Accounting Assignments Solutions

This accounting assignment provides solutions to various financial problems. It covers topics like calculating depreciation for different assets (cost, scrap value, useful life), accrued interest on a bank loan, outstanding wages for two days, and control accounts for accounts receivable and payable. The solutions are presented in a clear and organized manner with workings noted.

FINANCIAL ACCOUNTING

Table of Contents
GENERAL JOURNAL ENTRY............................................................................................................................................................................... 1
WORKSHEET.......................................................................................................................................................................................................... 1
INCOME STATEMENT.......................................................................................................................................................................................... 2
BALANCE SHEET................................................................................................................................................................................................... 2
Working note................................................................................................................................................................................................... 2

GENERAL JOURNAL ENTRY
Opening entry Debit Credit
Stationery supplies a/c Dr. $ 454.00
Gym Equipment a/c Dr. $ 21,776.00
Motor Vehicle a/c Dr. $ 30,926.00
Accounts receivable a/c Dr. $ 19,506.00
Cash at bank a/c Dr. $ 17,534.00
To Bank loan a/c $ 29,083.00
To Accounts payable a/c $ 8,929.00
To capital a/c (Bal. fig.) $ 52,184.00
WORKSHEET
Account Unadjusted T/B Adjustments Adjusted T/B Income Statement Balance Sheet
DR CR DR CR DR CR DR CR DR CR
Cash At Bank $17,534.00 $17,611.00 $16,162.00 $18,983.00 $18,983.00
Account
Receivable $19,506.00 $4,476.00 $2,845.00 $21,137.00 $21,137.00
Motor Vehicle $30,926.00 $30,926.00 $30,926.00
Prepaid Rent $2,314.50 $2,314.50 $2,314.50
Prepaid
Insurance $1,970.67 $1,970.67 $1,970.67
Acc. Depn. -
Motor Vehicle $450.97 $450.97 $450.97
Account
Payable $8,929.00 $1,775.00 $2,057.00 $9,211.00 $9,211.00
Bank Loan (due
2022) $29,083.00 $29,083.00 $29,083.00
Accrued Interest
Expense $266.59 $266.59 $266.59
Accrued Staff
Wages $310.00 $310.00 $310.00
Capital $52,184.00 $3,385.00 $55,569.00 $55,569.00
Drawings $1,089.00 $1,089.00 $1,089.00
Staff Wages
Exp $4,650.00 $4,650.00 $4,650.00
Motor Vehicle
Exp $532.00 $532.00 $532.00
Dividends
Interest Exp $266.59 $266.59 $266.59
Accrued Interest
Revenue
Sundry Exp $393.00 $393.00 $393.00
Rent Expense $771.50 $771.50 $771.50
Cost of Goods
Sold
Insurance Exp $985.33 $985.33 $985.33
Depreciation
Exp $817.05 $817.05 $817.05
Advertising Exp $2,280.00 $2,280.00 $2,280.00
Gym Equipment $21,776.00 $21,776.00 $21,776.00
Stationery
Supplies $454.00 $719.00 $577.00 $596.00 $596.00
Acc. Depn. -
Gym Eqpt $366.08 $366.08 $366.08
Squash Fees
Rev $6,110.00 $6,110.00 $6,110.00
Gym Fees Rev $4,836.00 $4,836.00 $4,836.00
Membership
Rev $4,911.00 $4,911.00 $4,911.00
Bad and
Doubtful Debts
Expense
Equipment Hire
Exp $1,049.00 $1,049.00 $1,049.00
Stationery Exp $577.00 $577.00 $577.00
Subtotal $90,196.00 $90,196.00 $42,276.64 $42,276.64 $111,113.64 $111,113.64 $13,410.47 $15,857.00 $97,703.17 $95,256.64
Profit (Loss) $2,446.53 $2,446.53
1

Total $97,703.17 $97,703.17
INCOME STATEMENT
Muscle Up - Income Statement
Particulars Debit Credit
Revenues
Squash Fees Rev $6,110.00
Gym Fees Rev $4,836.00
Membership Rev $4,911.00
Total revenue $15,857.00
Less: Expenditures
Drawings $1,089.00
Staff Wages Exp $4,650.00
Motor Vehicle Exp $532.00
Interest Exp $266.59
Sundry Exp $393.00
Rent Expense $771.50
Insurance Exp $985.33
Depreciation Exp $817.05
Advertising Exp $2,280.00
Equipment Hire Exp $1,049.00
Stationery Exp $577.00
Total expenditures $13,410.47
Net profit(Loss) $2,446.53
BALANCE SHEET
Muscle Up - Balance Sheet
Particulars $ $
Current assets
Cash At Bank $18,983.00
Account Receivable $21,137.00
Prepaid Rent $2,314.50
Prepaid insurance $1,970.67
Stationery supplies-Stock $596.00
Total current assets $45,001.17
Non-current assets
Motor Vehicle $30,926.00
Acc. Depn. - Motor Vehicle $450.97 $30,475.03
Gym Equipment $21,776.00
Acc. Depn. - Gym Eqpt $366.08 $21,409.92
Non-current assets $51,884.95
Total assets $96,886.12
Current liabilities
Account Payable $9,211.00
Accrued Interest Expense $266.59
Accrued Staff Wages $310.00
Current liabilities $9,787.59
Non-current liabilities
Bank Loan (due 2022) $29,083.00
Non-current liabilities $29,083.00
Total liabilities $38,870.59
$58,015.53
Financed by
Owner's investment $55,569.00
Add: Jun month's profit $2,446.53
Owner's capital $58,015.53
Total liabilities with owner's capital $96,886.12
Working note
W.N.1
Prepaid insurance
General insurance $2,956.00
Time period (months) 3
Prepaid insurance ( 2 month) $1,970.67
2

W.N. 2
Prepaid rent
Rent $3,086.00
Time period (months) 4
Prepaid rent (3 months) $2,314.50
W.N. 3
Depreciation -Gym equipments
Cost $21,776.00
Scrap $4,204.00
useful life 4
Depreciation -12 month $4,393.00
1 month depreciation $366.08
W.N. 4
Depreciation-Motor vehicle
Cost $30,926.00
scrap $3,868.00
Useful life 5
Depreciation -12 month $5,411.60
1 month depreciation $450.97
W.N. 5
Accrued interest on bank loan
Bank loan 29083
Interest rate 11%
Interest accrued for one month (June) 266.59
W.N. 6
Outstanding wages (2 days)
weekly wages $1,085.00
Number of days in a week 7
daily wages $155.00
Outstanding wages $310.00
W.N.7
Accounts recievable control a/c
Date Particulars Debit Date Particulars Credit
01-Jun To balance b/d 19506 06-Jun By cash a/c 1527
02-Jun To Squash fees 1209 20-Jun By cash a/c 1318
06-Jun To Squash fees 1331 30-Jun By balance c/d 21137
07-Jun To Gym fees 852
29-Jun To Gym fees 1084
23982 23982
W.N. 8
Accounts payable control a/c
Date Particulars Debit Date Particulars Credit
3

17-Jun To cash a/c 1216 01-Jun By Balance b/d 8929
29-Jun To cash a/c 559 18-Jun By advertisement 720
30-Jun To balance c/d 9211 21-Jun By equipment hiring expense 573
27-Jun By equipment hiring expense 764
10986 10986
4