Accounting A | Dash

Individual Assignment 1 (15%)

Semester : Summer 2020 – II Year : 2019-2020
Course Title : Intermediate Accounting I
Course Code : ACT410 Version : A
Instructor(s) : Dr. Rezart Demiraj
Due Date : August 31, 2020

To be completed by the student
Student ID: Student Name: 

Section: 

Grading Scheme
Question Earned Points Max. Points Question Earned Points Max. Points
1 100

Total Earned Points Total Available Points Instructor Signature
100

 
Question 1.Comprehensive Exercise (full accounting cycle) (20 points)
The following transactions and events have occurred during August2020 in ABC Company.
Date Transaction description
Aug1 Shareholders invested $150,000 cash in exchange for shares.
1 Purchased equipment for $15,000cash.
1 Paid $3,600 for 12 months of insurance.
6 Paid $500 for advertising on a local TV Station.
11 Received $6,000 cash in advance from a customer for services to be performed during August and September.
16 Billed customers $8,000 for services performed.
21 Purchased in cash $300 of supplies.
31 Paid dividends of $2,000 in cash.

Additional information at August 31:
• Equipment depreciates at a rate of $150 per month.
• 40% of the service related to transaction on August 11 was performed during August.
• An inventory count revealed that $200 of supplies were consumed during August.
Required
1. Prepare the journal entries for the month.(32 points)
2. Prepare the necessary adjusting entries.(16 points)
3. After posting all the above transactions, prepare the Adjusted Trial Balance.(NOTE: You are not required to show the T-accounts. Only the Trial Balance will be graded)(10 points)
4. Prepare the Income Statement, Retaining Earnings Statement and Statement of Financial Position.(30 points)
5. Prepare the closing entries.(12 points)