Class Exercise Session 1,2
Class Exercise Session 1,2
Class Exercise Session 1,2
What is accounting?
The Accounting Equation.
Users of Accounting.
How to do transactional analysis?
How to prepare journal entry.
How to post entries in ledger accounts.
How to prepare trial balance.
Q No.1 Use following title of accounts to complete journal entries of given transactions.
INSTRUCTION
A: Prepare journal entries
B: Post to ledger accounts
C: Prepare a trial balance at July 31,2005
Q No.2
Q No.3
In July 2005, Nasir Jamal started business and completed following transactions.
INSTRUCTION
A: Prepare journal entries
B: Post to ledger accounts
C: Prepare trial balance at July 31,2002
Q-4 Compute the missing amount in the accounting equation for each entity:
Q-5 Oracle Corporation started 19X9 with total assets of $5,819 million and total
liabilities of $2,861 million. At the end of 19X9, Oracle's total assets stood at $7,260
million, and total liabilities were $3,565 million.
Required
1. Did the owners' equity of Oracle Corporation increase or decrease during 19X9?
By how much?
2. Identify two possible reasons for the change in owners' equity of Oracle during
the year.
Q-6 Telemarketing Associates' balance sheet data at May 31, 20X2, and June 30, 20X2,
follow:
Required
Following are three assumptions about investments and withdrawals by the owner of the
business during June. For each assumption, compute the amount of net income or net loss
of the business during June 20X2.
2. The owner made no additional investments in the business but withdrew $11,000
for personal use.
3. The owner invested $41,000 in the business and withdrew $6,000 for personal
use.
Q. NO. 7
1. Khalid invested in business cash Rs.40000, office equipment Rs.60,000
2. Purchase merchandise for cash Rs. 6000
3. Purchase goods on credit from Zahid Rs.10000
4. Sold merchandise on credit to Amir Rs.10000
5. Paid rent expense Rs.600
6. Sold merchandise for cash Rs. 3500
7. Earned commission Rs. 10000
8. Purchase supplies on credit from Aleem Rs. 800
9. Paid traveling expense Rs. 650
10. Sold merchandise to Mr. Kareem Rs. 4000 on credit.
11. Khalid withdrew cash for personal use Rs. 3000
12. Rendered services to client and received commission Rs. 2000
13. Paid insurance for the month Rs. 500
INSTRUCTION
A: Prepare journal entries
B: Post to ledger accounts
C: Prepare a trial balance at July 31,2002
Q. NO. 8
1. Khalid invested in business Rs.40000, Furniture Rs.24,000, equipment Rs.15000
2. Purchase merchandise for cash Rs. 6000
3. Purchase office stationary for Rs.2000
4. Purchase goods on credit from Zahid Rs.10000
5. Sold merchandise on credit to Amir Rs.10000
6. Paid rent expense Rs.600
7. Sold merchandise for cash Rs. 3500
8. Billed to Mr. Bilal for service rendered Rs. 10000
9. Purchase supplies on credit from Aleem Rs. 800
10. Paid traveling expense Rs. 650
11. Sold merchandise to Mr. Kareem Rs. 4000 on credit.
12. Received cash from Mr. Kareem Rs.1500
13. Khalid withdrew cash for personal use Rs. 3000
14. Paid insurance for the month Rs. 500
15. Received cash from Mr. Bilal Rs.8000
INSTRUCTION
A: Prepare journal entries
B: Post to ledger accounts
C: Prepare a trial balance at July 31,2002
Q-9 Helen Ingersoll owns and operates an interior design studio called Ingersoll
Interiors. The following amounts summarize the financial position of her business on
August 31, 20X2:
Owner's
= +
Assets Liabilities Equity
Helen
Accounts Accounts Ingersoll,
Cash + Receivable + Supplies + Land = Payable + Capital
Bal. 2,250 1,500 12,000 8,000 7,750
a. Ingersoll inherited $20,000 and deposited the cash in the business bank account.
g. Consulted on the interior design of a major office building and billed the client for
services rendered, $2,400.
i. Sold supplies to another business for $150 cash, which was the cost of the
supplies.
Required
1. Analyze the effects of the preceding transactions
5. Prepare the income statement of Ingersoll Interiors for the month ended
September 30, 20X2.
July 1: Khalid invested in business cash Rs.55000 , office supplies Rs.1500, office
equipment Rs.45000
July3: Obtained loan from bank Rs.100,000
July 5: Purchase office equipment from Karim &Co. for Rs.25000 and paid Rs.12000
July 10: Paid rent for office premises in advance for three moths Rs.3000 per month.
July 12: Purchase goods on credit from ABC & Co. Rs 25000
July 15: Sold merchandise to Kashif Rs.5000
July 16 Paid salaries Rs.4500
July 20: Paid to Karim Rs.2000
July 23: Received form Kashif Rs.1500
July 25: Paid to ABC & Co. Rs.3000
July 27: Paid installment of bank loan Rs 5000
July 30: Paid advertising expense Rs 3000
INSTRUCTION
Prepare journal entries, T -account and Trial Balance.
Ken Mazanec obtained a corporate charter form the state of Pennsylvania and started a
cable television service. During the first month of operations Mazanec completed the
following selected transactions:
a. Mazanec began the business with an investment of $30,000 cash and a building
valued at $50,000. The corporation issued common stock to Mazanec.
b. Borrowed $25,000 from the bank, signed a note payable.
c. Paid $32,000 for transmitting equipment.
d. Purchased office supplies on account, $400.
e. Paid employee salary, $1,300.
f. Received $500 for cable TV service performed for customers.
g. Sold cable service to customers on account, $2,300.
h. Paid $100 of the account payable created in d.
i. Received a $600 bill for utility expense that will be paid in the near future.
j. Received cash on account, $1,100.
k. Paid the following cash expense:
(1) Rent on land, $1,000
(2) Advertising, $800.
l. Declared and paid dividends of $2,600.
Required: