Arid Agriculture University, Rawalpindi: Final Exam / FALL-2020 (Paper Duration 24 Hours) To Be Filled by Teacher

Pir Mehr Ali Shah
Arid Agriculture University, Rawalpindi

Office of the controller of Examinations
Final Exam (Theory)/ FALL-2020 (Paper Duration 24 hours)
To be filled by Teacher
Course No.: MGT 321 Course Title: Principles of Accounting

Total Marks: 30 marks… Date of Exam: 08/02/2021
Degree: BS COMMERCE Semester:…1ST ……. Section: B (afternoon)
Marks
Q. No. 1 2 3 4 5 6 7 8 9 10 Obtained/
TotalMarks
Marks
Obtaine
d
Total Marks in Words: Thirty
Name of the teacher: ARIFA ANDLEEB
Who taught the course: Signature of teacher / Examiner:
To be filled by Student
Registration No.: ………………………………………….……… Name:……………………………………………………..
Answer the following questions.

Q.No.1. (Marks 6)
Q.1: Fred Schwartz Dance Studio, Inc. adjusts its accounts monthly. This is the studio’s
unadjusted trial balance dated December 31, 2002.
FRED SCHWARTZ DANCE STUDIO, INC.

Trial Balance
December 31, 2002
Debits Credits
Cash....................................................................................... $ 10,800
Client’s fees receivable.......................................................... 58,000
Supplies.................................................................................. 7,000
Prepaid studio rent................................................................. 50,000
Studio equipment................................................................... 96,000
Accumulated depreciation: studio equipment........................ $ 45,000
Accounts payable................................................................... 7,000
Notes payable......................................................................... 25,000
Interest payable...................................................................... 500
Unearned client fees............................................................... 10,000
Income taxes payable............................................................. 3,000
Capital stock........................................................................... 70,000
Client fees earned................................................................... 87,000
Supply expense...................................................................... 6,000
Salary expense....................................................................... 9,000
Interest expense ..................................................................... 500
Studio rent expense................................................................ 0
Utilities expense..................................................................... 4,200
Depreciation expense: studio equipment............................... 0
Income taxes expense............................................................ 6,000 ________
$247,500 $247,500
Other data
1. Supplies on hand at December 31, 2002, total $2,500.
2. The studio pays rent quarterly (every 3 months). The last payment was made
November 1, 2002. The next payment will be made early in February 2003.
3. Studio equipment is being depreciated over 96 months (8 years).
4. $250 Interest is yet to be paid.
5. At December 31, 2002, $4,000 of previously unearned client fees had been earned.
6. Accrued, but unrecorded and uncollected client fees earned total $700 at Dec 31
7. Accrued, but unrecorded and unpaid salary expense totals $900 at December 31.
Required:
i. Prepare a 10-column work sheet utilizing the trial balance and adjustments
shown above.
ii. Also record adjusting and closing entries
Answer:
Question No. 2 (6 marks)
The trial balance of Kaplan Printing at December 31, 2014, appears below. The
data needed for the month-end adjustments follow the trial balance.
KAPLAN PRINTING
Unadjusted Trial Balance
December 31, 2014
Cash $ 5,400
Accounts receivable 18,600
Prepaid rent 4,500
Supplies 1,200
Furniture and equipment 19,200
Accumulated amortization—furniture and equipment $ 5,760
Accounts payable 3,400
Salaries payable 0
Unearned printing revenue 2,400
S. Kaplan, capital 23,140
S. Kaplan, withdrawals 6,000
Printing revenue 36,500
Salaries expense 12,500
Rent expense 0
Amortization expense—furniture and equipment 0
Advertising expense 3,600
Supplies expense 0
Miscellaneous expense 200
Total $71,200 $71,200
Adjustment data:
1.Unearned printing revenue still remaining to be earned at December 31, $800.
2.Prepaid rent still available at December 31, $2,000.
3.Supplies used during the month, $450.
4. Amortization for the month, $660.
5. Accrued miscellaneous expense at December 31, $200. (Credit Accounts Payable.)
6. Accrued salaries expense at December 31, $1,975.
Required
1. Open T-accounts for the accounts listed in the trial balance, inserting their December
31 unadjusted balances.
2. Journalize the adjusting entries on December 31, and post them to the T-accounts.
Identify the journal entries and posted amounts by their letter.
3. Prepare the adjusted trial balance.
4. How will the company use the adjusted trial balance?
Answer:
Question No 3 Marks 6

