Introduction to Accounting

Academic year 2020-2021

IMPROVE MY SKILS IN ACCOUNTING!

The layouts are at the end of document.

1. Prepare an Income Statement using the following information:

 Interest expense €2,670.
 Revenues from merchandises sales €13,900
 Wages expenses €8,600
 Advertising expenses €400
 Rent charges €5,150
 Fees to lawyer €600
 Electricity expense €670
 Revenues from non-current assets sales €22,000
 Cost of sales €7,000
 Maintenance expenses €800
 Services revenues €5,000
 Penalties expense €1,290
 Depreciation charge €1,500
 Interest revenues €1,400
Profit: 13.620 no tax

2. Saqqara Corporation engaged in the following activities during the year 2019: Service
Revenue, lei 13,200; Rent Expense, lei 1,200; Wages Expense, lei 8,340; Advertising
Expense, lei 1,350; Utilities Expense, lei 900; Income Taxes Expense, lei 200 PROFIT 1210
Dividends payable, lei 700; Cash, lei 1,550; Accounts Receivable, lei 750; Suppliers, lei 100;
Land, lei 1,700; Accounts Payable, lei 450; Share capital, lei 1,000, Bank loan (5 years), lei
540.
Prepare the income statement and balance sheet for Saqqara Corporation (assume the
year ends on December 31, 2019).
__________________ (company name)
Balance Sheet
for the year ended ____________

Items Values
A. Non-Current assets 1700
I. Intangibles

II. Tangibles
Land 1700

III. Financial

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 Introduction to Accounting
Academic year 2020-2021

Items Values

B. Current assets 2300

I. Inventories

II. Receivables
Accounts Receivable, 750

III. Short term investment

IV. Cash and cash equivalent

Cash 1550

C. Prepayment 0
1. Short term

2. Long term

D. Short term liabilities 1250

Dividends payable 700

Suppliers, 100
Accounts Payable, 450
E. Net current assets/net current liabilities 1050
E = B + C1 – D – I1

F. Total assets minus current liabilities 2750

F = A + C2 +E or F = A + C2 +B + C1 – D – I1

G. Long term liabilities

Bank loan (5 years) 540

H. Provisions

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 Introduction to Accounting
Academic year 2020-2021

Items Values

I. Deferred Income
1. Short term

2. Long term

J. Capital and reserves 2210

Capital 1000
PROFIT 1210

J=F-G-H=2750-540-0=2210

3. Below are the financial accounts of Landscape Design, Inc.

 Accounts Receivable 9,100
 Accounts Payable 7,400
 Bank loan (5 years) 29,200
 Cash 115,750
 Share capital 15,000
 Dividends payable (1 month) 40,000
 Income Taxes Expense 38,850
 Income Taxes Payable 14,600
 Marketing Expense 19,700
 Design Service Revenue 248,000
 Office Rent Expense 18,200
 Retained Earnings (loss) 55,400
 Salaries Expense 96,000
 Salaries Payable 2,700
 Supplies 800
 Stationery Expense 3,100
PROFIT 72.150
Prepare the income statement and balance sheet for Landscape Design, Inc.

Balance Sheet
for the year ended ____________

Items Values
A. Non-Current assets 0
IV. Intangibles

V. Tangibles

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 Introduction to Accounting
Academic year 2020-2021

Items Values

VI. Financial

B. Current assets 124.850

V. Inventories

VI. Receivables
Acc receivables 9100

VII. Short term investment

VIII. Cash and cash equivalent

 Cash 115.750

C. Prepayment
1. Short term

2. Long term

D. Short term liabilities 65.500

 Accounts Payable 7400

 Dividends payable (1 month) 40,000 40.000

Income Taxes Payable 14,600 14.600
 Salaries Payable 2,700 2.700
 Supplies 800 800

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 Introduction to Accounting
Academic year 2020-2021

