Rift Valley University

Department of Accounting and Public Business management

Fundamentals of Accounting I Group Assignment (20-25%)
for ACC and Bm Regular and Weekend Degree Program (Finfinnee Campus)
1. On June 1, 2011, Kaku created a new travel agency called worldwide tours. The company records
prepaid and unearned items in balance sheet accounts. These transactions occurred during the
company’s first month:
June 1. Kaku invested ETB40, 000 cash and computer equipment worth ETB80,000
2. Rented furnished office space by paying ETB 3400 rent for the first month.
3. Purchased ETB 2200 of office supplies for cash
10. Paid ETB 7200 for the premium on a one year insurance policy. Insurance
Coverage began on June 10.
14. Paid ETB 3600 for two weeks salaries for employees
24. Collected ETB 15800 of commissions from airlines on tickets obtained for customers
28. Paid another ETB 3600 for two weeks salaries.
29. Paid the month’s ETB 1300 telephone bill
30. Paid ETB 500 cash to repairs the company’s computer.
30. Kakuu withdraws ETB3000 cash from the business for personal use.
Required:
1. Prepare journal entries to record the transactions for June.
2. Prepare unadjusted trial balance as of June 30.
3. Use the following information to journalize adjusting entries for the month:
a) Two thirds one month’s insurance coverage was consumed.
b) There was ETB 1400 of office supplies on hand at the end of the month
c) Depreciation on the computer equipment was estimated to be ETB 1200
d) The employees had earned ETB 640 of unpaid and unrecorded salaries.
e) The company had earned ETB 3300 of commissions that had not yet been billed.
4. Prepare an income statement, a statement of changes in owner’s equity, and a balance sheet.
5. Prepare journal entries to close temporary accounts
6. Prepare a post-closing trial balance.

2. Prepare Financial Statements

Abdi Company is a sole proprietorship owned by ABC and providing legal services to its clients.
The beginning balance sheet on January 01, 2016 has shown the following balances:
Account Title Amount in Birr
Cash 100,000
Accounts Receivable 28,000
Office Equipment and 37000
Furniture
Accounts Payable 14,000
Capital 151000
During the month of January 2016, the business has made the following transactions:
Date of Transactions occurred during the month
Transaction
January 01 Paid six months house rent of Birr 12000 for the business starting from
January, 2016.
January 03 Delivered legal service to Genet for Birr 3000 on account.
January 05 Purchased Stationary materials (supplies) for Birr 2,000 on account.
January 15 Genet has withdrawn Birr 1600 for his personal consumption.
January 20 Delivered legal service to ALSADDISS PLC for Birr 30,000 on cash.
January 28 Paid salary of Birr 7000 for its employees.
January 29 Collected Birr 1600 from Genet for the service rendered on account on
January 03.
Adjustment data:
A. Office Supplies on hand at the end of the month worth Birr 1600.
Required Tasks:
Task 1: Pass journal entries for the above transactions.
Task 2: Post the entries to T-accounts.
Task 3: Prepare unadjusted trial balance on January 31, 2016.
Task 4: Pass the adjusting entries and post them on January 31, 20116.
Task 5: Prepare adjusted trial balance on January 31, 20116.
Task6: Prepare Interim Income Statement and Balance Sheet on January 31, 20116.
Task 7: Prepare post-closing Trial Balance.
 3. Financial Transactions and Prepare Financial Reports

Trans Ethiopia Corporation opened the year 2007, with the following trial balance information
Trans Ethiopia Corporation
Trial Balance
January 1, 2007
Accounts D e b i t C r e d i t
C a s h 100,000
Accounts Receivable 300,000
L a n d 600,000
Accounts Payable 2 4 0 , 0 0 0
Loan Payable 1 2 0 , 0 0 0
Capital stock 2 0 0 , 0 0 0
Retained Earning 4 4 0 , 0 0 0
Dividend
Revenues
Salaries Expense
Rent Expense
Supplies Expense
Interest Expense
T o t a l 1,000,000 1,000,000

➢ January transactions are listed below:-

Jan 2: Collected Br 40,000 on an open account receivable.
Jan 3: Purchased additional Track of Land for Br 80,000.
Jan 5: Provided services on account to a customer for Br 60,000.
Jan 7: Borrowed Br 48,000 on a term loan payable.
Jan 11: Paid Salaries of Br 12,000.
Jan 12: Provided services to a customer for cash Br 44,000.
Jan 15: Purchased (and used) office supplies on account Br 8,000.
Jan 17: The Company paid shareholders Br 10,000 dividend.
Jan 20: Paid rent of Br 6,800.
Jan 23: Paid salaries of Br 16,000.
Jan 24: Paid Br 64,000 on the open accounts payable.
Jan 29: Collected Br 200,000 on account receivable.
Jan 31: Repaid loan of Br 88,000.
Jan 31: Paid interest on loan of Br 2,400.
Required:
A. Prepare journal entries for January’s transactions
B. Post journal entries to the general ledger
C. Prepare a trial balance as of Jan 31, 2007
D. Prepare:
I. Income statement
II. Statement of retained earnings, and
III. Balance sheet as of Jan 31, 2007
 4. . Bank Reconciliation Statement and Transaction

The bank statement for Geda Company for June 30, 2015, indicates a balance of birr 9,143.11.
All cash receipts are deposited each evening in a night depository, after banking hours. The
accounting records of the company indicate the following summary data for cash receipts and
payments for June:
Cash balance as of June 1, 2015------------------------------------- birr 3,943.50
Total cash receipts for June 2015-------------------------------------birr 28,971.60
Total amount of checks issued (payment) in June 2015-----------birr 28,388.85
Comparing the bank statement and the company’s records the following reconciling items were
identified:
A. The bank had collected for Geda Company birr 1,030 on a note left for collection. The
face amount of the note was birr 1,000.
B. Deposit in transit was birr 1,852.21.
C. Checks outstanding totaled birr 5,265.27.
D. A check written for birr 139 had been incorrectly charged by the bank as birr 157.
E. A check for birr 30 was wrongly recorded as birr 240 by the company. The check was for
the payment of accounts payable.
F. Bank Service Charge during the period is Br 18.20.
Instruction:
Task 1: Prepare bank reconciliation for June 2015.
Task 2: Journalize the entries that should be made by Geda Company

Sub. Date On the date of Final Exam

Maximum number of students in one group is 5 students, unless disqualify to all