Principles of Accounting: Preparation of Financial Statements and Closing Entries

Principles of Accounting
5/16/2019

Accounting 1
Contents
Case 1...............................................................................................................................................2
Preparation of worksheet, financial statements, and closing entries...........................................2
HNM Medical Service Income Statement...................................................................................4
Statement of changes in equity....................................................................................................5
Balance Sheet...............................................................................................................................5
Case 2...............................................................................................................................................8
Background of the case................................................................................................................8
Source documents would be required in a manual accounting system.......................................9
Computerised accounting package help Samantha make better decisions and manage her
business better............................................................................................................................11
Case 3.............................................................................................................................................12
Stakeholders...............................................................................................................................12
Derek appear to be doing anything wrong.................................................................................13
Ethical issues involved in the case.............................................................................................14
References......................................................................................................................................15

Accounting 2
Case 1
Preparation of worksheet, financial statements, and closing entries
The ledger of the HNM medical service is provided which include the account and their balance
based on 30 June 2017. Considering the ledger the 10 column worksheet, financial statements,
and closing entries are prepared which are given below: -
Particulars Debit Credit
Cash at Bank 12,600
Accounts Receivable 11,800
Prepaid Insurance 1,800
Land 180,200
Building 196,000
Accumulated Depreciation – Building 86,900
Equipment 32,300
Accumulated Depreciation –
Equipment 8,800
Accounts Payable 16,400
Mortgage Payable 64,000
Owner, Capital 236,950
Owner, Drawings 86,500
Fees Earned 262,430
Rent Revenue 14,400
Salaries Expense 124,600
Telephone Expense 4,520
Interest Expense

Accounting 3
3,080
Insurance Expense 36,480
Total 689,880 689,880
HNM Medical Service
Financial Statement- 10 Columns Worksheet
Account
Title
Unadjusted trial
Balance Adjustments
Adjusted trial
balance
Income
statement Balance sheet
Debit Credit Debit
Credi
t Debit
Credi
t
Debi
t
Credi
t Debit
Credi
t
Cash at
Bank 12,600
1260
0 12600
Accounts
Receivable 11,800
1180
0 11800
Prepaid
Insurance 1,800 1340 460 460
Land 180,200
1802
00
18020
0
Building 196,000
1960
00
19600
0
Accumulat
ed
Depreciati
on –
Building
86,900
9600
9650
0
9650
0
Equipment 32,300
3230
0 32300
Accumulat
ed
Depreciati
on –
Equipment
8,800
3680
1248
0
1248
0
Accounts
Payable 16,400
1640
0
1640
0
Mortgage
Payable 64,000
6400
0
6400
0
Owner,
Capital 236,950
2369
50
2369
50
Owner,
Drawings 86,500
8650
0 86500
Fees
Earned 262,430 600
2618
30
2618
30