Accounting and Financial Management Homework Solution

This document presents a comprehensive solution to an accounting and financial management assignment. It begins with detailed journal entries for various transactions from January and February 2015, meticulously recording debits and credits. Following the journal entries, the solution provides ledger accounts, summarizing the transactions for each account, including cash, accounts receivable, inventory, and various expense and revenue accounts. A trial balance for January is included, followed by unadjusted and adjusted trial balances for February. The assignment then constructs key financial statements, including an income statement, retained earnings statement, and balance sheet, providing a clear picture of the company's financial performance and position. Finally, a post-closing trial balance is provided to ensure the accuracy of the closing process. The assignment is concluded with a bibliography of cited resources. This solution provides a complete and organized financial analysis.

Running head: ACCOUNTING & FINANCIAL MANAGEMENT
Accounting & Financial Management
Name of the Student:
Name of the University:
Author’s Note:

1ACCOUNTING & FINANCIAL MANAGEMENT
Table of Contents
Journal Entries:................................................................................................................................2
Ledgers:...........................................................................................................................................8
Trial Balance for January:.............................................................................................................18
Unadjusted Trial Balance for February:........................................................................................19
Adjusted Trial Balance for February:............................................................................................20
Income Statement:.........................................................................................................................21
RE Statement:................................................................................................................................22
Balance Sheet:...............................................................................................................................22
Post-Closing Trial Balance:...........................................................................................................23
Bibliography:.................................................................................................................................25

2ACCOUNTING & FINANCIAL MANAGEMENT
Journal Entries:
In the books of …….
Journal Entries
Dr. Cr.
Date Particulars Amount Amount
01-01-
2015 Cash A/c. Dr.
$1,00,00
0
To, Common Stock A/c.
$1,00,00
0
01-01-
2015 Cash A/c. Dr.
$2,20,00
0
To, N/P1 A/c.
$2,20,00
0
01-01-
2015 Equipment 1 A/c. Dr.
$1,50,00
0
Furniture 1 A/c. Dr.
$1,00,00
0
To, Cash A/c.
$2,50,00
0
02-01-
2015 Rent Expenses A/c. Dr. $2,000
To, Cash A/c. $2,000
02-01-
2015 PP-Insurance A/c. Dr. $4,800
To, Cash A/c. $4,800
02-01-
2015 Equipment 1 A/c. Dr. $40,000
To, Cash A/c. $10,000
To, A/P A/c. $30,000
03-01-
2015 Inventory A/c. Dr. $15,000
To, Cash A/c. $15,000
03-01-
2015 Supplies A/c. Dr. $2,000
To, Cash A/c. $2,000

3ACCOUNTING & FINANCIAL MANAGEMENT
08-01-
2015 Cash A/c. Dr. $20,000
CC/R A/c. Dr. $5,000
CGS A/c. Dr. $5,000
To, Sales Revenue A/c. $25,000
To, Inventory A/c. $5,000
10-01-
2015 A/P A/c. Dr. $2,000
To, Cash A/c. $2,000
12-01-
2015 Inventory A/c. Dr. $4,000
To, A/P A/c. $4,000
15-01-
2015 Cash A/c. Dr. $21,000
A/R A/c. Dr. $3,000
CC/R A/c. Dr. $6,000
CGS A/c. Dr. $6,000
To, Sales Revenue A/c. $30,000
To, Inventory A/c. $6,000
15-01-
2015 Wages Expenses A/c. Dr. $8,000
To, Cash A/c. $8,000
16-01-
2015 Cash A/c. Dr. $3,000
To, CC/R A/c. $3,000
23-01-
2015 Cash A/c. Dr. $16,000
A/R A/c. Dr. $2,000
CC/R A/c. Dr. $2,000
CGS A/c. Dr. $4,000
To, Sales Revenue A/c. $20,000
To, Inventory A/c. $4,000
24-01-
2015 A/P A/c. Dr. $4,000
To, Cash A/c. $4,000

