Assignment 2 Instructions 1. 2. 3. This is an individual assignment. The assignment carries 3 questions. The assignment covers Chapter 3&4 and 15% of your total marks. The assignment need to be submitted as a soft copy in EduOasis, typed in Microsoft word file or written clearly in an A4 paper (upload a scanned copy of the document). The assignment has to be submitted in EduOasis on or before February 16, 2021 4. 5. Question 1: Recording events in the general journal, posting it to T-accounts, and preparing trial balance The following events apply to Computer Services Inc. in the first year of operation: 1. Acquired $40,000 cash from the issue of common stock 2. Earned $28,000 service revenue on account. 3. Incurred $15,200 of operating expenses on account. 4. Collected $26,400 cash from accounts receivable. 5. Made a $13,600 payment to account payable 6. Paid $2,000 casg dividend to sharehodlers. 7. Received a $7,100 cash advance for services to be provided in the future. 8. Purchased $1,600 of supplies on account 9. Recognized $2,400 of revenue for services provided to the customer in Event 7. 10. Recognized $1,200 of supplies expense 11. Recorded $1,600 of accrued salary expense 12. Reocgnized $450 of accrued interest revenue. Question 2: Final Accounts - Merchandizing Business The following trial balance pertains to Feazell Hardware as of January 1, 2013. Account Title Debit Credit Cash $ 28,000 Account inue Debit Creant Cash $ 28,000 Account Receivable 18,000 120,000 Merchandise Inventory Accounts Payable Common Stock $ 10,000 140,000 16,000 Retained Earnings The following events occurred in 2013. Assume that Feazell Hardware uses the periodic inventory system. 1. Purchased land for $16,000 cash 2. Purchased merchandise on account for $46,000, terms 2/10 n/30. 3. The merchandise purchased by Feazell was shipped FOB shipping point for $460 cash. 4. Returned $4,000 of defective merchandise purchased in Event 2 5. Sold merchandise for $4,000 cash 6. Sold merchandise on account for $100,000, terms 1/20 n/30. 7. Paid cash within the discount period on accounts payable due on merchandise purchased in Event 2. 8. Paid $2,400 cash for selling expenses. 9. Collected $70,000 of accounts receivable within the discount period. 10. Collected $24,000 of accounts receivable but not within the discount period. 11. Paid $6,400 of other operating expenses. 12. Performed a physical count indicating that $60,000 of inventory was on hand at the end of the accounting period. Requirements a. Record these transactions in a general journal. b. Post the transactions to ledger T-accounts. c. Prepare a schedule of cost of goods sold, an income statement, a statement of changes in stockholder's equity, a balance sheet and a statement of cash flows for 2013