Company A was incorporated on January 1, 2010 with an initial capital Rs 1,000,000. During
the first month of its operations, the company engaged in following transactions:
Date Transaction
Jan 2 An amount of Rs 36,000 was paid as advance rent for three months.
Jan 3 Paid Rs 60,000 cash on the purchase of equipment costing Rs 80,000.
Jan 4 Purchased office supplies costing Rs 17,600 on account.
Jan Provided services to its customers and received RS 28,500 in cash.
13
Jan Paid the accounts payable on the office supplies purchased on January 4.
13
Jan Paid wages to its employees for first two weeks of January, aggregating Rs 19,100.
14
Jan Purchased office supplies costing Rs 5,200 on account.
26
Jan Paid wages to its employees for the third and fourth week of January: Rs 19,100.
28
Jan Paid Rs 5,000 as dividends. Electricity bill of Rs 2,470, telephone bill of Rs 1,494.
31
Required:
You are required to prepare the following.
1. Accounting Equation
2. Journal and define rules of debit and credit of each entry
3. Ledger.
4. Trial Balance
5. Income Statement
6. Statement of Financial Position
Answer:

Journalize the following sales related transactions.
a) Sold merchandise on account to Jangle Co., $5,000, terms FOB Shipping Point, 2/10, n/30.
The cost of the merchandise sold was $3,000. Paid transportation charges of $200 on
behalf of buyer, which were added to the invoice.
b) Sold merchandise on account to Comet Co., $10,000, terms FOB Destination, 1/10, n/30.
The cost of the merchandise was $6,000.
c) Paid transportation charges of $400 for delivery of merchandise sold to Comet Co.
d) Issued credit memorandum for $2,000 to Comet Co. for merchandise returned from sale in
and the cost of the merchandise was $1,200.
e) Received amount due from Jangle Co. within the discount period.
f) Received amount due, less return and discount from Comet Co.

The following is a series of related transactions between Leggy Pants and Viking, a
chain of retail clothing stores:
Sept. 11 Leggy Pants sold Viking 200 pairs of pants on account, terms 2/10, n/30. The
cost of these pants to Leggy Pants was $30 per pair, and the sales price was
$70 per pair.
Sept. 15 Viking returned 5 pairs of pants to Leggy Pants because they were the wrong
size. Leggy Pants allowed Viking full credit for this return.
Sept. 21 Viking paid the remaining balance due to Leggy Pants within the discount
period.
Both companies use a Perpetual Inventory system.
Required: 1.Record these series of transactions in the general journal of Leggy Pants.
(2Marks)
2. Record these series of transactions in the general journal of Viking.
(2Marks)
3. Record the transactions in

i- Leggy Pants if receive collection after discount period
ii- Viking if pays after discount period
(2Marks)

Arid Agriculture University, Rawalpindi: Final Exam / FALL-2020 (Paper Duration 24 Hours) To Be Filled by Teacher

Uploaded by

Copyright:

Available Formats

Arid Agriculture University, Rawalpindi: Final Exam / FALL-2020 (Paper Duration 24 Hours) To Be Filled by Teacher

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Arid Agriculture University, Rawalpindi: Final Exam / FALL-2020 (Paper Duration 24 Hours) To Be Filled by Teacher

Uploaded by

Copyright:

Available Formats

Pir Mehr Ali Shah

Arid Agriculture University, Rawalpindi

Course No.: MGT 321 Course Title: Principles of Accounting

Registration No.: ………………………………………….……… Name:……………………………………………………..

Answer the following questions.

FRED SCHWARTZ DANCE STUDIO, INC.

Unadjusted Trial Balance

December 31, 2014

Accounts receivable 18,600

Prepaid rent 4,500

Furniture and equipment 19,200

Accumulated amortization—furniture and equipment $ 5,760

Accounts payable 3,400

Unearned printing revenue 2,400

S. Kaplan, capital 23,140

S. Kaplan, withdrawals 6,000

Printing revenue 36,500

Salaries expense 12,500

Amortization expense—furniture and equipment 0

Advertising expense 3,600

Miscellaneous expense 200

Total $71,200 $71,200

Question No 3 Marks 6

Question No 4 Marks 6

Question No 5 Marks 6

Both companies use a Perpetual Inventory system.

3. Record the transactions in

You might also like