4ACCOUNTING & FINANCIAL MANAGEMENT
25-01-
2015 Inventory A/c. Dr. $6,000
To, A/P A/c. $6,000
29-01-
2015 Wages Expenses A/c. Dr. $7,500
To, Cash A/c. $7,500
29-01-
2015 Cash A/c. Dr. $2,000
To, A/R A/c. $2,000
29-01-
2015 Cash A/c. Dr. $4,000
To, CC/R A/c. $4,000
29-01-
2015 Cash A/c. Dr. $19,600
A/R A/c. Dr. $2,800
CC/R A/c. Dr. $5,600
CGS A/c. Dr. $5,600
To, Sales Revenue A/c. $28,000
To, Inventory A/c. $5,600
29-01-
2015 N/P 1 A/c. Dr. $2,000
Interest Expenses A/c. Dr. $1,000
To, Cash A/c. $3,000
01-02-
2015 Rent Expenses A/c. Dr. $2,000
To, Cash A/c. $2,000
01-02-
2015 Cash A/c. Dr.
$1,60,00
0
To, N/P 2 A/c.
$1,60,00
0
01-02-
2015 Equipment 2 A/c. Dr.
$1,00,00
0
Furniture 2 A/c. Dr.
$1,00,00
0
To, Cash A/c.
$2,00,00
0

5ACCOUNTING & FINANCIAL MANAGEMENT
01-02-
2015 Cash A/c. Dr. $3,000
To, Rental Revenue A/c. $3,000
02-02-
2015 Dividend A/c. Dr. $30,000
To, Cash A/c. $30,000
03-02-
5015 Cash A/c. Dr. $2,000
To, CC/R A/c. $2,000
03-02-
2015 Inventory A/c. Dr. $25,000
To, Cash A/c. $2,000
To, A/P A/c. $23,000
07-02-
2015 Cash A/c. Dr. $14,000
A/R A/c. Dr. $2,000
CC/R A/c. Dr. $4,000
CGS A/c. Dr. $4,000
To, Sales Revenue A/c. $20,000
To, Inventory A/c. $4,000
08-02-
2015 Utility Expenses A/c. Dr. $500
To, U/P A/c. $500
09-02-
2015 Cash A/c. Dr. $3,000
To, A/R A/c. $3,000
10-02-
2015 A/P A/c. Dr. $3,000
To, Cash A/c. $3,000
14-02-
2015 Cash A/c. Dr. $9,000
A/R A/c. Dr. $3,000
CC/R A/c. Dr. $3,000
CGS A/c. Dr. $3,000
To, Sales Revenue A/c. $15,000
To, Inventory A/c. $3,000

6ACCOUNTING & FINANCIAL MANAGEMENT
14-02-
2015 Wages Expenses A/c. Dr. $8,000
To, Cash A/c. $8,000
15-02-
2015 Cash A/c. Dr. $40,000
To, Common Stock A/c. $40,000
16-02-
2015 Inventory A/c. Dr. $3,000
To, Cash A/c. $3,000
23-02-
2015 Cash A/c. Dr. $12,000
A/R A/c. Dr. $8,000
CGS A/c. Dr. $4,000
To, Sales Revenue A/c. $20,000
To, Inventory A/c. $4,000
24-02-
2015 U/P A/c. Dr. $500
To, Cash A/c. $500
25-02-
2015 A/P A/c. Dr. $2,000
To, Cash A/c. $2,000
28-02-
2015 Cash A/c. Dr. $21,000
A/R A/c. Dr. $3,000
CC/R A/c. Dr. $6,000
CGS A/c. Dr. $6,000
To, Sales Revenue A/c. $30,000
To, Inventory A/c. $6,000
28-02-
2015 Dividend A/c. Dr. $20,000
To, Cash A/c. $20,000
28-02-
2015 N/P 1 A/c. Dr. $2,000
Interest Expense A/c. Dr. $1,000
To, Cash A/c. $3,000

7ACCOUNTING & FINANCIAL MANAGEMENT
28-02-
2015 Supplies A/c. Dr. $2,000
To, Cash A/c. $2,000
28-02-
2015 N/P 2 A/c. Dr. $2,500
Interest Expense A/c. Dr. $1,000
To, Cash A/c. $3,500
28-02-
2015 Insurance Expenses A/c. Dr. $800
To, PP-Insurance A/c. $800
28-02-
2015 Supply Expenses A/c. Dr. $3,500
To, Supplies A/c. $3,500
28-02-
2015 Dep-Exp Equipment 1 A/c. Dr. $500
Dep-Exp Equipment 2 A/c. Dr. $300
Dep-Exp Furniture 1 A/c. Dr. $300
Dep-Exp Furniture 2 A/c. Dr. $200
To, ACC-DEP Equipment 1 A/c. $500
To, ACC-DEP Equipment 2 A/c. $300
To, ACC-DEP Furniture 1 A/c. $300
To, ACC-DEP Furniture 2 A/c. $200
28-02-
2015 Sales Revenue A/c. Dr.
$1,88,00
0
Rental Revenue A/c. Dr. $3,000
To, PL Adjustment A/c.
$1,91,00
0
28-02-
2015 PL Adjustment A/c. Dr. $74,200
To, CGS A/c. $37,600
To, Rent Expenses A/c. $4,000
To, Supply Expenses A/c. $3,500
To, Insuarnce Expenses A/c. $800
To, Wages Expenses A/c. $23,500
To, Utility Expenses A/c. $500
To, Dep-Exp Equipment 1 A/c. $500
To, Dep-Exp Equipment 2 A/c. $300

