Accounting 20
Module 1
Assignment 2
Accounting 20
1
Assignment 2
Accounting 20
2
Assignment 2
Accounting 20
3
Assignment 2
Accounting 20
4
Assignment 2
Assignment 2
(30)
Problem 1 follows
(20)
Problem 2 follows
(10)
Problem 3 follows
(20)
Problem 4 follows
(20)
______
(100)
Problem 5 follows
Problem 1
The trial balance for the Todd Young’s Moving Business is given for the year ended
December 31, 20--.
Instructions:
1.
Complete the worksheet.
2.
Prepare an income statement and a balance sheet.
3.
Prepare closing entries in the general journal, page 9.
4.
Post the closing entries to the partially completed ledger accounts.
5.
Prepare a post-closing trial balance.
Accounting 20
5
Assignment 2
Key Figure to Check: Net Income is $16 126.00
Todd Young's Moving Business
Work sheet
For the Year Ended December 31, 20_
Acct.
Trial Balance
Debit
Credit
Account Title
No.
Cash
101
8 5 0 0 00
Unexpired Insurance
102
4 0 0 00
Accts. Rec/Patterson
104
2 5 0 00
Accts. Rec/Osborn
106
1 7 5 00
Land
121
7 8 0 5 00
Building
131
12 3 6 0 00
Accts.Pay./ABC.Co.
204
9 2 5 00
Accts.Pay./XYZ Co.
206
3 6 9 00
Bank Loan Payable
209
6 7 4 2 00
T. Young, Capital
301
9 9 0 5 00
T. Young, Drawings
302
Income Summary
303
Revenue - Sales
401
Advertising Expense
501
6 4 0 00
Salaries Expense
502
8 0 0 0 00
Utilities Expense
503
1 2 0 0 00
Miscellaneous Espense 504
Accounting 20
Income Statement
Debit
Credit
Balance Sheet
Debit
Credit
4 5 7 7 00
26 4 3 7 00
44 4 7 1 00 44 3 7 8 00
6
Assignment 2
Key Figure to Check: Total Owner’s Equity is $21 454.00 in the Balance Sheet.
Accounting 20
7
Assignment 2
Ge n e ra l J o u rn a l
Date
20__
P o st
Re f.
Ac c o u n t Tit le
P a ge 9
D e bit
Cre dit
Account Cash
D a te
Dec.
Account No. 101
Ex p la n a ti o n
P ost
Re f.
D e bi t
Cre d i t

31 Balance
Dec.
Ex p la n a ti o n
31 Balance
Accounting 20
B a la n c e
8
Account Unexpired Insurance
D a te
B ALAN CE
5
0 0 00 (Dr)
Account No. 101
P ost
Re f.
D e bi t

Cre d i t
B a la n c e
4
8
0 0 00 (Dr)
Assignment 2
Account Accounts Receivable/Patterson
D a te
Dec.
Ex p la n a ti o n
P ost
Re f.
Account No. 104
D e bi t
Cre d i t
2
Account Accounts Receivable/Osborn
D a te
Dec.
Ex p la n a ti o n
D e bi t
Cre d i t
P ost
Re f.
D e bi t
Cre d i t

31 Balance
Ex p la n a ti o n
31 Balance
Accounting 20
B a la n c e
7
Account Building
Dec.
7 5 00 (Dr)
Account No. 121
Ex p la n a ti o n
D a te
B a la n c e
1
Account Land
Dec.
5 0 00 (Dr)
Account No. 106
P ost
Re f.

31 Balance
D a te
B a la n c e

31 Balance
8
0 5 00 (Dr)
Account No. 131
P ost
Re f.
D e bi t

Cre d i t
B a la n c e
1 2
9
3
6 0 00 (Dr)
Assignment 2
Key Figure to Check: the balance in the Capital account on December 31 is $21
454.00.
Account Accounts Payable/ABC Co.
D a te
Dec.
Ex p la n a ti o n
Account No. 204
P ost
Re f.
D e bi t
Cre d i t
9
Account Accounts Payable/XYZ Co.
Dec.
Ex p la n a ti o n
P ost
Re f.
D e bi t
Cre d i t
3
Account Bank Loan Payable
Dec.
Ex p la n a ti o n
P ost
Re f.
D e bi t
Dec.
Ex p la n a ti o n
31 Balance
Accounting 20
B a la n c e
6
Account T. Young, Capital
D a te
Cre d i t

31 Balan ce
6 9 00 (Cr)
Account No.
209
D a te
19__
B a la n c e

31 Balance
2 5 00 (Cr)
Account No.
206
D a te
B a la n c e

31 Balance
7
4
2 00 (Cr)
Account No. 301
P ost
Re f.
D e bi t

Cre d i t
B a la n c e
9
10
9
0 5 00 (Cr)
Assignment 2
Account T. Young, Drawings
D a te
Dec.
Ex p la n a ti o n
Account No. 302
P ost
Re f.
D e bi t
Cre d i t

