Accounting Assignment: Comprehensive Financial Reporting Solution

This comprehensive accounting assignment solution addresses various aspects of financial accounting. It begins with answers to multiple-choice questions on internal controls and accounting principles. The core of the assignment involves preparing financial statements, starting with an unadjusted trial balance. Adjusting journal entries are then created to reflect accrued and unearned revenues, along with expense adjustments for salaries, material consumption, insurance, depreciation, and salary payable. Based on these adjustments, an income statement, balance sheet, retained earnings statement, and closing entries are prepared. The assignment also calculates key financial ratios, including working capital, current ratio, profit margin, and debt ratio, and includes a bank reconciliation statement. The solution concludes with a post-closing trial balance and a list of references used.

Running head: ACCOUNTING
Accounting
Name of the Student:
Name of the University:
Authors Note:

1ACCOUNTING
Table of Contents
Problem 1.........................................................................................................................................2
Problem 2.........................................................................................................................................4
Reference.......................................................................................................................................15

2ACCOUNTING
Problem 1
Answers to Question 4-34:
C. To maximize net income
Answer to Question 4-35:
a. Sarbanes-Oxley Reform
Answer to Question 4-36:
D. Separation of duties.
Answer to Question 4-37:
b. The customer should be able to see the amount entered into the cash register
Answer to Question 4-38:
C. deducted from the bank balance.
Answer to Question 4-39:
B. Deducted from the book balance
Answer to Question 4-40:
A. $9 deduction from the book balance
Answer to Question 4-41:
D. No entry is required
Answer to Question 4-42:
C. Added to the book balance.

3ACCOUNTING
Answer to Question 4-43:
D. All of the above.

4ACCOUNTING
Problem 2
9/26/2016 cash $920.00 9/20/2016 Balance b/d $6,100.00 6/20/2019 Balance b/d $14,000.00
9/30/2016 cash $420.00
9/30/2016 Balance $4,760.00 9/30/2016 Balance $14,000.00
Total $6,100.00 Total $6,100.00 Total $14,000.00 Total $14,000.00
Salary Expenses Accounts Receivable
Date Particulars Amount Date Particulars Amount Date Particulars Amount Date Particulars Amount
9/20/2016 Balance b/d $37,000.00 9/20/2016 Balance b/d $7,500.00 9/29/2016 Cash $680.00
9/30/2016 Balance $37,000.00 9/30/2016 Balance $6,820.00
Total $37,000.00 Total $37,000.00 Total $7,500.00 Total $7,500.00
9/30/2016 Balance $37,000.00 9/30/2016 Balance $6,820.00
Total $37,000.00 Total $37,000.00 Total $7,500.00 Total $7,500.00
Dividend Service Revenue
Date Particulars Amount Date Particulars Amount Date Particulars Amount Date Particulars Amount
9/20/2016 balanec b/d $16,000.00 9/20/2016 Balance b/d $161,000.00
9/30/2016 Cash $1,266.00
9/30/2016 balance $16,000.00 9/30/2016 Balance $162,266.00
Total $16,000.00 Total $16,000.00 Total $162,266.00 Total $162,266.00
Accumulated depreciation Building Land

5ACCOUNTING
9/20/2016 Balance b/d $15,600.00
9/30/2016 Balance $15,600.00
Total $15,600.00 Total $15,600.00
Supply Inventory
Date Particulars Amount Date Particulars Amount
9/20/2016 Balance b/d $4,600.00
9/30/2016 Balance $4,600.00
Total $4,600.00 Total $4,600.00
Prepaid Insurance

6ACCOUNTING
Supply Inventory
Date Particulars Amount Date Particulars Amount
9/20/2016 Balance b/d $4,600.00
9/30/2016 Balance $4,600.00
Total $4,600.00 Total $4,600.00
Prepaid Insurance
Date Particulars Amount Date Particulars Amount
9/20/2016 Balance b/d $3,500.00
9/20/2016 Balance b/d $3,500.00
9/30/2016 Balance $3,500.00
Total $3,500.00 Total $3,500.00
Building
Date Particulars Amount Date Particulars Amount
9/20/2016 Balance b/d $110,000.00
9/30/2016 Balance $110,000.00
Total $110,000.00 Total $110,000.00