8ACCOUNTING & FINANCIAL MANAGEMENT
To, Dep-Exp Furniture 1 A/c. $300
To, Dep-Exp Furniture 2 A/c. $200
To, Interest Expenses A/c. $3,000
28-02-
2015 PL Adjustment A/c. Dr.
$1,16,80
0
To, RE A/c. $66,800
To, Dividend A/c. $50,000
Ledgers:
Cash A/c. Dr. Cr.
Date Particulars Amount Amount Balance
01-01-2015 Common Stock A/c. 100000 100000
DR
.
01-01-2015 N/P 1 A/c. 220000 320000
DR
.
01-01-2015 Equipment 1 A/c. 150000 170000
DR
.
Furniture 1 A/c. 100000 70000
DR
.
02-01-2015 Rent Expenses A/c. 2000 68000
DR
.
02-01-2015 PP-Insurance A/c. 4800 63200
DR
.
02-01-2015 Equipment 1 A/c. 10000 53200
DR
.
03-01-2015 Inventory A/c. 15000 38200
DR
.
03-01-2015 Supplies A/c. 2000 36200
DR
.
08-01-2015 Sales Revenue A/c. 20000 56200
DR
.
10-01-2015 A/P A/c. 2000 54200
DR
.
15-01-2015 Sales Revenue A/c. 21000 75200
DR
.
15-01-2015 Wages Expenses A/c. 8000 67200
DR
.
16-01-2015 CC/R A/c. 3000 70200
DR
.
23-01-2015 Sales Revenue A/c. 16000 86200 DR

9ACCOUNTING & FINANCIAL MANAGEMENT
.
24-01-2015 A/P A/c. 4000 82200
DR
.
29-01-2015 Wages Expenses A/c. 7500 74700
DR
.
29-01-2015 A/R A/c. 2000 76700
DR
.
29-01-2015 CC/R A/c. 4000 80700
DR
.
29-01-2015 Sales Revenue A/c. 19600 100300
DR
.
29-01-2015 N/P 1 A/c. 2000 98300
DR
.
Interest Expenses A/c. 1000 97300
DR
.
31-01-2015 Closing Balance 97300
DR
.
01-02-2015 Rent Expenses A/c. 2000 95300
DR
.
01-02-2015 N/P 2 A/c. 160000 255300
DR
.
01-02-2015 Equipment 2 A/c. 100000 155300
DR
.
Furniture 2 A/c. 100000 55300
DR
.
01-02-2015 Rental Revenue A/c. 3000 58300
DR
.
02-02-2015 Dividend A/c. 30000 28300
DR
.
03-02-2015 CC/R A/c. 2000 30300
DR
.
03-02-2015 Inventory A/c. 2000 28300
DR
.
07-02-2015 Sales Revenue A/c. 14000 42300
DR
.
09-02-2015 A/R A/c. 3000 45300
DR
.
10-02-2015 A/P A/c. 3000 42300
DR
.
14-02-2015 Sales Revenue A/c. 9000 51300
DR
.
14-02-2015 Wages Expenses A/c. 8000 43300
DR
.
15-02-2015 Common Stock A/c. 40000 83300
DR
.
16-02-2015 Inventory A/c. 3000 80300
DR
.

