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.