Accounting Assignment: Financial Records, Statements, and Analysis

This accounting assignment from Pete's Handyman Services covers the preparation of accounting records, including journal entries, ledger accounts, and a trial balance. The assignment requires the student to record transactions for July 2019, prepare T-accounts, and make adjusting entries for depreciation, supplies, and prepaid insurance. The solution includes the unadjusted trial balance, adjusting journal entries, an income statement, and a balance sheet. Furthermore, the assignment also covers the origin of accounting and discusses ethical principles. Finally, it provides the calculation of the current and debt ratios. This comprehensive assignment provides a detailed look into the fundamental aspects of financial accounting, allowing students to understand the practical application of accounting principles.

Running Head: ACCOUNTING 1
ACCOUNTING

Running Head: ACCOUNTING
Table of Contents
Question 1: Origin of Accounting...............................................................................................................3
Question 2: Ethical Principles.....................................................................................................................5
List and explain each of the ethical principles in the code of ethics........................................................5
Principle of objectivity........................................................................................................................5
Principle of integrity............................................................................................................................5
Principle of confidentiality..................................................................................................................5
Principle of professional behavior.......................................................................................................5
Principles of due care and diligence....................................................................................................6
What should accountants do?..................................................................................................................6
References...................................................................................................................................................8

Running Head: ACCOUNTING
Question 1: Preparation of accounting records
Journal Entries
Pete's handyman Services
Date Particluars Debit Credit
07-01-
2019 Purchases A/c Dr.
$
4,200.00
To loan a/c
$
4,200.00
(for tool trailer purchased via loan
07-02-
2019 Outstanding expenses Dr.
$
300.00
To bank a/c
$
300.00
for expenses paid through bank
07-04-
2019 Accounts Receivables Dr.
$
700.00
To service revenue
$
700.00
for services provided on credit
07-07-
2019 bank a/c Dr.
$
500.00
To accounts receivables
$
500.00
for cash recived in resoect of the services delivered
07-08-
2019 Cash Dr.
$
600.00
To prepaid income
$
600.00
for services delivered now
07-09-
2019 Supplies A/c Dr.
$
350.00
To Bank Account
$
350.00
for supplies purchased
07-10-
2019 Accounts Receivables Dr.
$
1,300.00

Running Head: ACCOUNTING
To service revenue
$
1,300.00
for services provided on credit
07-12-
2019 Drawings A/c Dr.
$
2,500.00
To cash a/c
$
2,500.00
for cash withdrawn for personal use
14/7/19 Bank A/c Dr.
$
1,250.00
to service revenue
$
1,250.00
For services provided and payment receieved
15/7/19 Fuel expenses Dr.
$
80.00
To bank A/c
$
80.00
(for cash paid for the fuel)
16/7/19 Bank A/c Dr.
$
1,300.00
To Accounts Receivables
$
1,300.00
for cash received from Mrs. Budd
22/7/19 Accounts receivables Dr.
$
500.00
To service revenue
$
500.00
for sales made on credit
23/7/19 Service revenue Dr.
$
2,600.00
To unearned revenue
$
2,600.00
for prepaid income received
23/7/19 Advertising A/c Dr.
$
1,200.00
To Bank A/c
$
1,200.00
(for advertising charges paid thorugh bank account)

Running Head: ACCOUNTING
23/7/19 Bank a/c Dr.
$
700.00
To Accounts receivables
$
700.00
cash receieved against the credit sales
26/7/19 Drawings A/c Dr.
$
2,500.00
To cash a/c
$
2,500.00
for cash withdrawn for personal use
26/7/19 Bank A/c Dr.
$
280.00
to service revenue
$
280.00
For services provided and payment receieved
30/7/19 Prepaid insurance Dr
$
320.00
To bank A/c
$
320.00
for insurance paid in advance
31/7/19 Interest expense Dr.
$
400.00
To bank a/c
$
400.00
for interest on loan paid
31/7/19 Repair and Maintenance Dr.
$
320.00
To accounts payable
$
320.00
for repair and maintenance services availed
31/7/19 Telephone Expenses Dr.
$
150.00
To telephone exp payable
$
150.00
for telephone bill outstanding
Total
$
22,050.00
$
22,050.00

Running Head: ACCOUNTING
Ledger Accounts

Running Head: ACCOUNTING
Pete's handyman Services
BANK A/C
Date Particulars Amount Date Particulars Amount
07-01-
2019 To bal b/d 3600
07-07-
2019 To accounts receivable 500
07-02-
2019 By outstanding expe 300
07-08-
2019 To prepaid income 600
07-09-
2019 By supplies 350
14/7/19 To service revenue 1250
07-12-
2019 By drawings 2500
16/7/19 To accounts receivable 1300 15/7/19 By motor vehicle 80
23/7/19 To accounts receivable 700 23/7/19 By advertising 1200
26/7/19 To service revenue 280 26/7/19 By drawings 2500
30/7/19 By prepaid expenses 320
31/7/19 By interest 400
31/7/19 By bal c/d 580
8230 8230
Accounts receivable
Date Particulars Amount Date Particulars Amount
07-01-
2019 To bal b/d 800
07-07-
2019 By bank a/c 500
07-04-
2019 to service revenue 700 16/7/19 By bank a/c 1300
07-10-
2019 to service revenue 1300 23/7/19 By bank a/c 700
22/7/19 to service revenue 500
31/7/19 By bal c/d 800
3300 3300
Prepaid Expenses
Date Particulars Amount Date Particulars Amount
07-01-
2018 To bal b/d 300
30/7/19 To bank 320 31/7/19 By bal c/d 620