10ACCOUNTING & FINANCIAL MANAGEMENT
23-02-2015 Sales Revenue A/c. 12000 92300
DR
.
24-02-2015 U/P A/c. 500 91800
DR
.
25-02-2015 A/P A/c. 2000 89800
DR
.
28-02-2015 Sales Revenue A/c. 21000 110800
DR
.
28-02-2015 Dividend A/c. 20000 90800
DR
.
28-02-2015 N/P 1 A/c. 2000 88800
DR
.
Interest Expense A/c. 1000 87800
DR
.
28-02-2015 Supplies A/c. 2000 85800
DR
.
28-02-2015 N/P 2 A/c. 2500 83300
DR
.
Interest Expense A/c. 1000 82300
DR
.
28-02-2015 Closing Balance 82300
DR
.
A/R A/c. Dr. Cr.
Date Particulars Amount Amount Balance
15-01-2015 Sales Revenue A/c. 3000 3000
DR
.
23-01-2015 Sales Revenue A/c. 2000 5000
DR
.
29-01-2015 Cash A/c. 2000 3000
DR
.
29-01-2015 Sales Revenue A/c. 2800 5800
DR
.
30-01-2015 Closing Balance 5800
DR
.
07-02-2015 Sales Revenue A/c. 2000 7800 DR

11ACCOUNTING & FINANCIAL MANAGEMENT
.
09-02-2015 Cash A/c. 3000 4800
DR
.
14-02-2015 Sales Revenue A/c. 3000 7800
DR
.
23-02-2015 Sales Revenue A/c. 8000 15800
DR
.
28-02-2015 Sales Revenue A/c. 3000 18800
DR
.
28-02-2015 Closing Balance 18800
DR
.
CC/R A/c. Dr. Cr.
Date Particulars Amount Amount Balance
08-01-2015 Sales Revenue A/c. 5000 5000
DR
.
15-01-2015 Sales Revenue A/c. 6000 11000
DR
.
16-01-2015 Cash A/c. 3000 8000
DR
.
23-01-2015 Sales Revenue A/c. 2000 10000
DR
.
29-01-2015 Cash A/c. 4000 6000
DR
.
29-01-2015 Sales Revenue A/c. 5600 11600
DR
.
30-01-2015 Closing Balance 11600
DR
.
03-02-2015 Cash A/c. 2000 9600
DR
.
07-02-2015 Sales Revenue A/c. 4000 13600
DR
.
14-02-2015 Sales Revenue A/c. 3000 16600
DR
.
28-02-2015 Sales Revenue A/c. 6000 22600
DR
.
28-02-2015 Closing Balance 22600
DR
.
Inventory A/c. Dr. Cr.

12ACCOUNTING & FINANCIAL MANAGEMENT
Date Particulars Amount Amount Balance
03-01-2015 Cash A/c. 15000 15000
DR
.
08-01-2015 CGS A/c. 5000 10000
DR
.
12-01-2015 A/P A/c. 4000 14000
DR
.
15-01-2015 CGS A/c. 6000 8000
DR
.
23-01-2015 CGS A/c. 4000 4000
DR
.
25-01-2015 A/P A/c. 6000 10000
DR
.
29-01-2015 CGS A/c. 5600 4400
DR
.
30-01-2015 Closing Balance 4400
DR
.
03-02-2015 Cash A/c. 2000 6400
DR
.
A/P A/c. 23000 29400
DR
.
07-02-2015 CGS A/c. 4000 25400
DR
.
14-02-2015 CGS A/c. 3000 22400
DR
.
16-02-2015 Cash A/c. 3000 25400
DR
.
24-02-2015 CGS A/c. 4000 21400
DR
.
28-02-2015 CGS A/c. 6000 15400
DR
.
28-02-2015 Closing Balance 15400
DR
.
Supplies A/c. Dr. Cr.
Date Particulars Amount Amount Balance
03-01-2015 Cash A/c. 2000 2000
DR
.
30-01-2015 Closing Balance 2000
DR
.
28-02-2015 Cash A/c. 2000 4000
DR
.
28-02-2015 Supply Expenses A/c. 3500 500 DR

13ACCOUNTING & FINANCIAL MANAGEMENT
.
28-02-2015 Closing Balance 500
DR
.
PP-Insurance A/c. Dr. Cr.
Date Particulars Amount Amount Balance
02-01-2015 Cash A/c. 4800 4800
DR
.
30-01-2015 Closing Balance 4800
DR
.
28-02-2015 Insurance Expenses A/c. 800 4000
DR
.
28-02-2015 Closing Balance 4000
DR
.
Equipment 1 A/c. Dr. Cr.
Date Particulars Amount Amount Balance
01-01-2015 Cash A/c. 150000 150000
DR
.
02-01-2015 Cash A/c. 10000 160000
DR
.
A/P A/c. 30000 190000
DR
.
30-01-2015 Closing Balance 190000
DR
.
Equipment 2 A/c. Dr. Cr.
Date Particulars Amount Amount Balance
01-02-2015 Cash A/c. 100000 100000
DR
.
28-02-2015 Closing Balance 100000
DR
.
Furniture 1
A/c. Dr. Cr.
Date Particulars Amount Amount Balance
01-01-2015 Cash A/c. 100000 100000
DR
.

