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CSE 1 & 2

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9 views

CSE 1 & 2

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2020200000009
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© © All Rights Reserved
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SOUTHEAST UNIVERSITY

Set A Department of CSE MST


Midterm Examination
Semester: Fall 2021
Course Title: Introduction to Accounting
Course Code: ACT 1021/ ACT141
Program: BSc Sec: 1 & 2
Time: 2 Hours Full Marks: 30

(Answering Question 1 and 2 is mandatory for all the students.)


1. (a) Sakib’s Repair Shop was started on December 1 by Sakib-Al-Hasan. A summary of December
transactions is presented below.

I. Invested $70,000 cash to start the repair shop.


II. Provided repair service on account to customers $120.
III. Paid $300 cash for office rent.
IV. Purchased equipment for $5,000 cash.
V. Withdrew $1,200 cash for personal use.
VI. Purchased supplies on account for $900
VII. $3,000 cash from customers was received for repair service.
VIII. Salaries of $1,000 were paid to employees.
IX. Paid utility bills $460.
X. Paid $600 cash to creditors from transaction (VI).
XI. Collected cash of $100 for services billed in transaction (II).
XII. Paid insurance cost $100

Instructions:
(a) Prepare a tabular analysis of the transactions, using the following column headings: Cash, Accounts
Receivable, Supplies, Equipment, Accounts Payable, Capital, Drawings, Revenues, and Expenses.

(b) Write down the expanded accounting equation.

(8+2=10)
2. (a) Jonson Park was started on December1 by Mitchel Jonson. The following selected events and
transactions occurred during the month:
Dec. 1 Jonson invested $90,000 cash in the business.
3 Purchased $2,200 of supplies on account from Read Supply Company.
4 Purchased land costing $15,000 for cash.
8 An advertisement was published on The Daily Sun. The Daily Sun sent a bill of $2,500.
13 Paid $3,000 cash for interest.
18 Hired a secretary-receptionist at a salary of $2,000 per month.
20 Received $2,300 in cash for providing services.
23 Customers were billed for $6,900 after performing services.
28 Received cash for amount due from customers on December 23.
30 Paid 40% of balance due to Read Supply Company.
Instruction:
Prepare journal entries. 10
(Answer any one from question 3 & 4)
3. a) “Recording transaction is just an activity of accounting not the purpose of accounting”—Do you
support this statement? Explain the logic behind your answer.
b) Indicate whether each of the following items is an asset (A), liability (L), or part of
owner’s equity (OE).
i. Furniture vi. Notes payable
ii. Interest payable vii. Land
iii. Rent revenue viii. Salary expense
iv. Bank Loan ix. Interest revenue
v. Utilities expense x. Inventory

(c) Differentiate between Event and Economic Event.


(3+5+2=10)

4.a) From the information given in question 2 to prepare ledger of the following accounts- Cash,
Accounts Receivable, Accounts Payable, Service Revenue.
b) How to identify Debit balance and Credit Balance in ledger accounts.
(7+3=10)

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