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ACC - 419 FINANCIAL ACCOUNTING

FALL 2016
SATURDAY: 05:15 PM - 08:15 PM
SECOND ASSIGNMENT

Note: Each Part is a separate part, proper presentation and workings are required.

Questions:
a) Name the four different types of adjusting entries passed at the period end.
b) Briefly define the implications of prudence and materiality concept.
c) On 1st May 2016, Harry Plc has the prepaid insurance of $7500 which represents the
insurance of three months (May, June and July).
Requirement:
Prepare the necessary general entry and adjusting entry, income statement extract and balance
sheet extract on 31st May 2016

d) On 1st October 2016, Harry Plc provided goods to Mr. Robert of $6,500 on credit but not
yet billed him. On 20th October 2016, Mr. Robert paid 4,200 to Harry Plc.
Requirement:
Prepare the necessary entries, income statement extract and balance sheet extract on 31st
October 2016

e) On 12th April 2016, wages for the month were $5,800. On 30th April 2016 wages of
$4,000 were still unpaid for the month.
Requirement:
Prepare the necessary entries, income statement extract and balance sheet extract on 30th
September 2016.

f) On 1st September 2016, Harry Plc has the unearned revenue of $6000. During the
month, Harry Plc delivered the services amounting $2000.
Requirement:
Prepare the necessary general entry and adjusting entry, income statement extract and balance
sheet extract on 30th September 2016.

g) On 1st September 2016, Harry Plc has the prepaid rent of $10,000 which represents the
rent of five months (September 2016 - January 2017).
Requirement:
Prepare the necessary entries, income statement extract and balance sheet extract on 30 th
September 2016

h) On 1st September 2016, Harry Plc has the unearned fees revenue of $8,000. During the
month, at the end of the month revenue of $3,500 was still unearned.
Requirement:
Prepare the necessary entries, income statement extract and balance sheet extract on 30 th
September 2016.

i) On 1st September 2016, Harry Plc provided services to Mr. John of $3,000 but not yet
billed him. On 15th September 2016, Mr. John paid 1,700 to Harry Plc.
Requirement:
Prepare the necessary entries, income statement extract and balance sheet extract on 30 th
September 2016

j) On 25st September 2016, salaries for the month were $4,600. On 30th September 2016
salaries of $2,000 were paid for the month.
Requirement:
Prepare the necessary entries, income statement extract and balance sheet extract on 30th
September 2016.