14ACCOUNTING & FINANCIAL MANAGEMENT
30-01-2015 Closing Balance 100000
DR
.
28-02-2015 Closing Balance 100000
DR
.
Furniture 2 A/c. Dr. Cr.
Date Particulars Amount Amount Balance
01-02-2015 Furniture 2 A/c. 100000 100000
DR
.
28-02-2015 Closing Balance 100000
DR
.
A/P A/c. Dr. Cr.
Date Particulars Amount Amount Balance
02-01-2015 Equipment 1 A/c. 30000 30000 CR.
10-01-2015 Cash A/c. 2000 28000 CR.
12-01-2015 Inventory A/c. 4000 32000 CR.
24-01-2015 Cash A/c. 4000 28000 CR.
25-01-2015 Inventory A/c. 6000 34000 CR.
30-01-2015 Closing Balance 34000 CR.
03-02-2015 Inventory A/c. 23000 57000 CR.
10-02-2015 Cash A/c. 3000 54000 CR.
25-02-2015 Cash A/c. 2000 52000 CR.
28-02-2015 Closing Balance 52000 CR.
U/P A/c. Dr. Cr.
Date Particulars Amount Amount Balance
08-02-2015 Utility Expenses A/c. 500 500 CR.
24-02-2015 Cash A/c. 500 0 CR.
28-02-2015 Closing Balance 0 CR.
N/P 1 A/c. Dr. Cr.
Date Particulars Amount Amount Balance
01-01-2015 Cash A/c. 220000 220000 CR.
29-01-2015 Cash A/c. 2000 218000 CR.
30-01-2015 Closing Balance 218000 CR.
28-02-2015 Cash A/c. 2000 216000 CR.

15ACCOUNTING & FINANCIAL MANAGEMENT
28-02-2015 Closing Balance 216000 CR.
N/P 2 A/c. Dr. Cr.
Date Particulars Amount Amount Balance
01-02-2015 Cash A/c. 160000 160000 CR.
28-02-2015 Cash A/c. 2500 157500 CR.
28-02-2015 Closing Balance 157500 CR.
ACC-DEP Equipment- 1 A/c. Dr. Cr.
Date Particulars Amount Amount Balance
28-02-2015 Dep-Exp Equipment 1 A/c. 500 500 CR.
28-02-2015 Closing Balance 500 CR.
ACC-DEP Equipment- 2 A/c. Dr. Cr.
Date Particulars Amount Amount Balance
28-02-2015 Dep-Exp Equipment 2 A/c. 300 300 CR.
28-02-2015 Closing Balance 300 CR.
ACC-DEP Furniture- 1 A/c. Dr. Cr.
Date Particulars Amount Amount Balance
28-02-2015 Dep-Exp Furniture 1 A/c. 300 300 CR.
28-02-2015 Closing Balance 300 CR.
ACC-DEP Furniture- 2 A/c. Dr. Cr.
Date Particulars Amount Amount Balance
28-02-2015 Dep-Exp Furniture 2 A/c. 200 200 CR.
28-02-2015 Closing Balance 200 CR.
Common Stock A/c. Dr. Cr.
Date Particulars Amount Amount Balance
01-01-2015 Cash A/c. 100000 100000 CR.
31-01-2015 Closing Balance 100000 CR.

