Problem 1 Barones Repair Shop was started on May 1 by Nancy Barone. A summary of May transaction is presented bellow. 1.

Invested TK 10,000.00 cash to start the repair shop. 2.Purchased equipment for TK 5,000.00 cash. 3.Paid TK 400.00 cash May office rent. 4.Paid TK 500.00 cash for supplies. 5.Incurred TK 250.00 of advertising costs in Beacon News on account. 6.Received TK 5,100.00 in cash from customers for repair service. 7.Withdrew TK 1,000.00 cash for personal use. 8.Paid part-time employee salaries TK 2,000.00. 9.Paid utility bills TK 140.00. 10. Provided repair service on account to customers TK 750.00 11. Collected cash of TK 120.00for services billed in transaction (10). Barones REPAIR SERVICE Journal For the month of May Date 1 Cash Dr Capital Cr Office Equipment Dr Cash Cr Office Rent Dr Cash Cr Supplies Dr Cash Cr Advertising Expense Dr Account Payable Cr Cash Dr Service Revenue Account Title R ef Debit Taka 10,000.00 10,000.00 Credit Taka

5,000.00 5,000.00

400.00 400.00

500.00 500.00

250.00 250.00

5,100.00 5,100.00

Cr 7 Drawings Dr Cash Cr Salary Dr Cash Cr Utility Bill Dr Capital Cr Account Receivable/Detor Dr Service Revenue Cr Cash Dr Account Receivable/Detor 1,000.00 1,000.00

2,000.00 2,000.00

140.00 140.00

10

750.00 750.00

11

120.00 120.00 Cr 25,260.00 25,260.00

Barones REPAIR SERVICE Leadger For the month of May

Cash Account

Date May 01 2 3 4

Explanation Capital Office Equipment Office Rent Supplies

DR 10, 000

CR

Balance Dr 10,000

Balance Cr

5,000 400 500

5,000 4,600 4,100

6 7 8

Repair Service Withdrawn Salaries

5100 1000 2000

9200 8200 6200

9 11

Utility Bill Accont Receivable 120

140

6060 6180

Capital Account Date 1 Explanation Cash Dr Cr 10,000.00 Balance Dr Balance Cr 10,000.00

Office Equipment Date 2 Explanation Cash Dr 5000 Cr Balance Dr 5000 Balance Cr

Office Rent Date 3 Explanation Cash Dr 400 Cr Balance Dr 400 Balance Cr

Supplies Date 4 Explanation Cash Dr 500 Cr Balance Dr 500 Balance Cr

Advertising Date 5 Explanation Account payable Dr 500 Repair Service Date 6 10 Explanation Cash Account Receivable Dr Cr 5100 750 With drawn Date 7 Explanation Cash Dr 1000 Cr Balance Dr 1000 Balance Cr Balance Dr Balance Cr 5100 5850 Cr Balance Dr 500 Balance Cr

Salaries Date 8 Explanation Cash Dr 2000 Cr Balance Dr 2000 Balance Cr

Utility Bill

Date 9

Explanation Cash

Dr 140

Cr

Balance Dr 140

Balance Cr

Account Receivable Date 10 11 Explanation Repair Service Cash Dr 750 Cr 120 Account Payable Date 5 Explanation Advertising expense Dr Cr 500 Balance Dr Balance Cr 500 Balance Dr 750 630 Balance Cr

Barones REPAIR SERVICE Trial Balance For the month of May

618 1 2 3 4 5 6 7 8 9 10 11 12 Cash Accounts Capital Office Equipment Office Rent Supplies Advertising Repair service Withdrawn Salaries Utility Bill Account Receivable Account Receivable 1000 2000 140 630 500 5000 400 500 250 5850 0 10000

16350

16350

Problem 2 1.Paid TK 2,900.00 cash on account payable 2.Collected TK 1,300.00 of accounts receivable. 3.Purchased additional office equipment for TK 2,100.00 paying, TK 800.00 in cash, and the balance on account. 4.Earned revenue of TK 8,000.00 of which TK 2,500.00 in cash and the balance is due in October. 5.Withdrew TK 1,000.00 cash for personal use. 6.Paid salaries TK 1,700.00, rent of September TK 900.00 and advertising expenses TK 300.00. 7.Incurred utility expenses for month on account TK 170.00. 8.Received TK 10,000.00 from Capital Bank-money borrowed on a note payable. JOURNAL Date Account Title R e f Debit Taka Credit Taka

Account Payable Cash Cr Cash Dr Account Receivable Office Equipment Cash Cr Account Payable Cash Dr Account Receivable Service Revenue Drawings Dr Cash Cr Salary Dr Rent Dr Advertising Expense Cash Cr Utility Expense Account Payable Cash Dr Note Payable

Dr

2,900.00 2,900.00

1,300.00 1,300.00 Cr Dr Cr 2,500.00 5,500.00 Dr Cr 1,000.00 1,000.00 8,000.00 2,100.00 800.00 1,300.00

1,700.00 900.00 300.00 2,900.00 Dr

7 8

Dr Cr

170.00 170.00 10,000.00 10,000.00

Cr 28,370.00 28,370.00

Leadger For the month of January, 2008

Cash Account

Date

Explanation

DR

CR

Balance Dr

Balance Cr

900 Jan01 2 3 4 5 6 Opening balance Accont Payable Accont Receivable Office Equipment Service revenue withdrawn Salaries Rent Advertising 8 Capital Bank 10000 2500 1000 1700 900 300 0 2900 1300 800 6600 9100 8100 6400 5500 5200 15200 9000 6100 7400

Account Payable Date 1 1 3 7 Explanation Opening balance Cash Office equipment Utility expenses Dr 2900 1300 170 Cr 3600 Balance Dr Balance Cr 3600 700 2000 3170

Account Receivable Date 2 4 Explanation Opening balance Cash Service Revenue Dr 1700 5500 Office Equipment Date 2 3 Explanation Opening balance Cash Account payable Dr 6000 800 1300 Cr Balance Dr 6000 800 8100 Balance Cr Cr 1300 Balance Dr 1700 400 4200 Balance Cr

Service Revenue Date 4 Explanation Cash Accont Receivable Dr Cr 2500 5500 Balance Dr Balance Cr 2500 8000

With drawn Date Explanation Dr Cr Balance Dr Balance Cr

Cash

1000

1000

Salaries Date 6 Explanation Cash Dr 1700 Cr Balance Dr 1700 Balance Cr

Office Rent Date 6 Explanation Cash Dr 900 Cr Balance Dr 900 Balance Cr

Advertising Date 6 Cash Explanation Dr 300 Utility Bill Date 7 Cash Explanation Dr 170 Supplies Date Explanation Opening balance Dr 600 Capital Date Explanation Opening balance Dr Cr Balance Dr 13700 Capital BankAccount Date 11 Explanation Cash Dr Cr 10,000.00 Balance Dr Balance Cr 10,000.00 Balance Cr 13700 Cr Balance Dr 600 Balance Cr Cr Balance Dr 170 Balance Cr Cr Balance Dr 300 Balance Cr

Trial Balance

Sl No

Explanation

Dr.

Cr.

1 2 3 4 5 6 7 8 9 10 11 12 13

Cash Accounts Account Payable Account Receivable Office Equipment Service revenue Withdrawn Salaries Rent Advertising Utility Bill Capital Bank Supplies Capital

15200 2170 5900 8100 8000 1000 1700 900 300 170 10000 600 13700

33870

33870