QUEENS COLLAGE

SCHOOL OF POST GRADUATE STUDIES

DEPARTMENT OF PROJECT MANAGEMENT
FINANCIAL AND MANAGERIAL ACCOUNTING
GROUP ASSIGNMENT I
SECTION E
GROUP 5 MEMBERS
Name ID

1. WendimuYitagesu………………… MGSR/MPM/0190/15

2. Seblewengel Yebulgawerk…………. MGSR/MPM/0236/15

3. Kehali Kiros……………………….. MGSR/MPM/0227/15

4. Ayele Demrew…………………… MGSR/MPM/0221/15

5. Aseged Tamiru……………………. MGSR/MPM/0222/15

6. Bililign Gereme…………................ MGSR/MPM/0158/15

7. Tulu Reu…………………............... MGSR/MPM/0263/15

8. Meseret Enyew………..…………. MGSR/MPM/0265/15

Submitted To: Mohamed (Ass.Prof.)

March, 2023

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 COMPREHENSIVE ACCOUNTING CYCLE PROBLEM
For the past several years, Emily Page has operated a part-time consulting business from her home.
As of June 1, 2022, Emily decided to move to rented quarters and tooperate the business, which was
to be known as Bottom Line Consulting, on a full-timebasis. Bottom Line Consulting entered into the
following transactions during June:
June 1. The following assets were received from Emily Page: cash, $20,000; accounts receivable,
$4,500; supplies, $2,000; and office equipment, $11,500. There were no liabilities received.
I.Paid three months’ rent on a lease rental contract, $6,000.
II.Paid the premiums on property and casualty insurance policies, $2,400.
4. Received cash from clients as an advance payment for services to be provided and recorded it
as unearned fees, $2,700.
5. Purchased additional office equipment on account from Office Depot Co., $3,500.
6. Received cash from clients on account, $3,000.
10. Paid cash for a newspaper advertisement, $200.
12. Paid Office Depot Co. for part of the debt incurred on June 5, $750.
12. Recorded services provided on account for the period June 1–12, $5,100.
14. Paid part-time receptionist for two weeks’ salary, $1,100.
17. Recorded cash from cash clients for fees earned during the period June 1–16, $6,500.
18. Paid cash for supplies, $750.
20. Recorded services provided on account for the period June 13–20, $3,100.
24. Recorded cash from cash clients for fees earned for the period June 17–24, $5,150.
26. Received cash from clients on account, $6,900.
27. Paid part-time receptionist for two weeks’ salary, $1,100.
29. Paid telephone bill for June, $150.
30. Paid electricity bill for June, $400.
30. Recorded cash from cash clients for fees earned for the period June 25–30, $2,500.
30. Recorded services provided on account for the remainder of June, $1,000.
30. Emily withdrew $5,000 for personal use.

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Instructions
1. Journalize each transaction in a two-column journal, referring to the following chart of accounts in
selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this
time.)
11 Cash 31 Emily Page, Capital
12 Accounts Receivable 32 Emily Page, Drawing
14 Supplies 41 Fees Earned
15 Prepaid Rent 51 Salary Expense
16 Prepaid Insurance 52 Rent Expense
18 Office Equipment 53 Supplies Expense
19 Accumulated Depreciation 54 Depreciation Expense
21 Accounts Payable 55 Insurance Expense
22 Salaries Payable 59 Miscellaneous Expense
23 Unearned Fees

2. Post the journal to a ledger using T accounts.

3. Prepare an unadjusted trial balance.
4. At the end of June, the following adjustment data were assembled. Analyze and use these data to
complete parts (5) and (6).
a. Insurance expired during June is $200.
b. Supplies on hand on June 30 are $650.
c. Depreciation of office equipment for June is $250.
d. Accrued receptionist salary on June 30 is $220.
e. Rent expired during June is $2,000.
f. Unearned fees on June 30 are $1,875.
5. Journalize and post the adjusting entries.
7. Prepare an adjusted trial balance.
8. Prepare an income statement, a statement of owner’s equity, and a balance sheet.
9. Prepare and post the closing entries. (Income Summary is account #33 in the chart of accounts.)
Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry.
10. Prepare a post-closing trial balance.

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 Solution
1. General Journal

Beginning Balance
Cash.......................................................................................20,000.00
Account Receivable ............................................................. 4,500.00
Supplies.................................................................................. 2,000.00
Equipment ............................................................................. 11,500.00
Total Asset ............................................................................ 38,000.00
Owner Equity……………………………………………………..….. 38,000.00
1 Prepaid Rent 6,000.00
Cash 6,000.00

2 Prepaid Insurance 2,400.00

Cash 2,400.00
4 Cash 2,700.00
Unearned Revenue 2,700.00
5 Equipment 3,500.00
Account Payable 3,500.00
6 Cash 3,000.00
Account Revisable 3,000.00
10 Advertising Expense 200.00
Cash 200.00
12 Account Payable 750.00
Cash 750.00
12 Account Receivable 5,100.00
Sales 5,100.00
14 Salary Expense 1,100.00
Cash 1,100.00
17 Cash 6,500.00
Sales 6,500.00
18 Supplies 750.00
Cash 750.00
20 Account Receivable 3,100.00
Sales 3,100.00
24 Cash 5,150.00
Sales 5,150.00
26 Cash 6,900.00

