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    02 - Homework Exercises-1

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    This document contains two accounting exercises. The first asks the student to classify balance sheet items for a small business into accounts and prepare a narrative format balance sheet. The second exercise has the student record balance sheet accounts and transactions into a general ledger, balance the accounts, and prepare a trial balance.

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    02 - Homework Exercises-1

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    This document contains two accounting exercises. The first asks the student to classify balance sheet items for a small business into accounts and prepare a narrative format balance sheet. The second exercise has the student record balance sheet accounts and transactions into a general ledger, balance the accounts, and prepare a trial balance.

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    02_Homework exercises-1

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    This document contains two accounting exercises. The first asks the student to classify balance sheet items for a small business into accounts and prepare a narrative format balance sheet. The second exercise has the student record balance sheet accounts and transactions into a general ledger, balance the accounts, and prepare a trial balance.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    5 views7 pages

    02 - Homework Exercises-1

    Uploaded by

    BTS LOVERS
    This document contains two accounting exercises. The first asks the student to classify balance sheet items for a small business into accounts and prepare a narrative format balance sheet. The second exercise has the student record balance sheet accounts and transactions into a general ledger, balance the accounts, and prepare a trial balance.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 7

    BUS120 Introduction Accounting Worksheet 2

    BUS120 Introduction Accounting


    HOMEWORK EXERCISES 2
    Balance sheet, the general ledger
    & trial balance
    1. Balance sheet
    The following list of assets and liabilities relate to B. Smythe’s home decorating services, known as
    Brian’s Renovations, as at 1 March of the current year.
    You are required to:
    a. Classify the items below as:
    Current Asset (CA) or Non-Current Asset (NCA);
    Current Liability (CL) or Non-Current Liability (NCL); and
    Owner’s Equity (OE).
    b. Prepare a fully classified BALANCE SHEET (narrative format) for Brian’s Renovations as at 1
    March of 20xx from the following information, and calculate the owner’s capital contribution.

    __CA____ Cash at bank................................................................


    __NCA____ Workshop equipment......................3000

    _NCA_____ Tools.........................................................................
    _CL_____ Owing to Paint Wholesalers..................785

    __CL____ Owing to Jones’ Hardware.............................................


    _CA_____ Owing by D. Black.................................520

    __NCA____ Motor wagon..........................................................


    _NCA_____ Workshop fixtures & fittings.............1400

    __CL____ Loan from his mother (< 12mths)................................


    __CA____ Paint, timber, etc on hand (stock).......2300

    _CA_____ Owing by W. Rule..........................................................


    _OE_____ Capital A/C – B. Smythe............................?

    _NCL_____ Bank loan (> 12mths)..............................................

    Create the fully classified narrative format Balance Sheet here …

    1|Page
    BUS120 Introduction Accounting Worksheet 2

    Balance sheet
    Assets
    Current Assets:
    Cash at bank $2,600
    Tools $1,200
    Owning by W.Rule $415
    Paint, timber (stock) $2,300
    Non current assets:
    Motor wagon $12,000

    Workshop equipment $3,000

    Workshop fixtures & fittings $1,400

    Total Assets $22,915

    Liabilities

    Current Liabilities:

    Owing to Jones’ Hardware $470

    Loan from his mother (< 12 months) $2,500

    Owing to Paint Wholesalers $785

    Owing by D. Black $520

    Non current liabilities:

    Bank loan (> 12 months) $10,000

    Total Non-Current Liabilities $10,000

    Total Liabilities $14,275

    Owners Equity

    Total Owner's Equity $8,640

    Total Liabilities and Owner's Equity $22,915

    2|Page
    BUS120 Introduction Accounting Worksheet 2

    2. POSTING BALANCE SHEET ITEMS TO THE LEDGER

    G. Bailey
    Balance Sheet
    as at 1 February 2017
    Current assets Current liabilities
    Cash at bank 4,200 T. Thomas 375
    A. Baker 525 W. Wilson 530 905
    B. Collins 230 4,955
    Non-current liabilities
    Non-current assets Mortgage loan on land 14,000 14,000
    Land 15,000 TOTAL LIABILITIES 14,905
    Buildings 50,000
    Motor vehicles 15,750 Owner’s Equity
    Furniture Equipment 5,800 86,550 Capital G. Baily 76,600
    TOTAL EQUITY 76,600

    TOTAL ASSETS $91,505 TOTAL LIABILITIES & EQUITY $91,505

    a. On 1 February 2017, G. Baily commenced business with the above assets and liabilities.
    Post all BALANCE SHEET items to the ledger of G. Bailey.

    b. Record the following transactions to G. Bailey’s ledger accounts:


    Transactions:
    2 Feb B. Collins paid his account.....................................................................$230
    Account A - L - OE + - Dr/Cr Amount

    10 Feb Paid amount owing to W. Wilson..........................................................$530


    Account A - L - OE + - Dr/Cr Amount

    18 Feb Purchased furniture equipment on credit from P. Rose......................$2800


    Account A - L - OE + - Dr/Cr Amount

    3|Page
    BUS120 Introduction Accounting Worksheet 2

    21 Feb Paid P. Rose a deposit of $800..............................................................$800


    Account A - L - OE + - Dr/Cr Amount

    22 Feb Received payment from A. Baker .........................................................$275


    Account A - L - OE + - Dr/Cr Amount

    c. Balance all ledger accounts

    d. Prepare a Trial Balance as at 28 February 2017

    4|Page
    BUS120 Introduction Accounting Worksheet 2

    5|Page
    BUS120 Introduction Accounting Worksheet 2

    6|Page
    BUS120 Introduction Accounting Worksheet 2

    Account title Acc # Debit Credit

    7|Page

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