Accounting I ACCT 1211 Assignment 6: Module 6 Problems

This document presents the solutions for Assignment 6 of ACCT 1211: Accounting I. The assignment covers several key areas of accounting, including the preparation of financial statements, journal entries, and the use of specialized journals such as sales, cash receipts, purchases, and cash payments journals. The solution provides detailed calculations for current and long-term assets, net profit, total equity, and total liabilities. It demonstrates the proper use of different journals to record various transactions, including sales, purchases, and cash transactions. The assignment also covers posting references, the general ledger, and specific accounts such as cash, accounts receivable, supplies, prepaid advertising, inventory, office furniture, accounts payable, sales revenue, sales discounts, interest revenue, advertising expense, telephone expense, salary expense, and cost of goods sold. The document provides a step-by-step solution to the assignment's questions, ensuring a comprehensive understanding of the accounting principles involved.

ACCT 1211: Accounting I A6-1
Acct 1211_Student ID_Student
Name_Assignment_6
Question 1
(10 marks)
Current Asset = $ 10,000
Long term Assets = $ 45,000
Total Assets = Current Assets + Long Term Assets
= $ (10,000 + 45,000)
= $ 55,000.
Net Profit = Total Revenue – Total Expenses
= $ 60,000 -$ 55,000
= $ 5,000.
Total Equity = Capital + Profits– Drawings
= $ (50,000 + 5,000 – 25,000)
= $ 30,000
Total Liabilities = Total Assets – Total Equity
= $ 55,000 - $ 30,000
= $ 25,000

A6-2 Assignment 6
Question 2
(15 marks)
G = General Journal
S = Sales Journal
CR = Cash Receipts Journal
P = Purchases Journal
CP = Cash payments Journal
Transactions:
1. Collection of interest revenue earned on an investment - CR
2. Cost of goods sold along with a credit sale - S
3. Sale on account - S
4. Cash sale - CR
5. Return of merchandise - S
6. Purchase of office furniture on account - G
7. Payment on account - P
8. Payment of telephone bill - CP
9. Getting a loan from the bank - G
10. Expiration of prepaid rent - G
11. Cash purchase of computer equipment - CP
12. Amortization of office furniture - G
13. Accounts receivable collected - S
14. Purchases of goods for sale on account - P
15. Prepayment of rent - G

ACCT 1211: Accounting I A6-3
Question 3
(10 marks)
Posting Reference Actual Reference
A. √
B. √
C. # (1200)
D. # (2000)
E. X
F. # (1000)
G. √
H. √
I. # (4000)
J. #

A6-4 Assignment 6
Question 4
(20 marks)
A.
The entry of beach swimmer which is considered as an inventory of the business and therefore is posted correctly in the purchase
general account.
B.
PURCHASES JOURNAL
Credits Debits
OTHER ACCOUNTS
DATE
Account
Credited
Invoice
Date
Post
Ref.
Accounts
Payable Inventory Supplies
Account
Title
Post
Ref. Amount
June 5 Beach Apparel
06/04
√ 6900 6900
Purchases
Discounts 300 6,900
7 Furniture Forever 06/06 √ 5000 Furniture 5000
13 Quick Office Suppliers 06/13 2000 2000
17 Beach Swimwear 06/15 √ 4400 4400
25 Sunny Sundresses 06/25 3000 3000
Totals 20300 14300 2000 11900
(200) (120) (130)

ACCT 1211: Accounting I A6-5
Question 5
(45 marks)
A. and D
General Ledger
CASH ACCOUNT ACCOUNT NO. 100
DATE
2018 ITEM
JRNL.
REF. DEBIT CREDIT
BALANC
Nov 5 Inventory $ 2,000
Nov 6 Inventory $ 3,300
Nov 8 Interest Revenue $ 7,000
Nov 11 Office Furniture $ 2,800
Nov 12 Accounts Receivable $ 7,840
Nov 13 Accounts Payable $ 19,200
Nov 19 Accounts Receivable $ 19,600
Nov 22 Advertising Expense $30,000
Nov 23 Sales Revenue $ 100
Nov 25 Telephone Expense $ 300
Nov 28 Accounts Receivable $ 3,920
Nov 30 Salary Expense $ 2,000
$ 59,660 $38,400 $ 21,260
ACCOUNTS RECEIVABLE ACCOUNT ACCOUNT NO. 110
DATE
2018 ITEM
JRNL.
REF. DEBIT CREDIT
BALANC
Nov 12 Wilson Limited $ 7,840
Nov 19 Cash $19,600
Nov 28 Wilson Limited $ 3,920

