same period.
2
(2 marks)
Solution question 1: Prepare a tabular analysis for the previous transactions.
(5marks: each line 0.5 mark).
a- Tabular analysis
T.
No.
1
Assets
Liabilities
Owner Equity
Cash A/R Prepaid
Equip
insurance
A/P
Capital Drawing Expenses Revenues
2
3
4
5
6
7
8
9
10
Total
3
b- Prepare the income statement and the owner equity statement for the month of
January (2 marks)
Ali Income statement for the Month of January, N
Label
Amount
= Net income/net loss
Question 2: ( Total 8 marks)
CLO#2
Following are transactions related to Peter new business for the month of
December, 2020.
1. The owner, Peter, invests $200,000 in cash in starting a real estate office.
2. Paid $10,000 in cash for two-years rent.
3. Purchased $ 10,000 office supplies on credit.
4. Paid $5000 cash on account for office supplies purchased in transaction 3.
5. Real estate commissions revenues billed to customers amount to $4000
6. Received cash of $ 3000 for services to be performed after 3 monthes.
7. Purchased office equipment for $30,000, paying $10,000 in cash and signed
a 60-days, note payable for 12,000 and the balance on accounts.
8. Paid $ 4,000 cash for officer’s salaries.
9. Peter withdrew $ 2000 from the business for personal expenses.
10. Received cash for $2,000 from a client in payment on account for
commissions billed in transaction 5.
Instructions:
1- prepare journal entries for Peter new business for the month of december
(5 marks)
2- Post journal entries to general ledger, December 31, 2020 (1.5 marks)
3- Prepare the trial balance on december 31 , 2020
(1.5 marks)
4
Question 2: Total 5 marks: 0.5 mark for each journal entry
1 General Journal
Date
Accounts Titles and Explanation
1
2
3
4
5
6
7
5
Debit
Credit
8
9
10
2. General ledger: Total 1.5 marks
Prepaid rent
Peter , Capital
Accounts payable
Cash
Office supplies
6
Service revenues
Account receivables
Unearned revenues
Equipment
Notes payable
Drawing
Salaries expenses
7
C. Trial balance (Total 1.5 marks)
Account
Debit
Total
8
Credit