Iqra University
Islamabad Campus
Final Term Examination – Fall 2024 Semester
Course Code & Title: BUS231 Financial Accounting Principles
Program / Department: BSCS, BBA
Teacher’s Name: Mr. Anas Aziz
Total Marks: 40
Date & Time: 17 March 2025
Total Time: 2 hrs.
Student’s Name:
Reg. No.:
Instructions
Attempt All Questions.
Question # 1 [CLO 1]
[15 Marks]
Federal Analytica
Unadjusted Trail Balance
31 December 2024
Sno Account
Debit (Rs.) Credit (Rs.)
1 Cash
218,144
2 Accounts receivable
10,750
3 Office supplies
1,102
4 Prepaid rent
6,450
5 Unexpired insurance
1,451
6 Office equipment
290,250
7 Accumulated depreciation: office equipment
189,467
8 Accounts payable
7,525
9 Interest payable
1,935
10 Income taxes payable
9,406
11 Note payable
48,375
12 Unearned retainer fees
18,813
13 Capital stock
161,250
14 Retained earnings
43,000
15 Dividends
5,375
16 Client fees earned
322,500
17 Office supplies expense
3,252
18 Depreciation expense: office equipment
44,344
19 Rent expense
31,040
20 Insurance expense
5,429
21 Salaries expense
145,663
22 Interest expense
1,935
23 Income taxes expense
37,088
802,270
802,270
Total
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Other Data:
1. Accrued but unrecorded client fees earned on December 31 amount to Rs.8063.
2. Records show that Rs.13438 of cash receipts originally recorded as Unearned Retainer Fees
had been earned as of December 31.
3. Office supplies on hand on December 31 amount to Rs.590.
4. The company purchased all its office equipment when it first began business. At that time,
the equipment’s estimated useful life was six years (or 72 months).
5. On October 1, the company renewed its rental agreement paying Rs.9675 cash for six
months’ rent in advance.
6. On March 1 of the current year, the company paid Rs.5805 cash to renew its 12-month
insurance policy.
7. Accrued but unrecorded salaries on December 31 amount to Rs.10213.
8. On June 1, 2024, the company borrowed money from the bank by signing Rs. 48375, 8%
12-month note payable. The entire note, plus 12 months’ accrued interest, is due on May
31, 2025
9. The company estimates that income taxes for the entire year is Rs.35313.
Required:
1. Prepare the necessary adjusting entry for the above-mentioned transactions.
2. Prepare the company’s Adjusted Trail balance for 31 December 2024
Question # 2 [CLO 3]
[10 Marks]
Indicate the effects that each of the adjustments in Question # 1 will have on the following six total
amounts on the financial statements for the month of December. Organize your
answer in tabular form, using the column headings shown below. Use the letters I for increase,
D for decrease, and NE for no effect.
Income Statement
Adjusting
Entry No.
Revenue - Expenses
Balance Sheet
= Net Income
Question # 3 [CLO 4]
Assets
= Liabilities
+
Owners’
Equity
[5 Marks]
Prepare the necessary year end closing entries for the Federal Analytica from Question # 1.
Question # 4 [CLO 2]
[10 Marks]
Refer to Question # 1. Prepare a 10-column worksheet for Federal Analytica dated December 31,
2024.
------Good Luck 😊
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