A6-6 Assignment 6
$ 11,760 $19,600 $ 7,840
SUPPLIES ACCOUNT ACCOUNT NO. 120
DATE
2018 ITEM
JRNL.
REF. DEBIT CREDIT
BALANC
Nov 2 Inventory $ 4,500
Nov 10 Inventory $ 12,000
Nov 10 Inventory $ 2,800
Nov 23 Cash $ 100
$ 19,300 $ 100 $ 19,200
PREPAID ADVERTISING ACCOUNT ACCOUNT NO. 130
DATE
2018 ITEM
JRNL.
REF. DEBIT CREDIT
BALANC
Nov 22 Cash $ 30,000
INVENTORY ACCOUNT ACCOUNT NO. 140
DATE
2018 ITEM
JRNL.
REF. DEBIT CREDIT
BALANC
Nov 2 Supplies $ 4,500
Nov 6 Cash $ 3,300
Nov 10 Supplies $12,000
Nov 15 Accounts Payable $ 9,000
Nov 18 Supplies $ 2,800
Nov 20 Jones Limited $ 10,000
Nov 26 Laces Limited $ 15,000
Nov 27 Laces Limited $ 2,000

ACCT 1211: Accounting I A6-7
OFFICE FURNITURE ACCOUNT ACCOUNT NO. 150
DATE
2018 ITEM
JRNL.
REF. DEBIT CREDIT
BALANC
Nov 11 Cash $ 2,800
ACCOUNTS PAYABLE ACCOUNT ACCOUNT NO. 200
DATE
2018 ITEM
JRNL.
REF. DEBIT CREDIT
BALANC
Nov 13 Dancing Shoes Limited $19,200
Nov 15 Inventory $ 9,000
SALES REVENUE ACCOUNT ACCOUNT NO. 400
DATE
2018 ITEM
JRNL.
REF. DEBIT CREDIT
BALANC
Nov 3 Wilson Limited $ 8,000
Nov 5 Cash $ 2,000
Nov 16 Children's Wear Limited $ 9,000
Nov 17 Children's Wear Limited $ 3,990
Nov 28 Private Design Limited $ 7,000
SALES DISCOUNTS ACCOUNT ACCOUNT NO. 410
DATE
2018 ITEM
JRNL.
REF. DEBIT CREDIT
BALANC
SALES RETURNS AND ALLOWANCES ACCOUNT ACCOUNT NO. 420
DATE
2018 ITEM
JRNL.
REF. DEBIT CREDIT
BALANC
Nov 17 Children's Wear Limited $ 3,990

A6-8 Assignment 6
INTEREST REVENUE ACCOUNT ACCOUNT NO. 430
DATE
2018 ITEM
JRNL.
REF. DEBIT CREDIT
BALANC
Nov 8 Cash $ 7,000
COST OF GOODS SOLD ACCOUNT ACCOUNT NO. 500
DATE
2018 ITEM
JRNL.
REF. DEBIT CREDIT
BALANC
Nov 30 Supplies Expense $19,200
SALARY EXPENSE ACCOUNT ACCOUNT NO. 510
DATE
2018 ITEM
JRNL.
REF. DEBIT CREDIT
BALANC
Nov 30 Cash $ 2,000
ADVERTISING EXPENSE ACCOUNT ACCOUNT NO. 520
DATE
2018 ITEM
JRNL.
REF. DEBIT CREDIT
BALANC
Nov 22 Cash $ 30,000
TELEPHONE EXPENSE ACCOUNT ACCOUNT NO. 530
DATE
2018 ITEM
JRNL.
REF. DEBIT CREDIT
BALANC
Nov 25 Cash $ 300