Computerized Accounting - Assignment

Example ...

American Journal

Trial Balance

Income Statement

Statement of Changes in Equity

Balance Sheet

Assume that you are an accountant in a new established company and you have been asked to build an accounting system using Microsoft Excel. Build a full accounting system that represents the full accounting cycle for a chosen period (1 year) begins from 1st January 2018. Instructions: Make at least 7 journal entries additional to the entries given below; Make 3 adjusting entries additional to the adjusting entry provided below Transactions required recording 1. Payment for 1 year medical insurance policy starts from 1st March 2018 2. On 1st Jan 2018 applied for a 1 year short term loan with an interest of %10 due on 30 June 2018 3. Purchased furniture on 31 March 2018 Amount 420,000 $1,000,000 $75,000 Adjusting Entry: 1. Furniture useful life is 3 years and it has an estimated residual value of $15,000. The company is using straight line method for depreciation BALANCE ADJUSTING ENTRIES ADJUSTED TRIAL BALANCE Income Statement Statement of Changes In Equity Statement of Financial Position CR CR CR CR CR CR CASH 63,300 16,150 47,150 47,150 47,150 Share capital 0,000 0,000 0,000 0,000 0,000 7,000 5,500 10,600 7,000 5,500 10,600 7,000 7,000 PURCHASE 10,600 ACCOUNT PAYABLE 10,850 10,600 2,500 25,000 8,100 4,700 2,800 1,900 26,900 26,900 advertisi 250 SALES office rent SALARIES UTILITIES DEPRECIATION EXP-CARS ACCUMAULATED DEPRECATION NVENTIRY OGs NOTES PAYBLE PREPAID RENT 13,500 13,500 25,D00 38,500 38,500 600 600 400 250 25D 2,000 2,000 8,600 8,6C0 9,600 2,500 2,500 500 ABC Company lcome Statement For the year ended Dec 31, 2018 SALES COGS Gross Profit Selling Expenses: advertising expense Total Selling Expense 38,500 (8,600) 29,900 (250) (250) Administrative Expenses office rent SALARIES UTILITIES DEPRECIATION EXP-CARS Total Administrative Expenses Total Expenses (400) (900) (200) (250) (1,750) (2,000) Net Operating Income 27,900 ABC Company Statement of Changes In Equity For the year Ended Dec-31-2018 Share Capital Retained Earnings Total Begingging Balance lsuance of Shares Net Income Ending Balance of Dec-31-2018 50,000 27,900 77,900 50,000 27,900 27,900 50,000 ABC Company Statement of Financial Posision Dec-31-2018 Assets Non-Current Assest: Computer equipment CARS ACCUMAULATED DEPRECATION Total Non-current Assets Current Assests: CASH A/R INVENTIRY PREPAID RENT Total Current Assets: Total Assets 7,000 5,500 (250) 5,250 12,250 47,150 26,900 2,000 200 76,250 88,500 Liabilities And Shareholders Equity Non-Current Liabilities NOTES PAYBL Total Non-Current Liabilities Current Liabilities ACCOUNT PAYABLE Total Current Liabilities Total Liabilities 2,500 2,500 8,100 8,100 10,600 Share Holders Equity: Share capital Retained Earnings Total Shareholders Equity Total Liabilities And Shaereholders Equity 50,000 27,900 77,900 99,100 Assume that you are an accountant in a new established company and you have been asked to build an accounting system using Microsoft Excel. Build a full accounting system that represents the full accounting cycle for a chosen period (1 year) begins from 1st January 2018. Instructions: Make at least 7 journal entries additional to the entries given below; Make 3 adjusting entries additional to the adjusting entry provided below Transactions required recording 1. Payment for 1 year medical insurance policy starts from 1st March 2018 2. On 1st Jan 2018 applied for a 1 year short term loan with an interest of %10 due on 30 June 2018 3. Purchased furniture on 31 March 2018 Amount 420,000 $1,000,000 $75,000 Adjusting Entry: 1. Furniture useful life is 3 years and it has an estimated residual value of $15,000. The company is using straight line method for depreciation BALANCE ADJUSTING ENTRIES ADJUSTED TRIAL BALANCE Income Statement Statement of Changes In Equity Statement of Financial Position CR CR CR CR CR CR CASH 63,300 16,150 47,150 47,150 47,150 Share capital 0,000 0,000 0,000 0,000 0,000 7,000 5,500 10,600 7,000 5,500 10,600 7,000 7,000 PURCHASE 10,600 ACCOUNT PAYABLE 10,850 10,600 2,500 25,000 8,100 4,700 2,800 1,900 26,900 26,900 advertisi 250 SALES office rent SALARIES UTILITIES DEPRECIATION EXP-CARS ACCUMAULATED DEPRECATION NVENTIRY OGs NOTES PAYBLE PREPAID RENT 13,500 13,500 25,D00 38,500 38,500 600 600 400 250 25D 2,000 2,000 8,600 8,6C0 9,600 2,500 2,500 500 ABC Company lcome Statement For the year ended Dec 31, 2018 SALES COGS Gross Profit Selling Expenses: advertising expense Total Selling Expense 38,500 (8,600) 29,900 (250) (250) Administrative Expenses office rent SALARIES UTILITIES DEPRECIATION EXP-CARS Total Administrative Expenses Total Expenses (400) (900) (200) (250) (1,750) (2,000) Net Operating Income 27,900 ABC Company Statement of Changes In Equity For the year Ended Dec-31-2018 Share Capital Retained Earnings Total Begingging Balance lsuance of Shares Net Income Ending Balance of Dec-31-2018 50,000 27,900 77,900 50,000 27,900 27,900 50,000 ABC Company Statement of Financial Posision Dec-31-2018 Assets Non-Current Assest: Computer equipment CARS ACCUMAULATED DEPRECATION Total Non-current Assets Current Assests: CASH A/R INVENTIRY PREPAID RENT Total Current Assets: Total Assets 7,000 5,500 (250) 5,250 12,250 47,150 26,900 2,000 200 76,250 88,500 Liabilities And Shareholders Equity Non-Current Liabilities NOTES PAYBL Total Non-Current Liabilities Current Liabilities ACCOUNT PAYABLE Total Current Liabilities Total Liabilities 2,500 2,500 8,100 8,100 10,600 Share Holders Equity: Share capital Retained Earnings Total Shareholders Equity Total Liabilities And Shaereholders Equity 50,000 27,900 77,900 99,100