Items Values
E. Net current assets/net current liabilities 59.350

F. Total assets minus current liabilities 59.350

G. Long term liabilities 29.200

 Bank loan (5 years) 29,200

H. Provisions

I. Deferred Income
3. Short term

4. Long term

J. Capital and reserves

 Share capital 15,000 15.000
 Retained Earnings (loss) 55,400 (55.400)
PROFIT 72.150 72.150

4. The following data relate to Kabli Inc.: Accounts Payable, lei 20,400; Accounts
Receivable, lei 15,200; Accumulated Depreciation–Building, lei 5,600; Accumulated
Depreciation–Equipment, lei 6,800; Bonds Payable, lei 24,000; Building, lei 28,000; Cash, lei
12,480; share capital, lei 40,000; Copyright, lei 2,480; Equipment, lei 60,800; Inventory, lei
16,000; Investment in Corporate Securities (long-term), lei 8,000; Investment in Six-Month
Government Securities, lei 6,560; Land, lei 3,200; Reserves, lei 20,000; Prepaid Rent (3
years), lei 480; Retained Earnings, lei 35,280; and Revenue Received in Advance (6 months),
lei 1,120.
Prepare a classified balance sheet at December 31, 200N.

5. The following data refer to Atlantic Corporation: net sales, lei 405,000; cost of goods sold,
lei 220,000; selling expenses, lei 90,000; general and administrative expenses, lei 60,000;
income taxes, lei 7,500; interest expense, lei 4,000; interest income, lei 3,000.
Prepare a short Income statement.

6. The following information is available for Jan Bartok’s business for the year ended 31
December:
 Bank overdraft 1,200 lei

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 Introduction to Accounting
Academic year 2020-2021

 Trade receivables 5,000 lei

 Opening inventory 1,500lei
 Motor vehicles 2,800 lei
 Sales revenue 25,000 lei
 Drawings 2,000 lei
 Opening capital 5,000 lei
 Purchases 20,000 lei
 Trade payables 20,000 lei
 Closing inventory 3,000 lei
 Cash in hand 100 lei
 Administration expenses 1,000 lei
 Wages (expenses) 800 lei
 Buildings X
Prepare an income statement for the year ended 31 December and a balance sheet at
that date.

__________________ (company name)

Balance Sheet
for the year ended ____________

Items Values
A. Non-Current assets
VII. Intangibles

VIII. Tangibles

IX. Financial

B. Current assets
IX. Inventories

X. Receivables

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 Introduction to Accounting
Academic year 2020-2021

Items Values

XI. Short term investment

XII. Cash and cash equivalent

C. Prepayment
1. Short term

2. Long term

D. Short term liabilities

E. Net current assets/net current liabilities

F. Total assets minus current liabilities

G. Long term liabilities

H. Provisions

I. Deferred Income
5. Short term

6. Long term

J. Capital and reserves

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 Introduction to Accounting
Academic year 2020-2021

Items Values

_______________ (company’s name)

Profit or Loss Account

for the year ended ___ _____

I. Operating revenues

II. Operating expenses

Expenses with salaries

III. Operating Profit / Loss

IV. Financial revenues
V. Financial expenses
VI. Financial profit / loss
VII. TOTAL REVENUES

VIII. TOTAL EXPENSE

IX. Profit / loss before tax

X. Income tax expense (16%)

XI. NET PROFIT / LOSS (IX-X)

Balance Sheet
for the year ended ____________

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 Introduction to Accounting
Academic year 2020-2021

Items Values
A. Non-Current assets
X. Intangibles

XI. Tangibles

XII. Financial

B. Current assets
XIII. Inventories

XIV. Receivables

XV. Short term investment

XVI. Cash and cash equivalent

C. Prepayment
1. Short term

2. Long term

D. Short term liabilities

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 Introduction to Accounting
Academic year 2020-2021

Items Values

E. Net current assets/net current liabilities

F. Total assets minus current liabilities

G. Long term liabilities

H. Provisions

I. Deferred Income
7. Short term

8. Long term

J. Capital and reserves

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