31 Balance
Account Revenue & Expense Summary
D a te
Ex p la n a ti o n
P ost
Re f.
Dec.
Ex p la n a ti o n
D e bi t
Cre d i t
P ost
Re f.
D e bi t
Cre d i t
Dec.
Ex p la n a ti o n
31 Balance
Accounting 20
B a la n c e
B a la n c e
2 6
Account Advertising Expense
D a te
7 7 00 (Dr)
Account No. 401

31 Balance
5
Account No. 303
Account Revenue
D a te
B a la n c e
4
4
3 7 00 (Cr)
Account No. 501
P ost
Re f.
D e bi t

Cre d i t
B a la n c e
6
11
4 0 00 (Dr)
Assignment 2
Account Salaries Expense
D a te
Dec.
Ex p la n a ti o n
Account No. 502
P ost
Re f.
D e bi t
Cre d i t

31 Balance
Account Utilities Expense
D a te
Dec.
Ex p la n a ti o n
D e bi t
Cre d i t
Dec.
Ex p la n a ti o n
31 Balance
Accounting 20
0 0 00 (Dr)
B a la n c e
1
Account Miscellaneous Expense
D a te
0
Account No. 503
P ost
Re f.

31 Balance
B a la n c e
8
2
0 0 00 (Dr)
Account No. 504
P ost
Re f.
D e bi t

Cre d i t
B a la n c e
4
12
7 1 00 (Dr)
Assignment 2
Key Figure to Check: the totals are $29 490.00
Ac c t.
No.
Ac c o u n t Ti tle
Accounting 20
13
D e bi t
Cre d i t
Assignment 2
Problem 2
Todd Young’s Moving Business. received its bank statement for April. 20--.
Examination of the statement reveals the following information:
·
The final balance in the bank statement is $44 465.00.
·
Service charges total $5.00.
·
·
An NSF cheque was received from N. Nelson for $300.00.
A deposit of $4 200.00 made late at night on April 30 does not appear on the
statement.
·
A comparison of the cancelled cheques returned by the bank and the cheques
written
by Todd’s shows the following cheques as outstanding.
Cheque No.
·
133, $221.00
135, 175.75
136, 361.29
139, 135.15
141, 463.06
The cash account before reconciliation shows a balance of $47 613.75.
Instructions:
1.
Complete the bank reconciliation, using the form on the next page.
2.
Journalize any entries that affect the company’s cash account on page 25 of the
general journal found below. Use April 30, 20-- as the date.
General Journal
D a te
Accounting 20
P ost
Re f.
Ex p la n a ti o n
14
Page
D e bi t
Cre d i t
Assignment 2
B a la
Key Figure to Check: the corrected balances are $47 308.75, on April 30.
Accounting 20
15
Assignment 2
Key Figure to Check: Cash on hand is $38.00.
Problem 3
Sarah’s Appliances has a petty cash fund of $200.00. The cash balance of $38.00 is in
the petty cash box. Sarah, decides to replenish the fund. Complete the petty cash
record on the following page.
Instructions:
1. Total and rule the petty cash record.
2. Calculate the cash on hand and totals.
3. Complete the cash balance and replenished fund amount. Use cheque #157.
Petty Cash Record
MonthofofJune
June19__
20__
Month
Page 1
Petty
Date
20__
19__
June
Explanation
Cash
Vchr.
No.
1 Established fund
Distribution of Payments
Receipts
Payments
Supplies
Delivery
Expense
Misc.
Expense
2 0 0 00
2 Notepaper
1
1 0 50
6 Collect telegram
2
5 40
5 40
7 Word processor repair
3
2 6 50
2 6 50
9 Postage on a sale
4
7 35
13 Postage stamps
5
1 5 00
15 Ad in school paper
6
2 0 00
17 Postage on a sale
7
8 90
20 Telegram
8
7 25
Paper paper
21 Carbon
9
1 0 60
23 Postage on a sale
10
1 2 75
27 Postage stamps
11
3 0 00
30 Postage on a sale
12
7 75
Accounting 20
Other Payments
Account
Amount
1 0 50
7 35
1 5 00
Advertising Expense
2 0 00
8 90
7 25
1 0 60
1 2 75
3 0 00
7 75
16
Assignment 2
Problem 4
Jake Eastwood owns Speedy Taxi Service. He operates one taxi which he leases. At the
end of each day, the fares collected are totalled and recorded on a receipt form. The
receipt form is the source document for all cash received transactions.
The following are the accounts used by the business:
Assets: 101 Cash
Liabilities: 210 Accts. Pay./Ben’s Garage; 220 Bank Loan
Owner’s Equity: 301 J. Eastwood, Capital; 302 J. Eastwood, Drawings.
Revenue: 401 Fares Earned
Expenses: 501 Gas and Oil Expense; 510 Rent Expense; 520 Advertising Expense;
530 Utilities Expense
Instructions:
1.
On page 3 of the cash journal on the next page, record the beginning cash balance
on hand, $1 153.00. Use September 1 of the current year.
2.
Record the following transactions in the cash journal.
3.
Total, prove, and rule the journal as of September 30.
Sept. 1
2
4
6
10
14
20
23
26
30
Accounting 20
Received cash, $220.00, from fares. R211.
Wrote a cheque, $100.00, for office space rental. Ch303.
Wrote a cheque, $23.80, for telephone service. Ch304.
Wrote a cheque, $150.00, to Ben’s Garage for part of amount owed. Ch305.
Received cash, $170.00, from fares. R212.
Wrote a cheque, $27.85, for gas and oil. Ch306.
Wrote a cheque, $270.00, to Hong Kong Bank as payment on loan. Ch307.
Received cash, $150.00, from fares. R213.
Wrote a cheque, $25.00, for advertisement in local high school yearbook.
Ch308.
Wrote a cheque, $200.00, to J. Eastwood for personal use. Ch309.
17
Assignment 2
Key Figure to Check: the total of the Cash Debit column is $540.00.
Problem 4
Ca s h J o u rn a l
Ca s h
D e bi t
Ge n e ra l
D e bi t
D a te
20__
19__
Ac c o u n t Ti tle
Page
Do c .
P o s t.
Ge n e ra l
F a re s Ea rn e d
No .
Re f.
Cre d it
Cre d i t
Ca s h
Cre d it
Problem 5
From the following partial cash journal, post any totals that need posting and any
individual amounts from the cash journal to the appropriate accounts in the general
ledger.
Accounting 20
18
Assignment 2
Problem 5
P a rtia l Ca sh Journa l
Cash
Debit
General
Debit
Date
20__
20__
Aug
1 5 0 0
3
5
38
6
4
0
Page
00
Account Title
No.
General
Re f.
C re dit
1 Rent Expense
T2
9 3 0
00
2 Equipment
Ch712
2 0 0 0
00
3 Salary Expense
Ch713
1

