Question
Question 1 The following data is for Jack and Bill, Inc.: Balance Balance 12/31/07 12/31/08 Cash 30,000 78,100 Accounts Receivable 50,000 90,000 Allowance for Doubtful
Question 1
The following data is for Jack and Bill, Inc.:
Balance Balance
12/31/07 12/31/08
Cash 30,000 78,100
Accounts Receivable 50,000 90,000
Allowance for Doubtful Accounts 10,000 15,000
Inventory 70,000 50,000
Prepaid Insurance 2,400 3,600
Equipment 200,000 350,000
Accumulated Depreciation 20,000 80,000
Land 100,000
Goodwill 10,000
Accounts Payable 30,000 35,800
Wages Payable 10,000 8,000
Rent Payable 4,000 6,000
Interest Payable 3,750 3,250
Taxes Payable 5,000 10,000
Note Payable 150,000 130,000
Common Stock ($1 each) 60,000 200,000
Retained Earnings 59,650 193,650
Sales 1,400,000
Cost of Goods Sold 719,500
Wage Expense 264,000
Rent Expense 48,000
Office Expenses 41,000
Depreciation Expense 60,000
Bad Debt Expense 30,000
Insurance Expense 3,000
Interest Expense 14,500
Income Tax Expense 66,000
The land was acquired on June 30, 2008 by exchanging 60,000 shares of common stock worth $60,000 and
cash for the balance of the purchase price. The additional common stock (other than that issued for the purchase
of the land) was sold on September 30, 2008 for $1 per share. The company did not sell any equipment during the year. All equipment purchased during the year was purchased for cash. The retained earnings balance for both years is after all closing entries have been made. The Note Payable requires payments of $20,000 principal plus interest at 10% on September 30th of each year.
Required:
Prepare the income statement and balance sheet for Jack and Bill, Inc for the year ending at 31 December 2008.
Question 2
- The following transactions belong to Mr Roy business from Nov 10th, 20_5 to Nov 30th, 20_5
Enter the following transactions in the Journal and post them into ledger and from the information obtained prepare a Trail Balance.
Nov 10th | : | Mr. Roy started business with 60,000 |
11th | : | Bought furniture from Modern Furniture for 10,000 |
12th | : | Purchased goods for cash 15,000 |
13th | : | Purchased goods from B. Sen & Co for 30,000 |
14th | : | Opened a bank account by depositing 16,000 |
16th | : | Sold goods for cash 15,000 |
17th | : | Purchased stationery for 1000 from Bharat Stationery Mart |
18th | : | Sold goods to Zahir Khan for 10,000 |
19th | : | Bought machinery for 6,000 and payment made by cheque |
20th | : | Goods returned by Zahir Khan for 2,000 |
21st | : | Payment to B.Sen & Co by cheque 5,000 |
22nd | : | Withdrew from bank for personal use 3,000 |
23rd | : | Interest paid through cheque 2,000 |
24th | : | Withdrew from bank for office expenses 10,000 |
26th | : | Cheque received from Zahir Khan 5,000 |
27th | : | Paid electricity bill for 100 |
29th | : | Cash sales for 6,000 |
30th | : | Commission received by cheque 5,000 |
Required:
Enter the above transactions in the Journal.
Post the journal transactions into ledger.
Prepare a Trail Balance.
This is group assignment. There should be maximum four members in each group. Please include cover page for your answers stating your names and ID numbers. The marking will be 20% of your total mark. Please include proper cover page and submit the assignment in hand writing (not typing) format. The deadline for submitting this assignment is 12102016. Students are needed to submit both hard-copy and soft-copy. The hardcopy should be submitted during lecture class on 12102016. The softcopy should be uploaded in LMS website under assignment folder. Uploading by one group member is enough. Question 1 The following data is for Jack and Bill, Inc.: Balance Balance 12/31/07 12/31/08 Cash 30,000 78,100 Accounts Receivable 50,000 Allowance for Doubtful Accounts Inventory 90,000 15,000 10,000 70,000 50,000 Prepaid Insurance 2,400 3,600 Equipment 200,000 350,000 20,000 80,000 Accumulated Depreciation Land 100,000 Goodwill Accounts Payable 10,000 30,000 35,800 Wages Payable 10,000 8,000 Rent Payable 4,000 6,000 Interest Payable Taxes Payable 3,750 3,250 5,000 10,000 Note Payable 150,000 130,000 Common Stock ($1 each) Retained Earnings Sales 60,000 59,650 200,000 193,650 1,400,000 Cost of Goods Sold 719,500 Wage Expense Rent Expense 264,000 48,000 Office Expenses 41,000 Depreciation Expense 60,000 Bad Debt Expense Insurance Expense Interest Expense 30,000 3,000 14,500 Income Tax Expense 66,000 The land was acquired on June 30, 2008 by exchanging 60,000 shares of common stock worth $60,000 and cash for the balance of the purchase price. The additional common stock (other than that issued for the purchase of the land) was sold on September 30, 2008 for $1 per share. The company did not sell any equipment during the year. All equipment purchased during the year was purchased for cash. The retained earnings balance for both years is after all closing entries have been made. The Note Payable requires payments of $20,000 principal plus interest at 10% on September 30th of each year. Required: Prepare the income statement and balance sheet for Jack and Bill, Inc for the year ending at 31 December 2008. Question 2 The following transactions belong to Mr Roy business from Nov 10th, 20_5 to Nov 30th, 20_5 Enter the following transactions in the Journal and post them into ledger and from the information obtained prepare a Trail Balance. Nov 10th : Mr. Roy started business with 60,000 11th : Bought furniture from Modern Furniture for 10,000 12th : Purchased goods for cash 15,000 13th : Purchased goods from B. Sen & Co for 30,000 14th : Opened a bank account by depositing 16,000 16th : Sold goods for cash 15,000 17th : Purchased stationery for 1000 from Bharat Stationery Mart 18th : Sold goods to Zahir Khan for 10,000 19th : Bought machinery for 6,000 and payment made by cheque 20th : Goods returned by Zahir Khan for 2,000 21st : Payment to B.Sen & Co by cheque 5,000 22nd : Withdrew from bank for personal use 3,000 23rd : Interest paid through cheque 2,000 24th : Withdrew from bank for office expenses 10,000 26th : Cheque received from Zahir Khan 5,000 27th : Paid electricity bill for 100 29th : Cash sales for 6,000 30th : Commission received by cheque 5,000 Required: (a) Enter the above transactions in the Journal. (b) Post the journal transactions into ledger. (c) Prepare a Trail Balance
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