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Assignment Questions Exercise: 1: Instruction: Journalize The April Transactions in The Books of Frontier Park

Frontier Park started business on April 1. During April, the owner invested cash, purchased land, incurred advertising expenses, paid salaries, hired a park manager, purchased insurance, withdrew cash for personal use, received admission fees, and sold coupon books. The park also paid balances owed for advertising and received more admission fees. The second exercise provides a trial balance for Tony Vian's computer repair service as of December 31, 2013 and lists transactions that occurred in January 2014, including advertising costs paid in cash, supplies purchased on account, expenses paid in cash, cash collected from receivables and paid to creditors, repair services performed for cash and on account, wages paid, and owner drawings. The instructions are to journalize

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112 views2 pages

Assignment Questions Exercise: 1: Instruction: Journalize The April Transactions in The Books of Frontier Park

Frontier Park started business on April 1. During April, the owner invested cash, purchased land, incurred advertising expenses, paid salaries, hired a park manager, purchased insurance, withdrew cash for personal use, received admission fees, and sold coupon books. The park also paid balances owed for advertising and received more admission fees. The second exercise provides a trial balance for Tony Vian's computer repair service as of December 31, 2013 and lists transactions that occurred in January 2014, including advertising costs paid in cash, supplies purchased on account, expenses paid in cash, cash collected from receivables and paid to creditors, repair services performed for cash and on account, wages paid, and owner drawings. The instructions are to journalize

Uploaded by

NAZMUL HASAN
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Assignment Questions

Exercise: 1
Frontier Park was started business on April 1 by M. Preston. The following selected events and
transactions occurred during April:
Apr. 1 Preston invested Tk. 35,000 cash in the business.
4 Purchased land costing Tk. 27,000 for cash.
8 Incurred advertising expense of Tk. 1,800 on account.
11 Paid salaries to employees Tk. 1,500.
12 Hired park manager at a salary of 4,000 per month, effective May 1.
13 Paid Tk. 1,650 cash for a one-year insurance policy.
17 Withdrew Tk. 1,000 cash for personal use.
20 Received Tk. 6,800 in cash for admission fees.
25 Sold 100 coupon books for Tk. 25 each. Each book contains 10 coupons that entitle the holder
to one admission to the park.
30 Received Tk. 8,900 in cash admission fees.
30 Paid Tk. 900 on balance owed for advertising incurred on April 8.
Frontier Park uses the following accounts: Cash, Prepaid Insurance, Land, Accounts Payable, Unearned
Service Revenue, Owner’s Capital, Owner’s Drawings, Service Revenue, Advertising Expense, and
Salaries and Wages Expense.
Instruction: Journalize the April transactions in the books of Frontier Park.

Exercise: 2
Tony Vian owns and manages a computer repair service business, which had the following trial balance
on December 31, 2013 (the end of its fiscal year).
VIAN REPAIR SERVICE
Trial Balance
December 31, 2013
Debit Credit
Cash Tk. 8,000
Accounts Receivable 15,000
Supplies 13,000
Prepaid Rent 3,000
Equipment 20,000
Accounts Payable Tk. 19,000
Owner’s Capital 40,000
Tk. 59,000 Tk. 59,000

Summarized transactions for January 2014 were as follows.


1. Advertising costs, paid in cash, Tk. 1,000.
2. Additional supplies acquired on account Tk. 4,200.
3. Miscellaneous expenses, paid in cash, Tk. 2,000.
4. Cash collected from customers in payment of accounts receivable Tk. 14,000.
5. Cash paid to creditors for accounts payable due Tk. 15,000.
6. Repair services performed during January: for cash Tk. 6,000; on account Tk. 9,000.
7. Wages for January, paid in cash, Tk. 3,500.
8. Tony’s drawings during January were Tk. 3,000.
Instructions
a. Open T-accounts for each of the accounts listed in the trial balance, and enter the opening
balances for 2014.
b. Prepare journal entries to record each of the January transactions. (Omit explanations.)
c. Post the journal entries to the accounts in the ledger. (Add accounts as needed.)
d. Prepare a trial balance as of January 31, 2014.

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