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Accounting Questions

ACCOUNTING QUESTIONS 8

AccountingQuestions

FinancialAccounts

PARTA:

TheTransactions

a.Brian invests $10,000 cash to begin an accounting service.

b.The company buys office furniture for cash, $600.

c.The company buys additional office furniture on account, $300.

d.The company makes a payment for the office furniture, $200.

Brian`sAccounting Service

ASSETS = LIABILITIES + OWNER`S EQUITY

Cash+ Office Furniture = Accounts Payable + Brian`s Capital

a.(Cash) $10,000 = – + $10,000

b.(Office Furniture) $600 +

(Cash)$9400 = – + $10,000

c.. (Office Furniture) $900 + = (Creditors) $300 + $10,000

(Cash)$9400

d.Office Furniture) $900 + = (Creditors) $0 + $10,000

(Cash)$9100

PARTB: Trial Balance

Thelist of accounts and their balances for Benson Company for the monthended June 30, 20xx.

Cash $1,370 Benson,Withdrawals $ 500

AccountsPayable 770 Accounts Receivable 1,600

OfficeEquipment 900 Service Fee 2,730

Benson,Capital 1,500 Salaries Expense 630

ExplanatoryNote

Atrial balance is a financial statement that lists all the accounts ofa business enterprise in their respective debit and credit sides.This statement helps an organization to describe the financialposition to the user by presenting the balances of each of theaccounts from the financial books of the business (Mukherjee,2003).Mukherjee(2003) explains that atrial balance helps a business organization to detect any errors ormistakes that might have been committed during the book keepingprocess. This way, an organization will be assured that its accountsbalances reflect true and fair view of the business.

BensonCompany

TrialBalance

Asat 30th June, 20xx

Dr

Cr

Cash

Accounts Payable

Office Equipment

Benson Drawings

Benson Capital

Accounts Receivable

Service Fees

Salaries Expense

$

1,370

900

500

1,600

630

5,000

$

770

1,500

2,730

5,000

PART3: T-Accounts

Thetransaction for the month of June for Campus Cycle Shop to berecorded in the T accounts

a.Tyler invested $6,500 in the bike service from his personal savingsaccount.

b.Bought office equipment for cash, $900.

c.Performed bike service for a customer on account, $1,000.

d.Company cell phone bill received, but not paid, $80.

e.Collected $500 from the customer in transaction c.

f.Tyler withdrew $300 for personal use.

Tyler’sCapital A/c 311

Year $

Year $

G Bal c/d 6,500

. .

6,500

a Casha/c 6,500

. .

6,500

OfficeEquipment a/c 112

Year $

Year $

b Cash a/c 900

. .

900

G Bal c/d 900

. .

900

Cash a/c 111

Year $

Year $

a Capital a/c 6,500

e Debtors 500

. .

7,000

b Office Equipment a/c 900

f Drawingsa/c 300

G Bal c/d 5,800

. .

7,000

AccountsReceivable a/c 112

Year $

Year $

c Bike Service fees 1000

. .

1,000

e Casha/c 500

G Bal c/d 500

. .

1,000

BikeService Fees a/c 411

Year $

Year $

G Bal c/d 380

. .

380

c Debtors 380

. .

380

Tyler’s Drawings a/c 312

Year $

Year $

f Cash a/c 300

. .

300

G Bal c/d 300

. .

300

Accounts Payable a/c 211

Year $

Year $

G Bal c/d 80

. .

80

d Telephone Expenses a/c 80

. .

80

Telephone Expenses a/c 512

Year $

Year $

d Accounts Payable a/c 80

. .

80

G Bal c/d 80

. .

80

Reference

Mukherjee,M. (2003).&nbspFinancialAccounting.Boston: McGraw Hill Higher Education