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02 - Homework Exercises-1

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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36 views7 pages

02 - Homework Exercises-1

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.

Uploaded by

BTS LOVERS
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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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 …

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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

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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

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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

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BUS120 Introduction Accounting Worksheet 2

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BUS120 Introduction Accounting Worksheet 2

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BUS120 Introduction Accounting Worksheet 2

Account title Acc # Debit Credit

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