Tan, Vanessa Juventia Aurelia Dinata

2440031572
LG24-IBM

Assignment 1
Presented below is selected information related to Kirby Company at December 31, 2020. Kirby
reports financial information monthly.
 Accounts Payable $ 3,000
 Cash 6,500
 Advertising Expense 6,000
 Service Revenue 53,500
 Equipment 29,000
 Salaries and Wages Expense $16,500
 Notes Payable 25,000
 Rent Expense 10,500
 Accounts Receivable 13,500
 Owner’s Drawings 7,500
a. Determine the total assets of Kirby Company at December 31, 2020.
b. Determine the net income that Kirby Company reported for December 2020.
c. Determine the owner’s equity of Kirby Company at December 31, 2020.
Jawaban
a. Cash + equipment + account receivable = Total assets
$6,500 + $29,000 + $13,500 = Total assets
Total assets = $49,000
b. Revenue – expense = Net income
Service revenue – (advertising expense + salaries and wages expense + rent expense)
= $53,500 – ($6,000 + $16,500 + $10,500)
= $53,500 – $33,000
Net Income = $20,500
 c. Service revenue – expense – owner’s drawings = Owner’s equity
= $53,500 – $33,000 – $7,500
Owner’s equity = $13,000
Assignment 2
An analysis of the transactions made by Peat Deloitte & Co., a certifi ed public accounting fi rm,
for the month of August is shown below. The expenses were $560 for rent, $4,800 for salaries
and wages, and $400 for utilities.

Instructions
a. Describe each transaction that occurred for the month.
b. Determine how much owner’s equity increased for the month.
c. Compute the amount of net income for the month.
Jawaban
a. 1. Owner invested $24,000 in the business.
2. paid $5,000 to buy equipments : $2,000 on cash and $3,000 is by issuing the note
payable.
3. paid $750 cash to buy supplies.
4. performed sevices for $8,500 : cash of $4,000 was received from customers, and the
balance of $4,500 was billed to customers on account.
5. paid $1,500 of buying equipment in transaction (2).
6. cash withdrawal of $2,000 by owner for personal use.
7. paid $560 for rent.
8. received $450 cash from customers billed in transaction (4).
 9. paid employees’ salaries and wages, $4,800.
10. paid $400 of utilities on account.
b. Equity August 31th = $15,000 + ($8,500 – $5,760 – $2,000)
Equity August 31th = $15,000 + ($740)
Equity August 31th = $15,740
Owner equity has increased $740
c. Total revenue – total expenses = Net income
= $8,500 – ($560 + $4,800 + $400)
= $8,500 – $5,760
Net Income = $2,740

Assignment 3
On April 1, Adventures Travel Agency began operations. The following transactions were
completed during the month.
1. Owner invested $24,000 in the business.
2. Obtained a bank loan for $7,000 by issuing a note payable.
3. Paid $11,000 cash to buy equipment.
4. Paid $1,200 cash for April office rent.
5. Paid $1,450 for supplies.
6. Purchased $600 of advertising in the Daily Herald, on account.
7. Performed services for $18,000: cash of $2,000 was received from customers, and the
balance of $16,000 was billed to customers on account.
8. Cash withdrawal of $400 by owner for personal use.
9. Paid the utility bill for the month, $2,000.
10. Paid Daily Herald the amount due in transaction (6).
11. Paid $40 of interest on the bank loan obtained in transaction (2).
12. Paid employees’ salaries and wages, $6,400.
13. Received $12,000 cash from customers billed in transaction (7).
Instructions:
Journalize the transactions.
Jawaban :
Adventures Travel Agency
General Journal
31 April
Date Accounts Title Debit ($) Credit ($)
1 Cash 24,000
Owner’s Capital 24,000
2 Cash 7,000
Note Payable 7,000
3 Equipment 11,000
Cash 11,000
4 Office Rent Express 1,200
Cash 1,200
5 Supplies 1,450
Cash 1,450
6 Prepaid Advertising Daily Herald 600
Account Payable 600
7 Cash 2,000
Account Receivable 16,000
Service Revenue 18,000
8 Owner’s withdrawals 400
Cash 400
9 Utility Expense 2,000
Cash 2,000
10 Account Payable Dily Herald 600
Cash 600
11 Interest Expense 40
Cash 40
12 Salaries and Wages Expense 6,400
Cash 6,400
13 Cash 12,000
Account Receivable 12,000
TOTAL 84,690 84,690

Assignment 4
Devin Wolf Company has the following balances in selected accounts on December 31, 2020.
Accounts Receivable $ –0–
Accumulated Depreciation—Equipment –0–
Equipment 7,000
Interest Payable –0–
Notes Payable 10,000
Prepaid Insurance 2,100
Salaries and Wages Payable –0–
Supplies 2,450
Unearned Service Revenue 32,000

All the accounts have normal balances. The information below has been gathered at December
31, 2020.
1. Devin Wolf Company borrowed $10,000 by signing a 9%, one-year note on September 1,
2020.
2. A count of supplies on December 31, 2020, indicates that supplies of $900 are on hand.
3. Depreciation on the equipment for 2020 is $1,000.
4. Devin Wolf Company paid $2,100 for 12 months of insurance coverage on June 1, 2020.
5. On December 1, 2020, Devin Wolf collected $32,000 for consulting services to be
performed from December 1, 2020, through March 31, 2021.
6. Devin Wolf performed consulting services for a client in December 2020. The client will
be billed $4,200.
7. Devin Wolf Company pays its employees total salaries of $9,000 every Monday for the
preceding 5-day week (Monday through Friday). On Monday, December 29, employees
were paid for the week ending December 26. All employees worked the last 3 days of
2020.

Instructions:
Prepare adjusting entries for the seven items described above.

Jawaban

Devin Wolf Company

Adjusting Entries
 December 31th 2020

Date Account Title Debit ($) Credit ($)

1 Interest Expense 300
Interest Payable 300
2 Supplies Expense 1,550
Supplies 1,550
3 Equipment Depreciation Expense 1,000
Accumulated Depreciation Equipment 1,000
4 Insurance Expense 1,225
Prepaid Insurance 1,225
5 Unearned Serviced Revenue 8,000
Service Revenue 8,000
6 Account Receivable 4,200
Service Revenue 4,200
7 Salaries and Wages Expense 5,400
Salaries and Wages Payable 5,400
TOTAL 21,675 21,675