Accounting Group Assignment: Reconstructing Financial Statements and Adjusting Entries, Exercises of Mathematical finance

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ACC

PRINCIPLES OF ACCOUNTING

GROUP ASSIGNMENT

1. Dana Bowen Company is completing its first year of operations on April

30. Reconstruct the entries for the year ended April 30 from the T accounts below. Record them, assigning letters to each transaction, as follows: a–l Transaction m–r Adjusting journal entries

2. Balance and prepare the income statement, the statement of owner’s equity, and the balance sheet from the T accounts.
3. Prepare the closing entries (s–t).
4. Prepare the post-closing trial balance. Cash Accounts Receivable Supplies Prepaid Insurance 6,500 1,250 870 1, 900 385 540 725 400 420 1, 2, 50 350 930 Equipment Accumulated Depreciation Accounts Payable Wages Payable 2,500 130 870 225 Unearned Revenue Dana Bowen, Capital Dana Bowen, Drawing 930 6,500 350 590 2, Fees Earned Wages Expense Rent Expense Supplies Expense 900 420 400 540 1,250 225 2, 385 590 Insurance Expense Depreciation Expense Miscellaneous Expense 725 130 50

Kirk Enterprises offers rug cleaning services to business clients. Below are the adjustments data for the year ended July 31. Using this information along with the worksheet below, record the adjusting entries in proper general journal form and complete the worksheet. Adjustments: (a) The equipment is estimated to last for five years with no salvage value. The asset will be depreciated evenly over its useful life. Record one month’s depreciation. (b) Accrued wages, $2. (c) Unused supplies on hand, $8. (d) Of the unearned revenue, 75% has been earned. (e) Unexpired insurance remaining at the end of the month, $9. Kirk Enterprises End-of-Period Spreadsheet For the Year Ended July 31 Unadjusted Trial Balance (^) Adjustments Adjusted Trial Balance Dr. Cr. Dr. Cr. Dr. Cr. Cash 36 Prepaid Insurance 12 Fees Receivable 56 Supplies 12 Equipment 60 Accumulated Depreciation 12 Unearned Revenue 20 Accounts Payable 32 Wages Payable Ruben Ramon, Capital 84 Ruben Ramon, Drawing 4 Service Revenue 80 Advertising Expense 28 Wages Expense 20 Insurance Expense Supplies Expense Depreciation Expense 228 228

Austin Enterprises was started by Daniel Austin. During the current year, Daniel Austin invested $8, in the business. Based on the following end-of-period worksheet, prepare an income statement, statement of owner’s equity, and balance sheet for Austin Enterprises for the year ended December 31. Austin Enterprises End-of-Period Spreadsheet For the Year Ended December 31 Adjusted Trial Balance Income Statement Balance Sheet Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 26,500 26, Accounts Receivable 7,000 7, Supplies 1,000 1, Equipment 18,500 18, Accumulated Depr.—Equip. 5,000 5, Accounts Payable 11,000 11, Wages Payable 1,000 1, Daniel Austin, Capital 8,000 8, Daniel Austin, Drawing 2,000 2, Fees Earned 59,500 59, Wages Expense 19,000 19, Rent Expense 7,000 7, Depreciation Expense 3,500 3, 84,500 84,500 29,500 59,500 55,000 25, Net income 30,000 30, 59,500 59,500 55,000 55,