7ACCOUNTING
Building
Date Particulars Amount Date Particulars Amount
9/20/2016 Balance b/d $110,000.00
9/30/2016 Balance $110,000.00
Total $110,000.00 Total $110,000.00
Utilities Expenses
Date Particulars Amount Date Particulars Amount
9/20/2016 Balance b/d $2,000.00
9/30/2016 Balance $2,000.00
9/30/2016 Accounts Payable $420.00
9/30/2016 Balance $2,000.00 9/30/2016 balance $14,075.00
Total $2,000.00 Total $2,000.00 Total $16,111.00 Total $16,111.00
Office supplies Electricity bill
Date Particulars Amount Date Particulars Amount Date Particulars Amount Date Particulars Amount
Statement showing Trial balance (Un Adjusted)
Accounts Debit Credit
Service revenue $162,266.00
Salary Expenses $37,000.00
Advertising Expenses $7,300.00
Utilities Expenses $2,000.00

8ACCOUNTING
Office Supplies $310.00
Electricity bill $386.00
Dividend $16,000.00
Land $53,000.00
Building $110,000.00
Accounts Receivable $6,820.00
Supply Inventory $4,600.00
Prepaid Insurance $3,500.00
Cash $14,075.00
Unearned Service Revenue $5,500.00
Accumulated Depreciation Building $15,600.00
Accounts Payable $4,760.00
Retained Earnings $52,865.00
Common stock $14,000.00
Total $254,991.00 $254,991.00
Statement Showing Adjustment Journal Entry
Particulars Debit Credit
Unearned Service Revenue $1,650.00
Service Revenue $1,650.00
(Being unearned service revenue earned, now adjusted)
Salary $2,600.00
Salary Payable $2,600.00
(Being salary due adjusted for new executives)
Accounts receivable $35,000.00
Service revenue $35,000.00
(Being accrued service revenue adjusted)
Material Consumed $3,100.00
Supply Inventory $3,100.00

9ACCOUNTING
(Being inventory consumed now adjusted)
Insurance Expenses $1,500.00
Prepaid Insurance $1,500.00
(Being insurance expenses adjusted)
Salary $37,000.00
Salary Payable $ 37,000.00
(Being salary due adjusted for half month)
Depreciation $2,600.00
Accumulated Depreciation $2,600.00
(Being depreciation adjusted)

10ACCOUNTING
Insurance Expenses $1,500.00 $1,500.00
Depreciation Expenses $2,600.00 $2,600.00
Dividend $16,000.00 $16,000.00
Land $53,000.00 $53,000.00
Building $110,000.00 $110,000.00
Accounts Receivable $6,820.00 $35,000.00 $41,820.00
Supply Inventory $4,600.00 $3,100.00 $1,500.00
Prepaid Insurance $3,500.00 $1,500.00 $2,000.00
Cash $14,075.00 $14,075.00
Unearned Service Revenue $5,500.00 $5,500.00
Accumulated Depreciation Building $15,600.00 $2,600.00
Accounts Payable $4,760.00
Salary Payable $63,000.00
Retained Earnings $52,865.00
Common stock $14,000.00
Total $254,991.00 $254,991.00 $110,700.00 ### $355,591.00
Income Statement
Particulars Amount Amount
Revenue
Service revenue $202,766.00
Expenses
Material Consumed $3,100.00
Salary Expenses $100,000.00
Advertising Expenses $7,300.00
Utilities Expenses $2,000.00
Office Supplies $310.00

11ACCOUNTING
Electricity bill $386.00
Insurance Expenses $1,500.00
Depreciation Expenses $2,600.00
Dividend $16,000.00
Total Expenses $133,196.00
Net Profit $69,570.00
Balance Sheet
Amount Amount
Assets
Non-Current Assets
Land $53,000.00
Building $110,000.00
Total $163,000.00
Current Assets
Accounts Receivable $41,820.00
Supply Inventory $1,500.00
Prepaid Insurance $2,000.00
Cash $14,075.00
Total $59,395.00
Total Assets $222,395.00
Liability
Current Liability
Accumulated Depreciation Building $18,200.00
Accounts Payable $4,760.00
Salary Payable $63,000.00
Total Current Liability $85,960.00
Net Assets $136,435.00
Retained Earnings $122,435.00
Common stock $14,000.00
Total Owners Equity $136,435.00
Statement Showing Retained Earning