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 Account Receivable 6,900.00
27 Salary Expense 1,100.00
Cash 1,100.00
29 Utility Expense 150.00
Cash 150.00
30 Utility Expense 400.00
Cash 400.00
30 Account Receivable 1,000.00
Sales 1,000.00
30 Withdrawal 5,000.00
Cash 5,000.00

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 2. Post the Journal Entry
Account receivable
4,500.00 3,000.00 Supplies
Equipmen
5,100.00 6,900.00 2,000.00 t
Cash 11 3,100.00 750.00 11,500.00
20,000.00 6,000.00 1,000.00 2,750.00 3,500.00 Prepaid Rent
2,700.00 2,400.00 13,700.00 9,900.00 Prepaid Insurance 15,000.00 6,000.00
3,000.00 200.00 3,800.00 2,400.00
6,500.00 750.00 Owner Equity Withdrawal
5,150.00 1,100.00 Account payable Unearned Revenue 38,000.00 5,000.00
6,900.00 750.00 750.00 3,500.00 2,700.00
1,100.00 2,750.00
150.00 Sales Advertizing Expense Salary Expense Utlity Expense
400.00 5,100.00 200.00 1,100.00 150.00
5,000.00 6,500.00 1,100.00 400.00
44,250.00 17,850.00 3,100.00 2,200.00 550.00
26,400.00 5,150.00
1,000.00
20,850.00

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 3. Prepare Unadjusted Trial Balance
Emily Page Business
Unadjusted Trail Balance
For the month of June 30 2022

Account Title Dr Cr
Cash 26,400.00
Account Receivable 3,800.00
Supplies 2,750.00
Prepaid Rent 6,000.00
Prepaid Insurance 2,400.00
Equipment 15,000.00
Account Payable 2,750.00
Unearned revenue 2,700.00
Owner equity 38,000.00
Withdrawal 5,000.00
Sales 20,850.00
Advertising
expense 200.00
Salary Expense 2,200.00
Utility expense 550.00
Total 64,300.00 64,300.00

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 4. Adjustment Entry

A Insurance Expense 200.00

Prepaid Insurance 200.00
B Supplies Expense 100.00
Supplies 100.00
C Depreciation Expense 250.00
Accumulated Deprecation 250.00
D Salary Expense 220.00
Salary Payable 220.00
E Rent Expense 2,000.00
Prepaid Rent 2,000.00
F Unearned Revenue 875.00
Fee Earned 875.00

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5. Adjusted Trail balance

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 Emily Page Business
adjusted Trail Balance
For the month of June 30,2022

Account Title Dr Cr

Cash 26,400.00

Account Receivable 3,800.00

Supplies 2,650.00

Prepaid Rent 4,000.00

Prepaid Insurance 2,200.00

Equipment 15,000.00
Accumlated deprecation 250.00
Account Payable 2,750.00
Salary payable 220.00
Unearned revenue 1,825.00
Owner equity 38,000.00

Withdrawal 5,000.00 -
Sales 21,725.00

Advertising expense 200.00 -

Salary Expense 2,420.00 -

Utility expense 550.00 -

Insurance Expense 200.00

Supplies expense 100.00

Depreciation Expense 250.00

Rent Expense 2,000.00

Total 64,770.00 64,770.00

6. Emily Page Business

Income Statement
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 For the month ended June 30 2022
Revenue:
Sales 21,725.00
Operating Expense:
Advertising expense 200.00
Salary Expense 2,420.00
Utility expense 550.00
Insurance Expense 200.00
Supplies expense 100.00
Depreciation Expense 250.00
Rent Expense 2,000.00
Total Operating Expense 5,720.00
Net income Before Tax 16,005.00

Emily Page Business

Owner Equity Statement
For the month of June 30 2022
beginning Owner Equity 38,000.00
Add Net income Before tax 16,005.00
Less Withdrawal 5,000.00
Ending Capital 49,005.00
Emily Page Business
Balance sheet Statement
For the month of June 30 2022
Asset
Plant asset
Equipment 15,000.00
Lesss Accumulated Deprecation 250.00 14,750.00
Current Asset
Cash 26,400.00
Account Receivable 3,800.00
Supplies 2,650.00
Prepaid Rent 4,000.00
Prepaid Insurance 2,200.00
Total Current Asset 39,050.00
Total Asset 53,800.00
Liability
Account Payable 2,750.00
Salary payable 220.00
Unearned revenue 1,825.00
Total Liability 4,795.00
Owner Equity 49,005.00
Total Liability and Owner Equity 53,800.00

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 7. Closing Entry

Revenue 21,725.00

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 Income Summery 21,725.00
income Summery 5,720.00
Advertising expense 200.00
Salary Expense 2,420.00
Utility expense 550.00
Insurance Expense 200.00
Supplies expense 100.00
Depreciation Expense 250.00
Rent Expense 2,000.00
Owner Equity 5,000.00
Withdrawal 5,000.00
income Summery 16,005.00
Owner Equity 16,005.00

8. Post closing trail Balance

Emily Page Business
Post-closing trail Balance
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 For the month of June 30 2022

Account Title Dr Cr
Cash 26,400.00
Account Receivable 3,800.00
Supplies 2,650.00
Prepaid Rent 4,000.00
Prepaid Insurance 2,200.00
Equipment 15,000.00
Accumulated deprecation 250.00
Account Payable 2,750.00
Salary payable 220.00
Unearned revenue 1,825.00
Owner equity 49,005.00
Total 54,050.00 54,050.00

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