16ACCOUNTING & FINANCIAL MANAGEMENT
15-02-2015 Cash A/c. 40000 140000 CR.
28-02-2015 Closing Balance 140000 CR.
PL Adjustment A/c. Dr. Cr.
Date Particulars Amount Amount Balance
28-02-2015 Sales Revenue A/c. 188000 188000 CR.
Rental Revenue A/c. 3000 191000 CR.
28-02-2015 CGS A/c. 37600 153400 CR.
Rent Expenses A/c. 4000 149400 CR.
Supply Expenses A/c. 3500 145900 CR.
Insuarnce Expenses A/c. 800 145100 CR.
Wages Expenses A/c. 23500 121600 CR.
Utility Expenses A/c. 500 121100 CR.
Dep-Exp Equipment 1 A/c. 500 120600 CR.
Dep-Exp Equipment 2 A/c. 300 120300 CR.
Dep-Exp Furniture 1 A/c. 300 120000 CR.
Dep-Exp Furniture 2 A/c. 200 119800 CR.
Interest Expenses A/c. 3000 116800 CR.
28-02-2015 RE A/c. 116800 0 CR.
28-02-2015 Closing Balance 0 CR.
Dividend A/c. Dr. Cr.
Date Particulars Amount Amount Balance
02-02-2015 Cash A/c. 30000 30000
DR
.
28-02-2015 Cash A/c. 20000 50000
DR
.
28-02-2015 RE A/c. 50000 0
DR
.
28-02-2015 Closing Balance 0
DR
.
RE A/c. Dr. Cr.
Date Particulars Amount Amount Balance
28-02-2015 PL Adjustment A/c. 116800 116800 CR.
Dividend A/c. 50000 66800 CR.
28-02-2015 Closing Balance 66800 CR.

17ACCOUNTING & FINANCIAL MANAGEMENT
Sales Revenue A/c. Dr. Cr.
Date Particulars Amount Amount Balance
08-01-2015 Cash A/c. 20000 20000 CR.
CC/R A/c. 5000 25000 CR.
15-01-2015 Cash A/c. 21000 46000 CR.
A/R A/c. 3000 49000 CR.
CC/R A/c. 6000 55000 CR.
23-01-2015 Cash A/c. 16000 71000 CR.
A/R A/c. 2000 73000 CR.
CC/R A/c. 2000 75000 CR.
29-01-2015 Cash A/c. 19600 94600 CR.
A/R A/c. 2800 97400 CR.
CC/R A/c. 5600 103000 CR.
31-01-2015 Closing Balance 103000 CR.
07-02-2015 Cash A/c. 14000 117000 CR.
A/R A/c. 2000 119000 CR.
CC/R A/c. 4000 123000 CR.
14-02-2015 Cash A/c. 9000 132000 CR.
A/R A/c. 3000 135000 CR.
CC/R A/c. 3000 138000 CR.
23-02-2015 Cash A/c. 12000 150000 CR.
A/R A/c. 8000 158000 CR.
28-02-2015 Cash A/c. 21000 179000 CR.
A/R A/c. 3000 182000 CR.
CC/R A/c. 6000 188000 CR.
28-02-2015 Closing Balance 188000 CR.
Rental Revenue A/c. Dr. Cr.
Date Particulars Amount Amount Balance
01-02-2015 Cash A/c. 3000 3000 CR.
28-02-2015 Closing Balance 3000 CR.
CGS A/c. Dr. Cr.
Date Particulars Amount Amount Balance
08-01-2015 Inventory A/c. 5000 5000
DR
.
15-01-2015 Inventory A/c. 6000 11000 DR

18ACCOUNTING & FINANCIAL MANAGEMENT
.
23-01-2015 Inventory A/c. 4000 15000
DR
.
29-01-2015 Inventory A/c. 5600 20600
DR
.
31-01-2015 Closing Balance 20600
DR
.
07-02-2015 Inventory A/c. 4000 24600
DR
.
14-02-2015 Inventory A/c. 3000 27600
DR
.
24-02-2015 Inventory A/c. 4000 31600
DR
.
28-02-2015 Inventory A/c. 6000 37600
DR
.
28-02-2015 Closing Balance 37600
DR
.
Rent Expenses A/c. Dr. Cr.
Date Particulars Amount Amount Balance
02-01-2015 Cash A/c. 2000 2000
DR
.
31-01-2015 Closing Balance 2000
DR
.
01-02-2015 Rent Expenses A/c. 2000 4000
DR
.
28-02-2015 Closing Balance 4000
DR
.
Supply Expenses A/c. Dr. Cr.
Date Particulars Amount Amount Balance
28-02-2015 Supplies A/c. 3500 3500
DR
.
28-02-2015 Closing Balance 3500
DR
.
Insurance Expenses A/c. Dr. Cr.
Date Particulars Amount Amount Balance
28-02-2015 PP-Insurance A/c. 800 800
DR
.

