Assignment – Principle to Accounting

promontory 1 (Total 10 Marks) Instructions Indicate in which journal the transactions given below would be recorded by placing the let journal abbreviation in the space provided. AbbreviationJournal GJGeneral Journal CB property & Bank hold SJgross revenue Journal SRSales Return Journal PJPurchases Journal PRPurchases Return Journal CB 1. authorized cash on outstanding amount from customer. SR 2. Customer handed intersection sold on account. CB 3. Sold swop to customer for cash. GJ 4. owner withdrew merchandise for personal use. GJ 5.Paid shipping charges on merchandise purchased on account. GJ 6. Purchased assurance equipment on credit. PJ 7. consultation purchase from supplier. GJ 8. Recorded adjusting entries. SR 9. Returned damage merchandise to supplier which has not paid yet. SJ 10. Sold merchandise to customer on account. Question 2 (Total 22 Marks) Instructions Given the entry information in Silva employment, prepare appropriate entries for the month of August 201 2 0. Aug. 1Sold merchandise for cash $300. Dr coin$300 Cr Sales$300 1. Aug. 2Purchased merchandise from first rudiment Co. n account for $5,000 terms 2/10, n/30. 2. Aug. 4Sold excess realm for $7,000 accepting a 2-year, 12% note. The land was purchased for $7,000 last year. 3. Aug. 6Sold merchandise to D. muffin on account for $930, terms 2/10, n/30. 4. Aug. 8Accepted a gross revenue pitch of defective merchandise from D. Stonecredit granted was $280. 5. Aug. 11Purchased merchandise from Tanner hardware on account for $1,800 terms 1/10, n/30. 6. Aug. 12Paid freight of $200 on the shipment from ABC Co. in cash. 7. Aug. 15Received salary in all-encompassing from D. Stone by cash. 8. Aug. 19Paid ABC Co. n full by cheque. 9. Aug. 20Paid Tanner Hardware in full by cheque. 10. Aug. 27Purchased office supplies for $250 cash. Question 2 Answer Date Account Debit ($) Credit ($) Aug. 1 Cash 300 Sales 300 Aug. Purchases 5,000 ABC Co. 5,000 Aug. 4 Notes receivable 7,000 La nd 7,000 Aug. 6 D.Stone 930 Sales 930 Aug. 8 Sales return 280 D. Stone 280 Aug. 1 Purchases 1,800 Tanner Hardware 1,800 Aug. 12 Carriage private 200 Cash 200 Aug. 5 Cash 637 Discount allowed 13 D. Stone 650 Aug. 19 ABC Co. 5,000 Bank 5,000 Aug. 20 Tanner Hardware 1,800 Bank 1,782 Discount received 18 Aug. 7 authorisation supplies 250 Cash 250 Question 3 (Total 48 Marks) Instructions Based on your entries make in Question 2, prepare, for the month of August 2012 a) Adjusted trial remainder (24 Marks) b) Income statement (12 Marks) c) eternal sleep sheet (12 Marks)Silva commerce Trial Balance as at July 31, 2012 Account TitlesDr. Cr. Cash500 Bank9,075 Prepaid Insurance2,000 Freehold Lands31,000 Notes due26,000 F. Santos, Capital15,000 F. Santos, Drawing2,000 Sales17,125 Purchase6,400 Salaries write down4,000 Supplies expenditure1,500 Insurance Expense1,200 Interest Expense500 Interest Payable 50 Total58,17558,175 Question 3(a ) Answer Silva Trading Trial Balance for the period ended 31st August 2012 Account Titles Debit ($) Credit($) Cash 987 Bank 2293 Prepaid Insurance 2000 Freehold Lands 24000 Notes Payable 26000 F. Santos, Capital 15000 F.Santos, Drawing 2000 Sales 18355 Purchase 13200 Salaries Expense 4000 Supplies Expense 1500 Insurance Expense 1200 Interest Expense 500 Interest Payable 50 Notes receivable 7000 Sales return 280 Discount allowed 13 Discount received 18 Carriage in 200 Office supplies 250 _____ _____ Total 59423 59423 Question 3(b) Answer Silva Trading Income statement for the period 31st August 2012 Sales 18355 -Sales return 280 18075 -Discount allowed 13 Net sales 18062 -Cost of sales Purchases 13200 -Discount received 18 13182 Carriage inward 200 13382 Gross profit 4680 Expenses Salaries Expense 4000 Supplies Expense 1500 Insurance Expense 1200 Interest Expense 500 7200 Net loss (2520) Silva Trading Balance sheet as at 31st August 2012 Non-current assets Freehold Lands 24000 Office supplies 250 Notes receivable 7000 31250 authorized Assets Cash 987 Bank 2293 Prepaid Insurance 2000 5280 Current Liabilities Notes Payable 26000 Interest Payable 50 26050 Works capital (20770) 10480 Owners Equity Early Capital 15000 -Drawing 2000 13000 -Net loss (2520) 10480