Accounting and Financial reporting
1) All tasks
Task 4- Tesla
1)
Account Debit Credit
Cash 1 000
Unearned revenue 1 000
2) Only an agreement, no transactions made.
3)
Account Debit Credit
Cash 34 000
Unearned revenue 1 000
Sales revenue 1 000
Task 5- Accrual Accounting
General Journal- October/November
Event e) no transaction as no money involved
Date Account and explanations Debit Credit
Cash 85 000
Unearned Revenue 85 000
Deposit hotel expense 8 000
cash 8 000
Deposit hotel food and 2 600
beverages
Cash 2 600
General Journal- February
Date Account and explanations Debit Credit
Unearned revenue 85 000
Revenue 85 000
Salary expense 4 000
Cash 4 000
Hotel expense 40 000
Cash 32 000
Prepaid expense 8 000
, Hotel food and beverages 13 000
expense
Cash 10 400
Prepaid expense 2 600
Bus expense 500
Accounts payable 500
Salary expense (speaker) 20 000
Accounts payable 20 000
Task 6
General journal
Date Account titles and Debit Credit
explanations
Jan 1 Cash 12 000
Share capital 12 000
Cash 200 000
Bank loan 200 000
PPE- store 150 000
Cash 150 000
Jan 15 Inventory 2 000
Cash 2 000
Jan 31 Equipment 10 000
Equipment payable 10 000
Interest expense 1 500
cash 1500
Inventory 6 000
Cash 2500
Accounts payable 3500
1 Feb Rent payment (prepaid) 4800
Cash 4800
15 Feb Accounts payable 500
cash 500
28 Feb Salaries expense 900
cash 900
28 Feb Interest payment 1500
Cash 1500
28 March Equipment payable 10 000
Cash 10 000
31 March Electricity expenses 200
Electricity payable 200
31 March Interest payment 1500
Cash 1500
, Trial Balance
1) Assets (in order of the easiest one to convert in cash)
2) Liabilities
3) Expense
Debit Credit
Cash 36 800
Prepaid rent 4 800
Inventory sold 8 000
Equipment 10 000
Building 150 000
Accounts payable 3 000
Electricity payable 200
Share capital 12 000
Bank loan 200 000
Salary expense 900
Electricity expense 200
Interest expense 4 500
Total 215 200 215 200
Adjusting entries
Cost of goods sold: 8 000-800= 7 200
Acc. Dep. Equipment: 10 000 total / 5 (years)= 2 000/year
Every 2 months as it starts Jan 31: 2 000/6= 333
Acc. Dep. Building: 150 (years) = 10 000/ year
10 000/ 4(as every 3 month)= 2 500
Debit Credit
Cash 8 000
Accounts receivable 2 000
Sales revenues 10 000
Cost of goods sold 7200
Inventory 7 200
Depreciation expense- 333
equipment
Accumulated depreciation 333
equipment
Depreciation expense 2 500
building
Accumulated depreciation 2 500
Building
, Heat expense 300
Accrued expense 300
Rent expense 2 400
Prepaid rent 2 400
Total 22 733 22 733
Adjusted Trial balance
Credit Debit
Cash 44 800
Prepaid rent 2 400
Inventory 800
Account receivable 2 000
Equipment 10 000
Building 150 000
Acc. Dep. Equipment 333
Acc. Dep. Building 2 500
Depreciation expense 2 833
Accounts payable 3 000
Electricity expense 200
Electricity payable 200
Bank loan 200 000
Share capital 12 000
Sales revenue 10 000
Salary expense 900
Cost of goods sold 7 200
Rent expense 2 400
Interest expense 4 500
Heat expense 300
Heat payable 300
TOTAL 228 333 228 333
1) All tasks
Task 4- Tesla
1)
Account Debit Credit
Cash 1 000
Unearned revenue 1 000
2) Only an agreement, no transactions made.
3)
Account Debit Credit
Cash 34 000
Unearned revenue 1 000
Sales revenue 1 000
Task 5- Accrual Accounting
General Journal- October/November
Event e) no transaction as no money involved
Date Account and explanations Debit Credit
Cash 85 000
Unearned Revenue 85 000
Deposit hotel expense 8 000
cash 8 000
Deposit hotel food and 2 600
beverages
Cash 2 600
General Journal- February
Date Account and explanations Debit Credit
Unearned revenue 85 000
Revenue 85 000
Salary expense 4 000
Cash 4 000
Hotel expense 40 000
Cash 32 000
Prepaid expense 8 000
, Hotel food and beverages 13 000
expense
Cash 10 400
Prepaid expense 2 600
Bus expense 500
Accounts payable 500
Salary expense (speaker) 20 000
Accounts payable 20 000
Task 6
General journal
Date Account titles and Debit Credit
explanations
Jan 1 Cash 12 000
Share capital 12 000
Cash 200 000
Bank loan 200 000
PPE- store 150 000
Cash 150 000
Jan 15 Inventory 2 000
Cash 2 000
Jan 31 Equipment 10 000
Equipment payable 10 000
Interest expense 1 500
cash 1500
Inventory 6 000
Cash 2500
Accounts payable 3500
1 Feb Rent payment (prepaid) 4800
Cash 4800
15 Feb Accounts payable 500
cash 500
28 Feb Salaries expense 900
cash 900
28 Feb Interest payment 1500
Cash 1500
28 March Equipment payable 10 000
Cash 10 000
31 March Electricity expenses 200
Electricity payable 200
31 March Interest payment 1500
Cash 1500
, Trial Balance
1) Assets (in order of the easiest one to convert in cash)
2) Liabilities
3) Expense
Debit Credit
Cash 36 800
Prepaid rent 4 800
Inventory sold 8 000
Equipment 10 000
Building 150 000
Accounts payable 3 000
Electricity payable 200
Share capital 12 000
Bank loan 200 000
Salary expense 900
Electricity expense 200
Interest expense 4 500
Total 215 200 215 200
Adjusting entries
Cost of goods sold: 8 000-800= 7 200
Acc. Dep. Equipment: 10 000 total / 5 (years)= 2 000/year
Every 2 months as it starts Jan 31: 2 000/6= 333
Acc. Dep. Building: 150 (years) = 10 000/ year
10 000/ 4(as every 3 month)= 2 500
Debit Credit
Cash 8 000
Accounts receivable 2 000
Sales revenues 10 000
Cost of goods sold 7200
Inventory 7 200
Depreciation expense- 333
equipment
Accumulated depreciation 333
equipment
Depreciation expense 2 500
building
Accumulated depreciation 2 500
Building
, Heat expense 300
Accrued expense 300
Rent expense 2 400
Prepaid rent 2 400
Total 22 733 22 733
Adjusted Trial balance
Credit Debit
Cash 44 800
Prepaid rent 2 400
Inventory 800
Account receivable 2 000
Equipment 10 000
Building 150 000
Acc. Dep. Equipment 333
Acc. Dep. Building 2 500
Depreciation expense 2 833
Accounts payable 3 000
Electricity expense 200
Electricity payable 200
Bank loan 200 000
Share capital 12 000
Sales revenue 10 000
Salary expense 900
Cost of goods sold 7 200
Rent expense 2 400
Interest expense 4 500
Heat expense 300
Heat payable 300
TOTAL 228 333 228 333