19ACCOUNTING & FINANCIAL MANAGEMENT
28-02-2015 Closing Balance 800
DR
.
Wages Expenses A/c. Dr. Cr.
Date Particulars Amount Amount Balance
15-01-2015 Cash A/c. 8000 8000
DR
.
29-01-2015 Cash A/c. 7500 15500
DR
.
31-01-2015 Closing Balance 15500
DR
.
14-02-2015 Cash A/c. 8000 23500
DR
.
28-02-2015 Closing Balance 23500
DR
.
Utility Expenses A/c. Dr. Cr.
Date Particulars Amount Amount Balance
08-02-2015 U/P A/c. 500 500
DR
.
28-02-2015 Closing Balance 500
DR
.
Dep-Exp Equipment -1 A/c. Dr. Cr.
Date Particulars Amount Amount Balance
28-02-2015 ACC-DEP Equipment 1 A/c. 500 500
DR
.
28-02-2015 Closing Balance 500
DR
.
Dep-Exp Equipment -2 A/c. Dr. Cr.
Date Particulars Amount Amount Balance
28-02-2015 ACC-DEP Equipment 2 A/c. 300 300
DR
.
28-02-2015 Closing Balance 300
DR
.

20ACCOUNTING & FINANCIAL MANAGEMENT
Dep-Exp Furniture -1 A/c. Dr. Cr.
Date Particulars Amount Amount Balance
28-02-2015 ACC-DEP Furniture 1 A/c. 300 300
DR
.
28-02-2015 Closing Balance 300
DR
.
Dep-Exp Furniture -2 A/c. Dr. Cr.
Date Particulars Amount Amount Balance
28-02-2015 ACC-DEP Furniture 2 A/c. 200 200
DR
.
28-02-2015 Closing Balance 200
DR
.
Interest Expenses A/c. Dr. Cr.
Date Particulars Amount Amount Balance
29-01-2015 Cash A/c. 1000 1000
DR
.
31-01-2015 Closing Balance 1000
DR
.
28-02-2015 Cash A/c. 1000 2000
DR
.
28-02-2015 Cash A/c. 1000 3000
DR
.
28-02-2015 Closing Balance 3000
DR
.
Trial Balance for January:
Trial Balance
as on 31 Jan 2015
Dr. Cr.
Particulars Amount Amount
Cash $97,300
A/R $5,800
CC/R $11,600
Inventory $4,400
Supplies $2,000

21ACCOUNTING & FINANCIAL MANAGEMENT
PP-Insurance $4,800
Equipment-1 $1,90,000
Equipment-2 $0
Furniture-1 $1,00,000
Furniture-2 $0
A/P $34,000
U/P $0
N/P 1 $2,18,000
N/P 2 $0
ACC-DEP Equipment 1 $0
ACC-DEP Equipment 2 $0
ACC-DEP Furniture 1 $0
ACC-DEP Furniture 2 $0
Common Stock $1,00,000
RE $0
Dividend $0
Sales Revenue $1,03,000
Rental Revenue $0
CGS $20,600
Rent Expenses $2,000
Supply Expense $0
Insurance Expense $0
Wages Expense $15,500
Utility Expense $0
Dep-Exp Equipment 1 $0
Dep-Exp Equipment 2 $0
Dep-Exp Furniture 1 $0
Dep-Exp Furniture 2 $0
Interest Expense $1,000
TOTAL $4,55,000 $4,55,000
Unadjusted Trial Balance for February:
Unadjusted Trial Balance
as on 28 Feb 2015
Dr. Cr.
Particulars Amount Amount
Cash $82,300
A/R $18,800

22ACCOUNTING & FINANCIAL MANAGEMENT
CC/R $22,600
Inventory $15,400
Supplies $4,000
PP-Insurance $4,800
Equipment-1 $1,90,000
Equipment-2 $1,00,000
Furniture-1 $1,00,000
Furniture-2 $1,00,000
A/P $52,000
U/P $0
N/P 1 $2,16,000
N/P 2 $1,57,500
ACC-DEP Equipment 1 $0
ACC-DEP Equipment 2 $0
ACC-DEP Furniture 1 $0
ACC-DEP Furniture 2 $0
Common Stock $1,40,000
RE $0
Dividend $50,000
Sales Revenue $1,88,000
Rental Revenue $3,000
CGS $37,600
Rent Expenses $4,000
Supply Expense $0
Insurance Expense $0
Wages Expense $23,500
Utility Expense $500
Dep-Exp Equipment 1 $0
Dep-Exp Equipment 2 $0
Dep-Exp Furniture 1 $0
Dep-Exp Furniture 2 $0
Interest Expense $3,000
TOTAL $7,56,500 $7,56,500
Adjusted Trial Balance for February:
Adjusted Trial Balance
as on 28 Feb 2015
Dr. Cr.
Particulars Amount Amount

