Question Number 1:

The Super Motel opened for business on May 1, 2015. Its trial Balance before adjustment on
December 31 is as follows:
SUPER MOTEL
Trial Balance
December 31, 2015
Particulars Debit Credit
Cash 2500
Prepaid Insurance 1800
Supplies 1900
Land 15000
Lodge 70000
Furniture 16800
Accounts Payable 4700
Unearned Rent Revenue 3600
Mortgage Payable 35000
Sara Sutton, Capital 60000
Rent Revenue 9200
Salaries Expense 3000
Utilities Expense 1000
Advertising Expense 500
Other Data:
1. Insurance expires at the rate of 200 taka per month.
2. An inventory of supplies shows 1200 taka of unused supplies on December 31.
3. Annual Depreciation of 2400 Taka on lodge and 1800 taka on furniture.
4. The mortgage interest rate is 24%. (The mortgage was taken out on May 1.)
5. Unearned rent of 1000 taka has been earned.
6. Salaries of 300 taka are accrued and unpaid at December 31.
Instructions:
1. Prepare 10 column worksheet
Question Number – 2:

The unadjusted Trial Balance for MS Shapla & Co. at the end of the current year is presented below:

MS Shapla & Co
Unadjusted Trial Balance
as at 31 December, 2003
Accounts Title Debit Credit
Cash at Bank 9880
Accounts Receivable 4310
Prepaid Rent 1500
Prepaid Insurance 1320
Office Supplies Inventory 1280
Office Equipment 4000
Accumulated Depreciation – Office Equipment 2400
Accounts Payable 630
Unearned Fees 1800
Bills Payable 3000
Capital 10000
Drawings 36000
Fees Revenue 79320
Salary Expense 25200
Rent Expense 5000
Telephone Expense 2490
Research Expense 4310
Travel Expense 1860
TOTAL 97150 97150

Additional Information:

1. Office supplies inventory determined by the physical count was 620 Taka.
2. The balance in the prepaid rent account was for 3 months’ rent paid on 1 November.
3. Unpaid salaries earned by employees amounted to 1300 Taka.
4. Insurance expired during the period was 600 Taka.
5. The balance in the unearned fees account consisted of advance payment of 700 taka for law
services to be performed next year. The remaining advance payments were generated in this
period.
6. Estimated depreciation on office equipment is 800 Taka.
7. Accrued interest on Bills payable due on 15 January was Taka 210.
8. Travel expense incurred by employees but unpaid were 220 Taka.

Prepare the Worksheet of MS Shapla and Co. for the year ended December 31, 2003.

The Super Motel opened for business on May 1, 2015. Its trial Balance before adjustment on May 31 is as
follows:
Question Number – 3:

SUPER MOTEL
Trial Balance
May 31, 2015
Particulars Debit Credit
Cash 2500
Prepaid Insurance 1800
Supplies 1900
Land 15000
Lodge 70000
Furniture 16800
Accounts Payable 4700
Unearned Rent Revenue 3600
Mortgage Payable 35000
Sara Sutton, Capital 60000
Rent Revenue 9200
Salaries Expense 3000
Utilities Expense 1000
Advertising Expense 500

Other Data:
1. Insurance expires at the rate of 200 taka per month.
2. An inventory of supplies shows 1200 taka of unused supplies on May 31.
3. Annual Depreciation of 3600 Taka on lodge and 3000 taka on furniture.
4. The mortgage interest rate is 12%. (The mortgage was taken out on May 1.)
5. Unearned rent of 1500 taka has been earned.
6. Salaries of 300 taka are accrued and unpaid at May 31.

Instructions:
1. Journalize the Adjusting Entries.
2. Prepare a Worksheet including Trial Balance, Adjustment, Adjusted Trial Balance, Income
Statement & Balance Sheet Column at May 31.