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Assignment 2465 - 02 PDF

This document contains two accounting assignments. The first asks the student to correct errors in a trial balance for Pioneer Trading by preparing adjusting entries. It provides a trial balance with errors and instructions to prepare a corrected trial balance and suspense account. The second assignment provides summarized transactions for a computer repair service owned by Jameel Shaikh for January 2020 and asks the student to record the transactions, post to accounts, and prepare a January 31, 2020 trial balance.

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Ahsan Kamran
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165 views2 pages

Assignment 2465 - 02 PDF

This document contains two accounting assignments. The first asks the student to correct errors in a trial balance for Pioneer Trading by preparing adjusting entries. It provides a trial balance with errors and instructions to prepare a corrected trial balance and suspense account. The second assignment provides summarized transactions for a computer repair service owned by Jameel Shaikh for January 2020 and asks the student to record the transactions, post to accounts, and prepare a January 31, 2020 trial balance.

Uploaded by

Ahsan Kamran
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ASSIGNMENT # 2

Instructor: ASLAM MURAD Course: ACCOUNTING 1

QUESTION # 1

The trial balance of Pioneer Trading shown below does not balance.
POINEER TRADING
Trial Balance
September 30, 2019
Debit Credit
Cash $69,840
Accounts Receivable $32,725
Prepaid Insurance 8,380
Equipment 95,400
Accounts Payable 53,725
Property Taxes Payable 6,664
Shahid, Capital 139,630
Service Revenue 79,611
Salaries Expense 50,055
Advertising Expense 13,090
Property Tax Expense 9,545
$319,495 $239,170

Your review of the ledger reveals that each account has a normal balance. You also discover the following errors:

1. The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Property Tax Expense were each
understated by $1,190
2. Transposition errors were made in Accounts Receivable and Service Revenue. Based on posting made, the
correct balances were $30,583 and $82,824 respectively.
3. A debit posting to Salaries Expense of $2,380 was omitted.
4. Drawing of $11,900 by the owner was debited to M. Sterling, Capital for $11,900 and
credited to Cash for $11,900
5. Supplies of $6,188 purchased on account were debited to Equipment for $6,188 and
credited to Cash for $6,188
6. A cash payment of $5,355 for advertising was debited to Advertising Expense for $536 and
and credited to Cash for $536
7. A collection from a customer for $2,499 was debited to Cash for $2,499 and credited to
Accounts Payable for $2,499

Instructions:
1. Prepare a corrected trial balance. Note that the chart of accounts includes: Shahid's drawing and Supplies accounts.
2. Prepare Suspense account in T-account format.
3. Prepare correcting entries for errors numbered 4 to 7.

Page 1 of 2
ASSIGNMENT # 2

Instructor: ASLAM MURAD Course: ACCOUNTING 1

QUESTION # 2

Jameel Shaikh owns and manages a computer repair service. Summarized transactions for January 2020 were as follows:

1. Advertising costs, paid in cash $ 12,000


2. Additional repair parts inventory acquired on account $ 47,700
3. cash paid to creditors for accounts payable due $ 178,600
4. Repair parts used during January $ 47,800
5. Cash collected from customers in payment of accounts receivable $ 166,700
6. Miscellaneous expenses paid in cash $ 23,900
7. Repair services performed during January - cash $ 71,500
8. Repair services performed during January - on account $ 107,200
9. Wages for January paid in cash $ 35,800
10. Jameel's drawing during January $ 35,800

The trial balance of Jameel business as on December 31, 2019 is as follows:

CYBER REPAIR SERVICE


TRIAL BALANCE
December 31, 2019
Debit Credit
Cash $ 95,300
Accounts Receivable $ 178,700
Repair Parts Inventory $ 154,900
Prepaid Rent $ 35,800
Shop Equipment $ 250,200
Accounts Payable $ 226,400
Jameel Shaikh, Capital $ 488,500
$ 714,900 $ 714,900

Instructions:
(a) Open T accounts for each of the accounts listed in the trial balance, and enter the opening balances for 2020.
(b) Prepare journal entries on Page J1 of General journal to record each of the January transactions. Use date of transaction as
January 31st.
(c) Post the journal entries to the accounts in the ledger. (Add accounts as needed.)
(d) Prepare general ledeger accounts in columnar format for Cash (account no. 101) and Accounts Receivable account no. 111)
and Accounts Payable (account no. 211) for the month of January.
(e) Prepare a trial balance as of January 31, 2020

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