23ACCOUNTING & FINANCIAL MANAGEMENT
Cash $82,300
A/R $18,800
CC/R $22,600
Inventory $15,400
Supplies $500
PP-Insurance $4,000
Equipment-1
$1,90,00
0
Equipment-2
$1,00,00
0
Furniture-1
$1,00,00
0
Furniture-2
$1,00,00
0
A/P $52,000
U/P $0
N/P 1
$2,16,00
0
N/P 2
$1,57,50
0
ACC-DEP Equipment 1 $500
ACC-DEP Equipment 2 $300
ACC-DEP Furniture 1 $300
ACC-DEP Furniture 2 $200
Common Stock
$1,40,00
0
RE $0
Dividend $50,000
Sales Revenue
$1,88,00
0
Rental Revenue $3,000
CGS $37,600
Rent Expenses $4,000
Supply Expense $3,500
Insurance Expense $800
Wages Expense $23,500
Utility Expense $500
Dep-Exp Equipment 1 $500
Dep-Exp Equipment 2 $300
Dep-Exp Furniture 1 $300
Dep-Exp Furniture 2 $200
Interest Expense $3,000

24ACCOUNTING & FINANCIAL MANAGEMENT
TOTAL
$7,57,80
0
$7,57,80
0
Income Statement:
Income Statement
for the period ending 28 Feb 2015
Particulars Amount
Sales Revenue $1,88,000
Rental Revenue $3,000
TOTAL REVENUE $1,91,000
CGS -$37,600
GROSS PROFIT $1,53,400
Operating Expenses:
Rent Expenses -$4,000
Supply Expense -$3,500
Insurance Expense -$800
Wages Expense -$23,500
Utility Expense -$500
Dep-Exp Equipment 1 -$500
Dep-Exp Equipment 2 -$300
Dep-Exp Furniture 1 -$300
Dep-Exp Furniture 2 -$200
TOTAL OPERATING EXPENSES -$33,600
NET OPERATING PROFIT $1,19,800
Interest Expense -$3,000
NET PROFIT $1,16,800
RE Statement:
RE Statement
for the period ending 28 Feb 2015
Particulars Amount

25ACCOUNTING & FINANCIAL MANAGEMENT
Opening Balance of RE $0
Add: Net profit for the
period
$1,16,80
0
$1,16,80
0
Less: Dividend -$50,000
Closing Balance of RE $66,800
Balance Sheet:
Balance Sheet
as on 28 Feb 2015
Particulars Amount
Current Assets:
Cash $82,300
A/R $18,800
CC/R $22,600
Inventory $15,400
Supplies $500
PP-Insurance $4,000
TOTAL CURRENT ASSETS $1,43,600
Non-Current Assets:
Equipment-1 $1,90,000
ACC-DEP Equipment 1 -$500
Equipment-2 $1,00,000
ACC-DEP Equipment 2 -$300
Furniture-1 $1,00,000
ACC-DEP Furniture 1 -$300
Furniture-2 $1,00,000
ACC-DEP Furniture 2 -$200
TOTAL NON-CURRENT ASSETS $4,88,700
TOTAL ASSETS $6,32,300
Current Liabilities:
A/P $52,000

26ACCOUNTING & FINANCIAL MANAGEMENT
U/P $0
TOTAL CURRENT LIABILITIES $52,000
Non-Current Liabilities:
N/P 1 $2,16,000
N/P 2 $1,57,500
TOTAL NON-CURRENT LIABILITIES $3,73,500
TOTAL LIABILITIES $4,25,500
Equity Capital:
Common Stock $1,40,000
RE $66,800
TOTAL EQUITY CAPITAL $2,06,800
TOTAL EQUITY & LIABILITIES $6,32,300
Post-Closing Trial Balance:
Post-Closing Trial Balance
as on 28 Feb 2015
Dr. Cr.
Particulars Amount Amount
Cash $82,300
A/R $18,800
CC/R $22,600
Inventory $15,400
Supplies $500
PP-Insurance $4,000
Equipment-1 $1,90,000
Equipment-2 $1,00,000
Furniture-1 $1,00,000
Furniture-2 $1,00,000
A/P $52,000
U/P $0
N/P 1 $2,16,000
N/P 2 $1,57,500
ACC-DEP Equipment 1 $500
ACC-DEP Equipment 2 $300