ACCT2003 Principles of Accounting I

Assignment #2A

This assignment consists of 1 question related to Chapter 4.

Instructions:
1. Type or hand-write the answers using A4 size white papers.
2. Use blue or black ball/ink pen. Assignment completed in pencil will not be graded and will earn
zero mark.
3. Answers should be supported by step-by-step/detailed calculations where appropriate.
4. Upload completed work to iSpace by 5 pm, Wednesday October 23, 2019 or another date
specified by your teacher. Late submission will not be graded.

Question: (25 marks)

Part A (20 marks)

The completed financial statement columns of the worksheet for Vaina Electrics are shown below.

VAINA ELECTRICS
Worksheet
For the year ended 31 December 2018
income statement Statement of changes in
equity and statement of
financial position
Account Titles Dr. Cr. Dr. Cr.
Cash 19,140
Accounts Receivable 14,850
Prepaid Insurance 3,850
Equipment 28,600
Accumulated Depreciation 6,160
Accounts Payable 12,430
Salaries Payable 3,300
Mark Vaina, Capital 39,600
Mark Vaina, Withdrawals 15,400
Service revenue 70,400
Repair Expense 2,200
Depreciation Expense 2,860
Insurance Expense 2,420
Salaries Expense 40,700
Utilities Expense 1,870
totals 50,050 70,400 81,840 61,490
Profit 20,350 20,350
70,400 70,400 81,840 81,840
Required:
(a) Prepare an income statement, a statement of changes in equity and a classified statement of financial position.
(b) Prepare the closing entries. Mark Vaina did not make any additional investments during the year.
(c) Prepare a post-closing trial balance.

Part B (5 marks)
(a) Describe the nature of the Income Summary account and identify the types of summary data that may be
posted to this account.
(b) What are the content and purpose of a post-closing trial balance?