UNITY UNIVERSITY
POST GRADUATE STUDIES
Individual assignment: for the course Project Financial and Managerial Accounting
Requirements
 Legible and neat Page format will be rewarded
 Strictly follow the instruction given below
 The assignment paper is to be submitted on Dec,5, 2022
➢ Clear and observable computation is required
➢ The project will be marked out of 10%
 Doing this assignment negligently will reduce your point.
Instruction: Show your computation (NB. Neatness and clear presentations has its own values)
Q1). Nice Golf plc was opened on April 1 by Mrs. Zelda. The following selected events and transactions
occurred during the month of April.
April 1. Invested $60,000 cash in the business in exchange for ordinary shares.
3. Purchased Golf Land for $38,000 cash. The price consists of land $10,000, building
$22,000, and equipment $6,000. (Make one compound entry.)
5. Advertised the opening of the driving range and miniature golf course, paying
advertising expenses of $1,600.
5 . Paid cash $1,480 for a 1-year insurance policy.
10. Purchased golf equipment for $2,500 from Young Company, payable in 30 days.
18. Received golf fees of $1,200 in cash.
25. Declared and paid a $1,000 cash dividend.
30. Paid salaries and wages of $900.
30 . Paid Young Company in full.
31 . Received $750 of fees in cash.
Nice 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
• Journalize transactions occurred during the month.
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Q2). The following are the trial balance and other information related to Colorful Ideas consulting firms.
Colorful Ideas Consulting
Trial Balance
December 31, 2021
Debit
Cash
$29,500
Accounts Receivable
49,600
Allowance for Doubtful Accounts
Supplies
1,960
Prepaid Insurance
1,100
Equipment
25,000
Accumulated Depreciation—Equipment
Notes Payable
Share, Capital
Dividend
17,000
Service Revenue
Rent Expense
9,750
Salaries and Wages Expense
30,500
Utilities Expense
1,080
Office Expense
720
$166,210
Credit
$750
6,250
7,200
52,010
100,000
$166,210
Other data:
1. Fees received in advance from clients $6,000.
2. Services performed for clients that were not recorded by December 31, $4,900.
3. Bad debt expense for the year is $1,430.
4. Insurance expired during the year $480.
5. Equipment is being depreciated at 10% per year.
6. The firm gave the bank a 90-day, 10% note for $7,200 on December 1, 2021.
7. Rent of the building is $750 per month. The rent for 2021 has been paid, as has that for
January 2022.
8. Salaries and wages earned but unpaid December 31, 2021, $2,510.
Instructions
a. From the trial balance and other information given, prepare annual adjusting entries as
of December 31, 2021.
b. Prepare the worksheet
c. Prepare an income statement for 2021, a statement of owner’s equity, and a classified
statement of financial position.
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d. Maintain the necessary closing entry.
Q3). Mr. Arian opened Arian’s Carpet Cleaners on May 1, 2021. During May, the following transactions
were completed.
May 1: Invested $35,000 cash in a share of a business.
May 1: Purchased used Truck (equipment) for $6,000, paying $2,000 cash and the remaining
balance on account.
May 3: Purchased cleaning supplies for $1,500 on account.
May 5: Paid $1,200 cash on one-year insurance policy effective May
May 14: Billed customers $4,800 for cleaning services.
May 18: Paid $1.500 cash on amount owed on Truck and $500 on amount owed on cleaning
supplies.
May 20: Paid $7,000 cash for employee salaries.
May 21: Collected $3,800 cash from customers billed on
May 28: Billed customers $2,500 for cleaning services.
May 31: Paid advertising expenses of $2000.
May 31: paid a dividend of $3000.
Requirements:
1) Journalize the May transactions.
2) Prepare necessary Ledger Accounts.
3) Prepare a Trial Balance at May 31
4) Journalize the following adjustments and prepare an adjusted Trial Balance:
i. Earned but unbilled revenue at May 31 was $1000.
ii. Depreciation on equipment for the month was $200.
iii. One-twelfth of the insurance expired.
iv.
An inventory count shows $400 of cleaning supplies on hand
v.
Accrued but unpaid employee salaries were $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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