AMERICAN COLLEGE OF TECHNOLOGY
DEPARTMENT OF BUSINESS STUDIES
Individual assignment: for the course Financial and Managerial Accounting
Target group: MBA students
Requirements
➢ Legible and neat Page format will be rewarded.
➢ Strictly follow the instruction given below.
➢ The assignment paper is to be submitted on July 20, 2022.
➢ Clear and observable computation is required
➢ The project will be marked out of 25%.
➢ Doing this assignment negligently will reduce your point.
Instruction: Show your computation (NB. Neatness and clear presentations has its own
values)
1) Malik Golf plc was opened on May 1 by Mrs. Tigist. The following selected events and
transactions occurred during May.
May 1 Invested Br.60,000 cash in the business in exchange for ordinary shares.
3 Purchased Golf Land for Br.38,000 cash. The price consists of land Br.10,000,
building Br.22,000, and equipment Br.6,000. (Make one compound entry.)
5 Advertised the opening of the driving range and miniature golf course, paying
advertising expenses of Br.1,600.
6 Paid cash Br.1,480 for a 1-year insurance policy.
10 Purchased golf equipment for Br.2,500 from EJ Company, payable in 30 days.
18 Received golf fees of Br.1,200 in cash.
25 Declared and paid a Br.1,000 cash dividend.
30 Paid salaries and wages of Br.900.
30 Paid Young Company in full.
31 Received Br.750 of fees in cash.
Malik Golf uses the following accounts: Cash, Prepaid Insurance, Land, Buildings,
Equipment, Accounts Payable, Share Capital—Ordinary, Dividends, Service Revenue,
Advertising Expense, and Salaries and Wages Expense.
Instructions
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Journalize the May transactions.
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2) The following are the trial balance and other information related to Fine Tech, a consulting
engineer.
Fine Tech, Consulting Engineer
Trial Balance
December 31, 2022
Debit
Credit
Cash
Br. 29,500
Accounts Receivable
49,600
Allowance for Doubtful Accounts
Br. 750
Supplies
1,960
Prepaid Insurance
1,100
Equipment
25,000
Accumulated Depreciation—Equipment
6,250
Notes Payable
7,200
Share, Capital
52,010
Dividend
17,000
Service Revenue
100,000
Rent Expense
9,750
Salaries and Wages Expense
30,500
Utilities Expense
1,080
Office Expense
720
Br. 166,210
Br. 166,210
Other data:
1. Fees received in advance from clients Br.6,000.
2. Services performed for clients that were not recorded by December 31, Br.4,900.
3. Bad debt expense for the year is Br.1,430.
4. Insurance expired during the year Br.480.
5. Equipment is being depreciated at 10% per year.
6. Fine Tech gave the bank a 90-day, 10% note for Br.7,200 on December 1, 2022.
7. Rent of the building is Br.750 per month. The rent for 2022 has been paid, as has
that for January 2023.
8. Salaries and wages earned but unpaid December 31, 2022, Br.2,510.
Instructions
a. From the trial balance and other information given, prepare annual adjusting
entries as of December 31, 2022.
b. Prepare the worksheet
c. Prepare an income statement for 2022, a statement of owner’s equity, and a
classified statement of financial position.
d. Maintain the necessary closing entry.
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3) Cooke NV has a fiscal year ending on September 30. Selected data from the September 30
worksheet are presented below.
Instructions
a. Prepare a complete worksheet.
b. Prepare a classified statement of financial position. (Note: €10,000 of the mortgage
payable is due for payment in the next fiscal year.)
c. Journalize the closing entries using the worksheet as a basis.
d. Prepare a post-closing trial balance.
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4) Mr. Arian opened Arian’s Carpet Cleaners on May 1, 2021. During May, the following
transactions were completed.
May 1: Invested Br. 35,000 cash in a share of a business.
May 1: Purchased used Truck (equipment) for Br. 6,000, paying Br. 2,000 cash and the
remaining balance on account.
May 3: Purchased cleaning supplies for Br. 1,500 on account.
May 5: Paid Br. 1,200 cash on one-year insurance policy effective May
May 14: Billed customers Br. 4,800 for cleaning services.
May 18: Paid Br. 1.500 cash on amount owed on Truck and Br. 500 on amount owed on
cleaning supplies.
May 20: Paid Br. 7,000 cash for employee salaries.
May 21: Collected Br. 3,800 cash from customers billed on
May 28: Billed customers Br. 2,500 for cleaning services.
May 31: Paid advertising expenses of Br. 2000.
May 31: paid a dividend of Br. 3000.
Requirements:
1)
2)
3)
4)
Journalize the May transactions.
Prepare necessary Ledger Accounts.
Prepare a Trial Balance at May 31
Journalize the following adjustments and prepare an adjusted Trial Balance:
i.
Earned but unbilled revenue at May 31 was Br. 1000.
ii.
Depreciation on equipment for the month was Br. 200.
iii.
One-twelfth of the insurance expired.
iv.
An inventory count shows Br. 400 of cleaning supplies on hand
v. Accrued but unpaid employee salaries were Br. 700.
5) Prepare the worksheet
6) Prepare an income statement, a statement of owner’s equity, and a statement of
financial position.
7) Maintain the necessary closing entry.
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