Assignment 1

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Due Date : 20 November 2020
Submission to be made in hand written hard copy to Mam Mussarrat Office.
Question 1

Question 2

On March 31, 20X1, these transactions and events took place:

1. Purchased merchandise on account, $3,000
2. Sold at cost for $1,000 cash some furniture that was not needed
3. Issued additional capital stock for machinery and equipment valued at $12,000
4. Purchased land for $25,000, of which $10,000 was paid in cash, the remaining being
represented by a 5-year note (long-term debt)

Prepare in good form a balance sheet for March 31, 20X1, showing supporting computations
for all new amounts.

Question 3
The balance sheet accounts of Detroit Machinery, Inc., had the following balances on
October 31, 20X0:
Following is a summary of the transactions that occurred during November:
a. Collections of accounts receivable, $75,000.
b. Payments of accounts payable, $14,000.
c. Acquisitions of inventory on open account, $80,000.
d. Merchandise carried in inventory at a cost of $70,000 was sold on open account for
$96,000.
e. Recognition of rent expense for November, $1,000.
f. Wages paid in cash for November, $8,000.
g. Cash dividends declared and disbursed to stockholders on November 29, $10,000.
Required:
1. Prepare journal entries.
2. Enter beginning balances in T-accounts. Post the journal entries to T-accounts. Use the
transaction letters to key your postings.
3. Prepare a trial balance for the month ending November 30, 20X0.
4. Prepare a balance sheet as of November 30, 20X0, and an income statement for the month
of November. Prepare the retained earnings column of a statement of stockholders’ equity.
Prepare the income statement first.