you just opened a small computer shop called SGN Computers near EIU. Your shop sells computer
accessories and makes computer repairs and the periodic inventory system has been implemented for your
merchandising inventories and all taxes are ignored. The following events occurred in the period of
November, 2016
a. Received $20,000 cash from your parents and issue capital stock to them.
b. Signed and paid a 1-year lease in advance for the shop totaled $3,600/year in cash.
c. Purchased all repair tools and equipment and furniture for $10,000 and paid all in cash.
d. Signed a 2-year loan with a bank to raise additional capital totaled at $10,000
e. Bought shop supplies totaled at $1,000 on account from suppliers.
f. Bought computer accessories (merchandise inventories) totaled at $3,000 in cash from suppliers.
g. Sold $2,000 of computer accessories (merchandise inventories) in cash.
h. Provided repair and upgrade services for customers totaled at $1.000 on account.
i. Collected $1,000 on account from customers from transaction (h) above.
j. Paid $200 in cash for employee wages expense.
k. Paid $100 in cash for utilities expense.
L Paid supplies $1,000 in cash for supplies purchased in (e).
Required:
1. For each transaction a-l, perform transactions analysis and indicate the account, amount, and effects (+
for increase and- for decrease) on accounting equation A L+ SE (5 points)
2. Prepare journal entries for each transaction into the general journal using the simplified format. (10
points)
3. Prepare an unadjusted trial balance at November 30, 2016. (7 points)
4. Assume that you are required to prepare and post adjusting journal entries for the following
transactions: (7 points)
m. The amount of depreciation expense for tools and equipment and furniture was $200/month.
n. Interest on loan from transaction (d) for November, 2016 was $125 which will be paid next year
with an annual interest rate of 15 %
o. One month's rent, $300, has now expired and leaving only 11 months of prepaid rent left at
November 30, 2016.
p. S100 of shop supplies has been used up in operations leaving only $900 left at November 30, 2016
q. The ending computer accessories (merchandise inventories) at November 30, 2016 was $2.000.
5. Prepare an adjusted trial balance at November 30, 2016. (7 points)
6 Prepare an Income Statement for the period of November, 2016. (assume no income tax expense (7
points)
7. Prepare the Balance Sheet as of November 30, 2016. (7 points) .
transaction
1)
Assets =
Liabilities
+
Owners’ Equity
a)
+
NE
+
b)
NE
NE
NE
c)
NE
NE
NE
d)
+
+
NE
e)
+
+
NE
f)
NE
NE
NE
g)
+
NE
+
h)
+
NE
+
i)
NE
NE
NE
j)
-
NE
-
k)
-
NE
-
l)
-
-
NE
2)
Account
a)
b)
c)
d)
e)
f)
g)
Cash
Capital Stock
Issue capital stock for 20.000
Prepaid Rent
Cash
paid a 1-year lease in advance
Tools, equipment and furniture
Cash
Purchased all repair tools and equipment and furniture
Cash
Note payable
Signed a 2-year loan
Supplies
Account payable
Bought shop supplies totaled at $1,000
purchase
Cash
Bought computer accessories in cash from suppliers.
cash
Sales revenue
Debits
Credits
20.000
20.000
3.600
3.600
10.000
10.000
10000
10.000
1000
1000
3000
3000
2000
2000
Sold $2,000 of computer accessories in cash
h)
i)
j)
k)
l)
1000
Account receivable
Service revenue
Provided repair and upgrade services for customers
cash
Account receivable
Collected $1,000 on account from customers
Wages expense
Cash
Paid in cash for employee wages expense.
Utilities expense
Cash
Paid in cash for utilities expense.
Account payable
Cash
Paid supplies in cash
1000
1000
1000
200
200
100
100
1000
1000
Unadjusted Trial Balance
3)
Account name
Debit
Cash
…………………………………………………………………………
Prepaid Rent ………………………………………………………………
Tools , equipment and furniture ……………………………….
Supplies ……………………………………………………………………..
Purchase. ………………………………………………………………….
Account Receivable …………………………………………………….
15.100
3.600
10.000
1.000
3.000
0
Credit
Account payable …………………………………………………………
Note payable ……………………………………………………………….
0
10.000
Capital stock ………………………………………………………………..
Sales revenue ……………………………………………………………….
Service Revenue
…………………………………………………………
Wages expense ………………………………………………………….
Utilities expense
……………………………………………………..
20.000
2000
1.000
Total
200
100
33.000
33.000
4)
m
n
o
p
q
account
Depreciation
Accumulated depreciation
Interest expense
interest payable
(10.000 x 15% x 1/12)
Rent Expense
Prepaid rent
Supplies expense
Supplies
Inventories (end of year)
Cost of goods sold
Debit
200
credit
200
125
125
Chính là
inventory
ending year.
300
300
100
100
1000
1000
Adjust Trial Balance
5)
Account name
Debit
Cash
…………………………………………………………………………
Prepaid Rent ………………………………………………………………
Tools , equipment and furniture ……………………………….
Accumulated depreciation …………………………………………
Supplies ……………………………………………………………………..
Inventories ………………………………………………………………….
Account Receivable …………………………………………………….
15.100
3.300
10.000
Credit
200
900
3000
0
Account payable …………………………………………………………
Note payable ……………………………………………………………….
Interest payable
………………………………………………………..
0
10.000
125
Capital stock ………………………………………………………………..
Sales Revenue …………………………………………………………………
Service Revenue
…………………………………………………………
Wages expense ………………………………………………………….
Utilities expense
……………………………………………………..
Supplies expense ………………………………………………………
Rent expense ……………………………………………………………
Depreciation expense ………………………………………………
Interest expense ………………………………………………………
Cost of goods sold ……………………………………………………..
20.000
2000
1.000
Total
200
100
100
300
200
125
1000
33325
33325
6)
Income statement
For November, 2016
Revenue
Less : cost of goods sold
Gross profit
3000 (sales+service)
1000 ( chỗ tính COGS lúc đầu)
2000
Expense
Wages expense
Utilities expense
Interest expense
Rent expense
Depreciation expense
Supplies expense
Total expense
200
100
125
300
200
100
1025
Net Income
Tính cogs:
Inventory (begining of year): 0
Purchase : 3000
Inventory (ending year) : 2000
COGS= (Inventory đầu+purchase) enventory (end)=(0+3000)-2000 = 1000
975
7)
Balance Sheet
At November, 2016
Assets
Cash
Account receivable
Supplies
Prepaid rent
Tools, equipment and furniture
Inventories
Total Assets
15.100
0
900
3300
10.000
2000( end year)
31.300
Liabilities
Accumulated depreciation
Account payable
Note payable
Interest payable
Total liabilities
200
0
10.000
125
10.325
Owners’ Equity
Capital stock
Net income
Total Owners’ Equity
20.000
975
20.975
Total Liabilities and Owners’ Equity
31.300