Running Head: ACCOUNTING
620 620
Supplies
Date Particulars Amount Date Particulars Amount
07-01-
2019 To bal b/d 400 31/7/19 By bal c/d 750
07-09-
2019 To bank a/c 350
750 750
Equipment
Date Particulars Amount Date Particulars Amount
07-01-
2019 To bal b/d 1800 31/7/19 By bal c/d 1800
1800 1800
Accumulated depreciation
Date Particulars Amount Date Particulars Amount
31/7/19 to bal c/d 800
07-01-
2019 By bal b/d 800
800 800
Motor Vehicle
Date Particulars Amount Date Particulars Amount
07-01-
2019 To bal b/d 12000 31/7/19 By bal c/d 12000
12000 12000
Accumulated depreciation
Date Particulars Amount Date Particulars Amount

Running Head: ACCOUNTING
31/7/19 to bal c/d 3600
07-01-
2019 By bal b/d 3600
3600 3600
Accounts payable
Date Particulars Amount Date Particulars Amount
31/7/19 to bal c/d 620
07-01-
2019 By bal b/d 300
31/7/19 By rrepairs 320
620 620
Unearned revenue
Date Particulars Amount Date Particulars Amount
31/7/19 to bal c/d 3200
07-01-
2019 By bal b/d 600
23/7/19 By service revenue 2600
0 3200
Capital
Date Particulars Amount Date Particulars Amount
31/7/19 to bal c/d 13600
07-01-
2019 By bal b/d 13600
0 0
Drawing
s
Date Particulars Amount Date Particulars Amount
07-01-
2019 To bal b/d 31/7/19 By bal c/d 5000

Running Head: ACCOUNTING
07-12-
2019 To cash 2500
26/7/19 To cash 2500
5000 5000
Service revenue
Date Particulars Amount Date Particulars Amount
23/7/19 To unearned revenue 2600
07-01-
2019 By bal b/d
31/7/19 to bal c/d 1430
07-04-
2019 By accounts receivable 700
07-10-
2019 By accounts receivable 1300
14/7/19 By bank a/c 1250
22/7/19 By accounts receivable 500
26/7/19 By bank a/c 280
4030 4030
Advertisng
Date Particulars Amount Date Particulars Amount
07-01-
2019 To bal b/d 31/7/19 By bal c/d 1200
23/7/19 To bank 1200
1200 1200
Interest expense
Date Particulars Amount Date Particulars Amount
07-01-
2019 To bal b/d
31/7/19 To bank a/c 400 31/7/19 By bal c/d 400
400 400
Motor vehicle expense
Date Particulars Amount Date Particulars Amount
07-01-
2018 To bal b/d
15/7/19 To bank 80 31/7/19 By bal c/d 80

Running Head: ACCOUNTING
80 80
Repairs
Date Particulars Amount Date Particulars Amount
07-01-
2019 To bal b/d
31/7/19 To accounts payable 320 31/7/19 By bal c/d 320
320 320
Telephone expense
Date Particulars Amount Date Particulars Amount
07-01-
2019 To bal b/d
31/7/19 To telephone payable 150 31/7/19 By bal c/d 150
150 150
Purchases
Date Particulars Amount Date Particulars Amount
07-01-
2019 To bal b/d
07-01-
2019 To loan 4200 31/7/19 By bal c/d 4200
4200 4200
Loan
Date Particulars Amount Date Particulars Amount
07-01-
2019 To bal c/d 4200
07-01-
2019 By purchases 4200
0 0
Outstanding Expense
Date Particulars Amount Date Particulars Amount

Running Head: ACCOUNTING
07-02-
2019 To bank a/c 300 31/7/19 By bal c/d 300
300 300
Prpeid income
Date Particulars Amount Date Particulars Amount
31/7/19 To bal c/d 600
07-08-
2019 By cash A/c 600
600 600
Telephone payable
Date Particulars Amount Date Particulars Amount
31/7/19 To bal c/d 150 31/7/19 By telephone expense 150
150 150
Unadjusted Trial Balance
Pete's Handyman Services
Account Name Debit Credit Adjustments Final Trial
Debit Credit Debit Credit
Bank A/c 580.00 580.00
Accounts Receivable 800.00 800.00
Supplies 750.00 260 490.00
Prepaid Expense 620.00 620.00
Store Equipment 1800.00 1800.00
Acc. Depreciation - Equipment 800.00 80 880.00
Motor Cycle
12000.0
0 12000.00
Acc. Depreciation - Automobile 3600.00 100 3700.00
Accounts Payable 620.00 620.00
Unearned revenue 3200.00 3200.00
Loan Payable 4200.00 4200.00
Telephone Expenses Payable 150.00 150.00
Outstanding Expenses 300.00 300.00
Capital 13600.00 13600.00
Drawings 5000.00 5000.00
Revenue 1430.00 1430.00
Prepaid income 600.00 600.00