2015

30 April
MARIST ENTERPRISES

A. General Journal
Date Particulars Debit Credit
1. Interest Expense 460
Interest Payable 460
Accrued interest on loan payable
(1.5 mark; 0.5 mark for each correct accounts, 0. 25
mark for each correct amt)
2. Office Supplies Expense 3 460
Office Supplies 3 460
Office supplies used
(1.5 mark; 0.5 mark for each correct accounts, 0. 25
mark for each correct amt)

3. Unearned Fees 550

Fees Revenue 550

Fees revenue received previously, now earned

(1 mark; 0.25 mark for each correct accounts, 0.25 mark for each correct amt)
4. Rent Expense 700
Prepaid Rent 700
Rent expense for April

(1.5 mark; 0.5 mark for each correct accounts, 0. 25

mark for each correct amt)
5. Insurance Expense 2 184
Prepaid Insurance 2 184
Insurance prepaid now expired
(1.5 mark; 0.5 mark for each correct accounts, 0. 25
mark for each correct amt)
6. Salaries Expense 840
Salaries Payable 840
Accrued salaries payable ( 3 days X $280)

(1.5 mark; 0.5 mark for each correct accounts, 0. 25

mark for each correct amt)
 7. Telephone Expense 670
Telephone Account Payable 670
Telephone expense for April

(1 mark; 0.25 mark for each correct accounts, 0.25 mark for each correct amt)

B. Assume that closing journal entries are raised at the end of April. Close only the
necessary entries to determine profit for the period.

30 April Dr. Fees Revenue 138 950

Cr. Profit and Loss Summary 138 950

(1 mark; 0. 25 mark for each correct accounts, 0.25 mark for each correct amt)

30 April Dr Profit & Loss Summary 81 814

Cr. Salaries expense 58 040

Cr. Telephone expense 6 770

Cr. Rent expense 10 900

Cr. Internet Expense 460

Cr. Office supplies expense 3 460

Cr. Insurance expense 2 184

(6 marks; 0. 5 mark for each correct expense account, 0.5 mark for each correct expense amt)
Profit and Loss Summary 57136

Capital 57136 1 mark for fully correct entry

Capital 52000

Drawings 52000 1 mark for fully correct entry

C. Using the journal entries in (B) above, construct and balance 1 Ledger Account, which will
calculate Net Profit for the period. Use the T-account format.

Profit & Loss Summary Account

Apr-30 Total Expenses 81814 Total Revenues 138950

Profit - Closing Entry 57136

138950 138950

( 5.5 MARKS: 0.5 mark for

correct account; 3 marks
(0.5 each) for correct
expense amt; 1 mark for
correct revenue amt; 1 mark
for correct profit)

D. Prepare reversing entries where appropriate.

1. Interest Payable 460

Interest Expense 460
Accrued interest on loan payable
(1 mark; 0.25 mark for each correct accounts, 0.25
mark for each correct amt)
6. Salaries Payable 840
Salaries Expense 840
Accrued salaries payable
(1 mark; 0.25 mark for each correct accounts, 0.25
mark for each correct amt)

7. Telephone Account Payable 670

Telephone Expense 670
Telephone expense for April
(1 mark; 0.25 mark for each correct accounts, 0.25 mark for each correct amt)

E)

Reverse all accruals and deferrals only for which original entries were made to temporary accounts
i.e. revenue and expenses. Reversing entries are made at the beginning of the next accounting period
to simplify the recording in the next accounting period. (3 marks)