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BUSI 3111.1 FINANCIAL AND COST ACCOUNTING

Fall Semester, 2021-2022

GROUP HOMEWORK 1
Prof. Suat Teker
NOTE: Please show all your computations and be neat for your answers.
Names, Last Names and Student Numbers of group members
1.____________________________________________________________
2.____________________________________________________________
3.____________________________________________________________
4.____________________________________________________________
5.____________________________________________________________

PROBLEM 1 (20 points)

Please do the journal entries for the following transactions.
Mar. 2 Purchased auto cleaning supplies from Robert Suppliers for $750 on account.
4 Collected an account receivable of $525 from a customer, Elegant Kitchens.
5 Paid $275 in partial payment of an account payable to Lucy Co for equipment purchased in
February.
7 Issued capital stock in exchange for $5,600 cash.
9 Purchased office equipment from Diamond’s Warehouse for $3,700; paid $1,700 cash and
issued a note payable due in 90 days for the balance.
Date ACCOUNTS DR CR
March 2

March 4

March 5

March 7

March 9
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PROBLEM 2 (40 points)

The unadjusted trial balance of Manhattan Park at January 31, 2021 as follows:
Debit Credit
Cash ......................................................................................... $ 6,600
Supplies ................................................................................... 5,400
Unexpired Insurance ............................................................... 12,600
Equipment ............................................................................... 72,000
Accumulated Depreciation: Equipment ................................. $ 18,000
Unearned Admission Revenue ............................................... 12,000
Capital Stock ............................................................................ 20,000
Retained Earnings, January 1, 2021........................................ 38,200
Admissions Revenue Earned................................................... 27,600
Salaries Expense ...................................................................... 8,100
Utilities Expense ...................................................................... 5,700
Rent Expense ........................................................................... 5,400 _________
$115,800 $115,800

Answer the following questions.

1. According to attendance records, $8,200 of the Unearned Admission Revenue has been earned in
January. How much is the admissions revenue earned to be shown in the January income
statement?

2. At January 31, the amount of supplies on hand is $2,300. What amount is shown on the January
income statement for supplies expense?

3. The equipment has an original estimated useful life of six years. Compute the book value of the
equipment at January 31 after the proper January adjustment is recorded.

4. On August 1, of the previous year, the company purchased a 12-month insurance policy. Please
make the necessary adjusting entry at January 31 of the current year.
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PROBLEM 3 (40 points)

The accountant for Rose’s Emporium, Inc. prepared the following trial balance at January 31, 2021, of the
current year, after one month of operations:
Debit Credit
Cash .............................................................................................................. $ 5,700
Accounts Receivable .................................................................................... 4,500
Unexpired Insurance ................................................................................... 2,100
Office Equipment ......................................................................................... 18,000
Unearned Consulting Fees .......................................................................... $ 3,300
Capital Stock ................................................................................................ 15,600
Retained Earnings, January 1, 2021 ............................................................ 0
Dividends ..................................................................................................... 3,300
Consulting Fees Earned ............................................................................... 26,800
Salaries Expense .......................................................................................... 7,700
Utilities Expense .......................................................................................... 1,700
Rent Expense ............................................................................................... 2,100
Supplies Expense ......................................................................................... ___600 ______
$45,700 $45,700
Based on the additional information shown below, do the adjusting entries.
1. Consulting services rendered to a client in January, not yet billed or recorded, $2,400.
2. Portion of insurance expiring in January, $300.
3. Income taxes expense for January of $2,500.
4. The office equipment has a life of 5 years.

Date ACCOUNTS DR CR