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    Assignment 1

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    Yared
    The document provides instructions for a group assignment in Fundamentals of Accounting I. It states that groups should have 5-7 members, submissions are due March 28th, computations must be clear, and the assignment is worth 15% of the grade. It then lists 14 business transactions conducted by Aynalem Garage during July 2010 and requires students to record journal entries, prepare T-accounts, do a trial balance, and prepare financial statements.

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    Assignment 1

    Uploaded by

    Yared
    24 views2 pages
    The document provides instructions for a group assignment in Fundamentals of Accounting I. It states that groups should have 5-7 members, submissions are due March 28th, computations must be clear, and the assignment is worth 15% of the grade. It then lists 14 business transactions conducted by Aynalem Garage during July 2010 and requires students to record journal entries, prepare T-accounts, do a trial balance, and prepare financial statements.

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    The document provides instructions for a group assignment in Fundamentals of Accounting I. It states that groups should have 5-7 members, submissions are due March 28th, computations must be clear, and the assignment is worth 15% of the grade. It then lists 14 business transactions conducted by Aynalem Garage during July 2010 and requires students to record journal entries, prepare T-accounts, do a trial balance, and prepare financial statements.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    24 views2 pages

    Assignment 1

    Uploaded by

    Yared
    The document provides instructions for a group assignment in Fundamentals of Accounting I. It states that groups should have 5-7 members, submissions are due March 28th, computations must be clear, and the assignment is worth 15% of the grade. It then lists 14 business transactions conducted by Aynalem Garage during July 2010 and requires students to record journal entries, prepare T-accounts, do a trial balance, and prepare financial statements.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Course Title: Fundamentals of Accounting I

    Group Assignment
    General instructions
     There is no any excuse for late submissions
     The assignment paper is to be submitted on March 28, 2022
     Clear and observable computation is required
     Total will be marked out of 15%.
     Each group should have 5 to 7 members.
     Doing this assignment negligently will reduce your point.
    1. During the month of July 2010, the business performed the following transactions. July 1,
    2010 Sergeant Aynalem has been running a big garage as a co-owner with his friends. As of
    July, he decided to start his own business known as Aynalem Garage. Sgt. Aynalem invested
    the following assets and liabilities to his new Garage:
    - Cash; Birr 16,400
    - Account receivable of the previous business, which is allocated to Sgt. Aynalem when
    the previous business is liquidated is Birr 4800,
    - Supplies; Birr 2000, and
    - Equipment having a value of Birr 12000.
    - There were no liabilities transferred to this business.
    2. July 2, 2010, paid cash Birr 2,700 in advance for rent for the next 3 months for the office of
    the business.
    3. July 5, 2010 received cash Birr 4000 from Maintenance service revenue.
    4. July 7, 2010, purchased additional equipment for Birr 2500 on account from Yacona
    Engineering.
    5. July 10, 2010, received cash Birr 1000 from charge customers in payment of their debt.
    6. July 11, 2010, paid cash Birr 720 for salary.
    7. July 12, 2010, paid Cash Birr 300 for advertisement (debit miscellaneous expense)
    8. July 13, 2010, paid Cash Birr 1000 in partial payment of an amount owed to Yacona
    Engineering.
    9. July 16, 2010, received cash Birr 3000 from maintenance service revenue.
    10. July 20, 2010, paid cash Birr 900 for the purchase of supplies.
    11. July 24, 2010, paid cash Birr 150 for electric bill and Birr 100 for telephone. (Charge to
    miscellaneous expense).
    12. July 25, 2010, delivered a maintenance service for credit customers on account for Birr 1500.
    13. July 25, 2010 paid cash Birr 800 for salary.
    14. July 28, 2010, paid cash Birr 1200 for the owner's withdrawal.
    Required
    1. Record the necessary journal entries?
    2. Prepare ledger account by using T- Account?
    3. Prepare trial balance?
    4. Prepare financial statement such; income statement, statement of owners’ equity and
    balance sheet?
    Project 2
    Zenith Laundry, owned by Belete Mola, is a sole proprietorship business, which provides
    clothes washing services. The business has been in operation for the last two years. The trial
    balance of the business for the year ended December 31, 2002 is shown below
    Zenith Laundry
    Trial balance
    December31,2002
    Cash 2,425 00
    Laundry supplies 1,870 00
    Prepaid insurance 820 00
    Laundry equipment 37,650 00
    Accumulated depreciation 9,700 00
    Account payable 925 00
    Belete Mola, capital 22,180 00
    Belete Mola, drawing 10,200 00
    Laundry revenue 39,125 00
    Wage expense 12,415 00
    Rent expense 3,600 00
    Utility expense 2,715 00
    Miscellaneous expense 435 00
    71,930 00 71,930 00
    Data needed for your adjustment are given below.
    1 Inventory of laundry supplies at December 31, 2010; Birr 480
    2 Insurance premium expired during the year Birr 315
    3 Depreciation expired during the year Birr 1950
    4 Wages accrued but not paid on Dec. 31, 2010; Birr 140
    Required:
    Now using the trial balance and the data given above, you are expected to do the following:

    I Record the adjusting entries.


    II Prepare adjusted trial balance
    III Prepare the income statement, statement of owner's equity (assuming that there is no
    additional investment), and balance sheet.

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