3
7
5
00
3 Accts. Rec./S. Sawyer
R403
2
7
5 00
1
0
0
00
3 Equipment
R404
1
0
0 00
7
6
7
67
6
0
00
Cash
Credit
Ch711
2
1
33
1 Bal. on hand $26 723.41
2 
00
Post.
Service
Income
Credit
4 
T4
3 5 0
00
4 Accts. Rec./S. Sawyer
7 5
00
5 Miscellaneous Expense Ch714
1 1 0 3
00
5 Accts Pay./XYA Co.
3 0 5 9
00

5
i202
6 4
0
7
6
0 00 28
00
3
0
00
0
0
0
00
7
5
00
1
1
0
3
00
00 11
3
6
1
00
7
67
3 5
0
00
8
0
9
7 6
0 9
0
2
Ch715
1
5
00
31 Totals
Debits
Credits
38 160.00
1 760.00
3 059.00
28 098.00
1 1 361.00
41 219.00
41 219.00
Account Cash
D a te
20__
19__
Au g.
Ex p la n a ti o n
Account No. 101
P ost
Re f.
D e bi t
Cre d i t

1 Balan ce
Account Accounts Receivable/S. Sawyer
D a te
20__
19__
Au g.
Ex p la n a ti o n
1 Balan ce
Accounting 20
B a la n c e
2
P ost
Re f.
7
Cre d i t
3 41 (Dr)
B a la n c e
2
19
2
Account No. 115
D e bi t

6
7
5 00 (Dr)
Assignment 2
Account Equipment
D a te
20__
19__
Au g.
Ex p la n a ti o n
Account No. 131
P ost
Re f.
D e bi t
Cre d i t

1 Balan ce
6
Account Accounts Payable/XYA Co.
Au g.
Ex p la n a ti o n
P ost
Re f.
D e bi t
Cre d i t

1 Balan ce
Ex p la n a ti o n
Accounting 20
Ex p la n a ti o n
5 00 (Dr)
1
0
3 00 (Cr)
Account No. 401
P ost
Re f.
D e bi t
Cre d i t
Account Miscellaneous Expense
D a te
20__
19__
2
B a la n c e
1
Account Service Income
D a te
20__
19__
7
Account No.
204
D a te
20__
19__
B a la n c e
B a la n c e
Account No. 501
P ost
Re f.
D e bi t
20
Cre d i t
B a la n c e
Assignment 2
Account Rent Expense
D a te
20__
19__
Ex p la n a ti o n
Account No. 503
P ost
Re f.
D e bi t
Cre d i t
Account Salary Expense
D a te
20__
19__
Accounting 20
Ex p la n a ti o n
B a la n c e
Account No. 507
P ost
Re f.
D e bi t
21
Cre d i t
B a la n c e
Assignment 2